Fujitsu Link - New Year Edition 2013

2013 IT Market Outlook :
- Our Top Predictions for 2013
- Five megatrends reshaping the role of the CIO
January is traditionally the time to make resolutions. Check out Fujitsu’s top five IT predictions for the year ahead and the megatrends that reshape the role of CIO.

1	Simulation technology models shopper movement, visualizing crowding conditions
2	Fujitsu Cloud service launched for Wandant Dog Pedometer
3	New concept for personal cloud in trials
4	Fujitsu supports sustainability initiative “WEEE”

What are the analysts saying about Fujitsu?
Our efforts in providing world-class ICT solutions and services to our customers have been recognized by analysts from around the world. Read about their evaluations here.

2012 - A Year of Industry Recognition for Fujitsu Hong Kong
We are dedicated to providing best-in-class solutions and services to enterprises in Hong Kong as a regional IT hub. Learn more about our infrastructure and services which secured the Capital Weekly PRO Choice and Hong Kong Business High-Flyers awards.

Fujitsu’s tech talk series
Fujitsu Hong Kong discusses how to help enterprises embark on the journey from virtualization to private cloud, enabling businesses to optimize operational efficiency.

Fujitsu’s data centre services lead enterprises to business success
Fujitsu’s data centers in Hong Kong (Tier III++) and South China (Tier III+) facilitate cross-border collaboration for companies focused on international expansion.

1	Fujitsu offers special promotion for ETERNUS Storage System CS800 S4
2	Next generation ScanSnap iX500 debuts – Direct link to smartphone / tablet for better speed performance
3	New Windows 8 LifeBook with a stylish, fine elegance

Fujitsu’s expertise in IT outsourcing reaps huge rewards for Finnerva
Fujitsu Finland is helping Finnvera, world’s leading specialist financing company, to reap the ultimate benefits from its IT infrastructure through IT outsourcing project.

Key trends shaping the next generation of retail stores
RFID sensors, touch-screen POS terminals and Big Data technology are transforming the retail environment and fueling the next-generation retail stores.

Hallmark Cards transforms retail with the power of Cloud
Mike Goodwin, CIO of Hallmark Cards, shares Hallmark’s experience of moving into the Cloud, boosting flexibility and efficiency.

Our Top Predictions for 2013
Turning the calendar page to January is traditionally the time to make resolutions for the year and conduct a little star-gazing, as we aim to foresee what will impact in the market over the next 12 months. Here are five predictions for 2013 from Fujitsu Hong Kong.

1	Despite macroeconomic pressures, spending on solutions which enable reduction in total cost of ownership will continue to grow According to IDC, worldwide IT spending in 2013 will exceed $2.1 trillion, up 5.7% from 2012. This year, we’re expecting to see an even greater proportion of this spend to be invested in virtual applications and cloud computing, as enterprises start to realize the long term benefits of embracing the cloud.

2	Cloud services will continue to boom Gartner predicts that the worldwide cloud services market will reach US$ 150.1 billion in 2013. Cloud computing undoubtedly offers organizations major benefits, including higher scalability and the chance to tap into huge pools of ICT capacity. Yet the leap into the cloud can require a significant change in mindset, so we foresee that demand for cloud services will grow as businesses seek trusted cloud partners to guide them as they aim to seamlessly integrate the cloud into their existing IT landscape, without the headache of setting up and maintaining the resources themselves.

3	Virtualization will become a reality for many more businesses Gartner predicts that “by 2016, 70 percent of x86 enterprise server workloads in China will be virtualized and 30 percent of them will be Hosted Virtual Desktop workloads.” This echoes the increasing demand we’ve seen from organizations in Hong Kong and Greater China for virtualized desktop infrastructure, which enables enterprises to reap the benefits of streamlined IT and increased cost efficiency as well as lowered carbon emissions and energy usage.

4	Enterprises will need to modernize in order to survive Since the global economic outlook will continue to be uncertain in 2013, businesses will face similar pressure to reduce costs, including IT expenditure, in preparation for a possible downturn. On top of this, many IT legacy systems will become obsolete or come to the end of their life. In the next twelve months, companies will need to take proactive measures to modernize and centralize control over IT infrastructure, not only to reduce costs but ensure minimal disruption to the business.

