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  • Global Advertising Spend Growth to Slow Next Year

    Global Advertising Spend Growth to Slow Next Year

    The latest Consensus Ad Forecast from Warc, the marketing intelligence service, indicates that global advertising spend will rise by 4.5% during 2016 as a whole, before the growth rate slows to 4.2% in 2017.

    With the exception of newspapers and magazines, all major media channels are expected to record adspend growth this year and next. However, the two largest, TV (+1.1%) and internet (+13.0%) are forecast to see their growth rate ease during 2017. The same is true for mobile, though it is still set to be the fastest-growing ad channel over the period.

    Warc’s Consensus Ad Forecast is based on a weighted average of adspend predictions at current prices from ad agencies, media monitoring companies, analysts, Warc’s own team and other industry bodies.

    Current sources include Carat, eMarketer, GroupM, Magna Global, Nikkei Advertising Research Institute (NARI), Pitch-Madison, Pivotal Research Group and ZenithOptimedia.

    All 13 markets covered in the report are forecast to see the amount invested in advertising rise both this year and next, though for eight of these the growth rate will be softer in 2017.

    India is expected to see the strongest annual rise in adspend this year, up 13.3%, with a similar rate of growth anticipated next year. The world’s largest ad market, the US, is expected to post adspend growth of 5.1% this year – buoyed by the presidential election campaigns and the Rio Olympics. US adspend growth is then forecast to cool next year – rising by 2.8% – as the impact of these events is lost.

    Adspend growth by country

                           2016 vs 2015     2017 vs 2016

                          y-o-y % change   y-o-y % change

    India                      13.3             13.4

    China                       7.8              7.1

    Russia                      5.8              6.1

    Spain                       5.8              5.2

    UK                          5.6              4.3

    US                          5.1              2.8

    Australia                   3.8              3.8

    Brazil                      3.3              2.1

    Italy                       2.8              1.6

    Germany                     2.1              1.8

    Canada                      2.0              2.4

    Japan                       1.7              1.7

    France                      1.3              0.8

    Global                      4.5              4.2

    Source: Warc’s Consensus Ad Forecast, November 2016 (www.warc.com)

    Despite the uncertainty surrounding the “Brexit” process by which the UK will leave the European Union in 2017, the nation’s ad market is forecast to record adspend growth of 5.6% this year and 4.3% next; both above the global respective rates.

    All four BRIC markets, India (+13.4%), China (+7.1%), Russia (+6.1%) and Brazil (+2.1%), are expected to post rises in ad expenditure this year and next. France is forecast to record muted growth of +0.8% in 2017, the softest rate of the 13 markets studied.

    All media, barring newspapers and magazines, are predicted to record year-on-year growth in 2017, with mobile expected to see the greatest adspend rise, up 34.2%. Total internet (including mobile) growth is expected to be 13.0% next year, while TV, the world’s largest ad channel by spend, is forecast to post growth of 1.1%.

    Global adspend growth by medium

                           2016 vs 2015     2017 vs 2016

                          y-o-y % change   y-o-y % change

    Mobile                     47.1             34.2

    Internet                   14.6             13.0

    Out of home                 3.4              3.2

    Cinema                      3.1              5.1

    TV                          2.8              1.1

    Radio                       0.4              0.3

    Magazines                  -5.9             -4.5

    Newspapers                 -8.0             -6.1

    Source: Warc’s Consensus Ad Forecast, November 2016 (www.warc.com)

    James McDonald, Senior Research Analyst at Warc, said: “The latest consensus results present a positive outlook for advertising investment at both a global and local level. All 13 markets studied are expected to record adspend growth in the short term, and this despite their contrasting socio-economic environments.”

    “We have identified a common trend among more mature markets whereby increasing investment in internet – particularly mobile – ad formats is driving headline growth. Applying consensus trends to Warc’s adspend data shows that mobile will grow to be the world’s third-largest ad channel by the end of 2016.”

  • Connectivity and collaboration in the ICT industry: the key to socio-economic development

    Connectivity and collaboration in the ICT industry: the key to socio-economic development

    Why is it so important to ensure that as many people in the world as possible have access to information and communication technologies? And why does collaboration within and across the ICT industry matter so much in driving socio-economic development?

    These questions are at the very heart of ITU Telecom World 2016, the annual platform for governments, corporates and small and medium enterprises (SMEs) within the ICT industry. Organized by ITU, the United Nation’s specialized agency for ICT matters, and taking place this year in Bangkok, Thailand, from 14 – 17 November, ITU Telecom World features an international exhibition of digital solutions, a world-class forum of debates, a programme of targeted networking activities and an Awards programme recognizing the best in innovative ICT solutions with social impact.

    On the agenda in the forum, on the stands and pavilions in the exhibition and amongst the networking leaders of governments and businesses big and small, the focus will be on working together to speed up innovation in ICTs to improve lives everywhere.

