The Integrator East Africa - July 2012

Editorial

We cannot seem to get enough of gadgets. Phone manufacturers had predicted that the smartphone would eventually replace all our other gadgets with the one magical device able to make phone calls, browse the internet, take photos and video, play computer games and basically handle all our communication interactions all from one convenient hand-held appliance. Every other gadget would simply fade into oblivion. This has not happened.

In fact, as more devices are launched the more communication needs we seem to have. More and more people are carrying multiple devices.

All this has provided an ever-expanding market for IT manufacturers to launch more and more products across the now broadened communication spectrum. Now the same IT company makes smartphones, tablets and netbooks. And they want the same customer to buy across the board having come up with links among their products so you take a photo on your cell phone, edit it on a tablet and share it with friends on a laptop.

We look at how firms in the computer accessories business are leveraging their growth on the strong demand for portable computer devices

This expansion has also provided an indirect boost to another segment of the IT industry; accessory makers. Not only do we want these gadgets, we want them wrapped in tasteful leather cases while we operate our laptops with designer mice. We also need that back up battery for those long house spent outside of the home and office in addition to the futuristic headphones to take it all in.

The African consumer has not been left behind.

This market is the next frontier for industry growth. The East African region in particular offers a combination of growing economies, an IT literate population and Governments willing to invest large sums of money to leverage their own economic expansion on tech innovation. This is an IT entrepreneur’s dream set-up.

Finally, The VAR Conclave returns to Nairobi from the 11th of July this year at The Norfolk Hotel. This event provides an excellent opportunity for the IT channel community to network, share ideas and learn from top names in the industry. It’s an event not to be missed.

David Ndichu Assistant Editor Publisher: Vivek Sharma Managing Editor: R. Narayan Assistant Editor: David Ndichu Art Director: Faiz Ahmed Sales Director: Alishan Zaidi Sr. Sales Manager: R. Subramanyan Business Development Manager: Mallika Rego Sales Coordinator: Smitha Jithesh

News Eyetech Stats & Trends

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Interview Pg-12

Content

IT Giants Stake Claim in Africa

Regulars

K. S. Pragg Managing Director, FVC discusses with The Integrator the company’s East African prospects

Feature Pg-14

Mitsumi is in a strong position to take advantage of imminent East African IT boom

Cover Focus Pg-16

Mobility remains a key factor in IT gadgets appeal to the customer

Channel Watch Pg-19

Sanjay Bhudia of Office Dynamics explains how to sustain customer interest in a competitive market

Interview Pg-20

Digital storage specialists TwinMOS expansion into East Africa bears fruits

Interview Pg-22

Western Digital CEO explains how the company has managed to remain one of the largest digital storage companies in the world

Storage Pg-24

Bid Data will help push more and more storage needs towards the cloud

DistriView Pg-26

Redington GM explains to The Integrator reasons behind the company’s recent entry into the computer peripherals business

M-Commerce Pg-27

Citibank and USAID are using M-Pesa’s successful model to spread financial development in the developing world

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Disclaimer: While the publishers have made every attempt possible to get accurate information on published content in this handbook they cannot be held liable for any errors herein.

July 2012 | The Integrator

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News

Mitsumi ‘s Toshiba event in Ethiopia Mitsumi Distribution, a leading technology distributor in Africa held a Toshiba Channel Event in Ethiopia on the 5th June at the Sheraton Hotel Addis Ababa. More than 150 channel partners were trained and familiarized with the latest technology from the Toshiba PC arena.

The event was aimed at giving channel partners a good understanding of the diverse range of Toshiba products. Mitsumi outlined the Toshiba product roadmap and how channel partners can learn about the solutions and how to take them to the market.

On display were the latest Toshiba technologies to the channel community.

Speaking during the event, Nelo Neves, African Regional Manager, Toshiba PSG, underscored the importance of the relationship between the IT giant and Mitsumi. “We are excited to launch our new product range to the market and look forward to working with Mitsumi in educating our channel partners about our products.