5	The local skills shortage will worsen IDC has forecast that an increasing talent shortage in APAC could impact enterprises’ ability to innovate, as the lack of in-house experts will make it difficult for businesses to cope with continual technological change. We envisage that Hong Kong, Macau and Greater China in particular will continue to face the pain of the ongoing IT skills shortage, meaning that local enterprises may struggle to implement and manage major IT investments internally. In light of this, we believe we’ll see a growing trend for enterprises to adopt IT managed services. By outsourcing their IT services with the consolidation of IT infrastructure and applications into a regional hub, organizations can leverage global expertise and local industry knowledge to ensure that the best available technologies are applied in the most appropriate way, to enhance business performance.

Despite the challenges ahead in 2013, we believe innovative technology is the most powerful tool available for enterprises seeking to optimize business agility and operational efficiency while simultaneously lowering total cost of ownership in the coming year.

Five megatrends reshaping the role of the CIO
The roles and responsibilities of the CIO have become a changeable feast in the past five years. Gone are the days when these C-level executives were merely responsible for the information technology and computer systems residing within an organization. Today they are tasked with reducing costs, maximizing business efficiency, increasing agility and navigating the constantly changing world of IT, both inside and outside the business perimeter.

We have identified five key megatrends which are having a dramatic effect on the job — and prospects — of the modern CIO. Are you responsible for managing your organization’s IT infrastructure? Read on to see how these key trends are significantly impacting the business landscape.

Megatrend #1: Cloud

-	Worldwide spending on public IT cloud services will rise from $40 billion in 2012 to around $100 billion in 2016, at a compound annual growth rate of 26.4% — five times that of the IT industry overall. (IDC)
-	Infrastructure-as- a-service will be the fastest growing segment of public cloud, with a compound rate of 42% through to 2016. (Gartner)
-	The three fastest growing SaaS segments in 2012 were office suites (41%), digital content creation (32%) and business intelligence (27%). (Gartner)

Megatrend #2: Social

-	59% of employees globally have no restrictions on sharing internal data, with media and engineering staff having the most freedom (70%). Meanwhile, 74% of workers say they expect to have that open data exchange in the future. (Intel)
-	Quantifying the value of enterprise social networking, users report it helps teams collaborate more efficiently (78%), saves them time (69%), enables them to find answers to questions faster (65%), and is an overall benefit to the company (85%). (Yammer survey)

Megatrend #3: Mobile

-	“Implementing mobility solutions” was ranked as the 7th biggest strategic priority for CIOs in 2012, up from 18th in 2011. (Gartner 2012 CIO Survey)
-	61% of CIOs are planning to enhance their mobility capability over the next three years, with almost half of those (48%) saying their organizations have the opportunity to become leaders in their sectors by fully adopting innovative mobility solutions. (Gartner 2012 CIO Survey)

Megatrend #4: Big Data

-	The volume of business data worldwide doubles every 1.2 years. (eBay)
-	Spending on big data technologies and services is expected to reach $16.9 billion in 2015, up from $3.2 billion in 2010, representing a compound annual growth rate of 40% — about seven times that of the overall ICT market. (IDC)

Megatrend #5: Consumerizaton

-	Almost two-thirds of global CIOs are actively promoting the development of mobile phone and tablet applications for their organization. (Harvey Nash CIO Survey)
-	By 2014, 90% of organizations will support corporate applications on personal devices. (Gartner)

These megatrends highlight how technology is continuing to mold the ever-changing role of the CIO. Business strategies will continue to become deeper entwined with digital strategies not just across the web, but also through mobile, social and local. In addition, given the huge impact of emerging policies such as Bring Your Own Device (BYOD), modern CIOs are expected to develop a keener understanding of the latest consumer technologies as these too impact the enterprise. Moreover, CIOs are becoming increasingly service-oriented as the cloud trend shifts focus from hardware and IT within the business perimeter to a cloud-based per-use model. Ultimately, the CIO’s role will adapt as the world of business continues to flex according to the latest technological trends. Those who succeed will be those most prepared for change.