    ICTs are the cross-cutting enablers behind sustainable development throughout the world, in emerging and developed markets alike. This means, quite simply, that ICTs are the essential backbone, the infrastructure behind development in economies, businesses, societies and homes everywhere. The transformative potential for ICTs is unprecedented: from e-health to e-education, digital financial services to e-government, agriculture and transport, there is not one vertical sector or field of activity which does not both rely on and benefit from ICTs.

    The Sustainable Development Goals, adopted by the global community in September 2015, set a new international agenda for the period up to 2030 – and recognize the enormous potential of ICTs in improving development outcomes worldwide.  Not just by measuring progress and enhancing the effectiveness of initiatives designed to meet the SDGs, but by providing access to a whole range of new digital products and services which can grow local economies, build on local innovation and strengthen local communities.

    Millions of children currently without access to primary level schooling; millions of deaths from easily-preventable non-communicable diseases; millions of unbanked or underbanked living outside national economies;  those without adequate basic sanitation, without access to water or electricity, let alone to government services – innovative ICT-based solutions can meet all of these challenges.

    Providing connectivity is the key: once everyone is connected, the speed of progress towards attaining the SDGS will be extraordinary, as emerging technologies such as IoT, artificial intelligence, robotics and data-driven innovation truly take off on a global scale.

    Getting everyone connected, however, is not so straightforward. More than half the world’s people are still offline, and the ICT sector’s commitment to connecting an additional 1.5 billion by 2020 is highly ambitious. It calls for innovative approaches to universal connectivity to tackle the multiple barriers of access, affordability, education and relevance.

    Building out networks, whether fixed, fibre, mobile, satellite, wifi, or any combination thereof, is the first step in providing access to the unconnected. The price of handsets, of network access and of products and services must be affordable for local communities.  And to be useful and sustainable both socially and financially, those products and services must be relevant to local needs and practices – in local languages, offering content that is valued and understood by local users. Finally, educating end-users disadvantaged by remote locations, illiteracy, gender or age, and increasing skills and capacity in local communities, are critical to ensure internet take-up and entry into the digital economy.

    The barriers are huge, the challenges significant – but the potential benefits to humanity are enormous. This is why connectivity is so important. It is also why the theme of ITU Telecom World 2016 is so pertinent: “Collaborating in the digital economy”.

    Because no one can do this alone. The private sector building out the networks, providing the equipment, products and services is reliant on government policies, on financial incentives, on supportive regulation. Public private partnerships are often the only solution to increasing access in remote or underserved regions.

    Within the private sector, the ongoing radical transformation of the ICT industry also calls for new partnerships, new business models and new approaches. A complex mix of factors is coming together: the rise of internet companies providing services over operator networks; the growth of SMEs throughout the world working in niche or innovative areas; new markets in the borderless digital global economy; new technologies and customer behaviours, from social media to 5G and IoT; and the collision of markets, ways of doing business, cultures and mindsets as ICTs cross into vertical sectors such as health, agriculture and education.

    Which is why collaboration within and across the global ICT ecosystem is so crucial. Working together in one way or another is the only way to extend connectivity, expand access and drive socio-economic development. It’s the only way to meet the SDGs and improve the lives of the world’s citizens everywhere.

    This is also why events such as ITU Telecom World 2016 are so important. By providing a meeting point and market place for the governments, regulators, international organizations and companies, both corporate and SME, of the world, the event opens the door to partnerships. To exchanging views and perspectives, to understanding challenges and needs, to debating policies, strategies and models. To meeting face-to-face to meet the needs of the world, now and in the future.

    To find out more about ITU Telecom World 2016, its full programme of debates, exhibits and activities, and to register to take part, visit telecomworld.itu.int.

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  • The importance of collaboration in the digital economy

    The importance of collaboration in the digital economy

    What’s the future for the connected car, for digital financial services, or for smart and sustainable cities in the new industrial reality? How are innovations and technical developments in 5G, the Internet of Things and spectrum management impacting on future networks and future businesses? And if meaningful, affordable connectivity is the single best bet for accelerating socio-economic development and meeting the UN’s sustainable development goals (SDGs), how can we ensure we reach the billions of unconnected most in need?

    These are some of the key questions at the heart of the agenda at ITU Telecom World 2016, four days of debate, networking and exhibition on the theme of “Collaborating in the Digital Ecosystem.” In an industry and era of intense transformation, collaboration is essential to make sense of the possibilities – and make a success of it for us all.

    Rapid technological developments, societal changes and radical new business models are enriching and enlarging the ICT ecosystem. Never before has connectivity offered so much potential for economic growth and social development in the digital economy. And never before have the challenges of extending that connectivity to all been so pressing, from providing universal access to technology to meaningful local content, fair and open competition, up-to-date regulation, security and education.