Toshiba will continue delivering the same innovative technologies."

Citrix new VDIin-a-Box Citrix Systems, Inc, a leading provider of virtual computing solutions that help companies deliver IT as an on-demand service, recently announced the launch of VDI-in-a-Box in the Middle East, an all-in-one virtual desktop solution for small and mid-sized enterprises (SMEs).

Investment in virtualization and cloud computing continues to rise in the Middle East, driven by enterprise customers across oil and gas, financial services, healthcare, telecommunications and public sectors.

VDI-in-a-Box is a single virtual appliance that provides all of the functionality needed to create, provision, manage, and load balance virtual desktops. VDI-ina-Box has a built-in connection broker, load balancer, user manager, and desktop provisioning server. It does not require separate shared storage, high-speed interconnects, or multiple management servers. The appliance runs on commodity servers running a hypervisor such as Citrix XenServer, Microsoft Hyper-V, or VMware ESXi. VDI-in-a-Box enables SMEs access to Citrix virtual desktop experience anytime, anywhere and on any device, without investment in datacenter infrastructure. The product will be available for purchase pre-installed on low cost server hardware, providing a bundled solution for virtualization at less than the cost of new PCs.

Office Cloud Solutions now in Kenya Microsoft recently launched its cloud based productivity suite Office 365 in Kenya.

The suite, which features all the popular Microsoft productivity applications including Word and Excel, will inspire Kenyan businesses utilize the power of the cloud.

Office 365 is a Web-based version of Microsoft's Office suite of enterprise-grade applications. Office 365 is delivered to users through the cloud and includes Exchange Online for email, SharePoint Online for collaboration, Lync Online for unified communications, and a suite of Office Web Apps, Web-based versions of the traditional Microsoft Office suite of applications. Office 365 users also have the option of accessing the applications in Microsoft Office 2010 Professional via a monthly subscription.

Office 365 is targeting small and medium businesses (SMBs) who have less or no legacy systems and therefore can easily migrate to the cloud. Speaking during the launch of Office365 at the Norfolk Hotel, in Nairobi, Louis Otieno, Microsoft's General Manager, Eastern and Southern Africa, said Office 365 is available in Kenya, Nigeria and SA as a result of better connectivity brought about by the undersea optical fiber cable infrastructure these governments have invested in.

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News

IBM Expands its East African Footprint IBM has announced the opening of a new branch office in Dar es Salaam, as part of the company's continued geographic expansion initiative to increase its presence in key growth markets and support its global growth strategy. The new subsidiary office is part of a broad program of investment that IBM is making in Africa covering the creation of new facilities, offices, training, staffing and recruitment, sales and marketing and corporate citizenship. The expanded presence in Tanzania will allow IBM to increase its level of service to clients and partners across East Africa and deliver more advanced and highvalue solutions.

IBM already serves a number of key clients in East Africa, spanning multiple sectors including telecommunications, oil & gas, finance and government.

For example in Tanzania, IBM is working with the National Microfinance Bank (NMB) to help transform the bank's core banking technology infrastructure and support business growth.

Techno Brain Achieves IT Milestone Techno Brain, an IT Training and BPO / ITES services provider with operations in USA, UAE, UK and India, has achieved HP Preferred Partner Status in East Africa covering Tanzania, Kenya, Uganda and Ethiopia. HP Preferred Partners are the top 5% of HP resellers who are certified and promoted as they offer in-depth knowledge and experience to give their clients’ businesses a competitive advantage.

As an HP Preferred Partners, Techno Brain is recognized and authorized to consult, sell and support all of HP’s products and solutions. Techno Brain will also leverage the direct relationship with HP through this partnership to provide an enhanced level of access for sales, marketing, planning, deployment and support for clients’ across globe.

