viewpoint Samson Tam: Hong Kong needs a tech bureau Page 8 +RQJ.RQJҋVVRXUFHRI,7LQVLJKW ZZZFZFRPKN -XO\$XJXVW9RO;;,;1R3ULFH+. Hong Kong CIO Awards 2012 Winners Page 12 Andy Chun, City University Hong Kong Tomasz Smaczny, *H[OH`7HJPÄJ bizpeople industryWYVÄSL feature techwatch MTR new CIO eyes IT excellence www.cw.com.hk Page 10 Startup maii brings free voice services Page 18 Great expectations Massive potential from for upcoming TCB :VM[^HYL+LÄULK5L[^VYRPUN July/August 2012 Computerworld Hong Kong 1 Page 20 Page 26 2 Computerworld Hong Kong July/August 2012 www.cw.com.hk contents July / August 2012 4 upfront A new beginning 6 news 8 viewpoint Hong Kong needs a tech bureau Legoco Councilor Samson Tam shares expectations of Technology and Communication Bureau 20 feature Great expectations for HK’s TCB Local IT pros expects Technology Communication Bureau to bring industry transformation ASAP coverstory Hong Kong CIO Awards 2012 Page 12 24 feature HK lags region in IPv6 adoption Survey shows awareness remain low as ISPs provide limited IPv6 services 26 techwatch :VM[^HYL+LÄULK5L[^VYRPUN! massive potential Programmable networks could bring paradigm shift in network management 28 talktech Securing the information age Mobility and cloud have pushed CIOs to refocus their security strategies 31 talktech )PNKH[H!PUUV]H[PVUVWWVY[\UP[` Generating insights from machines beyond structured data 10 bbizpeople A ride to excellence MTR Corp’s new CIO Ted Suen plans to take a talented IT team to new heights 18 34 HKCIOForum Seeing the opportunity in crisis i industryWYVÄSL Voice offers opps in the apps market 38 MACAUCIOForum Former Skype employee starts a tech venture to offer free voice services 40 chinawatch 4HJH\*06JOHSSLUNLZ!L]LYJOHUNPUN China to replace Silicon Valley subscribe to CWHK e-newsletter 42 backpage Check: www.cw.com.hk for daily news and online features. Why Microsoft should make tablets (and phones and PCs)? www.cw.com.hk July/August 2012 Computerworld Hong Kong 3 UPFRONT SHEILA LAM A new beginning J uly is a special month for Hong Kong. Summer vacation begins and the anniversary of Hong Kong’s handover to China always a busy day. This year’s July is particularly special—it’s the 15th anniversary of the handover and a new JRYHUQPHQWKDVWDNHQRI¿FH And with a new government comes new possibilities. Hong Kong’s collective IT industry looks forward to the re-organisation of the goverment secretariat that will establish the Technology and Communication Bureau (TCB). 7KH HVWDEOLVKPHQW RI WKH 7&% VKRZV WKH JRYHUQPHQW KDV ¿QDOO\ UHFRJQL]HG the importance of the tech industry to Hong Kong’s economy and plans to form a governing structure that facilitates that development. Our government formed the OGCIO in 2004, but only recently understands the need of a tech bureau—eight years is a very long time in the tech world. The establishment of the OGCIO was a good opportunity to transform IT-governance from an operational supporting unit LQWRDVWUDWHJLFUROH%XWWKHRI¿FHZDVQHYHUVWURQJHQRXJKWR LQÀXHQFHRYHUDOOJRYHUQPHQWVWUDWHJ\'XHWRLWVVWUXFWXUHDVD VXEGLYLVLRQ ZLWKLQ WKH &RPPHUFLDO DQG (FRQRPLF 'HYHORSPHQW%XUHDX&('%WKH2*&,2KDVOLWWOHFKDQFHRIJHWWLQJ LWVVXJJHVWLRQVWRWRSJRYHUQPHQWRI¿FLDOV 7KXVLPSOHPHQWDWLRQRIWHFKSROLFLHVZDVVORZ7KH'LJLWDO Sheila Lam VWUDWHJ\ZDVODVWXSGDWHGE\WKH&('%LQIRXU\HDUV Editor DJR,WDOVRODFNVYLVLRQDU\SROLFLHV²WKHRQO\VSHFL¿FLQLWLDWLYH slam@ in recent years was the recognition of datacenter industry questexasia. development. com Structure needs to be bolstered by leadership with the right WHFKQLFDODQGSROLWLFDOVNLOOVWRGHYHORSHIIHFWLYHSROLFLHV%XWLW¶VDQLPSRUWDQW¿UVW step. The process is similar to IT-within-the-enterprise: getting the board’s endorsement and approval are essential for any successful transformation. Although the TCB has not yet been formed and its contribution is yet to be seen, many within the industry are hopeful. We talked with some of IT leaders, academics DQGWHFKQRORJ\SURYLGHUVWR¿QGRXWZKLFKLVVXHVWKH\EHOLHYHVKRXOGEHWKH7&%¶V top priority (see page 20). While much of the general public is skeptical about the new government, the IT industry has hope and expectations. Will the local tech industry get the support it needs and deserves from the new government? We in the media will be watching... and reporting. http://www.cw.com.hk Computerworld Hong Kong is published by Questex Asia Ltd, 13/F, 88 Hing Fat Street, Causeway Bay, Hong Kong. PUBLISHER Simon Yeung syeung@questexasia.com EDITORIAL GROUP EDITOR Chee Sing Chan cchan@questexasia.com EDITOR Sheila Lam slam@questexasia.com TECH EDITOR Stefan Hammond shammond@questexasia.com SENIOR REPORTER Teresa Leung tleung@questexasia.com SENIOR CORRESPONDENT Carol Ko cko@questexasia.com CONTRIBUTING WRITERS Jason Krupp, Ross Milburn REGIONAL SALES DIRECTOR Connie Yip ACCOUNT MANAGER Angela Cheng MARKETING & SALES Carvin Lee SUPPORTING EXECUTIVE ADMINISTRATION ART DIRECTOR Eric Lam CIRCULATION & John Lam DISTRIBUTION DIRECTOR ASSISTANT CIRCULATION Allie Mok MANAGER cyip@questexasia.com acheng@questexasia.com clee@questexasia.com elam@questexasia.com jlam@questexasia.com amok@questexasia.com MANAGEMENT MANAGING DIRECTOR Jonathan Bigelow jbigelow@questexasia.com HR & ADMIN MANAGER Janis Lam janislam@questexasia.com ACCOUNTING MANAGER Nancy Chung nchung@questexasia.com Computerworld Hong Kong is published monthly. All material is Copyright 2011 by Questex Media Group, Inc. Reproduction is strictly forbidden without written permission. Sales and Custom Publishing Enquiries: E-mail can be sent to syeung@ questexasia.com Computerworld Hong Kong is circulated to IT, computing and internet companies and other private and public companies who use IT and computing. It is edited for IT professionals, engineers, and senior managers responsible for design, installation, marketing and maintenance of IT systems and networks. Free subscription offer valid in Hong Kong only. To subscribe, go to www.cw.com.hk. www.cw.com.hk Computerworld Hong Kong (ISSN 10234934) is published eleven times in a year by (852) 2589-1313 Questex Asia Ltd. Subscription rates: 1 year HK$343 (Hong Kong only), HK$383 (Macau only), US$102 (within Asia) and US$119 (outside Asia), 2 years HK$601 (Hong Kong only), HK$679 (Macau only), US$165 (within Asia) and US$180 (outside Asia). 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Gumas EXECUTIVE V.P. & CHIEF FINANCIAL OFFICER Tom Caridi EXECUTIVE VICE PRESIDENT Tony D’Avino Sheila Lam Editor slam@questexasia.com 4 Computerworld Hong Kong July/August 2012 Printed by: Asia One Communications Group 13/F, Asia One Tower 8 Fung Yip Street, Chai Wan, Hong Kong Tel: 852 2889 2320 www.asiaone.com.hk Average Circulation: 9,579 www.cw.com.hk Runs Oracle 10x Faster * The World’s Fastest Database Machine t Hardware by Sun t Software by Oracle * But you have to be willing to spend 50% less on hardware. 10x faster based on comparing Oracle data warehouses on customer systems vs. Oracle Exadata Database Machines. Potential savings based on total hardware costs. Oracle Database and options licenses not included. Actual results and savings may vary. www.cw.com.hk Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Oracle and Java are registered trademarks of Oracle and/or July/August 2012its affiliates. Computerworld Hong Kong 5 NEWS HONG KONG f 29 tech pros win Outstanding IT Achiever Awards A total of 29 IT pros walked away with accolades recently at the Outstanding ICT Achiever Awards 2012 presentation ceremony. Among the winners, YuetBor Yeung, Adjunct Professor, Department of Information Systems, City University of Hong Kong as well as ex-Asia Pacific head of IT at HSBC, was granted ICT Lifetime Achievement Award, said the award organizer Hong Kong Computer Society. Pun Sai Lit, Roy, associate partner, IBM Global Business Services Hong Kong, was selected Top ICT Achiever of the Year. HK datacenter hopes hang on building conversion measures HONG KONG f /VUN2VUNÄYTZMHJLUL^H[[HJRZ^LLRS` H RQJ .RQJ ¿UPV UHSRUW DQ DYHUage of 54 new security attack attempts each week, with successful incidents costing them an estimated average of US$159,244, according to a new report from Check Point. The report titled “The Impact of Cybercrime on Businesses” says that the estimated monetary loss includes variables such as forensic investigation, investments in technology, and brand recovery costs. &KHFN 3RLQW VXUYH\HG &OHYHO executives and IT security administra- RSHUDWLRQVDQGFXVWRPHUGDWDWKHIW &KHFN 3RLQW VDLG DERXW RI VHFXULW\ attacks were estimated to have been driven by political or ideological agendas. $ERXWRI+RQJ.RQJUHVSRQGHQWV VDLG 'R6 DWWDFNV ZHUH WKH PRVW VHULRXV security cybercrimes experienced in the last two years, followed by SQL Injections DQGZHEEDVHGPDOZDUH While the majority of companies have important security building blocks in SODFH VXFK DV ¿UHZDOO DQG LQWUXVLRQ SUHvention solutions, less than half of Hong Without offering a long-term datacenter land supply policy, the Hong Kong SAR Government puts its ‘hopes’ on two measures announced in the 2012-13 Budget Speech to give the datacenter sector a boost. The measures are related to the exemption of waiver fee for changing parts of an eligible industrial building into datacenter use, and premium assessment for the lease modification on the basis of hightier datacenter use for the datacenter part of a proposed project. Microsoft builds cloud tool for Hong Kong NGOs Microsoft and the Hong Kong Council of Social Service jointly launched a tailor-made, cloudbased system to help local NGOs manage their volunteers online at zero cost. Dubbed Volunteer Management System (VMS), the new tool is a customized version of Microsoft Dynamics CRM Online. Using VMS, NGOs in Hong Kong can manage their social services cases online, and promptly screen and match volunteers with the intended service recipients. :\JJLZZM\SZLJ\YP[`H[[HJRZJVZ[/2ÄYTZHULZ[PTH[LKH]LYHNLVM<: tors in the US, the UK, Germany, Hong .RQJDQG%UD]LOIRUWKHUHSRUW5HVSRQGHQWVUHSUHVHQWRUJDQL]DWLRQVRIDOOVL]HV and across multiple industries, includLQJ ¿QDQFLDO LQGXVWULDO GHIHQVH UHWDLO healthcare and education, the vendor added. The majority of Hong Kong responGHQWV LQGLFDWHG ¿QDQFLDO IUDXG DV the cybercriminal’s primary motivation, followed by the intent to disrupt business 6 Computerworld Hong Kong July/August 2012 .RQJ FRPSDQLHV VXUYH\HG KDYH SURWHFWLRQVWR¿JKWERWQHWVDQGDGYDQFHG threats. When asked to rank employee activities that pose the greatest risk, all regions surveyed unanimously cited the use of mobile devices—including smartphones and tablet PCs—as the biggest concern, followed by removable media devices such as USB sticks, and remote access to the network. www.cw.com.hk GLOBAL f 0+*!:[VYHNLZVM[^HYLZHSLZNYV^[OZSV^LZ[PU[^V`LHYZ S torage software sales growth is slower than at anytime in the past WZR\HDUVVDLG,'&UHFHQWO\ Worldwide revenue for storage softZDUHGXULQJWKH¿UVWTXDUWHURILQFUHDVHG\HDURYHU\HDUWRELOlion. While the amount was higher than WKH¿UVWTXDUWHURIUHYHQXHVJUHZ at a slower rate. There is still “healthy demand” for storage software products, but the rate of growth within the market has slowed to levels not seen since 2009 Companies with more than 1,000 employees made up the biggest component of storage software sales with $1.6 bilOLRQ LQ LQYHVWPHQWV GXULQJ WKH TXDUWHU 6DOHVJURZWKZDVÀDWKRZHYHUDW year over year. Storage software investments within the government and education category ZHUH DOVR UHODWLYHO\ ÀDW H[SHULHQFLQJ RQO\\HDURYHU\HDUUHYHnue growth. Small and medium VL]HG FRPSDQLHV²WKRVH ZLWK fewer than 500 employees— drove a considerable amount of PDUNHWJURZWKGXULQJWKHTXDUWHU LQFUHDVLQJ FRPSDUHG WRWKH¿UVWTXDUWHURI ³7KH ¿UVW TXDUWHU VDZ GHFLGedly mixed results,” said Eric 8»ZZ[VYHNLZHSLZNYV^[OVM OHZILLU[OLZSV^LZ[ZPUJL 6KHSSDUG,'&¶VUHVHDUFKGLUHFEMC, IBM, and Symantec were tor for storage software, in a statement. “Incremental spending attributable to once again the top ranking storage recent product refreshes have run their VRIWZDUH VXSSOLHUV ZLWK course within some functional markets, DQG PDUNHW VKDUHV UHVSHFWLYHO\ such as storage infrastructure software.” &RPP9DXOW ZLWK \HDURYHU 6KHSSDUG VDLG FRQWLQXHG ¿QHWXQLQJ \HDU LQFUHDVHV DQG ,%0 ZLWK of product pricing, packaging and mes- experienced the largest organic growth saging is helping to draw out new in- GXULQJWKHTXDUWHU+3¶VUHFHQWDFTXLVLvestments within other markets, such WLRQ RI $XWRQRP\ KHOSHG GULYH as the data protection and data recovery year-over-year growth for the company GXULQJWKHTXDUWHU market. 8\V[LVM[OL4VU[O Number Crunch IT departments that tried to align themselves with the I\ZPULZZILJHTLVYKLY[HRPUN butlers to the business —Peter Hinssen, author of the book The New Normal, commented at Forrester IT Forum www.cw.com.hk The amount in US dollars that RIM, maker of BlackBerry devices, wants to shave off from its costs by the end of 2013. The company announced in May that it would look to reduce headcount and spending July/August 2012 Computerworld Hong Kong 7 VIEWPOINT SAMSON TAM Hong Kong needs a tech bureau I WHFKFXOWXUHIURPWKDWRI6LQJDSRUHWKH+.6$5*RYHUQPHQW will likely be more open to ideas and suggestion from the public. Although I agree that the government should step up its supSRUW,EHOLHYHDQDUURZIRFXVRQVSHFL¿FWHFKQRORJLHV²OLNH IT, bio-tech or nano-tech—may not be helpful for Hong Kong to establish a “Knowledge Economy” since the overall economic development will rely on multiple sectors and parties. Many have also suggested the new government provide new funding schemes and establish new industrial policies. I agree the government should step up in these areas. But industryplayers and academics should jointly develop industrial policies with the government—no government body should develop industry-policy in a vacuum. Gathering various stakeholders to gauge public opinion and -YLLKVTVMPUMVYTH[PVUÅV^LZZLU[PHS )UHHGRPRILQIRUPDWLRQÀRZLVWKHIRXQGDWLRQIRULQQRYD- LQÀXHQFH JRYHUQPHQW SROLF\ LV QRWKLQJ QHZ LQ +RQJ .RQJ WLRQ WKXV LW LV WKH PRVW LPSRUWDQW HOHPHQW WKDW WKH +.6$5 It has been done widely: one recent example is the Kai Tak Government should protect. The rapid expansion of datacen- 5HGHYHORSPHQW3ODQ7KHHVWDEOLVKPHQWRI0DNH$'LIIHUHQFH ters in Hong Kong did not happen in a vacuum. Google, NTT- 0D'²DQ LQLWLDWLYH WR HQFRXUDJH FUHDWLYLW\ DPRQJ \RXQJ'RFRPRDQG&KLQD7HOHFRPFRXOGWDNHWKHLUGDWDFHQWHUVDQG sters—was accomplished using the same process. This model cloud computing capacity to another region if this important FDQ EH PDGH DYDLODEOH WR WKH ,7 LQGXVWU\ EXW LW ZLOO UHTXLUH government’s sponsorship as local SMEs are unlikely to have element is compromised. the needed resources. ’ve been advocating an “Innovation and Technology Bureau” in Hong Kong for years. Last July, I initiated a motion debate based on this idea and it’s been supported by my peers from various political background—including Emily /DXFKDLURI/HJ&R¶V)LQDQFH&RPPLWWHHDQG'U3DQ3H\ chyou of the Hong Kong Federation Trade Union. $OWKRXJK,GLGQRWDFKLHYHRIP\SURSRVHGFULWHULD the new government’s plan to establish a Technology and Communications Bureau (TCB) is close enough. With direct VXSHUYLVLRQE\WKH'HSXW\)LQDQFLDO6HFUHWDU\WKHQHZ7&% will be in a better position to coordinate with other policy bureaus across the government. My only concern is the “innovation” element might be forgotten in the new TCB. -YLLKVTVMPUMVYTH[PVUÅV^PZ[OL MV\UKH[PVUMVYPUUV]H[PVU Building a transnational region $SUDFWLFDOZD\IRUWKH6HFUHWDU\RI7&%WRGH¿QHVWUDWHJLHV and drum up support for Hong Kong is to sponsor a high-level summit. This should include local, mainland, and international representatives. Since the Copyright (Amendment) Bill 2011, which raised ,W ZRXOG SURYLGH D SODWIRUP IRU WKH WRS RI¿FLDOV IURP WKH