    More and new stakeholders are involved in making it happen. Governments decide policy and shape regulation. Major ICT companies face competition from new internet players and innovative small and medium enterprises (SMEs). New technologies open up new markets, often involving new partners in vertical sectors such as transport, health or agriculture. The borderless world of the digital economy opens up business in developed and emerging markets across the globe.

    Finding the right public sector policies, the business models and market strategies for success may not be easy. It will certainly involve new approaches to cross-sector partnerships, whether between public and private organizations, or between new industries or market players. The benefits of collaboration need to be balanced against competition, commercial interests and embedded cultures.

    A good example is 5G. As the technology evolves and develops to meet the growing demands of societies and economies, so does the potential for new opportunities. Delivering on the promise of effective future networks won’t be possible, however, without some form of collaboration on the standards that take solutions to scale and at speed. The mix of players, established and new, manufacturers, vendors and application developers, may lead to interesting joint ventures to streamline investment. The long-heralded convergence of fixed broadcast and mobile may be given a boost by the new technology. But then again, competition and entrenched mindsets may kill off any new form of shared investment or working together.

    Or take the connected car. Intelligent transport systems and self-driving vehicles are speeding towards widespread commercialization. The focus is on developing communication technologies that use the internet to integrate cars with smart devices – bringing a whole range of new players into the mix. Car manufacturers and suppliers must negotiate and collaborate with app developers, communication technology companies and OS developers. Combining such different industries, cultures, regulatory and business approaches as software and automotive cannot be without challenges. And given the key issues of security, safety, liability and public policy, it’s clear that the government will have an important role to play, too.

    The same balance between opportunity and challenge, between collaboration and competition and between multiple, often new, stakeholders applies to digital financial services. In a world where around 2 billion adults have no access to basic financial services, digital technology has the unprecedented potential to offer secure, cheap and reliable transactions for the unbanked or underbanked. Financial inclusion is a critical step to socio-economic development. Leapfrogging traditional banking to deliver financial services can have a profound impact on the underprivileged throughout the emerging world.

    But success here relies on the creation of a new ecosystem of government, business and individuals – centred around a sound working relationship between financial and ICT sectors. In its early stages of development, the market calls for convergence between mobile network operators, banks, microfinance institutions, payment platform providers and payment services providers. This dizzying array of players and potential partnerships must establish joined-up regulatory approaches, standards to enable cross-market interoperability, and accepted international good practice. All of which is not possible without collaboration.

    The smart integration of manufacturing and advanced information and communication technology – or Industry 4.0 – is making it possible to deliver tailored products to individual customer specifications at low cost and in high quality. The impact on companies, economies and societies across the globe is potentially enormous. But this, too, depends on the harmonious and fruitful coming together of a number of players, orchestrated to different degrees in different markets by committed government leadership.

    The digital economy is the single most important driver of innovation, competitiveness and growth worldwide. ICTs have tremendous potential to improve development outcomes in both emerging and developed markets, from measuring progress and success in the meeting the UN’s ambitious Sustainable Development Goals  (SDGs) to enhancing the efficiency and effectiveness of development initiatives, and providing access to a whole new range of digitally-enabled products and services which strengthen local economies, innovation and communities. Meeting the SDGs through ICTs, however, will only be possible if the industry can work together with corporate social responsibility departments, public sector, non-governmental and development organizations to build feasible business models.

    Any way you look, across all fields of ICT activity, in the macro digital economy and in the detail of each potential future market, it’s all about working together. Finding new partners, exploiting new opportunities, considering new stakeholders and new markets. Using new services, segments, solutions and devices to drive revenue and increase socio-economic development.

    But will there be stronger collaboration or will industry players default to a winner-takes-all approach? How clear are the benefits of working together both within the telco sector and with web players, disruptive market entrants, customers and the open source community, to stimulate and sustain growth in the industry?

    How can public policies and industry incentives attract investment into the network infrastructure and technologies that are the backbone to the digital economy? Can cross-regional, even international, initiatives maximize opportunities at scale? And what are the key innovative technologies and collaborative initiatives focused on expanding connectivity through access, affordability and relevance?

    These are the questions that the Forum debates at ITU Telecom World 2016 will discuss, with expert speakers, international perspectives and a unique audience of public and private sector leaders from emerging and developed markets, from SMEs fresh to the market to established major corporate players. The event itself works on the principle of collaboration, of coming together face-to-face, of meeting, exchanging knowledge, ideas and experiences, debating, working together – the very principle of collaboration on which the future success of the industry, our societies, economies and world may be built.

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  • Big data market to grow three times faster than tech overall

    Big data market to grow three times faster than tech overall

    Forrester’s latest forecast predicts that the big data technology market will grow at a 12.8% CAGR over the next five years.

    In the first forecast of its kind from Forrester, the market is segmented into six buckets — enterprise data warehouse, NoSQL, Hadoop, big data integration, data virtualization, and in-memory data fabric.