Commenting on this achievement, Manoj Shanker, CEO, Techno Brain Group, said, “We are delighted to have achieved HP Preferred Partner Status. Techno Brain has worked hard and grown a strong relationship with HP over the years.

We place a premium on high-quality customer service, backed by HP in every step.” He also attributed this accomplishment to Techno Brain’s ability to build capacity in the regions it operates.

Alfred Mugo, Practice Director, IT Infrastructure Solutions, Techno Brain, said, “This status recognizes us for demonstrating and maintaining the highest levels of expertise, support and customized solutions using HP products and technology’, adding, “this status enables us to offer state-of-the-art, optimal and professional products and solutions to our clients’ and ensure that their requirements and business needs are addressed on the right time more effectively.”

Belkin in New African Partnership Belkin has announced that they have partnered with AccessPlus FZE to further penetrate the African markets and increase the company’s visibility in the continent. AccessPlus will work with Belkin to market and sell the full product range in markets such as Nigeria, Kenya, Ethiopia, Tunisia, Morocco and Algeria.

Africa’s population is estimated to be over 1billion people with some 120 million of those online and an even greater number using mobile phones. In 2011, Africa saw a 50% growth in the purchase and use of smart phones according to the International Data Corporation (IDC).This portends a potentially huge demand for peripherals offered by Belkin.

While the company has been in the EMEA region for over 15 years, the logistics and supply chain division was recently opened to support companies in the Middle East and Africa. Walid Khaled, Managing Director of AccessPlus believes the potential between these two companies will create positive synergies for this growth market. “We have nearly 20 years’ experience in this field and we believe that this partnership between a global brand like Belkin and an experienced logistics company like us will be a win/win scenario”, says Khaled.

For Belkin this partnership represents another milestone in their expansion plans and a renewed focus on the key markets in Africa.

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Security Event in Kenya IDC recently held its 2012 IDC IT Security roadshow in Nairobi, During this roadshow, Kaspersky Lab’s senior security researcher, Stefan Tanase, addressed the audience and presenting a paper on critical IT security needs for an ever changing threat landscape, specifically focusing on virtualization and the growing dynamic Kenyan business landscape.

Tanase’s presentation explored how traditional cybercrime has evolved and where it is going. It also analyzed the new platforms that cybercriminals are targeting, explaining who their latest victims are, and evaluated their ever-increasing profits.

With approximately 41 million people, Kenya is one of Africa’s fastest growing countries in terms of telecommunications infrastructure and as a result, its business landscape is growing, allowing for the opportunity of trends such as virtualization to be embraced. Tanase addressed security in the virtual environment in more detail, to bring to light security realities and the corrective measures that need to be implemented to ensure that businesses operating in Kenya IDC CEMA organizes a wide range of activities designed to create an ongoing dialog about effective use of ICT technology and what it takes to succeed in the ICT markets of Central and Eastern Europe and the Middle East and Africa.

Cloud Security for Kenya Symantec Corporation and Internet Solutions Kenya have announced a partnership that will facilitate the marketing of Symantec.cloud’s hosted range of security services in Kenya and the East African region. The partnership is similar to the successful model in South Africa.

Lenovo Makes Gains in Region Lenovo aims to ship 400,000 units into Africa in the current financial year. This comes as the company grows its market share from 6% to 12.5% in the Middle East and Africa region in the past few years. Much of this growth has been achieved through a rise in corporate business.

Lenovo Group announced results for its fourth fiscal quarter and full year ended March 2012. With fullyear record sales of $US29.6 billion, an increase of almost 37% year-onyear, Lenovo finished the financial year as the world’s second largest PC vendor with a record full-year market share of 12.9%. In emerging Markets, including the Middle east and Africa, sales jumped 43% yearon-year during the fourth quarter to a total of $US1.2 billion.

Lenovo ships approximately 35,000 units into Africa, outside of South Africa, and David Drummond Lenovo’s general manager for Middle East and Africa‚ hopes to focus on the group’s headway into Kenya. Drummond said that the split between laptop and PC is roughly 50/50 in the region.