FRQFHUQ WKH FULPLQDOL]DWLRQ RI VDWLUH DQG SDURG\ ZDV QRW *XDQJGRQJ DQG +.6$5 *RYHUQPHQWV WR GLVFXVV PHDVXUHV passed in the previous LegCo term, I would like the incoming IRU LPSOHPHQWLQJ WKH ³*XDQJ]KRX+RQJ .RQJ .QRZOHGJH Secretary of the TCB to seek further public consultation on the &RUULGRU´²DFRQFHSWVLPLODUWRWKHgUHVXQG5HJLRQDWUDQVbill before it is brought to LegCo again. national region connected via a bridge between Copenhagen LQ 'HQPDUN DQG 0DOP| LQ 6ZHGHQ 7KH LGHD LV WR OHYHUDJH the characteristics of Hong Kong and Guangdong to develop a ;HRLYPZRZMVYNYV^[O 2WKHUUHTXHVWVIURPWKHLQGXVWU\IRUWKHLQFRPLQJ6HFUHWDU\ 35'UHJLRQZLWKDWHFKQRORJ\IRFXV of the TCB: be more visionary and work closer with the in- Note that the views expressed by ViewPoint contributors do not dustry. Many people within the industry have indicated they QHFHVVDULO\UHÀHFWWKHYLHZVRIComputerworld Hong Kong or its ZRXOGOLNHWRVHHWKH+.6$5*RYHUQPHQWWDNHPRUHULVNVDQG HGLWRULDOVWDII shoulder more responsibilities in the industry development. I believe the government can achieve that by providing of:HTZVU;HT>HPOVPZ[OL3LNPZSH[P]L fers similar to those granted by the Singapore Government: *V\UJPS4LTILYMVY[OL0;:LJ[VY *VU[HJ[OPTH[VMÄJL'ZHTZVU[HTOR EHWWHUFDSDFLW\SODQQLQJDQGPRUH¿QDQFLDOVXSSRUWWRWKHLQdustry. As we in Hong Kong have a different business and 8 Computerworld Hong Kong July/August 2012 www.cw.com.hk www.cw.com.hk July/August 2012 Computerworld Hong Kong 9 BIIZPEOPLE BIZ B BIZPEOPLE A ride to excellence After more than a decade of experience with different leading IT service providers, Ted Suen joined the MTR Corporation (MTR Corp) as Head of IT in February. He talks with Computerworld Hong Kong about continuing the company’s legacy and taking its IT team to new heights. When I was approached by headKXQWHU IRU WKH 075 &RUS +HDG RI ,7 position, I was driven by the challenge of the role, thus decide to give it a try and applied for this position. )`:OLPSH3HT Computerworld Hong Kong: In the SDVW GHFDGH \RXU FDUHHU IRFXVHG PDLQO\ RQ WKH YHQGRU VLGH +RZ GLG \RX PDNH WKH WUDQVLWLRQ IURP YHQGRU UHSWRHQWHUSULVHXVHU" :\LUMYVT[OL4;9*!0HTRLLU[VJOHSSLUNL [OLZ[H[\ZX\VHUKLUJV\YHNLT`[LHTKVZV CWHK: How did your experience IURPWKHYHQGRUVLGHKHOSLQ\RXUFXU UHQWUROH" TS: It’s been a tremendous help. My vendor background allows me to be more approachable by many local IT service providers. And understanding how vendors operate allows me to drive a more optimal deployment—and be in a better position for negotiation. When I was on the vendor side, I always had to work out the best technical and cost-effective solution for clients and deliver a long-term strategy for them. The experiences of managing various government-related projects—the relocation of border control system to the Chek Lap Kok airport, the e-passport implementation and the GHYHORSPHQWRI(6'/LIHSRUWDO±ZHUH excellent learning experiences for my current role. In addition, learning global best practices and methodologies from the vendors I worked for also enabled me to work with my team for further improvement. Ted Suen: People think I have a strong vendor background as I’ve worked in that capacity for the last 12 years. But I spent the first half of my career in a corporate IT environment. I started as DV\VWHPSURJUDPPHULQODWHV Later, I tried different roles including database administrators and system analyst in different corporations including Chase Manhattan Bank. I started my career on the vendor side when IDWHEURXJKWPHLQWR('6LQ Since then, I took various roles— from project management of different government-related projects to a manDJHPHQW UROH IRU ('6¶ UHJLRQDO DQG global clients of IT outsourcing. BeIRUH('6ZDVDFTXLUHGE\+3,VHUYHG DV 0DQDJLQJ 'LUHFWRU RI ('6 +RQJ .RQJ $IWHU WKH DFTXLVLWLRQ , VHUYHG DV WKH 'LUHFWRU RI ,7 2XWVRXUFLQJ IRU Greater China region. Before leaving HP, I was managing the Global Ser- CWHK: What directions and improve YLFH'HVNIRU$VLD3DFLILFUHJLRQZLWK ment do you plan to bring to the orga QL]DWLRQDQG\RXUWHDP" a team of 2,000 people. 10 Computerworld Hong Kong July/August 2012 www.cw.com.hk TS: My major goal is to turn this department into a business partner DQG HQDEOHU WR RSWLPL]H 075 &RUS¶V business. We’ve introduced a new role: the %XVLQHVV5HODWLRQVKLS0DQDJHU%50 6HYHQ %50V DUH DVVLJQHG WR HQJDJH with different business units, aiming to proactively advise them on applying technologies in their operations. 2QH LQLWLDWLYH IURP WKH %50V LV D WHFKLQQRYDWLRQ VHFWLRQ RUJDQL]HG for senior executives from different business units in April. The section introduced the latest technologies and provided demonstrations of how they can be used to enhance customers’ H[SHULHQFHVRURSHUDWLRQDOHI¿FLHQFLHV users. We will also launch another mobile app called Material Testing System, for our employees to file reports related to testing and approval of construction materials. All these mobile apps aim to improve passengers’ experiences and improve internal efficiency. We are also looking at cloud computing and have implemented a hyEULG FORXG VHUYLFH IRU 075 &RUS Property Management business unit since 2009. The application leverages WKH *RRJOH $SSV DQG 075 &RUS LQ house developed functions to build a single integrated portal service for communications with residents of our managed estates, particularly on We hope to inspire and educate business executives ^P[OPUUV]H[P]L\ZLVM[LJOUVSVN` We hope to inspire and educate business executives with innovative use of technology to help their roles. Apart from users’ suggestions, the IT department has also set up an innovation team to explore the opportunities of adopting the latest technologies ZLWKLQ075&RUS the notification of management fee payment and building maintenance VFKHGXOH 5HJDUGLQJ SULYDWH FORXG we are exploring the feasibility to build a cloud IT infrastructure for testing and development environment to reduce the cost of hardware and software. Early this year, we’ve launched the CWHK: What emerging technologies %<2' SURJUDP DOORZLQJ VWDII ZLWK are you exploring, and what are the iOS or Android devices to access ODWHVWLQLWLDWLYHVDW075&RUS" corporate emails. Currently there are no restrictions on application-access TS: 5HFHQWO\ ZH KDYH ODXQFKHG VHY- ZLWK GHYLFH UHJLVWHUHG XQGHU %<2' eral mobile apps for our passengers in- program, but users cannot use “jailFOXGLQJ 075 -RXUQH\ 3ODQQHU 075 break” devices. There are about 1,600 1H[W7UDLQDQG0757RXULVW SHRSOH DW WKH 075 &RUS ZKR DUH XVInternally, we have launched the LQJ GHYLFHV UHJLVWHUHG XQGHU %<2' mobile version of our Enterprise In- program, and we are starting to install formation Portal, which provides mobile-device management software information like staff directory and at each client-device to better manage corporate publications to our internal them. www.cw.com.hk CWHK: Your predecessor, Daniel /DL LV NQRZQ IRU KLV ,7 OHDGHUVKLS DQGSDVVLRQLQWDOHQWFXOWLYDWLRQ+RZ does that legacy help or challenge your role as the new IT leader at the 075&RUS" TS: 1R GRXEW WKDW 'DQLHO GLG D JUHDW MRE LQ FXOWLYDWLQJ ,7 WDOHQW DW 075 &RUS 7KH ,7 WHDP DW WKH 075 &RUS has many talented IT professionals and I’m delighted to have such a great team to work with. 2QWKHRWKHUKDQGLWLVDOVRTXLWHD challenge to keep a team of 130 permanent staff motivated at all times. A sense of achievement is a big part of motivation, and many employees at WKH 075 &RUS DUH YHU\ OR\DO DQG HDger to bring significant contributions to the company. Being new to the team, I’m in a good position to generate discussions that create these opportunities. I’m NHHQ WR FKDOOHQJH WKH VWDWXV TXR DQG encourage my team do so by commenting and suggesting new ideas for each other. Through these discussions, we are able to evaluate our own work with new perspectives and generated new ideas and projects for the team to improve. Another challenge for us is the issue of aging. In the upcoming six to seven years, a few senior managers in my department will be retiring. I am hoping to fill these positions through internal promotion and this is the right time to start developing the next generation managers, thus succession planning is on a high priority. Part of the plan for talent-cultivation is also to introduce a job-rotation program for key performers in key positions. It’s important that these nextgeneration leaders are able to expand their technical knowledge and business skills. July/August 2012 Computerworld Hong Kong 11 COVERSTORY 2012 Winner – CIO, Large Enterprise Tomasz Smaczny Executive Director and &KLHI,QIRUPDWLRQ2I¿FHU &DWKD\3DFL¿F$LUZD\V/LPLWHG 2012 Winner – CIO, Medium Enterprise Andy Chun &KLHI,QIRUPDWLRQ2I¿FHU &LW\8QLYHUVLW\ Hong Kong 12 Computerworld Hong Kong July/August 2012 www.cw.com.hk CIOs at Cathay and CityU win 2012 Hong Kong CIO Awards Awards recognize visionary and innovative IT leaders By Chee-Sing Chan H RQJ .RQJ &,2 $ZDUGV KDV UHDFKHG LWV VHFRQG \HDU $LPLQJ WR LGHQWLI\ ,7 OHDGHUV ZKR GHPRQVWUDWHRXWVWDQGLQJYLVLRQDQGH[HFXWLRQWKHDZDUGVSURJUDPLVRUJDQL]HG E\Computerworld Hong KongDQG&,2 SHHUQHWZRUN&,2&RQQHFW 6HOHFWHGE\WKHSDQHORIMXGJHVOHGE\ -XGJLQJ &RPPLWWHH &KDLUSHUVRQ 1LFN .LUNODQGFKLHIH[HFXWLYHDW&,2&RQQHFW WKLV \HDU¶V ZLQQHUV DUH &DWKD\ 3DFL¿F¶V 7RPDV] 6PDF]Q\ DQG $QG\ &KXQ IURP &LW\8QLYHUVLW\+RQJ.RQJ&LW\8 +HZDVLGHQWL¿HGE\WKHMXGJHV DV ³DQ LQQRYDWLYH OHDGHU LQ WKH WUDQVIRUPDWLRQDOXVHRI,7LQHGXFDWLRQDQG KLVYLVLRQRIWKHIXWXUHLQKRZWRVKDSH KLV RUJDQL]DWLRQ WKURXJK HPHUJLQJ WHFKQRORJ\´ ³7KH+RQJ.RQJ&,2$ZDUGLVDJUHDW KRQRUIRU&LW\8DVDZKROH7HFKQRORJ\ YLVLRQRQO\KDSSHQVZLWKWKHFRPPLWPHQW DQG SDUWLFLSDWLRQ IURP HYHU\RQH LQ WKH FRPPXQLW\ &LW\8 LV IRUWXQDWH WR KDYH DVWURQJWUDFNUHFRUGDVRQHRIWKHPRVW WHFKQRORJLFDOO\ SURJUHVVLYH XQLYHUVLWLHV LQWKHUHJLRQFUHDWLQJDYHU\XQLTXHVW FHQWXU\ OHDUQLQJ H[SHULHQFH IRU RXU VWXTechnology vision $ZDUGHGIRU/DUJH(QWHUSULVH&,2RI GHQWV´VDLG&KXQ&,2DW&LW\8 6PDF]Q\ DW &DWKD\ 3DFL¿F ZDV VLQJOHG RXW IRU ³KLV YLVLRQ DQG OHDGHU- Difference in scale VKLSLQWUDQVIRUPLQJ&DWKD\¶V,7ZKLFK &,2V IURP LQGXVWU\OHDGLQJ FRPSDKDVUHVXOWHGLQDTXDQWXPOHDSLQWKH,7 QLHVLQ+RQJ.RQJZHUHLQYLWHGWRVXERUJDQL]DWLRQ¶V VWUDWHJLF DOLJQPHQW DQG PLWDQGHQWULHVZHUHDFFHSWHGDVORQJDV HIIHFWLYHQHVV´DFFRUGLQJWRWKHMXGJHV WKH &,2 ZDV EDVHG LQ +RQJ .RQJ DQG ³,WLVDJUHDWKRQRUDQG,ZRXOGOLNHWR 0DFDX %RWK ORFDO DQG PXOWLQDWLRQDO WKDQNWKHMXGJLQJSDQHOIRUWKHLUUHFRJQL- ¿UPVZHUHDOVRDFFHSWHGGXULQJWKHVXEWLRQRIZKDW&DWKD\¶V,7KDVDFKLHYHG7KH PLVVLRQSURFHVVZKLFKWKLV\HDUIHDWXUHG ODVWWKUHH\HDUVZHUHYHU\FKDOOHQJLQJIRU WKHQHZFDWHJRULHVRI/DUJHDQG0HGLXP XV 2XU VXFFHVV LV D FUHGLW WR WKH &DWKD\ (QWHUSULVH&,2ZLQQHUV ,7WHDPWKHLUSURIHVVLRQDOLVPGHGLFDWLRQ &,2V ZKR OHG FRPSDQLHV ZLWK DQ ,7 SHUVHYHUDQFH DQG FRPPLWPHQW WR WKH GH- EXGJHW RI 86' PLOOLRQ DQG DERYH OLYHU\RIEXVLQHVVYDOXHLQVSLWHRIDOORGGV ZHUH GHHPHG WR EH ³/DUJH (QWHUSULVH´ DQGFKDQJHUHVLVWDQFH,QWRGD\¶VRUJDQL]D- 7KLV \HDU¶V DZDUGV VRXJKW WR UHFRJQL]H WLRQV,7SOD\VDYHU\FUXFLDOUROHLQOHDGLQJ WKHGLIIHUHQWDFKLHYHPHQWVRI&,2VIURP WUDQVIRUPDWLRQDOFKDQJHVDQGJLYLQJWKHLU ODUJHHQWHUSULVHVDVZHOODVIURPPHGLXP FRPSDQLHV VLJQL¿FDQW FRPSHWLWLYH HGJH´ EXVLQHVVHVDVWKHUHTXLUHPHQWVDUHIRXQG VDLG6PDF]Q\H[HFXWLYHGLUHFWRUDQG&,2 WREHTXLWHGLVWLQFWIURPHDFKRWKHU DW&DWKD\3DFL¿F ³:H KDYH IRXQG WKDW WKHUH LV D 0HDQZKLOH &KXQ DW &LW\8 VFRRSHG KXJH GLIIHUHQFH WKDW VFDOH EULQJV WR WKHSUL]HRI0HGLXP(QWHUSULVH&,2RI DQ HQWHUSULVH DQG WKDW LV WKH EDVLV IRU www.cw.com.hk GLIIHUHQWLDWLQJ WKH DZDUGV VDLG 1LFN .LUNODQG &KDLUSHUVRQ RI WKH -XGJLQJ &RPPLWWHH DQG DOVR FKLHI H[HFXWLYH DW &,2&RQQHFWZKRVHQHWZRUNQRZVSDQV 8.+RQJ.RQJDQGDOVR6LQJDSRUH ³6FDOHLPSDFWVORFDWLRQFXOWXUHFRPSOH[LW\ DQG FUHDWHV GLIIHUHQW FKDOOHQJHV ZKLFKUHTXLUHGXVWRHYDOXDWHODUJHDQG PHGLXPHQWHUSULVH&,2VVHSDUDWHO\´KH added. $ZDUG QRPLQHHV KDG WR GHPRQVWUDWH WR WKH MXGJHV WKDW WKHLU ZRUN KDG PDGH VLJQL¿FDQW FRQWULEXWLRQV WR EXVLQHVV LQ WKHIROORZLQJNH\DUHDV 7HFKQRORJ\OHGRUWHFKQRORJ\HQDEOHG innovation &UHDWLRQRIVLJQL¿FDQWEXVLQHVVYDOXH 'HOLYHU\ RI EXVLQHVVWHFKQRORJ\ transformation 'HYHORSPHQW RI ,7 RUJDQL]DWLRQ DQG staff 7KH $ZDUGV -XGJLQJ &RPPLWWHH ZDV KHDGHGE\.LUNODQGDW&,2&RQQHFWDQG PDGHXSRIVRPHRI+RQJ.RQJ¶VPRVW UHVSHFWHGFXUUHQWDQGIRUPHU,7OHDGHUV 7KHVHLQFOXGHG-RH/RFDQGUR'LUHFWRU RI *URXS ,7 DW &/3 :LQQHU RI 2YHUDOO &,2 RI WKH <HDU 6XQQ\ /HH ([HFXWLYH 'LUHFWRU RI ,7 DW +. -RFNH\ &OXE 2XWVWDQGLQJ &,2 $FKLHYHPHQW :LQQHU <% <HXQJ IRUPHUO\ DW +6%&7RP6KHSSDUGIRUPHUO\DW&DEOHDQG:LUHOHVV+.75D\PRQG:RQJ IRUPHUO\ DW ,PPLJUDWLRQ 'HSDUWPHQW +.6$5 *RYHUQPHQW DQG (GZDUG 1LFROIRUPHUO\DW&DWKD\3DFL¿F continued on page 14 July/August 2012 Computerworld Hong Kong 13 COVERSTORY COVERSTORY Cathay’s CIO strives to give IT its voice This program is already underway with the provision of a SOA-based platform and a new Web presence which will be implemented later this year. “As the result of full channel integration,” said Smaczny, “the majority of our current customer-related business processes are being re-engineered to deliver a much better integration of our sales and service offerings.” IT in the sky Cathay’s Smaczny: I always saw IT with a different lens Tomasz Smaczny speaks on the need to be authentic and how IT must never be subservient to business By Chee-Sing Chan H ong Kong’s flagship airline is known for its innovative use of technology. The drive and leadership of its IT organization has been noteworthy for decades, and in recent years, the man spearheading the effort is CIO Tomasz Smaczny. His recent CIO award win is a measure of his unswerving commitment to driving business value through IT and also the success and vision of his team’s key initiatives that are ongoing at Cathay Pacific Airways. One major project is the company’s overhaul and integration of its customer channels. The program requires a rebuild of all customer-facing channels: call centers, Web, social media, mobile, travel agents, direct sales, and corporate sales. 14 Computerworld Hong Kong July/August 2012 Another key program currently underway is Cathay’s innovative approach to HHQDEOLQJLWVDLUFUDIWZKLFKLV¿UVWLQWKH LQGXVWU\¿UVWDQGEHLQJZDWFKHGFORVHO\E\ its OneWorld Alliance peers and aircraft manufacturers. This project will help resolve the lack of integration between aircraft while they are in the air and ground systems. It would provide real-time data exchange and push-based updating of sysWHP¿UPZDUHDQGQDYLJDWLRQGDWDDVZHOO as customer loyalty information, aiming to elevate the airline’s service delivery levels. 0HDQZKLOH WKH ¿QDQFLDO EHQH¿WV RI Cathay’s e-enabled aircraft program is expected recoup the program investment by 2015 and generate in excess of HK$250 million in net savings per annum thereafter. These schemes are due to the vision and ability of Smaczny and his team to drive change and transformation not just within technology, but across business processes throughout the organization. The sign of quality technology leadership is the ability to effectively lead and drive this degree of business www.cw.com.hk ¿QDQFHLQVWLWXWLRQV3ULRUWRMRLQLQJ&DWKD\ LQ KH ZDV WKH &,2 RI $1= 1DWLRQDO%DQNWKH1HZ=HDODQGGLYLVLRQ Career: IT & management RIWKH$1=EDQNLQJJURXS 6PDF]Q\ EHJDQ KLV ,7 FDUHHU DOPRVW His remit when he joined Cathay was by accident—having studied electronic to help support an extensive business engineering due to a deep interest in transformation which is ongoing. The math and science, he later found that en- transformation element of the role was gineering did not elicit the passion that DNH\DWWUDFWLRQIRU6PDF]Q\DVZHOODV he had hoped for. When he and his fam- the new challenge of applying his skills ily emigrated from his homeland of Po- to an Asian context. land to Australia, he found himself in a With the foundations laid down by his software programming job even though predecessor who was instrumental in computer programming was completely EULQJLQJ6PDF]Q\WRWKHDLUOLQHKHKDV alien to him at the time. VLQFH SXW LQ SODFH VLJQL¿FDQW SURJUDPV The technology side of that job initiated to help streamline business operations. 