    Forrester data found that, in 2016, almost 40% of firms are implementing and expanding big data technology adoption. Another 30% are planning to adopt big data in the next 12 months.

    In-memory data fabric is taking off. In-memory data fabric will grow 29% annually over the forecast period, according to Forrester data.

    Interest in non-relational databases (NoSQL and Hadoop) is increasing. NoSQL will grow 25%, and Hadoop will grow 33% annually over the forecast period.

    Among respondents, 41% have implemented and are expanding use of NoSQL, and another 20% plan to implement NoSQL in the next 12 months.

    Also, 30% of respondents implemented Hadoop in 2016 versus only 26% in 2015. The increase in unstructured data stored in the cloud using Hadoop increased from 29% in 2015 to 35% in 2016.

    Further, market growth varies by industry. In the next five years, the pharmaceutical, transportation, and primary production industries will see the highest adoption of big data technology. Currently the professional services, telecoms, government, and financial service sectors are the largest users.

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  • Digital coupons to grow 60% by 2021

    Digital coupons to grow 60% by 2021

    The number of coupons issued via mobile and online channels will grow by more than 60% over the next five years, reaching 362 billion in 2021 Juniper’s latest research shows.

    The study, “Mobile & Online Coupons: Loyalty & Beacon Engagement 2016-2021,” found that highly targeted, personalized offers to consumers are driving the growth in digital coupon volumes.

    According to the research, brands will increasingly deploy bots, artificial intelligence applications which can interact with consumers via social media and messaging applications such as Facebook Messenger.

    The research cited Domino’s Pizza and Iceland Air as companies which have already utilized this strategy. Meanwhile, mass adoption of social media has spawned a number of dedicated coupon aggregators operating within that space, including Coupy in India and PennyCat in North America.

    Meanwhile, large-scale deployments of beacons – Bluetooth devices which can send offers to consumers whilst they shop – have been constrained. The research claimed that the key hurdle was the need for consumers to have opted in to online engagement with a brand or retailer, either through having installed a store’s application on their smartphone, or to be following their account on social media.

    The research, however, argued that with some beacons (such as Google’s Eddystone) allowing a wider range of online engagement channels including web browser interaction, retailers will have a far more encompassing product moving forwards.

    “For retailers one of the major tools is knowing their customers. Tracking user movements in store via beacons allows for targeted marketing and offers, this can also aid in providing invaluable data and statistics to a company, this then later applied to drive sales,” said research author Lauren Foye.

  • ICT vendors must prepare for China’s 13th Plan

    ICT vendors must prepare for China’s 13th Plan

    As China moves to implement its 13th Five-Year Plan, ICT vendors need to reassess their positions to take advantage of the major business opportunities it will offer, according to IDC.

    China’s 13th Five-Year Plan, and the decisions and policies introduced at the Third Plenary Session of the 18th Central Committee of the Communist Party of China will serve as the roadmap and action plan for the country’s economic development over the next five to ten years.

    Based on these two guiding documents and amid a challenging macroeconomic environment, the Chinese government has rolled out a host of policies and initiatives to advance the cause. These efforts will bring huge opportunities and become the cornerstone of China’s IT market in coming years, IDC predicts.

    IDC sees six areas that will be the foundation for China’s economic development as follows:

    1. Some 165 major projects to maintain economic growth – IDC estimates that total investment in these 165 projects will exceed 6 trillion yuan ($900 billion), generating over 500 billion yuan ($ 75 billion) in ICT business opportunities, with 300 billion yuan ($45 billion) alone in the rollout of 5G.

    2. Innovation to advance economic restructuring – The Chinese government has established innovation and entrepreneurship as two of its top policy initiatives to facilitate economic restructuring. IDC believes that such government-led endeavors will generate immense business opportunities for ICT vendors in ICT infrastructure; cloud computing and big data; mergers and acquisitions of startups; and the transition of traditional industries to digital.

    3. Policies to improve public well-being – In 2016, the State Council issued a joint initiative to promote Internet+Government services and kicked off 80 pilot cities with the One Window One Network plan that introduced interregional sharing of electronic certificates and public service information across government offices.

    For ICT vendors, the main business opportunities will be ICT infrastructure, cloud computing and services, big data platforms, smart community, and mobile apps, which are seen as the basis for the digital transformation of government.

    4. The Belt and Road Initiative to facilitate globalization – Initially introduced in 2013, this initiative has connected 18 of China’s provinces with nearly 40 countries along its route across Asia and Europe. For ICT vendors, IDC predicts the initiative to  give rise to abundant business opportunities as Chinese companies venturing abroad upgrade their IT systems, countries along the route construct their IT infrastructures, and China develops its own big data platforms for the initiative.

    5. Expanding Free Trade Zones – The first Free Trade Zone (FTZ) was established in Shanghai in 2013. In 2014, the second batch of FTZs was established in Tianjin, Guangdong, and Fujian. In 2016, Liaoning, Zhejiang, Henan, Chongqing, Sichuan, and Shanxi provinces were approved to set up FTZs. Currently, 11 FTZs have been established across China. Collectively, they support the Belt and Road Initiative in promoting globalization and the smooth development of China’s economy.