This article was adapted from a feature originally published in Global Intelligence for the CIO

Being the world’s third-largest IT services provider, Fujitsu’s solutions portfolio focuses on three core areas of dynamic infrastructures, application services and business services. Our wide spectrum of ICT offerings range from imaging, servers and storage systems, software, solutions and IT managed services, as well as applications tailored for industry verticals. We are committed to providing cost-efficient, reliable and eco-friendly solutions to our customers.

Our efforts in providing world-class ICT solutions to our customers are recognized by analysts from around the world. Here’s a recap of some of the positive analyst evaluations received in 2012:

Gartner

-	Positioned in the Niche category in the Gartner Magic Quadrant for Cloud Infrastructure as a Service, published in October
-	Positioned in the Niche category in the Gartner Magic Quadrant for SAP Application Management Service Providers, published in October
-	Leader in the Gartner Magic Quadrant for Data Center Outsourcing & Infrastructure Utility Services, Asia/Pacific (excl. Japan), published in November
-	Visionary in the Gartner Magic Quadrant for Help Desk Outsourcing (July) and Data Center Outsourcing & Infrastructure Utility Services (August), North America
-	Leader in the Gartner Magic Quadrant for Desktop Outsourcing (September), Help Desk Outsourcing (August) and Data Center Outsourcing & Infrastructure Utility Services (July), Europe

IDC

-	Major Player in the IDC MarketScape for Worldwide Oracle Implementation Ecosystem, published in October
-	Quantifying the value of enterprise social networking, users report it helps teams collaborate more efficiently (78%), saves them time (69%), enables them to find answers to questions faster (65%), and is an overall Major Player in the IDC MarketScape for Worldwide SAP Implementation Ecosystem, published in June

Forrester

-	Multinational in the Forrester SaaS Implementation Partner Landscape report published in July
-	Leader in the Forrester Wave for Retail POS Providers, published in July

Looking ahead to 2013, Fujitsu will continue to strive to develop innovative solutions and provide the best services, to be the trusted partner of our customers in their IT transformation journey.

The past year has been a significant one for Fujitsu Hong Kong. While we constantly strive to innovate and offer our customers the best solutions to help them achieve business success, over the past 12 months we have received significant recognition from the industry for excellence in providing innovative products and services. The following awards clearly demonstrate Fujitsu’s commitment to going the extra mile and exceeding customers’ expectations when delivering bespoke, effective solutions.

Capital Weekly PRO Choice
Every year, Capital Weekly presents these awards to companies which have displayed outstanding corporate culture and demonstrated excellence in providing first-class products and services. Fujitsu was honored by Capital Weekly for delivering flexible and innovative IT infrastructure products to customers, which enable them to drive the greatest value out of their IT resources and investments. By integrating global expertise and local knowledge, Fujitsu rides on the rapid development of the APAC region and helps its customers to transform their ICT infrastructure and strategy into business success, creating an ideal business environment through our comprehensive solutions and services offerings.

Hong Kong Business High–Flyer Award – Outstanding Enterprises
Now in its 9th year, the judges of the prestigious Hong Kong Business High-Flyers Awards have granted Fujitsu Hong Kong with an award for our unmatched performance in the ICT solutions and services industry. With extensive experience, from managed data centers services, end user services and infrastructure products and solutions, Fujitsu Hong Kong successfully drives values through effective, efficient and flexible IT services to sharpen customers’ competitive edge, and meet enterprises’ need for improved site effectiveness. Valuing our trusted partnerships with clients above all else, Fujitsu Hong Kong has been crowned as an industry outperformer by facilitating clients’ change management and customizing a world-class Cloud platform for long-term business success.

In 2013, Fujitsu expects a greater focus on virtualization and Cloud spending, as enterprises gain a deeper application of the long-term benefits of the Cloud. A virtual ecosystem will emerge as virtual appliances gain traction in IT operations and we believe that spending on enterprise-class Cloud services will increase. Let’s look forward to another fruitful year, during which we are focused on bringing even more innovations to market, to help businesses in Hong Kong and Macau capitalize on the growing Cloud opportunity.