6PDF]Q\ LQWR D FDUHHU SDWK IRFXVHG RQ He recalled his arrival at Cathay Pamanagement roles and transformation ini- FL¿FDQGDQLQWHUHVWLQJFRUSRUDWHFXOWXUH tiatives. Within a few years of the software he views as a combination of Chinese change and not be solely focused on the deployment of good technology. Without a strong voice, IT becomes a slave to the business GHYHORSPHQW MRE 6PDF]Q\ PRYHG LQWR the management side of technology with a keen eye on the business elements of IT. “I always saw IT with a different lens,” VDLG6PDF]Q\³,DOZD\VWULHGWRVHHKRZ IT can contribute to the business rather than simply view what IT could produce in terms of a technology product.” 7OVU`^HYZ 'XULQJ WKH HDUO\ GD\V RI KLV FDUHHU 6PDF]Q\ ZRXOG EH SXOOHG LQWR GHEDWHV about technology trends and intense discussions over whether to use Java or .Net, which he likened to religious wars. ³,QP\PLQGWKHTXHVWLRQZDVGRHVWKLV really matter?” he recalled. 6PDF]Q\¶V FDUHHU IURP WKDW ¿UVW SURgramming job led him to take on management roles with software houses DQG UHWDLO ¿UPV DV ZHOO DV EDQNLQJ DQG www.cw.com.hk “IT in my view performs a very important function in business today,” said 6PDF]Q\³,W¶VQHLWKHUDFRVWFHQWHUQRUD SUR¿WFHQWHU,7LVOHYHUDJHGIRUERWKRXWcomes depending on the situation. But IT must have an opinion and a voice.” He insists that IT departments must EHFOHDULQWHUPVRIKRZWKH\¿WZLWKLQ the business and how they can contribute and change the business. “Without DVWURQJYRLFH´VDLG6PDF]Q\´,7EHcomes a slave to the business.” He added that IT leaders must always TXHVWLRQ EXVLQHVV OHDGHUV DQG XQGHUstand the business strategy before proposing any IT schemes. “IT must challenge the business and leaders must step XSDQGIDFHWKLVUHDOLW\´VDLG6PDF]Q\ “Without these conversations, which can RIWHQ EH GLI¿FXOW DQ\ ,7 LQLWLDWLYH ZLOO likely fail to deliver.” Big lessons thinking with a British mindset. This culture mix in the past had often led to consensus-driven decision-making, ZKLFK 6PDF]Q\ QRWHG GRHV QRW DOZD\V yield the best overall decision from the perspective of the company. Higher standards He immediately set about building a more effective IT governance structure, ZKLFK SULRULWL]HV FRPPHUFLDO PHWULFV EDVHG RQ WKH ¿UP¶V EXVLQHVV QHHGV DQG transparency in the eyes of anyone on the business-side. “Every decision in IT needs to stand XSWRWKHVFUXWLQ\RIDQ\TXHU\´KHVDLG “and will also have metrics to show why decisions were made and what the results of each decision will create.” This would in time help create credibility for IT allowing it to evolve into a superior role. 6PDF]Q\DGGHGWKDWRQHRIWKHELJJHVW lessons he has learned during his time in technology is to be authentic and stick to your principles. “I believe that being authentic is very important in any career and to achieve that, you need to be congruent LQZKDW\RXGR´DGYLVHG6PDF]Q\³+RZ close can you stick to what you think, what you say and what you do?” He recalled a past situation where he was told to be less “black and white” in certain situations and adopt more EQ into his thinking. “In reaction I tried to be softer, but it was unnatural to meto WKHSRLQWZKHUHLWEHFDPHDUWL¿FLDO´VDLG 6PDF]Q\ ³7KLV LPSDFWHG P\ LQWHJULW\ as I didn’t really believe what I was actually saying. The lesson is to be yourself and be authentic at all times.” He added that this philosophy has helped him to be more sensitive to people’s needs and by staying authentic allows him to be better at helping others as his strong sense of belief creates better mutual trust in the working relationships he develops. July/August 2012 Computerworld Hong Kong 15 COVERSTORY COVERSTORY From AI researcher to university CIO Universities must ask what value they provide when people can learn many things on the Internet, says Hong Kong CIO Awards 2012 winner Andy Chun, CIO at City University of Hong Kong By Teresa Leung D XULQJ WKH ¿UVW KDOI RI KLV 30-year tech career, Andy Chun—now CIO at CityU— ZDV LQ WKH 86 IRFXVLQJ RQ DUWL¿FLDO intelligence (AI) R&D. Fascinated by Hong Kong’s lifestyle and opportunities for AI pros, Chun decided to return in 1994 to the city where he was born. “Back then, only a handful of IT pros had experiences in designing and developing sophisticated, real-time, and fault-tolerant mission critical apps while the number of AI pros was even smaller,” said Chun who helped the MTR, the Immigration Department, the Hospital Authority and the equestrianevent portion of the Beijing Olympics build different systems with AI technologies. After his rich industry experience, Chun made a move to become a CityU professor over a decade ago. “I’m always interested in teaching,” he said. “Nothing’s more rewarding than seeing the gleam in students’ eyes when they learn something new or create things that work.” From teaching to CIO Chun decided to take on the new role of CIO at CityU in 2009. “The bits and pieces of my varied experience helped prepare me for the CIO role that requires one to understand trends, create visions, GH¿QH VWUDWHJLHV WUDQVIRUP EXVLQHVV enable changes, and empower people,” said Chun who was also awarded the Computerworld Honors Laureate medal in Washington DC this year. CityU’s Chun: Communications and project management are key lessons to me as a CIO Now he heads a team of 150 people. Besides the university datacenter, student services, and enterprise systems, Chun is also responsible for building standards for IT teams managed by CityU’s various colleges and departments to follow. “CityU is different from a lot of universities in Asia,” said Chun. “While other universities might see IT as a unit that keeps the computers running, CityU sees IT as strategic to its operations and education. It’s the only university in greater China that has hired a CIO.” Tech transforms learning experiences Because of IT’s strategic importance, Chun and his team are involved in a huge number of projects. Hong Kong’s 16 Computerworld Hong Kong July/August 2012 3-3-4 education reform has made their OLYHVSDUWLFXODUO\EXV\EXW&KXQ¿QGV projects related to education the most exciting. Now more than 30% of CityU students use mobile phones or tablets to access the university’s learning management system to download learning materials, submit assignment, and communicate with classmates, according to Chun, adding that more than half of the students are expected to do the same by year-end. Social learning, said Chun, helps HQJDJH VWXGHQWV ZKR¶G RWKHUZLVH ¿QG lectures boring. “Now they can update their status and post learning-related materials such as articles and images using an in-class social network similar to Facebook,” he noted. “The network helps them share things related to www.cw.com.hk DXWRPDWLFDOO\ UHFRQ¿JXUHV DQG UHVL]HV SDJHVWR¿WYDULRXVPRELOHGHYLFHVDQG is accessible to the visually impaired— best illustrates project management’s importance. The project involved modifying more than 500,000 Web pages from more than 100 Web sites owned by different departments in about six months, Communications and project management he said. “It looked insurmountable, but Asked if staffers resist the heavy use I had an experienced project manager of technology in teaching, Chun said: who devised a thoughtful plan with “CityU is a young university where ZHOOGH¿QHG PDQDJHDEOH DQG LQFUHmost members of the teaching team mental milestones,” he said. “We also are young and love to engage students provide many workshops, aiming to with tech. Our teaching staff knows engage and motivate all stakeholders. that young people aren’t likely to learn The result: all departments were able anything if forced to listen to someone to share best practices, work in paralOHO DQG ¿QLVK WKH SURMHFW WRJHWKHU DV passively in a lecture hall.” Though most teaching staffers wel- scheduled.” While the tech world changes speedcome the use of technology, Chun said effective communications with users ily and the local tech talent shortage remain important and is one of the key continues, Chun said CIOs need to let lessons during his stint as a CIO. “New young people turn their ideas into new projects. “For instance, we work with VWXGHQWV LQ WKHLU ¿QDO \HDU SURMHFWV while opening our APIs and providing them with mentoring,” said Chun. CIOs need to let young people turn their ideas “We don’t stop there—we allow young into new projects people a growth opportunity by selecting the better projects for deployment in the university. Busy with his CIO role, Chun still dubbed MITx. About 120,000 people WHFKQRORJLHV FKDQJH DQ RUJDQL]DWLRQ¶V HQUROOHGIRULWV¿UVWFRXUVHFLUFXLWVDQG culture and people’s ways of doing VTXHH]HV LQ WLPH WR WHDFK DW OHDVW RQH electronics. There are many more simi- things,” he said. “My team and I have course every semester—except in 2011 ODUFDVHVLQWKH86WKDWSRWHQWLDOO\ÀDW- to let users know how they can make to prepare for the arrival of the new great use of technologies and the ben- 3-3-4 education scheme this year. “Talten the education landscape.” HQW FXOWLYDWLRQ RXWVLGH WKH RI¿FH VWLOO As a result, universities must allow H¿WV´ This is made easier with the help of matters a lot to me,” he said. “I want students to collaborate and do real problem-solving during class time—this is enthusiastic users, said Chun. “We seek to share my experiences of using techZKDW&KXQFDOOVDµÀLSFODVV¶³3URIHV- enthusiastic users to try new systems nologies to solve real problems with sors must become mentors and facili- and promote those new tools to other students.” “As an educator and a CIO in an edutators helping students solve problems users—it’s much more effective than in-class rather than giving lectures,” he getting an IT pro to do the job,” he said. cational institute, I want users to have The value of professional project a rewarding experience in using techsaid. “To prepare for problem solving in classes, students go online to study management is another important nologies and students to be able to use lesson. According to Chun, CityU’s tech in solving real-world problems,” course materials.” Web site—which he concluded. At CityU, teaching staffers can award-winning learning, and they use it because it’s similar to what they use in their daily life.” According to Chun, technology should help transform education and learning experiences. “These days you can learn many things on the Internet, and educational institutes must ask what value they can bring to students,” he said. “Look at the Khan Academy—started by Salman Khan who initially created and put videos on YouTube for his cousins to learn algebra,” said Chun. “Now [the academy] has more than 3,000 videos and become popular.” He added that more free contents are available from renowned universities like Stanford whose free online AI course has attracted about 250,000 people to sign up. “This isn’t a standalone case but a potential major paradigm shift,” he said. “MIT also announced earlier this year an online project www.cw.com.hk choose to pre-record lecture videos for students to view before coming to classes, according to Chun. “We started this last semester,” he said. “Some staffers have already tried to pre-record lecture videos to allow more interaction and discussion during classes.” July/August 2012 Computerworld Hong Kong 17 INDUSTRYPROFILE =VPJLVMMLYZVWWZPU[OLHWWZTHYRL[ Multi-pronged approach key to mobile app’s success, says VP Chris Lewis from local firm maaii )`;LYLZH3L\UN &:+. :K\ WKH QDPH PDDLL" :KHQ in January and the Android version in June. Lately we signed up 15 developers ZDVWKH¿UPIRXQGHG" in Singapore and more than 20 developChris Lewis: My team and I started ers in Shanghai—these people want to the company in 2011 after I left Skype enhance their existing apps with a voice in Hong Kong. The name maaii has no element. An ISP in Singapore will also meaning—we like it because it’s short deploy our platform in the next few and easy. maaii—with investment from months. WKH +RQJ .RQJKHDGTXDUWHUHG *DQJHV Group—has a team of 30 people sta- &:+.:KHUHDUH\RXUXVHUVORFDWHG" tioned in Hong Kong, Beijing, and SinJDSRUH+DOIRIRXUVWDIIHUVDUHLQ5' CL: Most are from Asia and the Middle East. Many in these regions seek cheaper &:+. PDDLL LV D IUHH PRELOH DSS IRU international voice services. FDOOLQJ DQG PHVVDJLQJ :KDW¶V \RXU CWHK: Do you consider WhatsApp and EXVLQHVVPRGHO" WKHOLNH\RXUFRPSHWLWRUV":K\RUZK\QRW" CL: While we offer a free consumer app for the iPhone and Android phones, we CL: On the consumer [app] front, our also provide enterprises and service pro- rivals include Viber, Skype, WhatsApp, viders with a white-label hosted offer- and Kakao. But Skype doesn’t provide SXVK QRWL¿FDWLRQV RQ L26 ZKLOH 9LEHU LQJSOXVDQ6'.IRUGHYHORSHUV Our customers pay a monthly fee for offers no calling function. Kakao has the white-label product—this helps them no social integration. At the moment, shed heavy upfront costs. We target our no one else provides a consumer app, a product at sectors like social media, ZKLWHODEHOSODWIRUPDQGDQ6'.DWWKH travel, gaming, and e-commerce. Inte- same time. gration with the maaii app allows an ecommerce Web site to easily and cost- &:+.:KDWDUHWKHFKDOOHQJHVIDFLQJ effectively link their customers directly PDDLLDVD+RQJ.RQJWHFK¿UP" to their call centers. For individual smartphone users, ma- CL: I’ve been in Hong Kong for over aii enables more than just free calls to six years, and I think the major chalother registered users—it also synchro- lenges here are similar to those in other QL]HVLWVHOIZLWKDXVHU¶V)DFHERRNIULHQG locations. Hiring tech talent is an issue list. We also give out free calling-min- in Hong Kong—especially for a startup like us. We need a bigger startup comutes to new users. munity to drive development and attract CWHK: When did you launch the maaii more talented pros. There is a tech community in Hong Kong, but its scale is DSS":KDW¶VWKHUHVSRQVH" unlike startup clusters in other countries CL: We launched the iPhone version such as Singapore. 