According to the statement, the partnership will see Internet Solutions Kenya become Symantec.cloud’s Kenya market route. A dedicated Symantec Software as a Service (SaaS) data centre will also be hosted on Internet Solutions’ infrastructure.

Internet Solutions clients in Kenya will have access to Symantec.cloud’s hosted security solutions such as Symantec’s Email AntiSpam.cloud and AntiVirus. cloud, Email Encryption.cloud, and Email Archiving. The Managing Director of Internet Solutions Kenya Loren Bosch stated that the company has become its clients’ trusted advisors, necessitating the need to give customers the very best in technology in line with latest international best practices. “Increasingly, clients are looking to us to provide them with an integrated suite of IT solutions that are easy to implement and require little or no IT resources to manage. They want us to be their trusted advisor and supply the very best technology and performance available globally,” he said.

July 2012 | The Integrator

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News

XON in New E. Africa Venture XON, the BBBEE ICT solutions business, has expanded its direct footprint into Kenya to extend its presence to 11 countries in subSaharan Africa.

“The direct footprint in Kenya capitalizes on the success we've experienced in the telecommunications service provider space in those countries where deregulated telecommunications and massive international bandwidth upgrades have created a fiercely competitive and progressive environment,” says Carel Coetzee, CEO of XON. XON supplies, implements and maintains IP and transmission networks and security infrastructure solutions for large enterprises and telecommunications service providers, among others. Demand has been so significant that XON managed to grow its Juniper Networks-based business 73% yearon-year by December 2011, and was subsequently awarded Juniper Networks Partner of the Year Middle East and Africa (MEA).

Uganda Takes Lead in IT Uganda has been ranked amongst the top three countries with advanced technological and innovation capabilities on the continent, second only to South Africa, according to a study conducted by the Martin Prosperity Institute of the US. The study focused on the performance of each nation with respect to research and development, investment, scientific and engineering research and level of innovation. The Ugandan Government attributed the success to the countries tertiary education institutions that have fully embraced information and communication technology.

“Government’s policy towards ICT is also good. Internet access is at low cost. The ministry is investing to expand infrastructure in this sector,” said Ugandan ICT Minister, Dr. Ruhakana Rugunda, in a statement to the local press. Dr. Rugunda also noted that the sector continues to attract foreign investment.

Dr. Rugunda said that the Government was determined to encourage more innovations. “President (Yoweri) Museveni has himself started innovation firms.

Our challenge now is to ensure that every region in this country has access to lowcost access internet.” According to the research, China, Brazil and India (which form part of the BRICS community) did not feature among the first five top nations, but are considered fast-growing economies that contribute significantly to the global economy.

Epson Opens Kenyan Office Epson known for printers and scanners is making its entrance into Kenyan market with the opening of an office in Nairobi. The office will act as the hub for Epson’s business operations in the East and Central Africa region. This is part of Epson’s overall growth strategy which aims at increasing its market share over its rivals and while growing sales in the future. To achieve the envisaged growth, Epson intends to launch over 140 new products with each one of them engineered for business, offering superior after-sale-service and strengthen its distribution network in emerging markets like Kenya and the rest of Sub-Saharan Africa. “In our chosen markets on the African continent, we intend to gain market share at a higher rate than market growth by striving to develop and create ground-breaking innovative products at affordable prices for all market segments,” said Mukesh Bector, Regional Manager for Epson East Africa. The firm will be targeting the banking, education sector and government to grow its sales. Mukesh said Epson’s choice of Kenya as the company’s East African was driven by the country’s excellent infrastructure and easy access to the rest of the markets in East Africa. The company also announced its ambitious green vision that seeks to reduce carbon emissions by 90 percent across the lifecycle of all products and services by the year 2050. This will be done by helping customers save on materials, paper and energy.