IDC has predicted that by 2020, 90% of all growth in the IT market will be driven by mobile, social, cloud and big data. Is your organization prepared to flourish in this increasingly connected, cloud-centric world?

Given the rapid development of Cloud Computing and its growing importance to business success, in November 2012 Fujitsu organized a seminar with Oracle focused on ‘Leading the Journey to Private Cloud’. IT leaders from various industries attended the event to learn about the latest capabilities in enterprise-ready Cloud infrastructure, technology and services that Fujitsu and Oracle have to offer. The partnership between Fujitsu and Oracle effectively addresses challenges faced by many companies moving to a private Cloud environment, by ensuring seamless integration of Cloud services with their existing IT environment.

In the same month, Fujitsu addressed attendees of the ‘VMware Solutions Symposium’, sharing its expertise in guiding enterprises on their journey from desktop virtualization to private Cloud. At the symposium, Fujitsu shared the extensive experience in helping enterprises to embark on the journey to private Cloud, in turn enabling them to create a more efficient and resilient workplace.

Fujitsu will continue to organize and participate in various industry events to share our insights on ICT technology development and market trends.

Organizations continuously expand their IT investments to stay competitive in the global market. They achieve this with the aid of sophisticated and large IT environments which unfortunately are highly complex to manage.

To address this critical operational issue, Fujitsu provides reliable, cost-efficient and flexible IT solutions that enable companies to consolidate, automate and virtualise client systems through cloud-enabled data centre and managed services.

Fujitsu Hong Kong Data Centre’s Affordable ‘Racks for Hire’ New Year Offer
Fujitsu Hong Kong’s Tier III++ purposed-built mission-critical data centre facility offers the following value-added management services:
• Managed PUE at the lowest cost effective operations
• Managed database
• Managed servers
• Managed storage and backup
• Capacity management
• Cloud Services

Our services cover the entire business process of most organizations - from analysis and planning to organization, operation and maintenance. We strive to address our customers’ IT requirements by providing key operational advantages, including reliable and robust infrastructure, proven technical expertise, lower TCO, competent delivery teams in a heterogeneous multi-vendor environment.

Enquiry:
Contact us at 2828-2628 or managedservices@hk.fujitsu.com for more information about Fujitsu data centre services.

Fujitsu South China Data Centre facilitates cross-border collaboration for businesses
To further demonstrate the company’s commitment to the Greater China region, in April 2012 Fujitsu launched its first data centre in China, the Fujitsu South China Data Centre. Located in the Guangdong High-Tech Service Zone for Financial Institutions, it is South China’s first Tier III+ data centre.

The Fujitsu South China Data Centre aims to provide corporate customers with best-in-class, efficient and secure IT systems and services delivering the following unique values :
“F”LEXIBLE – Customize a Data Centre solution for a client from half rack to entire data centre room
“S”ECURE – Most sophisticated and comprehensive Data Centre security system and process used in China
“C”OST EFFECTIVE – The highest quality Data Centre Solution at the most reasonable cost
“T”RANSPARENT – Provide all Data Centre documentation to customer if necessary

With over 15 years’ experience in global data centre services in Hong Kong, Fujitsu Hong Kong is well positioned to provide world-class, green data centre expertise to customers seeking a flexible selection of services for their critical business data assets, and are helping many organizations to engage with the global economy through cross-border collaboration. Through world-class data centre infrastructure and services, we take pride in our ability to serve as a regional IT hub for enterprises across an array of industries, looking for value-added services and innovative technology that accelerates their business growth.

In light of continuing cost pressures, rising customer expectations and ever-tightening compliance regulations, more and more FSI organizations are outsourcing IT services to relieve their IT infrastructure burden and tackle operational inefficiencies. According to market research firm Gartner, worldwide IT outsourcing recorded a 7.8% increase and totaled US$246.6 billion in 2011, up from US$228.7 billion the previous year. However, FSI organizations can often find themselves restricted when it comes to outsourcing, due to stringent compliance regulations. Recently, Finnvera, a specilalist financing company owned by the state of Finland, appointed Fujitsu as its server availability services provider, which marks its first major IT outsourcing project.