18 Computerworld Hong Kong July/August 2012 3L^PZ!;OLYL^PSSILTVYLºYHUKVT» L_WLYPLUJLSPRL+YH^:VTL[OPUNPU[OL market CWHK: What new products are you ZRUNLQJRQ"$Q\VODWHGODXQFKGDWH" CL: The next release of the consumer app will allow people to share content like videos and animation during calls— this will help further differentiate us from our rivals. We will also make callIRUZDUGLQJ DYDLODEOH ODWHU WKLV TXDUWHU In Q4, we’ll launch a feature that allows your contacts to reach you without incurring international call charges no matter ZKHUH\RXDUH:H¶OODOVRRSHQDQRI¿FH in Singapore in the near future. &:+.:KDW¶V\RXUWDNHRQQHZPRELO ity and social trends in the coming 12 PRQWKV" CL: More players will offer technologies to enrich existing apps because many developers don’t have the skillsets to build the new functions that users need. Also, expect more ‘random’ experiences in the market. For example, the 'UDZ6RPHWKLQJDSSIURP20*323² it was discovered by users and become viral in a short period of time. www.cw.com.hk Ricoh-sponsored study: three of four organizations suffer serious problems from broken document processes Study finding is first output of Ricoh’s new Document Process Imperative; Ongoing research to detail best document-related practices for business I neffective document-based processes, a “blind spot” for businesses, have directly triggered serious incidents at three out of four organizations in the past five years, according to a new IDC white paper commissioned by Ricoh Company, Ltd. The white paper is the first product of Ricoh’s new Document Process Imperative initiative. approach, we work to understand how information flows through an organization and how business processes, especially people-driven ones, affect that flow,” he said. “Improved processes can not only help drive efficiency and productivity, but can be engineered to help address risk factors at every stage.” Document process failures have caused severe consequences: 36 % of responding companies failed to meet compliance requirements, 30 % lost key employees, and 25 % lost major customers. Other consequences include major IT security breaches, getting pulled into a major audit, suffering a PR crisis and being sued. IT’S WORSE THAN YOU THINK The good news: addressing failures proactively can head off substantial financial harm. IDC estimates that the overall cost of process failure (in terms of staff time and executive oversight for activities such as required rework and process reviews, as well as opportunity costs associated with lost customers) is at least 10 times the direct out-of-pocket costs (such as paying financial settlements). “What many [business executives] may not appreciate is the degree to which document-driven business processes affect their organization’s risk profile: there is a high risk of breakdowns in these processes causing severely negative business outcomes, and the costs of these breakdowns are worse than many executives think,” states IDC in the Ricoh-commissioned report, “It’s Worse than You Think: Poor Document Processes Lead to Significant Business Risk”. “Although most invest significant resources to reduce lowprobability/high-impact risk events, high-probability/high impact risks introduced by broken document processes are lurking dangerously below the corporate radar and merit C-level attention.” The Ricoh Document Process Imperative is an ongoing initiative to help businesses understand the risks, opportunities and best practices around the documents that drive their critical business processes. Proposals for improving document processes sometimes fail because they don’t make it onto the agenda of C-level executives, the research found. That’s an important threshold because document processes span multiple teams, departments and organizations. Many subordinates don’t have the scope of responsibility to architect and execute the broad-based changes required. “Truly effecting change requires C-level attention,” the report states. 75.9 % COMPANIES EXPERIENCED SIGNIFICANT BUSINESS RISK INCIDENTS AND SUFFERED SEVERE CONSEQUENCES DUE TO BROKEN DOCUMENT PROCESSES, ACCORDING TO IDC WHITE PAPER, SPONSORED BY RICOH* POOR DOCUMENT PROCESSES LEAD TO SIGNIFICANT BUSINESS RISK 36.2% Failed to meet compliance requirements 30.2% Lost Key Employees 24.9% Lost Major Customers 24.8% Had a major IT breach 20.4% Were pulled into a major audit 19.1% Suffered a major PR crisis *IDC White Paper sponsored by Ricoh, “It's Worse than You Think: Poor Document Processes Lead to Significant Business Risk,” doc #6352, June 2012 Ricoh is keenly aware of these risks and, as a leader in providing Managed Document Services (“MDS”), is uniquely equipped to assist its customers. Sergio Kato, Deputy General Manager, Global Marketing Group/Services Business Center observes: “Through our Managed Document Services (MDS) www.ricoh.com/mds Follow us on twitter: http://twitter.com/#!/RicohGlobalMDS Copyright 2012 Ricoh Company, Ltd. All Rights Reserved IDC White Paper sponsored by Ricoh, “It’s Worse than You Think: Poor Document Processes Lead to Significant Business Risk,” doc #6352, June 2012 FOR MORE INFORMATION ON THE STUDY, please visit http://mds.ricoh.com/thoughtleadership www.cw.com.hk July/August 2012 Computerworld Hong Kong 19 )YV\NO[[V`V\I`9PJVO FEATURE Great expectations for HK’s TCB Local ICT pros expect the Technology and Communications Bureau to come up with industry development and transformation policies ASAP )`:OLPSH3HTHUK;LYLZH3L\UN S LQFH WKH +RQJ .RQJ 6$5 JRYernment’s establishment of the OGCIO—and its ditching of the ,76',QIRUPDWLRQ7HFKQRORJ\6HUYLFHV 'HSDUWPHQW²LQPDQ\ORFDO,&7 pros and startups have slammed the government’s lukewarm attitude towards the industry’s development. While innovation and technology is among the pillar industries designated by the government, there isn’t any sign of its development. According to various industry players CWHK talked to previRXVO\WKH2*&,2LVMXVWDQRI¿FHUDWKHU than a policy maker unit, thus lacking the power to move the industry forward. On top of this, employers have a hard time hiring the right tech talent because those brilliant young people are drawn WR¿QDQFHDQGRWKHUSURIHVVLRQVLQVWHDG of technology—where they don’t see a bright future. As a result, the ICT industry has demanded a technology bureau for years. While Hong Kong’s new ruling team ZDVVZRUQLQWRRI¿FHRQ-XO\²WKRXJK QRWTXLWHLQLWV¿QDOIRUP²PDQ\LQGXVtry players expect the Technology and Communications Bureau (TCB) to go live sooner or later. Of late, local CIOs and industry gurus (listed below) shared with CWHK their expectations of the TCB and suggestions on how the bureau could give the ICT sector a boost. 20 Computerworld Hong Kong July/August 2012 *HSS`*OHU managing director, Hong Kong, HP (CC) :[LWOHU3H\president, Hong Kong Computer Society :\UU`3LL executive director, IT, Hong Kong Jockey Club (SL) .HIYPLS3L\UN general manager, Hong Kong and Macau, EMC (GL) 4PJOHLS3L\UNsenior VP and CIO, China Construction Bank (Asia) (ML) 2HT-HP>VUNassociate dean, Faculty of Engineering at Chinese University of Hong Kong (KW) The government needs to know tech’s potential and where opportunities lie —Cally Chan, HP www.cw.com.hk in terms of ICT development. To make the TCB relevant, the bureau chief must have a tech background and understand the industry’s most pressing needs. The bureau must help Hong Kong and its ICT sector to catch up— the past two GCIOs wasted us lots RI WLPH ZKLOH WKH 'LJLWDO VWUDWHJ\ helps Hong Kong achieve nothing. What do you expect the TCB to achieve ZLWKLQWKH¿UVWPRQWKV" SL: It must come up with policies and a master implementation plan for the tech and innovation sector development. The bureau must also have tech priorities and allocate funds to projects according to those priorities. While The TCB must have tech priorities and allocate funds to projects according to those priorities —Sunny Lee, Hong Kong Jockey Club >VUNMYVT*</2!)V[O[OL;*)HUK THPUSHUKH\[OVYP[PLZULLK[VYLTV]LIHYYPLYZ YLZ\S[PUNMYVTYLN\SH[VY`KPMMLYLUJLZ Why is the TCB important to Hong .RQJ" CC: Hong Kong’s economy has undergone substantial transformation in recent years. With too much focus on the GHYHORSPHQW RI ¿QDQFLDO DQG WUDGLQJ LQGXVWULHVVLQFHWKHV+RQJ.RQJ has lost sight of what it could achieve. ICT has colossal potential in taking Hong Kong to new heights, but we need a government that understands the potential of technologies and idenWL¿HVRSSRUWXQLWLHVLQDWLPHO\PDWWHU 'HVSLWH WKH 'LJLWDO VWUDWHJ\ WKH government is slow in implementing ICT changes. While there are different indusWU\RUJDQL]DWLRQVWKH\VHOGRPFRPHXS with initiatives that drive Hong Kong’s ICT development. The TCB should be a critical enabler that facilitates and expedites Hong Kong’s transformation. ML: Hong Kong won’t survive without a tech bureau that has a clear mission and a strong vision—Singapore and Malaysia have left us in the dust www.cw.com.hk One of the bureau’s priorities should be tech talent cultivation. Employers have a hard time hiring tech pros with IRXU WR ¿YH \HDUV H[SHULHQFH DIWHU WKH tech bubble burst. In the long term, the bureau needs to build professional recognition for IT pros—this will encourage more young and brilliant people to VWHSLQWRWKH¿HOG KW: The ICT industry unanimously believes that it needs the TCB because technology is never the focus of the &RPPHUFH DQG (FRQRPLF 'HYHORSPHQW %XUHDX &('% XQGHU WKH FXUrent government structure. To develop Hong Kong’s ICT industry, we need both the TCB and a bureau chief who understands technology and has a vision on how tech can contribute to the local economy. PreviousO\ VHQLRU RI¿FLDOV LQ WKH JRYHUQPHQW mainly came from a legal or economics background, without technology knowledge or insights. As a result, the implementation of ICT related policies were always delayed. The government has wasted so much time and missed lots of opportunities to create a stronger local tech industry. some people might argue the government shouldn’t specify tech priorities, we must focus limited resources on the most valuable projects. It takes talent to keep tech and innovation going, thus the bureau must have a policy to create a healthy supply. Last but not least, the bureau must work out a policy to allow the local tech sector continued on page 22 3L\UNMYVT**)!:PUNHWVYLHUK4HSH`ZPH OH]LSLM[\ZPU[OLK\Z[PU[LYTZVM0*; KL]LSVWTLU[ July/August 2012 Computerworld Hong Kong 21 FEATURE LQJ IRFXV IURP EDVLF VFLHQWL¿F UHVHDUFK to engineering and application projto complement the development of its ects—more commercially viable products are likely to come from these. mainland counterpart. To drive innovation, the TCB can enML: It should take SMBs—the majority courage more IP rights and patent-relatof Hong Kong’s business community— ed activities. Besides buying and selling, seriously. For instance, the bureau should IP rights owners can leverage IP rights speed up the endorsement of the use of to develop partnership and form joint HELOOV DQG HFKHFNV²WKHVH ZLOO EHQH¿W ventures. These activities can expand SMBs. We are so behind—we can no the community of developers owning IP rights and expedite the product commerlonger rest on our Octopus laurels. The bureau must also work on a city FLDOL]DWLRQSURFHVV cloud and datacenter land supply. Without a long-term land supply policy, Hong What top issues should the TCB and Kong can’t become a regional datacenter PDLQODQGDXWKRULWLHVZRUNWRJHWKHU" hub. I can assure you that factory buildLQJV FDQ¶W VDWLVI\ GDWDFHQWHU UHTXLUH- Stephen Lau: Cloud. While China alments. China Construction Bank needs ready has its own cloud cities, Hong WR UHQW DQRWKHU ÀRRU IRU LWV GDWDFHQWHU Kong must build its own cloud and work in a Sha Tin factory building for more with China in expanding cloud-related power supply. For top-tier datacenters, opportunities. For instance, an overseas dual-power sources is a must—this we vendor that wants to establish its prescan get from China. ence in China but isn’t familiar with continued from page 21 The TCB needs to work with China on mutual YLJVNUP[PVUVM0;X\HSPÄJH[PVUZ —Gabriel Leung, EMC KW: The TCB can create a system to drive innovation by encouraging tech entrepreneurship and creating job opportunities. To develop successful tech entrepreneurs, we need a system that helps priRULWL]H DQG UHYLHZ 5' IXQGLQJ $Othough the government plans to increase UHVHDUFK IXQGLQJ IURP RI RXU *'3WRWKHQXPEHULVVWLOOPXFK smaller than those in countries like China where funding will see a hike from RI*'3WRE\WKHHQGRIWKH 12th Five-Year plan period. In addition, we need to shift our fund- this, the TCB needs to work with mainland authorities on mutual recognition of FHUWL¿FDWLRQV²RXU WHFK SURV ZLOO WKHQ have more opportunities in China. The bureau can also work with China to take mainland IT standards to the global stage. For a standard to become UHFRJQL]HGJOREDOO\LWKDVWREHFRPSUHhensive with a large adopter base. China has already developed many comprehensive technology standards. If Hong Kong adopts these standards and adds value to them with intellectual property protections—this is what we are good DW²ZHFDQPXWXDOO\EHQH¿WHDFKRWKHU KW: To encourage tech-related business activities between Hong Kong and &KLQD JRYHUQPHQW RI¿FLDOV IURP ERWK places need to remove some of the barriers resulting from regulatory differences. Both China and Hong Kong should also create programs to attract and foster EXVLQHVV DFWLYLWLHV 'LVFXVVLRQ DQG LPplementation related to this wasn’t possible before because there was no senior +RQJ.RQJJRYHUQPHQWRI¿FLDOIDPLOLDU with technology. Now with the TCB and a bureau chief supposedly with a tech background, things can move a lot faster. mainland laws can have its data processing and storage in Hong Kong. 7R H[SDQG ORFDO WHFK ¿UPV¶ RSSRUWXnities in China, the bureau should explore how it can collaborate with cities LQ*XDQJGRQJDQGWKH3HDUO5LYHU'HOWD GL:0XWXDOUHFRJQLWLRQRI,7FHUWL¿FDtions. To work on mainland government SURMHFWVWHFKSURVDUHUHTXLUHGWRREWDLQ YDULRXV ,7 FHUWL¿FDWLRQV LQ WKH FRXQWU\ but Hong Kong tech pros have global FHUWL¿FDWLRQV VXFK DV WKRVH E\ WKH 30, (Project Management Institute) rather than those from the mainland. In view of 22 Computerworld Hong Kong July/August 2012 3H\MVYT/2*:!/VUN2VUNT\Z[I\PSKP[Z V^UJSV\KHUK^VYR^P[O*OPUHPUL_WHUKPUN JSV\KYLSH[LKVWWVY[\UP[PLZ www.cw.com.hk ADVERTORIAL Dell devises next stage of data evolution Dell Fluid Data solutions offer a breakthrough approach to intelligently manage data end-to-end Alvin Khoo and Steve Lam from Dell Hong Kong In the past decade, a volatile business climate and a dynamic technology landscape have combined to raise the pressures on the enterprise data center, and especially on the storage infrastructure that underlies it. right cost,” said Steve Lam, Managing Director of Dell Hong Kong Limited. Automating storage processes Pushing the limits Kho added that Dell Fluid Data solutions encompass a rich and innovative portfolio of products, expertise and service which can help customers transform their storage infrastructure for the virtual era. “Customers will be able to automate data management, optimize their storage footprint and scale seamlessly to meet demand,” he said. “Enterprises can now protect their data simply and affordably, and integrate effectively across their whole environment.” The need to adapt to such constantly shifting demands and technology developments have sorely tested the limits of existing networked storage solutions. The virtualization mega trend has dramatically changed the way information is sized, controlled and protected. But traditional networked storage solutions are too often rigid, complex and inefficient. At the core are the Dell Fluid Data architecture, advanced technologies and the vision to support the company’s development philosophy to provide open, capable, and affordable storage infrastructure, bringing sophisticated enterprise computing capabilities within the reach of every organization. Business-critical applications demand more performance as their capacity requirements grow and are increasingly difficult to predict. Data is more critical than ever to the business, while the responsibility of managing it spreads out to cross traditional IT silos. “For organizations driving the shift to the virtual era, one thing quickly becomes apparent is that the status quo is not sustainable,” said Alvin Kho, Enterprise Technologist, Storage, Dell Hong Kong Limited. “Old processes of managing, maintaining and protecting information are proving costly, inefficient and unable to support new opportunities and challenges.” The essential truth about storage is that data isn’t static. It is not something to be merely stored. Data is something to be actively and intelligently managed. “Dell Fluid Data solutions offer a breakthrough approach to intelligently manage data end-toend – where stored information moves seamlessly through different platforms on different systems and even from physical to virtual environments as needs change – to put the right www.cw.com.hk data in the right place at the right time for the Rampant growth in the quantity and complexity of data is straining budgets and hindering IT productivity. Already immense, storage requirements continue to multiply year after year. Traditional storage solutions actually add cost and complexity instead of reducing them, effectively defeating the efficiencies promised by