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Gadgets Accessories

IT companies continue to launch devices at a bewildering rate. With all the gadgetry, and customers hunger for them, comes an opportunity for anyone connected with the industry.

Gadgets Craze Inspires Accessories Market Boom The computer accessory business is moving from a niche product business into the mass market in the region driven by a growing array of mobility devices. Customers in this area are spoilt of choice as vendors and distributors jostle for market share with more and more innovative products.

Targus is one of the larger vendors of accessories and peripherals around.

The American-based firm operates 45 offices worldwide with direct distributorship in 145 countries.

Targus signature products are its notebook carrying cases, although today the firm has a diversified product range that includes keyboards, mice to tablet cases and Ipad accessories.

Kim Gervin, Targus regional director continental Europe and Middle East, says the company has visible presence in the Middle East and East Africa with distributors and resellers in these countries. The company is also busy recruiting more merchandising agents and already has 18 merchandising agents on the ground through a local partner, according to Gervin.

Taiwanese company Genius on the

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other hand operates in the market through their distributor GCT. Genius makes a wide range of computer accessories including netbook and tablet cases, styluses, keyboards and mice, tablets, computer speakers and webcams among others. GCT has had an exclusive distributorship agreement with Genius since 1998 for the Middle East and African regions.

GCT attributes its success in the market to specialization on the accessories sector, according to Jihad Youssef, GM at GCT. Belkin utilizes channel partners, both distributors and retailers, own facilities to display their products and to offer them for sale. This is combined by aggressive marketing activities including installing promoters in retail stores to showcase products and assist customers. Belkin has local distributors with fully-fledged operations in both UAE and KSA that serve those markets. The East African market is still territory for Belkin, according to Youssef El-Arif, Sales Manager, MEA. “The company has recently appointed a logistics partner that will help us reach the channel partners within the

Youssef El-Arif Sales Manager, MEA

Feature

respective countries to serve these markets through better prices and product availability”.

The GCC region has become a real multi-cultural society and global brands find it easy to sell products with no major adjustments in marketing strategies. There’s a universal appeal in the products Targus company offers, according to Riyaz Abdulla, the Regional Sales director, Middle East and Africa.

The same big sellers in a market like Europe attract the same enthusiasm in the Middle East and Africa. For instance, black Ipad cases are popular sellers in all markets. Up to 80% of customers are generally satisfied with existing designs and colours, says Abdulla. GCT’s Youssef says that populations across the region have the same cultural attitudes and consumer behavior and the company is able to employ uniform strategies across the region using Dubai as the benchmark.

“We like to ensure that when people visit any country that we do business, they get similar products at similar prices no matter where they are buying

to inspire confidence in our products”.

IT giants are going into the accessories business themselves a trend recently underlined by the yet-to-launched Surface by Microsoft which comes with an in-built stand and keyboard.

Still, industry players insist there’s a lot to go around. Abdulla cites the example of Apple who despite having their own line of smart covers, other players in the market still able to corner their own markets. GCT’s answer to encroachment from IT giants is diversity and creativity according to Youssef. “We have a wide range of products which perform at various levels in various markets. That way we are able to balance out our sales.

We are also able to come up regularly with different unique products”, says Youssef. For instance, Genius produces more than 100 different varieties of mice; from basic to high end, ecofriendly to ergonomically friendly, and everything in between. Genius’s

products are largely made in-house.

Belkin’s strength lies in the ingenuity that goes into designing their products, differentiating them from similar merchandise from IT hardware makers, according to Youssef El-Arif.

“IT hardware manufacturers have always been supported by their own accessories which in my opinion is far from the creativity and solution that belkin has to offer”, he adds.

Customers want more and more gadgets even as technology convergence means the smartphone can almost do it all. People with laptops still buy tablets, those with tablets acquire gaming consoles and so on.

This has only broadened the market for accessories. “As more and more devices are launched, people find more needs for utilizing those gadgets”, says Gerin.