Enhance service levels efficiently and effectively
Finnvera used to run its own servers from its data centre, however, the company will soon move to new premises. It was therefore necessary for the company to either build a new data centre or buy data centre services from a trusted partner. Considering that a fully-equipped data centre requires various special structures such as air-conditioning, fire extinguishing systems and current feed, Finnvera decided to enlist Fujitsu as its external service vendor, in light of our ability to provide a similar or better service, delivered efficiently and effectively.

Gain value-based outsourcing services with a sterling track record
With a sterling track record of delivering value-based outsourcing services worldwide, Fujitsu values business relationships deeply and always works extremely closely with all customers to identify and meet their individual requirements. Finnvera is no exception. At Fujitsu, we believe that close partnerships are the key to developing truly customized and personalized services.

Fulfill strict requirements while maintaining flexibility
During the public bidding process, in compliance with the public procurement act in Finland, what differentiated Fujitsu’s bid from the others was the considerations on the special legislature that governs the operations of a financing company. The bespoke services not only ensured that Finnerva met necessary regulations, but also best fulfilled customer’s strict cost and quality requirements.

This example demonstrates how Fujitsu is in a unique position to help FSI companies to modernize, not only offering infrastructure and bespoke solutions, but also through consultancy and support services. We are able to fine-tune the modernization process according to the environment and requirements of each and every organization. By developing trusted partnerships with business leaders, we can quickly develop, deploy and optimize business processes and applications to meet evolving business demands, without compromising on business governance.

Check out http://www.fujitsu.com/fi/english/news/2013/finnvera.html for more details on Fujitsu’s IT outsourcing services for Finnvera.

Technology is transforming the retail environment and fueling the next-generation retail stores. Self-service kiosks and touch-sensitive displays are increasing in popularity in Hong Kong and are seen as a vital tool in restaurants, supermarkets and shops as brands seek to provide a seamless and fast-paced shopping experience to discerning consumers. In addition, increasingly long opening hours – sometimes 24/7 – are resulting a more complex, ‘always-on’ operating environment for retailers. It has become critical for retailers to have a standardized and integrated platform to enhance operational efficiency for better customer experience.

As technology continues to impact the retail sector, we have identified three key trends shaping the industry, which we believe will spawn a new breed of retail stores.

1	Virtual stores will grow in dominance In the future, almost every product you see on the shelves will be ‘smart’. Retailers have been attaching Radio Frequency Identification (RFID) tags to products for over a decade, but when combined with mobile technologies, RFID has the potential to revolutionize the supply chain and transform the customer payment experience. Near Field Communications (NFC) chips will enable smart devices to make payments, and location-based services will enhance communications and service quality. All these technologies will combine to make future stores increasingly ‘virtual’.

2	Retailers will respond to customer demands for personalization According to a survey conducted by the National Retail Federation, US retail websites have eclipsed physical stores as the top channel for marketers (81% for bricks-and-mortar vs. 86% online) for the first time in ten years. Over half (53%) of those surveyed said they will specifically focus on web personalization engines, as retailers look to invest in areas that provide their customers with a personal shopping experience. This includes enhancements such as location-based services and tracking methods unique to consumers’ shopping habits. To better serve the mobile-savvy shoppers in their stores, retailers are also enhancing handheld technologies, such as mobile point-of-sale.

3	Big Data applications will turn unstructured details into powerful intelligence Customer satisfaction is critical to accelerating sales growth, particularly amid declining retention rates and increased fragmentation. Retailers have more information available to them than ever before, but have difficulty taking full advantage of their large pools of data – typically millions of transaction-level data points including details on customers, merchandise and prices – in a systematic way. By adopting big data technology, retailers can better utilize this mass of unstructured data, transforming it into useful marketing intelligence. Along with business analytics tools retailers can gain a better understanding of hot market trends, as well as customer needs, as they evolve.

In order to ensure businesses keep pace with these developing trends retailers can take advantage of technologies such as virtualization, cloud computing and big data applications to upgrade their customer service and increase operational efficiency. By working with an IT services provider, retailers can gradually migrate their services from the traditional business model towards a more integrated, tightly managed, next-generation retail store.