virtualization. Moreover, scaling traditional storage from growth includes the pain of datain-place migrations and forklift upgrades. “What enterprise and organizations need are dynamic storage solutions that can truly simplify data management through built-in intelligence and advanced automation like Dell Compellent’s “Data Progression” that automatically places the huge amount of corporate static data into the most affordable storage media which all translates to huge cost savings in maintenance while avoiding human error,” said Lam. In Hong Kong, customers are leveraging Dell’s Fluid Data to truly enable their virtualized environment (both server virtualization and client virtualization) while paving the right way into the private cloud journey. “It is always great receiving the good news from customers that after they implemented our Fluid Data storage solutions, they no longer have to worry about the constant log-in and log-off storm in their VDI project which typically creates a lot enduser complaints.” said Kho. Removing complexity This growth exacerbates complexity, raising both the risks and the stakes of data loss and downtime, and posing a threat to IT organizations trying to control budget and simplify operations. “Within the Hong Kong and Asian regions we are seeing a number of manufacturing companies and medium to large size companies who don’t have large budgets or dedicated IT teams, adopting Dell managed data solutions which fit their specific needs, as one of our “Today’s storage must support global, aroundsolutions like Dell EqualLogic is providing all the-clock, web-optimized applications and exinclusive licensing and transparent managepanding databases, as well as multimedia and ment capabilities. These mean that customother file-based operations,” Kho said. “Perers can always have the “perfect’ budgeting vasive server and client virtualizations infuse for their storage plan which is extremely difnew requirements, potentially breaking existficult to achieve by traditional storage as they ing processes and forcing IT managers to realways have a lot of hidden costs and high opconsider the effectiveness of their per-existing erating costs associated with traditional data July/August 2012 Computerworld Hong Kong 23 storage infrastructures.” management” Lam added. FEATURE HK lags region in IPv6 adoption Survey shows awareness remains low as ISPs provide limited IPv6 services By Sheila Lam and Teresa Leung P ublic awareness of IPv6 is limited in Hong Kong and technical knowledge on the new Internet protocol is lacking, according to results of a survey released last month—the day of World IPv6 Launch. The online survey—conducted in WKH ¿UVW TXDUWHU RI WKH \HDU E\ WKH &LW\ University of Hong Kong—was commissioned by the Internet Society Hong .RQJ,62&+. Although 71% of over 600 respondents have basic knowledge of IPv4, only 24% of them are familiar with IPv6, according to Daniel Tse, Department of ,QIRUPDWLRQ6\VWHPV&LW\8QLYHUVLW\RI Hong Kong, who was in charge of the survey. The survey suggests a huge lack of preparation among individual and business users, he said. Although 63% of respondents agree that local enterprises must switch to IPv6 urgently, only 9.7% are ready to deploy IPv6, said Tse, adding that more than 90% of respondents have no plans to apply IPv6. (L-R) Tse from City University, OGCIO’s Lai, Mok from Internet Society Hong Kong Kong’s adoption rate is relatively low FRPSDUHGZLWKLQ&KLQDDQG in France. He said the higher IPv6 adoption rate in France is a result of local ISPs pushing WKHVHUYLFHV&KLQD²ZKHUHUDSLGRQOLQH development exhausted IPv4 addresses—has also resulted a higher adoption of IPv6, he added. customers to access your Web sites via the new Internet protocol,” said Mok. He added that there are currently two Hong Kong providers—Udomain and Easylink—that support IPv6 web hosting. Government support Unlike Singapore where the government could push IPv6 adoption via reguISPs limit IPv6 to select lations, the Hong Kong government can customer only “encourage” ISPs to start providing The low IPv6 adoption in Hong Kong IPv6 services by generating demand, is a result of selective service provision Mok noted. E\,63VVDLG,62&+.IRXQGLQJFKDLUSome of the local government’s iniPDQ&KDUOHV0RN tiatives to create IPv6 demand include “Most local ISPs only provide IPv6 moving 200 government Web sites to the services to some of the commercial cus- new protocol and providing IPv6 supAPNIC: Hong Kong woefully tomers,” said Mok. “Usually these cus- port in the next-gen government Wi-Fi unprepared WRPHUV DUH ODUJHU ¿UPV WKDW DUH SRZHU- program—to be launched in December, According to Geoff Huston, the chief IXOHQRXJKWR¿JKWIRUWKHVHUYLFHVWKH\ DFFRUGLQJWR*&,2'DQLHO/DL VFLHQWLVWRI$VLD3DFL¿F1HWZRUN,QIRU- want. Most local SMBs still have no ac/DL VDLG WKH 2*&,2 KDV DOVR IXQGHG PDWLRQ &HQWUH $31,& RQO\ RI cess to IPv6 services.” ,62& +. VLQFH 2FWREHU WR ODXQFK WKH Internet users in Hong Kong are IPv6He said that if local SMBs want to be “IPv6 In Action” project to educate the enabled as of May 2012. IPv6-enabled, they must take extra steps public and SMBs to ride on the IPv6 $31,& D QRQSUR¿W RUJDQL]DWLRQ WR UHFRQ¿JXUH WKHLU URXWHUV DQG DGRSW wave. Part of the program is the launch LV RQH RI ¿YH 5HJLRQDO ,QWHUQHW 5HJ- tunneling technologies. If a company of a user guide last month dubbed “All LVWULHV 5,5V FKDUJHG ZLWK HQVXULQJ can’t get help from the ISPs, it can still about IPv6.” The guide contains essenthe fair distribution and responsible jump the IPv6 bandwagon by letting tial information about IPv6, as well as management of IP-addresses and re- an IPv6-enabled service provider host VSHFL¿FVWHSVWRHQDEOHLWDWKRPHDQGRQ lated resources. Huston added Hong their Web sites. “This allows users or business networks. 24 Computerworld Hong Kong July/August 2012 www.cw.com.hk Introducing complete colo data centre physical infrastructure Scalable and without the complexity adaptable modular Fast and easy to deploy power and cooling modules infrastructure Cloud-enabled high-density pods Scalable, modular Schneider Electric data centre physical infrastructure is cloud-enabled, adaptable, and easy to deploy Adaptable infrastructure for every colo tenant With Schneider Electric™ as your partner throughout your data centre’s life cycle, you can welcome all customers — from small businesses that need to lease just a cage to cloud service providers looking for high-density pod space that can adapt quickly and easily to their business needs. Let’s face it: data centre CapEx for new builds or retrofits can be daunting and, in turn, out of reach for many small companies and enterprises. So now is your opportunity to expand your tenant base. Schneider Electric can help your colocation facility meet the fast-growing demand for outsourced, reliable, energy-efficient data centre physical infrastructure that comprises best-of-breed components. Complete infrastructure through a tailored global supply chain Our modular data centre physical infrastructure includes energy-efficient APC InRow™ cooling units, our innovative EcoBreeze™ economiser, scalable three-phase UPS solutions for right-sized power, vendor-neutral rack systems, end-to-end management software, and comprehensive services. It will make your lease agreements stand out. We’ll help your tenants cut their OpEx costs, reduce IT complexity, and focus on their core business at all times. And we’ll help you lower your own operating costs, do much more within a smaller footprint, grow your facility only as you need to, and deliver optimal uptime to your tenants. Make your colo data centre Business-wise, Future-driven… today! Business-wise, Future-driven.™ Our step-and-repeat approach to expansions You can add facility power and cooling capacity in just weeks with Schneider Electric data centre facility modules, scaling as needed in 500 kW increments, without taking \W]HS\HISL0;ÅVVYZWHJL > Pretested and prewired to reduce design and deployment time > CapEx cost savings from 10 to 20 per cent, and OpEx savings from 20 to 35 per cent > Right-sizing capabilities to optimise PUE > /RO^bOPZSb]a^SQWÅQ`SRc\RO\QgO\R capacity needs Check out the Schneider Electric partner programme for colo companies at www.schneider-electric.com D Download expert tips today to win a FREE travel adaptor! Visit www.SEreply.com key code 44855y or call (852) 8200 8589 email hk-seit@schneider-electric.com www.cw.com.hk July/August 2012 Computerworld Hong Kong 25 ©2012 Schneider Electric. All Rights Reserved. All trademarks are owned by Schneider Electric Industries SAS or its affiliated companies. 35 rue Joseph Monier, CS 30323, 95506 Rueil Malmaison Cedex (France) Tel. +33 (0) 1 41 29 70 00 998-6238_HK-GB TECHWATCH :VM[^HYL+LÄULK5L[^VYRPUN! massive potential Programmable networks could bring paradigm shift in network management )`:OLPSH3HTPU:HU+PLNV A t CiscoLive, the company’s annual global user conference in 6DQ'LHJRODVWPRQWKWKHPDjor topic revolved around Cisco’s blueSULQW WRZDUGV 6RIWZDUH'H¿QHG 1HWZRUNLQJ 6'1²D PRGHO WKDW HQDEOHV programmability in networks. 'ULYHQ E\ WKH DFDGHPLFV DQG PDMRU Web companies like Google, Facebook DQG <DKRR 6'1 DQG 2SHQ)ORZ²WKH VWDQGDUGL]HG DSSOLFDWLRQ SURWRFRO WKDW HQDEOHV 6'1²DUH LQFUHDVLQJO\ JDLQLQJ attention for its potential to manage and SURJUDPQHWZRUNWUDI¿FUHJDUGOHVVRIWKH underlying hardware. ³7KH DLP RI 6'1 LV WR UXQ QHWZRUNV with programmatic interfaces, allowing software programming to control network operations, rather than technicians ZLWK3K'V´VDLG'DYLG.UR]LHUSULQFLpal analyst, networking infrastructure at Ovum. Major networking vendors like Juniper, HP, IBM and NEC all provide capaELOLW\IRU2SHQ)ORZWKDWVXSSRUWV6'1 DFFRUGLQJ WR .UR]LHU &LVFR MXPSHG on the bandwagon last month and announced the Cisco Open Network Environment (ONE) strategy. Deep access APIs Aiming to provide an open platform and culture in the networking space, Cisco ONE includes the provision of APIs for deep programmatic access across Cisco’s operating systems and hardware platform. Named onePK, the software GHYHORSPHQW NLW 6'. ZLOO DOORZ GHvelopers to create a tight integration between the applications and the network to provide visibility and orchestration of network infrastructure. 7R VXSSRUW WKH 6'1 PRGHO &LVFR will also provide controller software and the OpenFlow agent at selected Cisco switches for academics and research institutions. The strategy also extends support of its virtual switch Nexus 1000V portfolio—previously only available for VMware and Microsoft hypervisors—to open-source hypervisors. 2PYHUMYVT*PZJV!0:7Z[Y`PUN[VKPMMLYLU[PH[L [OLTZLS]LZ^PSS[\YU[V:+5 Asia (service providers) are likely to lead the way to push forwards SDN and OpenFlow – Michael Beesley, Juniper Networks “Cisco ONE is what you’d expect from the company with the largest base RI GHSOR\HG QHWZRUNLQJ HTXLSPHQW´ VDLG .UR]LHU ³7KH VWUDWHJ\ LV GHVLJQHG to show the continuing value of Cisco HTXLSPHQWLQDPLJUDWLRQ´ Besides Cisco, Juniper Networks last October also made available the 6'.IRULWVRSHUDWLQJV\VWHP-8126 “I won’t be surprised to see Huawei come out with an announcement on its 6'1 GLUHFWLRQ WKLV \HDU RU QH[W´ VDLG .UR]LHU 26 Computerworld Hong Kong July/August 2012 7V[LU[PHSMVY:+5PU(ZPH Besides the excitement among academics and major Web companies, aggressive competition in the Asia telecom market is also expected to drive interest LQ6'1 “By opening this (onePK and OpenFlow agents) up, we expect people who have more understanding with applications to now relate what a network can do, so we are bridging these two,” said Shashi Kiran, senior director of marketing, datacenters, Cisco. “In Asia, such www.cw.com.hk bridging is particularly helpful for dealing with the challenge of limited network bandwidth.” Kiran said ISPs trying to differentiate WKHPVHOYHVVKRXOG¿QGWKHSURJUDPPDbility of networks enables them to proYLGHPRUHFXVWRPL]HGRIIHULQJV This view is echoed by Michael Beesley, platform systems division CTO of Juniper Networks. “Asia (service providers) are likely to lead the way to push IRUZDUGV6'1DQG2SHQ)ORZ´KHVDLG Beesley noted service providers, particularly public cloud providers, will appreciate the programmability of the network, which enables manageability of the WAN environment and provide higher levels of SLAs or QoS for its customers. ³,I \RX KDYH 6'1 FRQWURO RU SURYLsioning on both (enterprise and provider) sides, it will bring a more seamless and practical way to achieve SLAs and QoS for mission critical applications,” he said. (QWHUSULVHV WKDW UHTXLUH H[WUHPH QHWwork performance are also expected to HPEUDFH 6'1 ³,Q WKH ¿QDQFLDO VHFWRU their differentiation is to guarantee that transactions happen at a certain time regardless of the network environment,” added Beesley. He noted that the healthcare industry, ZKLFKKDVVHHQPXFK0$DFWLYLWLHVLQ UHFHQW \HDUV LV DOVR ORRNLQJ DW 6'1 DV a reliever. Beesley said this highly regulated industry is pressuring IT leaders to integrate and manage IT infrastructure while complying with regulatory reTXLUHPHQWV .UR]LHUIURP2YXPVDLGWKHWHFKQROogy remains new for Asia enterprises and they may rely on partners to develop new features. “I think Cisco sees enterprises (in Asia) selecting the network functions they need from Cisco or third party developers, rather than writing directly to onePK APIs,” he said. “I’m sure Cisco will be working to develop an ecosystem around onePK, as well as developing its own software applications. When onePK becomes available it may begin to have an impact on enterprise networks in Asia.” Giving users a choice of PCs and Apple devices available. Users are allowed to make that choice when they are due for a device-refresh. Cisco’s CIO shares experience in managing users experience She said it’s important to be clear with among engineers )`:OLPSH3HTPU:HU+PLNV the users about what support is being offered in order to avoid increasing helpany enterprises are seeing desk support costs. rising demand from users ³,Q WKH LQLWLDO GHSOR\PHQW RI %<2' IRUD%<2'SROLF\&LVFRLV we made it clear that choosing a Mac not excluded to that. At CiscoLive—the means choosing a community-support company’s annual user conference— service, versus a traditional call-center &LVFR &,2 5HEHFFD -DFRE\ VKDUHG KHU model,” said Jacoby. “We are also clear H[SHULHQFH LQ PDQDJLQJ %<2' DPRQJ about what type of roles work better with tech-savvy users. PCs and what roles work better with She says Cisco has been enabling Apple.” %<2' DPRQJ LWV HPSOR\HHV IRU IRXU 6LQFH WKH ODXQFK RI %<2' DW &LVFR years—soon after she took up the posi RI HPSOR\HHV FKRVH 0DF DQG tion. “We were driven to do so—I was 1HJVI`MYVT*PZJV!0\ZLK[VZWLUK FKRVH3&V-DFRE\QRWHGWKDWSURnew in the CIO role and spent enormous LUVYTV\ZHTV\U[ZVM[PTLKLMLUKPUN^O` viding choices to the users was the bigamounts of time defending why we ^LKPKU»[OH]LH)@6+WVSPJ` GLGQ¶W KDYH D %<2' SROLF\´ VKH VDLG While a majority of people use Android gest and most important decision for her “It was a waste of my time, so I said or iOS devices, there is a small and de- team. “I can tell how much it changed our WR WKH RUJDQL]DWLRQ WKDW ZH QHHG WR VD\ clining population of users going after UHODWLRQVKLS ZLWK WKH ZKROH RUJDQL]D‘yes’.” Blackberrys. 