Stories by CIO New Zealand staff

NTT to acquire Datacraft owner Dimension Data

Japanese based telecommunications service provider Nippon Telegraph and Telephone Corporation (NTT) has made a cash offer of approximately 2.1 billion pounds for UK based IT service provider Dimension Data and its New Zealand subsidiaries Datacraft and distributor Express Data. NTT plans to acquire 100 percent of Dimension Data’s shares. The acquisition process is expected be completed by the end of October.

Datacraft signs APAC deal with Arbor Networks

Datacraft Asia, a subsidiary of Dimension Data, will be selling Arbor Network’s range of network security offerings such as Peakflow across the APAC region including New Zealand. Observatory Crest also distributes Arbor Networks’ offerings in ANZ.

Intergen makes Microsoft Dynamics inner circle

Microsoft has recognised IT services company Intergen’s sales and innovation performance by awarding it President’s Club and Inner Circle status for Microsoft Dynamics. Members of the group represent the top five percent of Microsoft Dynamics partners worldwide.

Hudson: IT employer confidence rises

Local employment confidence has increased for the fifth quarter in a row, but is up only marginally on figures from the first half of 2010, as businesses start hiring again. According to the latest Hudson Employment Expectations survey, 20 percent of businesses plan to increase their headcount during the July – September quarter.

Gartner: ANZ AD software market to grow 6.7 percent

Application development (AD) software revenue in Australia and New Zealand is expected to reach A$160.4 million (NZ$189.2 million), an increase of 6.7 percent from 2009 revenue of A$173.3 million (NZ$204.1 million) according to Gartner. Worldwide growth is expected to rise 0.7 percent. Gartner principal research analyst Asheesh Raina says there is some pent up demand for AD products in the region. “One of the main reasons for solid growth is the relative insulation from the worldwide economic recession, as well as sustained domestic consumption. Many markets across the globe continue to be in decline.” According to Raina, ANZ is an area of spending growth and an attractive research and development centre for software vendors because of its rich demographics. “Apart from growth opportunities, it also offers vendors long-term stability and the highest forecast compound annual growth rate for AD software for the five year period to 2013,” he says. The ongoing need to invest in security testing is one of the top drivers for the application development market. “Despite the restrictions imposed on AD spending due to the worldwide economic downturn, this segment grew fastest in 2009 as security breaches continued to highlight the need for good testing, making up for some of a lack of spending on more mature and less dynamic tools,” he says. In 2009 AD market share results for ANZ, IBM held the share of 26.3 percent. This performance was helped by acquisitions such as Watchfire which provided growth in the security testing market. HP held share of 15.3 percent while Microsoft had 13.4 percent. Raina says HP’s share of the market remained fairly constant, whereas Microsoft’s market share grew slightly due to the company's preannouncement of Visual Studio 2010. This meant that many companies decided to postpone any upgrades and wait for the new version.

MYOB to release LiveAccounts in June

An online accounting package called LiveAccounts designed for small businesses that need to raise invoices, track expenses and manage income will be available from MYOB in June. MYOB CEO Tim Reed says the offering was developed in response to an independent survey of over 950 local businesses which found business owners are looking for online tools and functionality, but prefer to run their business from the desktop.

Ricoh forecasts 44 percent profit upgrade

Ricoh has reported a 44 percent upgrade of its forecast operating profit for the 2009/10 year. The Tokyo Stock Exchange announcement of 65 billion yen (NZ$995 million) operating profit comes a day before it reports the actual profit on April 27.

Integral buy of Axon could create $150 million IT firm

If rumours that IT services provider Integral Technologies is planning to buy Auckland-based Axon pan out, a new $150 million IT company could be set to challenge the local market. Axon today conceded staff have been told about discussions around the sale of the company, but refuses to confirm rumours a conditional agreement is in place with Integral Technologies.

Datacraft, Dimension Data pick up VMware awards

Datacraft Asia and its parent company Dimension Data were recognised at the VMware Partner Network Awards where they received the APAC and Global Solution Provider of the Year awards. Datacraft Asia director of solutions development group and alliances Andy Cocks says virtualisation is a topic on every CIO’s mind.

Datacraft, NZTE sign telco agreement

Datacraft New Zealand and New Zealand Trade and Enterprise (NZTE) have signed a three-year telecommunications services contract. According to Datacraft, it represents the company’s most significant end to end telecommunications win since being awarded the one.govt telecommunications networking contract in 2009.

Gartner: Spending on external service providers to increase

The results of a recent survey by Gartner indicate increased spending with external service providers (ESPs) will lead to a return to growth in the IT services market. According to the survey, 85 percent of organisations worldwide anticipate that their spending with ESPs will increase or stay the same. Seventy six percent of organisations surveyed are optimistic about the economic recovery indicating that in their planning cycles, they are seeing that a recovery already began in 2009 or will occur in 2010. According to Gartner, organisations in Australia and New Zealand are most optimistic of an early recovery, and those in Japan are least optimistic. 63 percent of ANZ respondents said that their spending on external service providers would increase, the highest proportion of all countries surveyed. Only 10 percent said it would decrease. "The impact of the global economic recession in 2008 through 2009 has been significant, in some cases radically changing a vertical market or a company's competitive position. Buyers of services have been impacted in many areas, making them more cautious regarding IT spending," says Gartner vice president and analyst Allie Young. "In terms of IT services spending, the recession has been clearly felt by organisations, which report the following changes in their behaviours: increased contract renegotiations with ESPs, greater influence of the CFO and procurement in IT services spending, and increased levels of offshore services usage. However, the good news for service providers going forward is that the majority of buyers of IT and business process services will increasingly turn to ESPs to support the execution of their IT strategies." Young says that the results of the survey confirm an overall positive market acceptance of ESPs to support IT initiatives. “Service providers that prioritize understanding the marketplace and monitoring the changes in their client and user environments will be best-prepared to capitalise on growth.” According to Gartner, sole-source decision making in IT services is largely over; however, through deep relationships, providers still rely on new opportunity leads and expansion of services from existing client relationships, often as sole-source opportunities. "Although there are positive signs of a return to growth, we will remain in a hypercompetitive IT services environment for some time, with more provider options for buyers to consider, a focus on cost continuing to dominate in buyer considerations, and very likely more providers pursuing the same opportunities," says Young. "Service providers across all types of service categories and relationship models have the potential to capitalise on growth opportunities as the economy recovers, yet there will likely be little relief from the extreme competitive challenges experienced by service providers in the 2008-through-2009 economic downturn."