With revenues of $4.1 billion and distribution through 38,000 outlets in the US, Hallmark Cards has long been the world’s leader in greeting cards. In July 2013, supported by the “retail-as-a-service” solution from Fujitsu, Hallmark Cards moved its core retail operations from a traditional software platform to a new cloud-based environment. The 10-year contract will allow Hallmark and its independent retailers in the US to switch to a subscription-based service delivered via Fujitsu data centers, its TeamPoS systems and Tomax’s Retail.net software.

The twists and challenges from the traditional route
As a business which spans three generations filled with strong consumer relationships, Hallmark Cards knows a thing or two about counting milestones. Last year, Mike Goodwin, CIO at Hallmark Cards, started considering a replacement for Hallmark’s aging retail software and systems. Yet marking another milestone with the existing IT infrastructure wasn’t the best plan of action for the business. Hallmark decided to leverage computing power and serviceability in a different way, looking to embrace cloud computing as the most ideal IT solution. However, at the time, no suitable cloud solution existed — one that would power its broad retail operations, from in-store point-of-sale (PoS) and payment card verification through to back-end transaction processing and merchandizing. “From an operations standpoint, we wanted to get out of the retail systems business,” said Goodwin.

Finding the ‘best-fit’ cloud solution
Goodwin found an exit in the form of a retail-as-a-service cloud solution developed and managed by Fujitsu, Hallmark’s longstanding retail hardware supplier. From early 2013, Fujitsu will provide a complete service solution through a private cloud environment hosted at Fujitsu’s Silicon Valley data center, running Retail.net software from SaaS specialist Tomax, with Fujitsu TeamPoS systems throughout the retail chain. Alongside that, Fujitsu provides a cloud-based, retail-as-a-service (RaaS) solution for Hallmark’s independent retailers and corporate stores nationwide. The retailer and its storeowners now leverage a monthly subscription model for Fujitsu’s TeamPOS which includes full PoS integration; real-time inventory management services; a web portal ordering service; and all related installation, maintenance and support services. The merchants also receive real-time inventory management services from Fujitsu, as well as maintenance and data center hosting services provided by Fujitsu partners.

Succeed to serve with Clouds
By creating a single, centralized platform that provides real-time updates on merchandise status, the end-to-end solution from Fujitsu allows the customer reap the responsiveness in the fast changing retail environment. “In a service model, you look to your partner to keep up with those changes and deliver them a whole lot faster, while also shaping emerging capabilities for you,” say Goodwin. His thinking is that there is a set of functionality such as mobility and compliance can best be handled by service partners. Retail is the first of Hallmark’s strategic activities to switch to the cloud, though the organization has already embraced SaaS — it is using Microsoft Office 365 for email and has back-office functions. Goodwin is convinced that cloud computing will gain a lot of traction in the retail industry in the coming years and is already bringing a remarkable competitive advantage to Hallmark, which is good news for stakeholders at all levels.

Check out http://fujitsunews.com/tag/hallmark-cards/ for more details on Fujitsu’s Cloud solution for Hallmark Cards.

This article was adapted from a feature originally published in Global Intelligence for the CIO

Fujitsu regards sustainable development of society and the planet as one of its most important global priorities, and we have continuously engaged in environmental activities around the world. Today, discharging its responsibility to society as an ICT leader, Fujitsu is continuously widening the scope of its efforts in this field. Through its advanced environmental solutions, services, and products, Fujitsu helps reduce the environmental burden generated by all aspects of our daily lives and by society.

Further strengthening its initiatives to promote Green IT in the local community, Fujitsu is sponsoring the “WEEE Like Recycle in HK Creative Short Film Contest” organized by the Hong Kong WEEE Recycling Association.

Marking its mission to educate Hong Kong’s young generation on the importance of protecting the environment, Fujitsu is committed to promoting environmental protection and caring for the society by cultivating an innovative green generation. The contest welcomes full-time secondary school students in Hong Kong creating a video to arouse public environmental awareness, bring up eco-friendly living attitude and promote environmental friendly ways of recycling WEEE. The deadline of submission is 22 March 2013. For more details, please visit www.pcmarket.com.hk/weee.

Enquiry: 2828 2628 Email: marketing@hk.fujitsu.com