5HJDUGLQJ PRELOH VHUYLFHV -DFRE\ tion by doing so,” she said. “It was ex*PZJV»Z)@6+WVSPJ` said both the devices and mobile ser- tremely important to our future and our 7KHFRPSDQ\¶V%<2'SROLF\DSSOLHV vices are not covered by the company, relationship with the engineering team. It proved that we are open-minded and to both mobile devices and laptop de- except for certain business roles. vices. She noted users are pretty much Meanwhile choices for laptops are did not adopt the legacy approach as the open to all choices for mobile devices. more limited and there is a standard list traditional IT.” M www.cw.com.hk July/August 2012 Computerworld Hong Kong 27 Securing the information age Mobility and cloud have pushed CIOs to refocus strategies from the perimeter and infrastructure to content and context-aware security measures By Chee-Sing Chan Roundtable attendees (L to R): Chee-Sing Chan, Computerworld Hong Kong; Thomas Yip, AIA Shared Services; Tom Leung, Hong Kong Exchange; Simon Cheung, Open University of Hong Kong; Micky Lo, Deutsche Bank; Michael Chue, Symantec; Victor Law, Symantec; Andre Greyling, Hospital Authority; Amelia Yeung, investment bank; T Rajah, CLSA. T echnology and security heads recently gathered at the Computerworld Hong Kong and Symantec-hosted CIO Roundtable to discuss the security issues facing businesses today with the rise of mobility, cloud and consumerization. According to Michael Chue, managing director, Symantec Hong Kong & Taiwan and Greater China, the environment today features multiple devices, multiple platforms and multiple locations and scenarios where company data is being accessed and moved to. “Devices will continue to grow in number and in capability which will further increase the threat of data loss,” said Chue. “It will surprise many people 28 Computerworld Hong Kong July/August 2012 WRGD\KRZPXFKGDWDLVÀRZLQJWKURXJK these mobile devices and between cloud services like Dropbox and WhatsApp.” He added these mobile devices, the availability of cloud services and the way users access information today are combining to create a huge challenge LQ VHFXULQJ GDWD ÀRZ ³7RGD\ ZH DUH clearly in a new age where content and context-aware security is the capability we need to enable for businesses,” said Chue. Change in inevitable As workers change the traditional dyQDPLFV RI ZRUNSODFHV WKH ÀRZ RI GDWD today within organizations and out beyond their own networks means that www.cw.com.hk securing users and information has become incredibly complex. According to Amelia Yeung, VP, technology risk manager, APAC, for a global investment bank, the scenario is likely the same at many other banks and organizations where users are constantly putting in new requests for access to company applications and data on their own devices. Her company has provided remote desktop access to staff for some time but the demand of iPhone access or other non-company devices is becoming something that cannot be ignored. E-mail and some applications are now accessible via iPhone but these are company-owned devices, noted Yeung. “We have some executives replacing their Blackberrys with iPhones and we are exploring the idea of staff bringing their own device but for now our compliance and regulatory stance is that corporate data can only be accessed via companyowned devices,” she said. Yeung added that there is a keen shift to adopt BYOD but there are regulatory and compliance issues that need resolving before internal risk and compliance groups can accept introducing staff-owned devices with the company. Symantec’s Chue: It will surprise many WLVWSL[VKH`OV^T\JOKH[HPZÅV^PUN through these mobile devices and between cloud services like Dropbox and WhatsApp www.cw.com.hk Yeung admits this is probably unsustainable as the company is unlikely to be able to provide iPhones or new Android devices to all users that put forward requests. At the Hospital Authority (HA), BYOD is already in place in certain parts of the organization, but again, due to “Users today are so empowered with technology that the IT departments are no longer solution providers to the usHUVEXWPRUHOLNHFULPH¿JKWHUVVHHNLQJ those that break the rules,” he added. “And that is creating an unhealthy environment and culture clash between IT and the users.” Most people are still in the mode of securing the perimeter — Micky Lo, Deutsche Bank compliance and internal regulation, it is not applied to all staff and instances. Andre Greyling, CIO at HA noted that doctors and executives can use their iPhone and iPads for some work tasks but must abide by strict security policies and have data loss prevention, device management, remote wipe and other security tools applied to them. 5DMDK LQVLVWV WKDW UDWKHU WKDQ ¿QGLQJ ways to block users IT must be an enabler of new capability. “We must build new capabilities and enable access – this means moving beyond e-mail and providing controlled access to data and applications across all main platforms,” he said. Access at all times Soft approach $FFRUGLQJ WR 7RP /HXQJ 93 RI ,7 Access to the cloud is also permitted Hong Kong Exchange and Clearing, the with things like Dropbox and other environment will also govern the speed cloud services being used by HA of adoption and the security approach staff. But whether on mobile or cloud, to BYOD and other mobile capabilities. anything that relates or contains patient In his previous roles with investment data is currently tightly guarded and banks, “they wanted staff to have access not accessible by personal devices or at all times and in all scenarios as they allowed to be placed into the cloud, would not accept any situation where stressed Greyling. staff could not be contacted or not be Such practices are understandable in able to do their work – it’s an always-on industries like the health sector but many FXOWXUH´VDLG/HXQJ But at Hong Kong Exchange the opFRPSDQLHVZLOO¿QGLWKDUGWRDGRSWVXFK a hardline with users. eration is locally focused, not as geo$W EURNHUDJH ¿UP &/6$ WKH EHOLHI graphically distributed and the need for is that, “if staff are not given access to mobility and the remote access is less the data they want, the applications they FULWLFDO/HXQJQRWHGWKDWPRELOLW\LVOHVV want or the devices they want to use – of a priority compared with other comWKH ERWWRP OLQH LV WKDW WKH\ ZLOO ¿QG D panies but he expected that to change as way around the rules regardless,” said continued on page 30 75DMDK&,2DW&/6$ July/August 2012 Computerworld Hong Kong 29 RID'HXWVFKH%DQNDSSURYHG26RQWKH device, which features the necessary security tools. HKEx evolves its business. Lo observed that tests so far show that $W 'HXWVFKH %DQN FXVWRPHUV ZHUH found to be driving staff to push for use applications and usability are no differRIL3DGVDQGL3KRQHV³)URQWRI¿FHVWDII ent to having the regular iOS installed. were passing feedback from consumers “The only difference noticed so far is the around why the bank’s staff were not us- GLJLWSDVVZRUGLQVWHDGRIWKHVWDQing these devices to present and provide dard 4 digit passcode on Apple devices,” information in meetings,” said Mickey KHDGGHG³6RWKHSROLF\LV%<2'EXW XQGHU'HXWVFKH%DQNFRQWURO´ Users must accept data encryption on the devices, restricted access to certain applications and data types as well as the option for IT to do remote data wipes in case of device loss or compromised security. continued from page 29 9HQHOMYVT*3:(!>LT\Z[TV]LH^H`MYVT [OPZMHsHKLVMWYV[LJ[PUN[OLI\ZPULZZI` ISVJRPUN[OPUNZ Lo, head of IT Security and IT OperaWLRQV'HXWVFKH%DQN “We saw other banks and companies starting to leverage these devices and because of overall market penetration and senior management’s preference for iPhone, we decided to focus our initial efforts on the Apple iOS platform,” said Lo. “We see the rise of Android and other platforms but we felt it was important WRZDON¿UVWEHIRUHZHUXQ´ The current plan is to run certain applications on iOS devices in a secure sandbox environment as well as provide VPN access for iPad users. Anyone wishing to use their Apple device to access company applications and data must accept corporate guidelines and security policies and accept the installation environment, greater user choice and %<2'DUHVLPSO\LQHYLWDEOH´DGPLWWHG 5DMDK Chue also added that whether comSDQLHV VWDQGDUGL]H RQ VRPH SODWIRUPV or go with the approach of going all %<2'DQGDOORZXVHUVWRMXVWEULQJWKHLU display, there will always be new and emerging threats regardless of the strategy. “It’s clear today that this is a neverending problem and will not be solved by any single point solution,” he said. +H[HJLU[YPJZLJ\YP[` 5DMDKREVHUYHGWKDWWKHSUREOHPWRGD\ is that many companies are merely dealing with the symptoms and not addressing the root problem. “When you get down to the heart of the matter, the chal7\SSPUNIHJRKH[H 'HXWVFKH %DQN LV DOVR PRYLQJ WR D lenge is the data itself,” he said. Users virtual desktop environment for staff in today will demand access to their data WKHRI¿FHDQGWKRVHRQWKHURDGRUZRUN- from all locations and on a variety of deing remotely. Staff can simply access vices and expectations will continue to their desktop from any desktop display rise regarding this. “We have to address the concept of or machine while all the data resides centrally in the data center and allows protecting data and focusing on this age for tighter security as the devices hold RI EHLQJ FRQWHQWZDUH ZKLFK UHTXLUHV no actual data and also can be centrally a different set of tools and methods for VHFXULW\´ 5DMDK DGGHG ³:H PXVW SUHmanaged. At CLSA there are policies in place to pare for a time where we are no longer control and monitor what people are put- in control of the devices that people use ting on their devices, the company can or the content that users work with. We control to an extent the applications and must move away from this façade of prothe data that resides on users’ devices tecting the business by blocking things.” /RDW'HXWVFKH%DQNDJUHHGWKDWPRVW today. “Our intended policy and strategy in people are still in the mode of securing the coming period will be to move the the perimeter. He added that given the focus has data back into the data center and away IURP WKH GHYLFHV LWVHOI´ VDLG 5DMDK DW now shifted to data, there should be CLSA. “We also will use virtual desk- ways for data to be dynamically and top technology to allow people to apply automatically secured. “Is there a way their desktop to any device which in a IRUGDWDWREHWDJJHGSUR¿OHGGH¿QHGE\ sense creates a ‘bring your own display’ certain properties and then secured in the appropriate manner?” asked Lo. “I think scenario.” 7KLV ZD\ WKH ,7 RUJDQL]DWLRQ FDQ VH- technologies should be smart enough to cure the data at source and secure the do that but for now, vendors have yet access. “If you don’t do these things to address this from a truly data-centric you won’t be attracting people into your perspective.” 30 Computerworld Hong Kong July/August 2012 www.cw.com.hk Big data: PUUV]H[PVUVWWVY[\UP[` Generating insights from machines beyond structured data )`(P3LP;HV technology. “We are not known for following the latest trend or technology,” he said. “We have good reasons to be conservative and be followers—to ensure that systems work well before we consider adoption.” )PNKH[HIPN]HS\L While some focus on structured data, others see unstructured data as a source of valuable insights—whether into customer data and preferences, or for forecasting purposes. For them, big data is more likely to encompass a wide variety RI GDWD W\SHV RWKHU WKHQ 5'%06 5Hcontinued on page 32 3LLMYVT.,!0[PZNL[[PUNTVYLKPMÄJ\S[[VÄUK[OL[Y\[OHUKYLTV]L[OLUVPZL B ig data is big, fast, and en route to becoming more valuable for enterprises as better approaches HPHUJHWRPDQDJHDQGDQDO\]HWKHGDWD said participants at a recent roundtable discussion. Twelve senior IT executives gathered at the Hong Kong Convention and Exhibition Centre to discuss big GDWDDQGLWVLPSDFWRQ,7RUJDQL]DWLRQV %LJGDWDKDVEHFRPHWKH,7EX]]ZRUG IRU VDLG 5REHUW /DX DUHD 93 IRU APJ, Splunk—a provider of operational intelligence software that monitors, reSRUWV DQG DQDO\]HV UHDOWLPH FXVWRPHU and transaction data. “Almost every conversation we have with CIOs is about www.cw.com.hk big data, which is now high on their agenda,” said Lau. %LJ GDWD WHQGV WR SRODUL]H RUJDQL]Dtions. For some, the world of structured data and traditional relational databases is still the priority. “We can do much more in the area of structured data,” said Henk ten Bos, CIO IRU LQVXUDQFH ¿UP $JHDV +RQJ .RQJ “For us, big data still revolves around business intelligence on our internal data.” Tom Leung, VP for IT, Hong Kong Exchange and Clearing, said that FHUWDLQRUJDQL]DWLRQVSUHIHUDZDLWDQG see approach when it comes to new 2^HUMYVT3=4/7*!>L\ZLKPMMLYLU[)0 J\ILZ[VHUHS`aL[YLUKZPUKPMMLYLU[THYRL[Z July/August 2012 Computerworld Hong Kong 31 continued from page 31 trends in different markets. Customers, culture and trends are totally different in Korea and Japan compared to China and Southeast Asia.” $QDO\]LQJ WKH FRQYHUJHQFH RI LQWHUQDO DQG H[WHUQDO GDWD LQÀXHQFHV D VOHZ of activities for LVMH: the invitee-list for VIP events, the style of advertisLQJ LQ PDJD]LQHV FKRRVLQJ ZKLFK 9,3 card will increase the chances of repeatbusiness for a particular customer—all WDLORUHG WR WKH WDVWHV RI WKH VSHFL¿F ORcal market. LVMH also uses big data to improve the development of its next generation of products and services, leveraging data from both internal and external sources to suit local cultures and preferences. ODWLRQDO'DWDEDVH0DQDJHPHQW6\VWHP GDWD DQG WR XWLOL]H QHZ LQIRUPDWLRQ sources. 2UJDQL]DWLRQV FDQ FDSWXUH GLIIHUent data sources to unlock their informational value, said Splunk’s Lau. He recounted a meeting with Singapore’s ,'$ ,QIRFRPP 'HYHORSPHQW $XWKRUity), which plans to leverage big data including social, systems, applications and machine data to derive deeper insights. For instance, a shopping mall may use real-time transactional data and correlate it with weather and concurrent so3H\MYVT:WS\UR!0+(PU:PUNHWVYLWSHUZ cial activities. If it’s raining, customers [VSL]LYHNLTHJOPULKH[H[VKLYP]LKLLWLY may stay longer in the mall, or the Euro PUZPNO[Z Cup’s on, customers may be buying PRUHVSRUWVHTXLSPHQW²ELJGDWDTXDQWL¿HVWKLVLQVLJKW Almost every conversation we have with CIOs is about One advantage of big data analytics big data, which is now top on their agenda is the rapid and agile analysis of data, – Robert Lau, Splunk allowing management to make faster and more accurate decisions, said Sundi Balu, CIO, Telstra International Hong Kong. “Big data has turned the problem gence] cube, hire 100 people, then give On obtaining useful customer on its head,” he said. “We used to pull the business side answers they wanted data, Kwan said it’s a challenge, as all available data into a structured form, six months previously.” But while the technology has evolved, unhappy customers may not voice ZULWH DQG TXHU\ WKH >%XVLQHVV ,QWHOOLBalu said legacy thinking still dominates their dissatisfaction and simply stop LQVRPHRUJDQL]DWLRQV²WKRVHZLWKWHFK- further interaction with the company nical architects still mired in traditional and its products. LVMH encourages its customers to provide feedback structured approaches to data-analysis. through electronic forms or free gifts. An effective form of informal feedback Customizing the customer Customer-facing applications and is gathered at their events, where the business processes gain most from un- management can glean useful data from structured data, said Peter Kwan, CTO, casual conversations with customers. When the customer is not forthcomLVMH Perfumes and Cosmetics, APJ. While LVMH focuses on both internal ing with feedback, one approach is to and external data, there is a greater focus triangulate the relationship using differon customer data from different chan- ent data sources, such as predicting what nels—whether it’s the Web, agencies, or may happen in three to six months based on what happened in past history, said different locales. “Finding our target-customer for re- .LQJ /HH &,2 *URZWK 2SHUDWLRQV peat-purchases is vital to us,” said Kwan. GE. Machine-data generated by its ma2^HUMYVT7\ISPJ)HUR!