    According to IDC, ICT vendors should focus on developing smart parks, smart transportation, smart logistics, and other smart city projects, in addition to utilizing the cloud platform infrastructure to support the digital transformation of FTZ regions.

    6.China as an internet powerhouse – China’s national IT development strategy was first introduced in 2006 and has acted as the basis of many of China’s IT development policies since then. In 2016, the Chinese government introduced an outline that standardizes and guides the next 10 years of China’s IT development.

    To remain competitive in this market, multinationals will have to radically transform many things, including their domestic business models, strategic investment, technology transfer, equity transfer, and joint investment strategy.

    “ICT vendors should capitalize on China’s supportive policies and economic environment, making use of ICT technologies and displaying their strengths to discover the opportunities being brought by Digital Transformation,” IDC China VP and chief analyst Lianfeng Wu said.

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  • Multi-device use on the rise in Asia

    Multi-device use on the rise in Asia

    Multi-device usage is on the rise in Asia, and users in the region interacting with their screens in increasingly complex ways. according to a new report from marketing company Appier.

    The report is based on an analysis of Appier-run campaigns and websites embedded with Appier site tag in Japan and across the region, and entails the company analyzing over one trillion campaign data points.

    According to the report, multi-device use is accelerating in Asia, and the number of multi-device users using more than four screens have increased by 40% compared to the second half of 2015.The number of users on more than four screens increased at a faster rate than those using three in markets such as Hong Kong (+16%), Japan (+11%), Malaysia (+17%) and Singapore (+15%). Moreover, cross screen campaigns outperform single screen campaigns to the tune of 67% in North Asia, 10% in developed markets and 16% in developing markets.For marketers, the evidence is that Asian users are ‘cross screening’ more than ever, and is an area that is crucial for marketers here. Moreover, the report also noted that the high number of devices in use also lends itself to usage patterns that will only get more complex and interconnected.

    Indeed, a wide variation in the final converting device among cross screen conversions paths across Asia was observed, with PCs and smartphones playing the greatest role in both driving awareness and conversions.

    “This latest report shows that cross screen is key in Asia, as users move between a growing number of screens in increasingly complex ways. One size does not fit all, and businesses need to consider how different messages and formats can help them connect with their audience across all screens,” said Caroline Hsu, the CMO of Appier.

    “Understanding these interconnections will allow marketers in the region to reach their users at various touch points in their journey, leading to more meaningful engagement throughout,” she said.

    PCs and tablets still relevant

    Smartphones are driving the greatest number of cross screen conversions at place like Hong Kong, Philippines, Malaysia, South Korea and Vietnam, though countries such as India and Singapore are seeing conversions on PC that outweigh those on smartphones.

    But while smartphones generate a greater number of page views and non-purchase actions taken on websites, PCs dominate in Asia when it comes to actual purchases. And with PC and tablet accounting for nearly a quarter and a fifth of conversions, respectively, there is no question that they are still relevant.

    Moreover, an examination of usage patterns also highlights the continuing significance of PCs and tablets in the region. Despite representing only about a third to a fifth of reachable devices, PCs generate 70% more volume of web usage than smartphones.

  • Global m-banking userbase to hit 2b by 2021

    Global m-banking userbase to hit 2b by 2021

    Over 2 billion consumers worldwide will have used their mobile devices for banking purposes by the end of 2021, up from 1.2 billion this year, Juniper Research predicts.

    Growth in mobile banking is being driven by consumer adoption of banking apps the changing way consumers manage their finances, the research firm said.

    The study found that the number of mobile banking logins are now exceeding that of internet banking logins in many markets. For example, the BBA (British Trade Association for Banking) announced that banking app logins in the UK reached a record 11 million per day during 2015, compared to 4.3 million internet banking logins during the same period.

    Meanwhile, a recent consumer survey conducted by Juniper Research found that around 65% of mobile banking customers in the US and the UK use an app to conduct banking services.

    The report found that banks are becoming increasingly concerned that their market position is being undermined by tech companies and pure-play vendors enabled by technology and regulations to enter the marketplace.

    Additionally, by 2017, banks in the EU will be compelled to open their APIs. This will result in many innovative new products that analyze (with permission) user data to create more attractive financial services for customers.

    “Recent industry shifts highlight why traditional banks must respond rapidly to retain market share by cultivating new revenue channels and enhancing existing base through sustained innovation,” research author Nitin Bhas said.

    “However the challenge here for new players is to increase market share and maintain profitability in the long-run.”