Customers also want products that can be used across the many platforms provided by the numerous IT products they own. Compatibility has become an industry byword. Bluetooth keyboards from Genius for instance can be used with android, windows and Apple tablets.

As computers become mass products, so do the accessories to go with them.

Peripheral manufacturers are targeting all demographics with all the different preferences. Indeed, IT buying is becoming a lifestyle issue for a lot of customers according to Youssef; it is now fashionable to go and purchase computers and accessories and customers want products that match their tastes. But there is a premium niche market for the discerning customer. For instance, traveling businesspeople demand high end casings for their gadgets. It also follows that a buyer purchasing a relatively expensive tablet like the Ipad will also buy a higher quality case for the same, reckons Gerin.

Kim Gervin Regional Director, Targus

For Belkin, Apple and Samsung have been a godsend for market growth.

With the two companies’ tablets and smartphones sales booming, so has the demand for accessories to go

Jihad Youssef GM, GCT

with them. Youssef El-Arif expects to see more sales expansion this with additional launches from Apple and Samsung. To keep the momentum going, Belkin will be launching its own home entertainment category to complement its peripheral business.

Accessories tend to be more oriented towards the end user and so the retail sector would tend to outdo enterprise.

Indeed, Targus’s focus has been until now firmly on the retail sector although it’s hoping to grow its business segment and bring it to par with retail. Every year GCT moves between 1000 and 1200 SKUs, 90% of which targeted for the retail market about 6% of the more than 48 and 50 million products sold worldwide by Genius. Belkin too sells up to 70% to the retail market with 30% through the reseller channel.

Challenges do exist though, not least the economic and political upheaval that followed the Arab Spring last year in the Middle East. But with the political situation stabilizing, the market growth should inevitably follow.

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Interview

FVC

Please discuss your current scale of East Africa operations and your new office?

We have just opened an office in Nairobi in Kenya. From this office we will offer sales and pre-sales support to our existing partners across East Africa including Kenya, Ethiopia, Tanzania and Uganda. We will also be adding a support centre that will include training facilities to provide local training and certification to both our channel partners and their customers.

What are the objectives of setting up operations in East Africa? Do you see a significant opportunity ahead in these markets as infrastructures build up takes place?

K.S. Parag Managing Director, FVC

FVC is one of the leading Value Added Distributors (VAD) across the Middle East and North Africa and has dedicated offices across the region. It has recently opened its office in Nairobi and intends to use this as a springboard for the growth of its business in East Africa. The company focuses on four clear areas of enterprise computing: Unified Communications, Information Security, Application Delivery and Cloud Computing. K.S. Parag, Managing Director, FVC discusses the company’s strategies and focus areas in the following interview

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expand this to include new vendors that will address the requirements of a new and connected Africa.

Which are the specific markets earmarked at the moment?

We are still relatively new but we are seeing significant demands in the education and the government sectors especially in Kenya and Ethiopia.

Do you have existing SI partners there? How will your local presence help these partners?

We already have partners in all these countries in East Africa but hope that our direct presence in the region will help to boost and support their efforts. We will provide them with the

All geared up for growth As a company, we believe in being close to our markets to be able to understand their needs better and ensure that we add the value solution offering both to our partners (to help them grow) as well as their customers to ensure that their immediate and long-term needs are met.

The African continent is embracing new technology and investing in the infrastructure and that includes everything. This means that we need to be on the ground to enable us to offer the right solutions to help them achieve their goals. We will initially offer our solutions and expertise in unified communications and networking. As we understand their needs, we will

necessary technology knowhow and support they need as well as appoint new partners to address different sectors to ensure that we have the right support infrastructure available for the end customers.

What would be the solutions that you will initially look to market in those territories?

As I mentioned earlier, we see a primary need for unified communications and the adequate network infrastructure to make this possible. We already have significant success in these sectors in East Africa and plan to build on these successes with our certified partners.