<UZ[Y\J[\YLKKH[H ³:H XVH GLIIHUHQW %, FXEHV WR DQDO\]H chines at customer sites offers customer JHUIL\ZLK[VJVUULJ[^P[OJ\Z[VTLYZ 32 Computerworld Hong Kong July/August 2012 www.cw.com.hk insights in addition to proactive maintenance, he added. )UDQFLV )XQJ &72 0LGODQG 5HDOW\ said Web intelligence based on data derived from Midland’s Web sites provides invaluable insight into their customers’ SUR¿OHV DQG WKH W\SHV RI SURSHUW\ WKDW interests them. Franky Tse, head of IT, Public Bank (Hong Kong), said unstructured data like the Internet and social media can be used to connect with customers, and digital marketing has been found to be attractive to the younger generation. Big data challenges While big data offers advantages, sticking-points remain. One such challenge is managing the sheer volume of GDWD DV RUJDQL]DWLRQV ¿QG WKHPVHOYHV inundated with ever-growing data from myriad sources. Handling massive amounts of e-mail data is their challenge, said Midland 5HDOW\¶V )XQJ ³6RPH SURSHUW\ DJHQWV complain they get too much internal email that is not relevant,” he said. “We need to provide training to show them how to manage this by building rules in Microsoft Exchange.” ;LSZ[YH»Z)HS\!)PNKH[HOHZ[\YULK[OLWYVISLTVUP[ZOLHK with the value derived from that data, said Herridge. “Our big concern with unstructured data is that we’ll chase something that won’t yield much,” he said. “We have a lot of data—some will convert to growth and sales, some won’t. We can spend another 10 years creating another BI beast and not leveraging it much.” Another challenge is that regulators and auditors may be uncomfortable if the company makes decisions based on unstructured data, said Michael Leung, 693&,2&KLQD&RQVWUXFWLRQ%DQN Finally, when it comes to the choice of big data technology, buying systems may be less risky than building it, said Our big concern with unstructured data is that we’ll Kwan of LVMH. “If one vendor’s soluchase something that won’t yield much – David Herridge, Adidas Global Sourcing tion does not work, we can switch to another vendor.” The challenge he faces is managing the mindset of the technical people who The challenge is to control and consoli- sheer volume of data. “It’s getting more EHOLHYHWKH\KDYHWKHUHTXLVLWHWHFKQLFDO date data in different formats from multi- GLI¿FXOW WR ¿QG WKH WUXWK DQG UHPRYH expertise and hence should build instead ple sources to be meaningful and coherent the noise,” he said. “There are so many of buy. “They need to transfer from beIRULWVPDQDJHPHQWWHDPVDLG5D\PRQG sources of information and sometimes ing a technical or project manager to beLee, head of IT, Hsin Chong Construc- WKH\ FRQWUDGLFW 7KH FKDOOHQJH LV WR ¿O- ing a service manager, and work with the tion Group. Kelvin Har, CIO, Securities ter through all that unstructured data and service provider to maintain the system and achieve an SLA level that ensures )XWXUHV&RPPLVVLRQDJUHHGWKDWPDQ- make sense of it.” aging the massive volume and velocity of A prime concern is balancing the cost business can use the system without any data poses multiple challenges, including RI PDQDJLQJ DQG DQDO\]LQJ ELJ GDWD issues—and to generate revenue.” www.cw.com.hk technical ones, on the best approach to H[WUDFWVWRUHRUDQDO\]HGDWD Legacy technology can also pose a FKDOOHQJHVDLG'DYLG+HUULGJHKHDGRI IT, Adidas Global Sourcing. “We have a legacy BI nightmare, with hundreds and thousands of cubes generated over the last 10 years. We are also dealing with PLOOLRQ HPDLOV DQG SURFHVVLQJ million purchasing orders a month. The data doubles year-on-year.” For GE’s Lee, the challenge is to seek valuable insights amidst the noise and July/August 2012 Computerworld Hong Kong 33 HKCIOFORUM :LLPUN[OLVWWVY[\UP[`PUJYPZPZ CIOs are being tasked to achieve the new definition of normality in business W ith the fourth anniversary of the global economic crisis RQWKHKRUL]RQDQGWKH(XURpean sovereign debt crisis in full swing, CIOs are currently facing some of the biggest challenges in IT history. to give them a sustainable competitive advantage. Asia holds the center The core of the opportunity according WR=DUUHOODLV$VLDDUHJLRQWKDWE\YLUtue of its distance from Western markets, HVFDSHG WKH JOREDO ¿QDQFLDO FULVLV UHODtively unscathed. “The Asian market is cashed up but wary, and IT leaders need to adapt to the rules of the new normal if they want to tap those resources and fuel WKHJURZWKRIWKHLURUJDQL]DWLRQV´VDLG =DUUHOOD $ODUJHSDUWRIWKLVZDVUHDOL]LQJWKDW IT is a partner in helping cut costs, and that technology leaders who fought this ZHUH OLNHO\ WR ¿QG WKHPVHOYHV TXLFNO\ out of job. Instead IT needs to offer solutions to the business that allows it reduce )`1HZVU2Y\WW Watching the watchers The second challenges were regulatory burdens. =DUUHOOD QRWHG WKDW ZDWFKGRJV DFURVV the globe were becoming more active after being asleep at the wheel for years EHIRUH DQG WKH FRPSDQLHV WKDW adapted to these new pressures with the PRVW HI¿FLHQF\ KDG D KXJH DGYDQWDJH over their peers. “If you look at mounting pressure, the one that hasn’t changed at all in the past VL[WRHLJKWPRQWKVLVUHJXODWRU\UHTXLUHments,” he said. *\Z[VTLYPZRPUN /DVWO\ =DUUHOOD VDLG EXVLQHVVHV QHHG to get their customers better. KPMG observed that Asian customers are at the very forefront of digital change, and are adopting new mobile AHYYLSSHMYVT274.!@V\ZOV\SKILZWLUK PUNTVYL[PTLVU[OLJ\Z[VTLYZPKLVM`V\Y I\ZPULZZ 7KLVLVFKDUDFWHUL]HGE\WKH³QHZQRUmal”—an environment where business DUH LQFUHDVLQJO\ ¿QGLQJ WKHLU FRVW EDVHV too high and their revenue levels too low, and IT is being tasked with the job of reducing the former and boosting the latter. But in this adversity there is also opportunity. 7KDW¶V WKH YLHZ RI (GJH =DUUHOOD a partner at KPMG, who shared his XQLTXHLQVLJKWVIURPDFURVVKXQGUHGVRI boardrooms with some of Hong Kong’s leading IT professionals at last month’s +RQJ .RQJ &,2 )RUXP RUJDQL]HG E\ Computerworld Hong Kong. He sketched out a broad outline of the changes he was seeing among big businesses that are grasping the volatility by the horns and making use of technology ROI, ROE, Net present value—learn these terms, they are coming back with a vengeance — Edge Zarrella, KPMG its cost base on a divisional and organi]DWLRQDOOHYHO He said it is about partnering with chief executives to help them execute their plans, though sometimes this needed to be phrased along the lines of ‘you needs to spend some now to save later’. ³52,52(1HWSUHVHQWYDOXH²OHDUQ these terms, they are coming back with a vengeance,” he said. “What is really LPSRUWDQW LV FDVK 5HYHQXH LV JUHDW EXW if you don’t have cash coming back it is worth nothing.” 34 Computerworld Hong Kong July/August 2012 applications and payment mechanisms on a whole scale which are just in their infancy in Western markets. Those businesses that failed to give customers these channels would suffer the greatest backlash, whether they are retailers, e-tailers, banks or insurance companies. “You should be spending more time on the customer side of your business, which is changing more and more in continued on page 36 www.cw.com.hk :THY[LYZ[VYHNLLUHISLK :6-;)(52.YV\W[V OLSWSPM[HUH[PVU ;VZLLOV^:6-;)(52.YV\WYHWPKS` KLWSV`LK>OP[L*SV\KZLY]PJLZ[V[OLW\ISPJ ^P[OPU[OYLLKH`ZVM[OL1HWHULHY[OX\HRL HUK[Z\UHTP]PZP[5L[(WWJVT)\PS[6U 5L[(WW(SSYPNO[ZYLZLY]LK:WLJPÄJH[PVUZHYLZ\IQLJ[[VJOHUNL^P[OV\[UV[PJL5L[(WW[OL5L[(WWSVNVHUK.VM\Y[OLYMHZ[LYHYL[YHKLTHYRZVYYLNPZ[LYLK[YHKLTHYRZVM5L[(WW0UJPU[OL<UP[LK:[H[LZ HUKVYV[OLYJV\U[YPLZ(SSV[OLYIYHUKZVYWYVK\J[ZHYL[YHKLTHYRZVYYLNPZ[LYLK[YHKLTHYRZVM[OLPYYLZWLJ[P]LOVSKLYZHUKZOV\SKIL[YLH[LKHZZ\JO www.cw.com.hk July/August 2012 Computerworld Hong Kong 35 HKCIOFORUM the business become more effective DQG HI¿FLHQW EH WKH\ KXPDQ UHVRXUF$VLD´=DUUHOODVDLG³,QIUDVWUXFWXUHLVD HVSURGXFWLRQGLVWULEXWLRQ¿QDQFHRU given, yes it is important, but customers marketing. are even more important.” It was with that in mind that allowed KPMG observed that the need to get KLPWRZRUNZLWK3HUQRG5LFDUG¶VVXSto know the customer better was driving ply chain management team to drive efdemand for business information and ¿FLHQFLHVWKURXJKWKHRSHUDWLRQV analytics systems in the region, and IT By deep diving into the division’s leaders who weren’t investing in these GDWD .ORVH UHDOL]HG WKDW WKHUH ZHUH VL[ systems should seriously consider do- key performance indicators that applied ing so. to all clients, namely service, cost, peo“This is what it’s all about, it’s more ple, volume, compliance, and value. and more about adapting to change,” Then, by thinking outside of the box =DUUHOOD VDLG ³:H VHH FOLHQWV PDNLQJ DQG WDNLQJ D OHDI RXW RI +5¶V ERRN real cash in this uncertain time but Klose then ranked each customer by it’s about getting the focus back to the these KPIs and built an automatic customer.” processing system over it, allowing continued from page 34 allowed the company to dynamically switch on promotional events at any number of bars simultaneously, all the while gathering vital data on how customers engaged with their products. “The consumer for IT is an end user, and IT wants to know who we are connecting to,” Klose said. “We want to transit the untrusted user to become trusted customer.” The strongest division within an organization will be the one that can handle change the best ·9`HU2SVZL7LYUVK9PJHYK(ZPH7HJPÄJ 7LYUVK9PJHYK»Z2SVZL!@V\OH]L[VI\PSKHU VYNHUPaH[PVU[OH[JVUULJ[Z0;^P[O[OL]PZPVU VM[OL*,6 ;OL]PL^MYVTHJVSSLHN\L RUGHUV WR EH SURFHVVHG DQG SULRULWL]HG At the conference, former CIO of DXWRPDWLFDOO\ ZKLFK VLJQL¿FDQWO\ 3HUQRG5LFDUG$VLD3DFL¿F5\DQ.ORVH sped up operations and shed costs in who now works within the spirit and the process. wine company’s management team, also “IT has power of data, don’t be afraid shared his experience in transforming to use it to change the rules,” Klose said. RSHUDWLRQV RI WKH ¿UP¶V $VLD 3DFL¿F wines division. Winning the customers heart 2QH RI WKH ¿UVW VWHSV IRU .ORVH ZDV and mind looking at which positions in a C-level $QRWKHU 3HUQRG 5LFDUG H[DPSOH ZDV executive structure had the widest reach in helping the marketing team to win the DFURVVDQRUJDQL]DWLRQDQGWKDWOD\ZLWK hearts and minds of customers. the Chief Executive and Chief Informa0DQ\RUJDQL]DWLRQVDOUHDG\XVH)DFHWLRQ2I¿FHU7KDWOHGKLPWRWKHUHDOL]D- book to engage with customers, but the WLRQWKDW³\RXKDYHWREXLOGDQRUJDQL]D- challenge for Klose was to take their tion that connects IT with the vision of ¿YH PLOOLRQ IROORZHUV DQG WUDQVIRUP the CEO”. them into a crowd of customers, with Once he reached that insight, the deep detailed information that marketfollow up was that by supporting the ing could use. CEO’s vision, IT was effectively be3HUQRG5LFDUGGLGWKLVE\EXLOGLQJD ing tasked with helping every area of master data management system that 36 Computerworld Hong Kong July/August 2012 Those were just two examples that showed how by adopting a central vision, technology executives can become more valuable to the businesses they work in, Klose said. A key learning for him was to reach out for help, and getting people within his department and outside of it to collaborate on the projects. “You don’t have to do everything yourself,” he said. Additionally it was about embracing and promoting change, and using the experience IT has in this arena to guide the RUJDQL]DWLRQ “The strongest division within an RUJDQL]DWLRQ ZLOO EH WKH RQH WKDW FDQ handle change the best,” said Klose. “IT has been managing change for 20 years, ZLWK (53 &50 %, :H NQRZ KRZ WR balance change probably better than any RWKHUGLYLVLRQLQWKHRUJDQL]DWLRQ´ www.cw.com.hk www.cw.com.hk July/August 2012 Computerworld Hong Kong 37 MACAUCIOFORUM 4HJH\*06JOHSSLUNLZ!L]LYJOHUNPUN Rapid growth, infrastructure issues and labor shortages )`:[LMHU/HTTVUKPU4HJH\ M acau’s tech-elite gathered last month for the Macau CIO Leadership Forum: a IXOOGD\ HYHQW RUJDQL]HG E\ &RPSXWHUworld Hong Kong and the Macao Computer Society. 5RJHU 6HVKDGUL &,2 0HOFR &URZQ Entertainment (MCE), spoke on IT as an integral part of the business—evolving from a support-function to become pervasive in every department. He credited this to “an executive team led by techsavvy CEO Lawrence Ho—as CIO, I report directly to the CEO, which is critical in the 21st century.” “The global economic crisis pose challenges to every global economy, including China and Macau,” said Seshadri. ³0DFDXKDVEHHQJURZLQJDWDQQXDOO\²SUHGLFWHGDWWKLV\HDU&KLQD is slowing down which impacts our core business: gaming.” 4*:»Z*OHU3LM[HUK*OHUMYVT(KPKHZ 9PNO[[HSRZHIV\[0;»ZLUHISPUNHUK LUMVYJPUNYVSLZPUI\ZPULZZLZ VWDI¿QJ ³, KDYH WR FRQVWDQWO\ VHDUFK for talent from 12 different neighborLQJFRXQWULHVWR¿QGWHFKQLFDOH[SHUWLVH Other challenges remain: we still have only one service-provider for communications: CTM, which has been great but '5UHPDLQVDFKDOOHQJHVLQFHWKHUHDUH no redundant lines,” he said. We’ve seen more property-app downloads from Macau than from Hong Kong — Francis Fung, CTO, Midland Realty 4HJH\IPaZJHWL Seshadri said that while the business dynamics of Las Vegas include entertainment, Macau is more a pure gamingplay. “A typical US customer spends on leisure and fun,” he said, “while our EXVLQHVVLVJDPLQJ´ “In the USA, there was only Las Vegas and Atlantic City, two states with OHJDOL]HG JDPLQJ²QRZ WKHUH DUH 40 states,” said Seshadri. “That kind of growth is happening in Asia: Singapore now outgrosses Las Vegas. Cambodia, Vietnam, you name it—regions are developing gaming-industries, and the products are similar so marketing must provide difIHUHQWLDWRUV(YHU\WKLQJUHTXLUHVWHFKEHcause promotions must happen rapidly.” Seshadri said that working in Macau EULQJV XQLTXH FKDOOHQJHV LQFOXGLQJ ded Web-browsers.” As for voice-communication: “our VoIP voice network runs on cloud, which saves money on local and international calls.” He added that as “MPLS is expensive in Macau and China, we use VPN to communicate with Hong Kong.” Fung says that Midland has four mobile apps for customers, and six for agents: the latter include enterprise-class IM, photo-uploads, and cloud storage RQ 'URS%R[ ³0RVW DSSV DUH GHYHOoped in-house,” he said. “We have an app-store for customers and we’ve seen more downloads in Macau than in Hong Kong, I don’t know why!” A tech-differentiator for Midland is a 45FRGHRQHDFKDJHQW¶VEXVLQHVVFDUG which directs customers to that agent’s personal Web site. “If their site only lists 3L]LYHNLHWWZHUKJSV\K “We’ve built a private cloud and developed mobile apps,” said Francis )XQJ&720LGODQG5HDOW\)XQJVDLG KLV¿UPKDV³DIHZKXQGUHGDJHQWVDQG 15-20 branches in Macau, the number changes every day.” Fung said he sees increased electronic communication with customers and PRUH%<2'DPRQJVWDII³:HQRZSURvide Wi-Fi in every branch for agents to access the network,” he said, adding that Midland has upgraded their Citrix thinclients—“the new models have embed- 38 Computerworld Hong Kong July/August 2012 one property, this isn’t ideal,” said Fung. ³7KHSHUVRQDO45FRGHGULYHVDJHQWVWR list more properties on their site and has LQFUHDVHGSKRWRXSORDGVE\´ 0;!N\HYKPHUZVM[OLI\ZPULZZ The morning’s panel-discussion— “Enabler or enforcer? IT’s role as guardians of the business”—began with a presentation from Jenny Fong, managing director, SingTel Hong Kong, who was then joined by Virgil Chan, vice-director general, Macao Computer Society(MCS) and Ken Chan, senior manager, GIT CC www.cw.com.hk Sourcing, Adidas Group Hong Kong. “Macau is challenging as the [telco] market is not deregulated,” said Fong. ³,W¶V GLI¿FXOW WR SURYLGH VXFFHVVIXO DQG competitive infrastructure services for the local market. But recently we see demand from the retail sector, where premium brands are building their shops and also their presence in Macau—these EUDQGVQHHGFRQWDFWFHQWHUVDQG&50WR serve the customers.” ³2XU &50 LV DERXW KDYLQJ WKH ULJKW product for the right customer available at the shops,” said Chan from Adidas. “What we’re looking at now is integrating our POS data with our supply-chain data, and bring that into our BI model so we can do more customer-analytics.” “We started a training school with international accreditation in Macau, DQGWKHLQGXVWU\LVVWDUWLQJWRUHFRJQL]H that better-trained employees will give better service,” said Chan from the MCS. “We’re working with high-school kids: we go to the school and try to convince the students and parents to invest two to six months in training for a career. But it’s still an uphill battle...for now.” “It would help if the government established a category for vocational trainers, because right now there isn’t any,” he added. “We have regulation constraints in Macau and I think competition needs to be there—that’s a key component,” said Fong. “Competition will bring extra investment in the infrastructure, bandwidth will be more available and the price will be more attractive. We talk about costs and scalability, but if you have a high ¿[HGFRVW LQ \RXU LQIUDVWUXFWXUH WKDW OLPLWV\RXUÀH[LELOLW\´ *HSJ\SH[PUNOVZWP[HSP[`]HS\L Toa Charm from the Hong Kong Computer Society BI SIG (Business Intelligence Special Interest Group) spoke on the topic of BI for Hospitality. “What’s www.cw.com.hk driving BI interest?” he asked. “CEOs are pushing it as business schools and competitors are competing on analytics—the TXHVWLRQLVQRWKRZPXFKEXWKRZVRRQ´ Charm said that BI’s ultimate goal in hospitality is determining the Customer Life Time Value (CLTV). He said BI can fail because of a lack of understanding how to use analytics to improve the business, lack of management ‘bandwidth’ due to competing priorities, and lack of skills internally in the line of business. But Charm said that BI purchase drivHUV LQFOXGH RSHUDWLRQDO HI¿FLHQF\ VWUDtegic business transformation, and the desire to achieve maturity in businessanalytics. “BI is a journey,” he said, “and lately, one that’s heading towards big data.” HQWLUHZRUOGRQO\\HDUVDIWHULWZDV¿UVW introduced. “There are three major characteristics UHTXLUHG RI ,7 OHDGHUV WRGD\´ DGGHG 5D\PRQG :RQJ IRUPHU ,7 H[HFXWLYH at Hong Kong Immigration, “M.V.P.