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  • RFID market is growing

    RFID market is growing

    IDTechEx Research has tracked the RFID market since 1999. IDTechEx find that in 2015, the total RFID market is worth $10.1 billion, up from $9.5 billion in 2014 and $8.8 billion in 2013. This includes tags, readers and software/services for RFID cards, labels, fobs and all other form factors, for both passive and active RFID. IDTechEx forecast that to rise to $13.2 billion in 2020.

    In retail, RFID continues to be adopted for apparel tagging – that application alone will demand 4.6 billion RFID labels in 2016 – which still has some way to go with RFID penetrating about 15% of the total addressable market for apparel in 2016. RFID in the form of tickets used for transit will demand 800 million tags in 2016. The tagging of animals (such as pigs, sheep and pets) is substantial as it continues to be a legal requirement in many more territories, with 420 million tags being used for this sector in 2016.

    In total, IDTechEx expects that 8.9 billion tags will be sold in 2015 and 10.4 billion in 2016. Most of that growth is from passive UHF RFID (RAIN RFID) labels. However, in 2015 UHF (RAIN RFID) tag sales by value will only be 11% of the value of HF tag sales, mainly because HF tags where used for security (such as payments, access etc) have a higher price point versus the cheaper, usually disposable UHF (RAIN RFID) tags used for tagging things.

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  • Beware the Internet of Unpatchable Things: Akamai

    Beware the Internet of Unpatchable Things: Akamai

    A recent spate of attacks involving attackers using IoT devices to remotely generate attack traffic by using a 12-year old vulnerability in OpenSSH have been discovered by researchers at Akamai Technologies.

    Akamai notes that the research and subsequent advisory do not introduce a new type of vulnerability or attack technique, but rather a continued weakness in many default configurations of Internet-connected devices. These devices are now actively being exploited in mass-scale attack campaigns against Akamai customers.

    The Threat Research Team said it has observed incidents of what it has called SSHowDowN Proxy attacks originating from the following types of devices:

    • CCTV, NVR, DVR devices (video surveillance)
    • Satellite antenna equipment
    • Networking devices (e.g. Routers, Hotspots, WiMax, Cable and ADSL modems, etc.)
    • Internet connected NAS devices (Network Attached Storage)

    Compromized devices are being used for mounting attacks against a multitude of internet targets and internet-facing services, such as HTTP, SMTP and Network Scanning. It is also being used to launch attacks against internal networks that host these connected devices.

    Once malicious users access the web administration console, they have been able to compromise the device’s data and, in some cases, fully take over the machine.

    “We’re entering a very interesting time when it comes to DDoS and other web attacks; ‘The Internet of Unpatchable Things’ so to speak,” explained Ory Segal, senior director for threat research at Akamai.

    “New devices are being shipped from the factory not only with this vulnerability exposed, but also without any effective way to fix it. We’ve been hearing for years that it was theoretically possible for IoT devices to attack. That, unfortunately, has now become the reality.”

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  • Take a bite out of the Indonesian digital pie

    Take a bite out of the Indonesian digital pie

    Recent research has highlighted the potential increase in digital ad spend in Indonesia over the next five years. Brands yet to venture into Indonesia’s booming digital ecosystem must expedite their entry strategies to ensure getting a share of this lucrative pie.

    A report has highlighted the growing potential of digital retail from Indonesia. This is attributed to the increasing use of mobile devices, especially with cheaper smartphones enabling a greater population to access the digital sphere. This rapid growth projects digital ad spending to increase to 20.4% of all media ad spending by 2018, up from 10.7% in 2016. This report illuminates the expanse of Indonesia’s digital ad market that could be further developed, and have an emergent interest in the technology amongst local advertisers.

    With the largest population in Southeast Asia, an exponential increase in digital adoption, and a seemingly insatiable appetite for e-commerce and social media, Indonesia is the puzzle every brand wants to solve.

    However, does this mean the death of the traditional advertising and offline retail? Are you as a marketer confident in leaving your brand in the hands of the bots?

    While digitisation has revolutionised the marketing function in Indonesia, brands cannot assume that a digital presence is the solution to building market share. Because of the increase in digital ad spending cited above, the question of effective brand engagement is more crucial than ever.

    So what can brands do to continue engaging their consumers beyond their finger-tips and into their hearts and minds? And more importantly, how can you build loyalty in a competitive market like Indonesia?

    Going beyond Digital

    The consumer journey is not limited to just the digital sphere. Rather than situating offline and online as extreme entities, they should be treated as a continuum. Take the example of Zalora. Marketed as the leading online apparel retailer in Asia, Zalora launched several pop-up stores in order to let consumers try their items before buying, thereby reducing return rates.

    Strategic alliances between logistic services and e-commerce consumer brands like Zalora are revolutionising the customer experience. The traditional is not dead. It is revamped with renewed excitement. Digital is an essential medium for marketers to reach out to their audience. This is more so imperative in the emerging scene of digital marketing in Indonesia to start with the right foot in.