Feature

Mitsumi

hugely successful. We are aggressively partnering with vendors and plan to unleash blitz campaigns to educate partners,” says Jagat Shah Chairman and CEO of Mitsumi “East Africa is showing continued good economic performance,” says Shah, adding “FDI flows have increased strongly in the past decade, investor perceptions of East Africa are ever improving and the outlook is positive with capital inflows forecast to reach record levels.” With a16 year presence in Africa, and Mitsumi as a global organization that invests in the continent, Shah believes these trends are hugely encouraging. Africa is currently enjoying the highest ROI

and GTM approach by reorienting ourselves. We are also restructuring our senior leadership team in the product and functional domains and across the regional geographical clusters,” explains Shah, adding, “We are confident these moves will help us leverage the experience of new senior talent from one market into the other, and ensure more specialized attention to synergistic business categories.” East Africa is also very promising on the telecom and security front. Mitsumi sees strong growth in East Africa by adding value and in telco businesses over this year.

Mitsumi’s vast pan-African network is the key factor influencing major brands

Mitsumi in Positive Trajectory Jagat Shah Chairman & CEO, Mitsumi

Mitsumi is one East Africa’s largest IT distributors and is an authorized distributor for leading global IT hardware and software brands such as HP, Dell, Acer, Toshiba, Samsung, Tripplite, BenQ and Microsoft. This means Mitsumi is poised to take full advantage of the anticipated PC shipments spike over the second half of 2012 in Africa. Value distribution is a very significant contributor to the bottom line, and the company is adding three major value brands to its portfolio.

Mitsumi has created different marketing campaigns and programs to educate partners. They recently concluded a channel event in Ethiopia.

“Over 150 channel partners attended the event thereby rendering the event

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Mitsumi entered the IT market in East Africa when the industry was in its nascent stages. The experiences have helped the company become one of the most respected distributors of IT products in Africa. in the world and is making strong progress towards political reform, macro-economic stability and social development. “Although the risks in investing in Africa may appear high, the risks can be managed, and the rewards can be great. That is why we are investing heavily in growing our Africa footprint over this year by unleashing Mitsumi 2.0 over 2013,” Shah explains.

With the emerging African market remaining resilient despite the challenging global business climate, Africa doesn’t cease to excite given the vast captive consumption and growth potential viz. CAGR of 15% and a PC market TAM close to 3 million units not including South Africa. “We are redefining our strategy

to further cement their partnership with Mitsumi. As stated earlier, Mitsumi has fully-fledged operations in 12 Countries in Africa and the channel has reciprocated by partnering with Mitsumi across Africa.

The support of the government and a computer literate population provides a positive backdrop for the East Africa hub. In a recent survey, 74% of Nairobi residents have used a computer at least once. In Lusaka, Zambia only with 32% had used a computer. This means that 68 percent of Lusaka residents have not used a computer, compared to only 26% of Nairobians. The high computer literacy rate can be attributed to a general rise in literacy levels as well as concerted efforts by the government and other stakeholders in pushing

the information communication and technology agenda forward. Moreover, the Kenya government zero-rated computers and related imports into the country in 2003. The move was meant to harmonize computers and related imports tariffs with the other two East African partner states; Tanzania and Uganda, which had instituted similar measures in their markets.

As expected, the shift conspicuously boosted sales as prices dropped. ”High speed connectivity shall therefore translate into heightened exchange of information and services between the region and the outside world,” says Shah.

Mitsumi has realized the business sense of having a well-trained population.

Economic growth in East Africa will only be achieved only when there is a dependable pool of highly qualified and knowledgeable human capital.”We are aggressively involved in partnering with the government and institutions working to grow literacy levels in Africa. One such initiative was when we partnered with the ICT Board in Kenya to supply students with heavily subsidized notebooks in the year 2010.

We will endeavor to boost literacy levels in Africa by partnering with schools and educational institutions as the concept of technology enabled education is gaining ground globally,” says Shah.