— mission, vision and passion.” Wong, currently adjunct professor at Hong Kong Polytechnic University, said his work in implementing the e-Channel DQG6PDUW,'LQ+RQJ.RQJFRQWULEXWHG to this concept. “Having a long term vision and treat the project as a mission, is critical for success,” he said, adding that passion is also important as challenges DUH KLJK ZKLOH ¿QDQFLDO LQFHQWLYHV DUH often low. Sam said the role of IT leaders is transforming as users become increas- -YVT3LM[[V9PNO[:HTMYVT4*:4PKSHUK9LHS[`»Z-\UN>VUNMYVT/VUN2VUN 7VS`[LJOUPJ<UP]LYZP[`HUK9P]LYILK»Z;PUN Innovation panel ingly tech-savvy. “Previously we were In a Cantonese-language panel discus- mainly in a support role,” said he. “Now sion, experts from Hong Kong and Ma- that users better understand the potential cau spoke on innovation. “Innovation is of technology, we can partner with them critical for survival in today’s business,” and push innovative initiatives.” “Innovative ideas often come from said Samuel Sam, executive deputy director general, MCS, citing Apple’s suc- brainstorming activities,” said Francis cess in innovation. Sam noted that IT or- )XQJIURP0LGODQG5HDOW\³EXWWKLVUHJDQL]DWLRQVQHHGWRLQQRYDWHHYHQZKHQ TXLUHV FURVVGHSDUWPHQWDO GLVFXVVLRQV´ innovative use of technology may not He said that the most innovative ideas often come from people outside the debring immediate returns. “Innovation often starts with partment. “I try to get the infrastructure small steps,” said Bill Ting, product guys to make suggestions for the appliPDUNHWLQJ DW 5LYHUEHG +LV H[DPSOH cation team and vice versa—interesting FORXG FRPSXWLQJ ZKLFK EHQH¿WV WKH ideas often emerge.” July/August 2012 Computerworld Hong Kong 39 CHINAWATCH (WWSLWH`Z<:4MVYP7HK[YHKLTHYR The legal battle had once threatened to ban sales of the iPad in China ment early this month, and stated that the legal dispute had been put to rest. Following the payment to Proview, ChiQHVHDXWKRULWLHVWUDQVIHUUHGWKH³,3$'´ trademark to Apple. The two companies have been locked in a legal dispute to determine ownership of the iPad trademark, with Apple claiming to have bought the iPad trademarks for China from Proview in 2009. The Guangdong court was originally ;OLSH[LZ[]LYZPVUVM expected to rule on the case. But Apple [OLP7HKOHZ`L[[V and Proview were in recent months in ILZVSKPU*OPUH talks to settle the dispute, at the initiapple has agreed to pay US$60 tive of the court. Apple did not respond immediately million for ownership of the iPad trademark in China, as WR D UHTXHVW IRU FRPPHQW 7KH FRPpart of a settlement with a little-known pany’s latest version of the iPad has &KLQHVH ¿UP FDOOHG 3URYLHZ WKDW KDG yet to be sold in the country, despite tried to ban sales of the tablet in the clearing regulatory checks. Analysts have said the legal dispute over the country, according to a local court. The Guangdong Province Higher iPad trademark could be delaying the People’s Court announced the settle- product’s sale. A )`4PJOHLS2HU Proview had wanted as much as $400 million in settlement from Apple in order to help clear its debts. Eight banks have taken over Proview’s assets. Li Su, the head of the consultancy representing the eight banks, said Apple initially wanted to pay only a few million dollars for the iPad trademark. But over time, Apple negotiated in good IDLWKUHDOL]LQJWKHGLVSXWHZRXOGOLQJHU in Chinese courts unless a settlement was reached, he added. “Some may feel that Apple had help from Chinese leaders by spending a lot of effort on public relations,” he said, noting how Apple’s CEO Tim Cook visited China in March and met with JRYHUQPHQWRI¿FLDOV “But I think Apple was acting in good faith,” Su added. “Apple only needed to pay a small amount to resolve what could have been a major inconvenience,” he said. Protests, not criticism, the target for China’s Internet censors A new study from Harvard University investigates how China’s online censorship operates C hina’s Internet censors freely allow users in the country to FULWLFL]H WKH JRYHUQPHQW EXW DUH TXLFN WR GHOHWH VRFLDO PHGLD SRVWV with the potential to start protests, suggested a new Harvard University study released last month. “With respect to speech, the Chinese people are individually free but collectively in chains,” said the study, which was conducted by Harvard professor *DU\.LQJDQGWZRXQLYHUVLW\3K'FDQGLGDWHV-HQQLIHU3DQDQG0DUJDUHW5REHUWV To monitor all the information, authorities deploy 20,000 to 50,000 Internet police to censor unwanted content, the study estimates, while also employing 250,000 to 300,000 Internet commentators to post positive information about the government. Outside of website and keyword blocking, authorities will manually read and then remove FRQWHQW WKH\ ¿QG REMHFWLRQDEOH WKH study added. To better understand which topics authorities were prone to censoring and 40 Computerworld Hong Kong July/August 2012 )`4PJOHLS2HU ZK\ WKH VWXG\ DQDO\]HG PLOOLRQV RI VRFLDOPHGLDSRVWVIURP&KLQHVH ZHEVLWHV PDGH GXULQJ WKH ¿UVW KDOI RI 2011. Through its analysis, the study found that China’s Internet censors will heavily suppress topics that involve the possibility of inciting protest. This was evidenced by how two of the most censored topics were the protests in China’s Inner Mongolia UHJLRQ DQG LQ =HQJFKHQJ D FLW\ LQ the country’s Guangdong province. www.cw.com.hk *OPUH[VYLWSHJL:PSPJVU=HSSL` Survey finds the world’s main tech innovation center to move towards China )`;LYLZH3L\UN hina is seen as the next global technology innovation center replacing Silicon Valley, according to results of KPMG Global Technology Innovation Survey released last month. .30* VXUYH\HG EXVLQHVV H[HFXWLYHVLQWKH$PHULFDV$VLD3DFL¿F Europe, the Middle East, and Africa, according to the company, adding that respondents come from tech startups, PLGWRODUJHVL]HHQWHUSULVHV9&¿UPV and angel investors. 7KH VXUYH\ UHVXOWV LQGLFDWH WKDW of respondents expect the world’s main tech innovation center to move from the Silicon Valley to another location outVLGHWKH86³RIWKRVHUHVSRQGHQWV who believe the center will move to ChiQD´VDLG(JLGLR=DUUHOOD&OLHQWVDQG,Qnovation Consulting, KPMG China. %RWK&KLQDDQGWKH86 are also perceived as countries that C are likely to produce the most disruptive tech breakthroughs, leaving India DV D GLVWDQW WKLUG DFFRUGLQJ WR WKHFRQVXOWLQJ¿UP “The broader high tech environment in China is emerging at speed and scale, and is seen as one of the game change enablers for the country’s economic WUDQVIRUPDWLRQ´ VDLG =DUUHOOD ³7KH VXUYH\ ¿QGLQJV GHPRQVWUDWH WKDW &KLna’s innovation investment has fostered ;OLIYVHKLYOPNO[LJOLU]PYVUTLU[PU *OPUHPZLTLYNPUNH[ZWLLKHUKZJHSL an environment for the development of disruptive technologies that’s growing China is moving in the right direction by leaps and bounds.” as cloud is set to drive both tech and enterprise tech development. “Cloud The emerging cloud in China ZLOO KDYH D PDMRU LPSDFW² RI China also keeps up with the latest respondents say that cloud software tech trends, having designated Beijing, as a service will enable the next 6KDQJKDL6KHQ]KHQ:X[LDQG+DQJ- indispensable consumer tech by 2015 ]KRX DV FORXG FRPSXWLQJ VHUYLFH LQ- while cloud infrastructure as a service novation pilot cities, in addition to its DQGVRIWZDUHDVDVHUYLFH plan to invest US$154 billion to boost will drive business transformation,” the cloud sector over the next few years. =DUUHOODQRWHG In both cases, local Chinese clashed with authorities, resulting in fights and demonstrations. Other topics that were heavily censored were the arrest of Chinese artist Ai Weiwei, outrage over children suffering lead poisoning in China’s Jiangsu province, and the bombing of government buildings by a disgruntled &KLQHVHIDUPHUZKRVHODQGZDVVHL]HG by authorities. But the study also found thousands of social media posts that harshly FULWLFL]HG WKH JRYHUQPHQW EXW VWLOO UHmained online for users free to read. In one example, a user had written: “This is a city government that treats life with contempt ... A city government that is shameless with greed, a government that trades dignity for power, a government without humanity...” The post, however, remained online, because it ZDV ZULWWHQ ZLWKRXW D FDOO WR RUJDQL]H action. “Indeed, despite widespread censorVKLSRIVRFLDOPHGLDZH¿QGWKDWZKHQ the Chinese people write scathing criticisms of their government and its leaders, the probability that their post will be censored does not increase,” the study wrote, speculating that this approach allowed the government to OHDUQ WKH YLHZV RI LWV FLWL]HQV DQG VDWisfy their concerns. China’s Internet police will act fast when deleting unwanted posts, accord- www.cw.com.hk ing to the study, censoring content within 24 hours of the original posting. But in scrubbing the Internet of information that can lead to protests, authorities will target posts regardless of whether they oppose or support the government. The study also found that abrupt increases or decreases in Internet censorship can also signal imminent action by the government. For instance, in the days before Chinese artist Ai Weiwei was arrested by authorities, the study found an uptick in censored social media posts about him. A similar trend occurred with former Chinese police chief Wang Lijun in the days before he was demoted. July/August 2012 Computerworld Hong Kong 41 BACKPAGE MIKE ELGAN >O`4PJYVZVM[ZOV\SKTHRL[HISL[Z (and phones and PCs)? M icrosoft last month announced its entry into the tablet hardware business. While the company does PDNHKDUGZDUH±PLFHNH\ERDUGV;ER[.LQHFW =XQH6XUIDFHDQGRWKHUSURGXFWV±,WKDVQRW\HWPDGHGHVNtop PCs, laptops or tablets, opting instead to embrace a partner strategy of third-party OEM manufacturing. Microsoft’s announcement seems to in line with the “Google PRGHO´±PDNLQJKDUGZDUHEXWDOVROLFHQVLQJ\RXU26WRKDUGware partners who make products of their own. Google partners with OEMs for smartphone handset and tablet hardware. But it DOVRDFTXLUHG0RWRURODZKLFKPDNHV$QGURLGKDUGZDUH Traditionally, the assumption has been that you must either partner with hardware companies to manufacture systems for your operating system (the Microsoft model) or not allow other companies to make hardware for your platform (the Apple model). A hybrid approach has been considered suicidal because competing with your partners puts you in a gray area, where you have hardware competition and fragmentation, but you also have a smaller number of partners, who are also less committed and more distrusting. But times are changing Microsoft’s application of the Microsoft model to mobile hasn’t worked out. A big partnership with Nokia has been a ÀRS7KHVRIWZDUHYHQGRUKDVIDUHGEDGO\LQWKHPRELOHPDUket, far outpaced by Apple, and Google. :KHQ *RRJOH DQQRXQFHG LWV ELG WR DFTXLUH 0RWRUROD²HIfectively declaring its intention to compete with its hardware partners —many pundits predicted disaster for the company. But the disaster never happened. Google is getting away with it. Android OEMs are continuing to churn out more innovative and exciting hardware, and they don’t seem vexed by the prospect of competing with the company that makes the operating system they use. Instead of the worst of both worlds, Google appears to be HQMR\LQJ WKH EHVW RI ERWK ZRUOGV JDLQLQJ WKH EHQH¿WV RI D hardware company (control and patents), while also gaining WKHEHQH¿WVRIDQRSHUDWLQJV\VWHPFRPSDQ\WKDWSDUWQHUVZLWK hardware OEMs (a thriving ecosystem, broad innovation and market choice). Apparently, Microsoft wants the same thing. And why not? 42 Computerworld Hong Kong July/August 2012 >O`[OL4PJYVZVM[TVKLS^VU»[^VYRPU[OLM\[\YL There are two reasons why Microsoft needs to move to the Google model for all of its product lines. First, the world is becoming increasingly mobile. The socalled PC market is simultaneously becoming more mobile and increasingly obsolete. Apple’s post-PC world is clearly WKH IXWXUH RI DOO FRPSXWLQJ 7KDW¶V ZK\ :LQGRZV LV VR KHDYLO\RSWLPL]HGIRUWDEOHWVDQGWRXFK The Microsoft model worked great for the old-and-busted desktop PC world, but it doesn’t work so well for the newhotness mobile and touch-tablet world. The world has changed, and the model that works is also changing. Second, Microsoft can’t rely on its OEM partners anymore. If you go to shop for a low-cost laptop, it’s clear that Microsoft Windows systems on the low end are garbage. These devices are bloated with crapware (cheap software loaded on the systems by OEMs), covered with ugly, sloppily applied VWLFNHUV DQG PDGH IURP ÀLPV\ FKHDSIHHOLQJ PDWHULDOV They look like junk. 0LFURVRIW QHHGV WR FUHDWH LWV RZQ SUHPLXP KLJKTXDOLW\ desktops, laptops, tablets and phones for the same reason that automakers like to have high-end car models in their lineups. The upscale models create a “halo effect” for the brand. ,W¶VDQHZZRUOG5DWKHUWKDQYLHZLQJ0LFURVRIWDVDFRPpetitor, Microsoft’s OEM partners should and, I believe, will welcome Microsoft’s participation in the hardware end of the business, because the company can create a halo effect that H[WHQGVWRWKHHQWLUHSODWIRUPDQGEHQH¿WVHYHU\RQH The Microsoft model is yesterday’s news. That leaves the Google model as Microsoft’s one hope for success in the postPC world. Noted that the views expressed by BackPage contributors GRQRWQHFHVVDULO\UHÀHFWWKHYLHZVRI&RPSXWHUZRUOG+RQJ .RQJRULWVHGLWRULDOVWDII 4PRL,SNHU^YP[LZYLN\SHYS`HIV\[[LJOUVSVN` HUK[LJOJ\S[\YLMVY*VTW\[LY^VYSK<: *VU[HJ[OPTH[,SNHUJVT www.cw.com.hk www.cw.com.hk July/August 2012 Computerworld Hong Kong 43 44 Computerworld Hong Kong July/August 2012 www.cw.com.hk