    To take a first-hand look at how leading marketers are tackling Indonesia’s digital frontier, be involved in Digital Marketing Indonesia that is happening on 24th and 25th November at Mandarin Oriental, Jakarta.

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  • Great Potential in Indonesia’s Modern Retail, Food & Beverage Sectors

    Great Potential in Indonesia’s Modern Retail, Food & Beverage Sectors

    In 2017 turnover in Indonesia’s processed food and beverage industry is expected to grow by 8 percent (y/y) to IDR 1,400 trillion (approx. USD $108 billion) from an expected IDR 1,300 trillion in 2016. Meanwhile, the nation’s modern retail industry is projected to expand in the range of 10 – 15 percent (y/y) to IDR 225 trillion (approx. USD $17.3 billion).

    Tutum Rahanta, Deputy Chairman of the Indonesian Retailers Association (abbrev. Aprindo), says the combination of accelerating macroeconomic growth and controlled inflation are the main supporters for growth of Indonesia’s modern retail sector. In 2016 Indonesia’s gross domestic product (GDP) is expected to expand by 5.1 percent (y/y) up from the realization of 4.79 percent (y/y) in 2015. Recently, the World Bank announced it sees the Indonesian economy growing further by 5.3 percent in 2017 and 5.5 percent in 2018.

    Aprindo Chairman Roy Nicholas Mandey added that after several years of economic slowdown, the retail sector of Indonesia has been recovering in 2016 on the back of low domestic energy prices (electricity, gas and fuel), the stronger rupiah exchange rate (versus the US dollar), rising government spending (on infrastructure development), low inflation (around 3 percent y/y), and accelerating economic growth. Due to these factors members of Aprindo have been eager to expand their businesses this year.

    Based on a Bank Indonesia (BI) survey, Indonesia’s retail sales grew 14.4 percent (y/y) in August 2016, supported by sales of non-food items, extending the promising trend recorded in the preceding month (retail sales growth at +15.7 percent y/y). However, this survey also signals that retailers expect retail sales to slow in November 2016 due to rising inflation (a seasonal phenomenon).

    Adhi Lukman, General Chairman of the Indonesian Food and Beverage Association (GAPMMI), agrees and expects the processed food and beverage Industry of Indonesia to rise by at least 8 percent (y/y) provided the government will not implement any policies that could undermine this growth (for example, the government once uttered the idea to implement a plastic excise tax). Besides the five above-mentioned factors, Lukman added that rebounding commodity prices also boost people’s purchasing power.

    Lukman is also optimistic that direct investment in Indonesia’s processed food and beverage industry will surpass IDR 50 trillion in 2016, up 16 percent from IDR 43 trillion in 2015. However, investors urge authorities to lower interest rates as that would make business expansion much more affordable. Lukman emphasized that Indonesian authorities need to be consistent and committed (for example through effective implementation of the economic policy packages) in order to support this industry and thus be able to compete with counterparts in Malaysia and Thailand.

    Indonesian Modern Retail Industry:

    2013 2014 2015 2016¹ 2017¹
    Turnover
    in IDR trillion
    		  148  168  181  200  225

    ¹ indicates forecast

    Indonesian Food & Beverage Industry:

    2015 2016¹ 2017¹
    Sales
    in IDR trillion
    		 1,209 1,300 1,404

    ¹ indicates forecast

  • Telecoms billing market on pace to $14b in 2022

    Telecoms billing market on pace to $14b in 2022

    The global telecom billing and revenue management market is expected to reach$14.2 billion in 2022 with a CAGR of 8% from $7.6 billion in 2014.

    The factors that are favoring the market growth include, hastily growing telecommunication sector, deployment of innovative services and increasing number of customers, whereas factors such as quick growth of subscribers, network clogging, plunge in quality of services, and fallout of services area are inhibiting the market growth.

    North America and Europe have the highest adoption of billing and revenue management in the telecom ecosystem and regions such as Asia-Pacific, Middle East and Africa along with Latin America offer a lot of opportunities for the vendors.

    Countries in Asia Pacific such as China and India have large subscriber bases and ever changing regulatory scenarios, thus creating demand for billing and revenue management solutions.

    The global telecom billing and revenue management market is segmented on the basis of deployment type, service, software, and geography. On the basis of deployment, the market is segregated into on-site and cloud.

    On the basis of service, the market is categorized into system integration, planning and consulting services, operations and maintenance services, managed services and others. The market is segmented on the basis of software into negotiation, revenue assurance, partner management, fraud management, billing and charging and others.

    The key players in the global telecom billing and revenue management market include Accenture, Cisco, Oracle, Ericsson, Hewlett-Packard (HP), SAP, Huawei Technologies, NEC, Amdocs and Comverse.

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  • Public cloud market set to grow 17% in 2016

    Public cloud market set to grow 17% in 2016

    The worldwide public cloud services market is projected to grow 17% in 2016 to $208.6 billion, according to Gartner.

    The highest growth will come from IaaS, which is projected to grow 43% in 2016. SaaS, one of the largest segments in the global cloud services market, is expected to grow 22% in 2016 to reach $38.9 billion.

    “There’s no question there is great appetite within organizations to use cloud services, but there are still challenges for organizations as they make the move to the cloud,” said Sid Nag, research director at Gartner. “Even with the high rate of predicted growth, a large number of organizations still have no current plans to use cloud services.”

    IT modernization is currently the top driver of public cloud adoption, followed by cost savings, innovation, agility and other benefits. The focus on IT modernization indicates a more sophisticated and strategic use of public cloud services.

    Security and/or privacy concerns continue to be the top inhibitors to public cloud adoption, despite the strong security track record and increased transparency of leading cloud providers.

    Most organizations are already using a combination of cloud services from different cloud providers. While public cloud usage will continue to increase, the use of private cloud and hosted private cloud services is also expected to increase at least through 2017.

    The increased use of multiple public cloud providers, plus growth in various types of private cloud services, will create a multi-cloud environment in most enterprises and a need to coordinate cloud usage using hybrid scenarios.

    Although hybrid cloud scenarios will dominate, there are many challenges that inhibit working hybrid cloud implementations. Organizations that are not planning to use hybrid cloud indicated a number of concerns, including integration challenges, application incompatibilities, a lack of management tools, a lack of common APIs and a lack of vendor support.

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  • How 3D printing will shake up the supply chain

    How 3D printing will shake up the supply chain

    Consumers today are already familiar with personalizing their favorite treats by molding them into unique shapes or printing edible messages on cakes, chocolate and flowers, among others. What if you could customize any product in the future to suit your preference – from shoes to even houses? While some may perceive this to be a pipe dream, the fact is that this is actually a reality. New Balance just introduced 3D printed shoes last April, and in China, Huashang Tengda successfully built a two-storey house in just under two days!

    3D printing is also known as additive manufacturing, a process that allows us to seemingly create objects such as bicycle frames and toys out of thin air. Manufacturing and supply chains have typically been all about assembly lines, warehousing and shifting products outwards from the point of manufacture. 3D printing is now revolutionizing the way products are manufactured and distributed.

    With the advent of 3D printing, individualized products can be designed, produced, delivered, and serviced in new ways. To start, organizations can leverage a product innovation platform that supports direct communication with customers and network partners from conceptualization to production. Consumers today love to customize everything and anything, and 3D printing makes this both possible and affordable. Organizations can now evolve beyond demand-driven supply chains to enable demand-driven manufacturing, furthering customer centricity and personalization.

    3D printing is also transforming the manufacturing industry, making it more digitized and in the process throwing out all the traditional rules of the game. Essentially, 3D printing changes who is in control. Analog manufacturing used to be the realm of huge companies that have the resources to invest and produce large quantities of the same good. These companies need to have the capital to support research, prototyping and focus groups to identify products that will please the critical mass, and marketing to promote that same product to large volumes of consumers. On top of that, delivering the products to consumers requires complex supply chain and retail channels.

    In contrast, 3D printing allows complex items to be produced on demand, eliminating the need for assembly lines. With 3D printing, the supply chain has the potential to become more efficient, more local and globally connected. Manufacturers are using 3D to respond to dynamic, real-time customer demands, reduce inventory and slice into transportation costs while dramatically compressing the time needed to ship products.

    Imagine this: Without the need for huge capital outlay, manufacturers do not need to set up factories at permanent locations. All manufacturers need is a 3D printer in local markets or regional production hubs, solving a number of large problems. The ability to bring manufacturing local will provide a way to significantly reduce carbon footprint. If you add the benefits of timeliness, cost reduction, and the freedom to print multiple materials and properties, you start to understand the impact 3D printing can have on society.

    Supply chains have a reputation for being boring, complicated, and uninteresting. But with the advent of the digital economy and 3D printing technologies, all of this is about to change. As the digital supply chains become both disruptive and important within the next few years, supporting the supply chain and the manufacturing floor to boost productivity will have ripple effects throughout any industry. The future of supply chain will be more collaborative and integrated with suppliers, retailers and even product planning and design.

    Where supply chain used to be the most inelastic piece in the journey from manufacturing to customer delivery, 3D printing will be the catalyst and enabler to reimagine a supply chain that can dynamically respond to customer requirements and expectations. In addition, we are going to see more of these advanced efficiencies permeating production activities as 3D printing continues to rise past the hype and into everyday manufacturing.

    In 2013, Wohlers Associates, a consulting firm that specializes in 3D printing, predicted that the sector would grow to $10.8 billion by 2021. The firm now forecasts even greater and faster growth, with the industry reaching $21.2 billion in 2020. That’s because while the firm is skeptical about the value of low-end, consumer-oriented printers, they are positive that more and more industrial clients – especially manufacturers – will be buying and implementing high-end, expensive 3D printers.

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