Mitsumi has been experiencing impressive growth of 50% YoY in line with its ambition to be the number one IT distributor in Africa. To this end, the company has opened sales offices, service centers and stock points in Kenya, Tanzania, Uganda, Rwanda and Ethiopia. Mitsumi has more than 150 employees and subsidiaries and the 12 continental locations ensure speedy, effective and professional service to resellers throughout Africa. Mitsumi has divided its operations into four regions of East Africa which includes Ethiopia, Rwanda, Tanzania, Uganda and DRC. West Africa operations have grown from Nigeria in 2009 to Ghana in 2010 and Ivory Coast in 2011.

Mitsumi intends to grow into Liberia and Cameroon this year.

Southern Africa operations constitute Zambia and Mozambique with the intention of beginning operations in Malawi, Botswana, Namibia, Mauritius and Zimbabwe in 2013. North Africa operations comprise Algeria and Tunisia. The main growth engine for the next five years is Southern and North Africa. The main overseas distribution office is strategically located in Dubai (U.A.E), which ensures faster and more efficient deliveries to Africa.

“We have invested heavily in East Africa and have a dedicated team of highly skilled sales, technical, financial and marketing professionals who live the Mitsumi philosophy of going the extra mile for our dealers/reseller community in East Africa,” says Shah.

Customers’ top technology priority is mobility, according to Shah. Slowly but surely, tablets are making their way into businesses, giving themselves a new role in modern day business. Easy to use for checking inventory, taking pictures of products, or being able to continue work away from the desk, these machines have started to pave a way into the future. It’s like having a new personal assistant that can take care of every task that you give it. As professional tablet use increases, the apps will evolve to meet growing and anticipated needs, and companies will start to rely on these machines more and more for the simple reasons of cost effectiveness and mobility. Cloud computing is expected to become more viable, but connectivity costs will still stand in the way of adoption.

The region will see strong growth in the demand for smart phones in 2012 as prices drop and competition among vendors heats up. IDC predicts that the market will expand by nearly 50% in 2012 and that smart phones will account for almost one handset in five sold in the region. Awareness of smart phones and their adoption will spread rapidly in Africa as the fiber optic

trunk lines extend further from coastal landfalls into the landlocked interior states of Africa.

“The growth of broadband in the region will drive higher gear of digital media development by telecom operators, primarily through new application and content development”, adds Shah.

In the fiscal year 2011, Mitsumi sold IT products to more than 6,000 technology resellers in over 12 countries. “Every day these resellers depend on us to help them costeffectively support the technology needs of end users of all sizes, including small- and medium-sized businesses, large enterprises, educational institutions, government agencies, and consumers”, says Shah, adding, “I will not be exaggerating if I say that we enjoy market share north of 50% across most of the brands we represent/ partner with in Africa.”

The main challenge for Mitsumi, like many other tech companies in the region, is grey marketing and software piracy that robs companies with genuine products a market for their products as well as depriving customers of quality products and after sales support.

Mitsumi has an advantage in Africa since the company was the first to establish a chain of in-country presence in these markets ranging from facilities like warehousing, stocking points and support service centers in 1996.

Mitsumi’s regional geographical coverage, focus on relationship model and extensive customer base made the group the largest and fastest growing distributor in Africa. It distributes a wide range of products covering computers, data centre, storage, security, networking, software and hardware.

“I envision Mitsumi as a world class company with great people contributing to the advancement of Africa. We will remain invested and create new business avenues to enhance life styles in Africa,” concludes Shah.

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Cover Focus

Mobility Mobility has come to define the modern computing era.

The industry continues to churn out thinner, lighter, sleeker designs to satisfy a consumer class that demands their electronic gadget fit more into their lifestyles without sacrificing functionality.

Companies that thrive will be the ones to provide all these and then some.

Djillali Lahiani Channel Business Partner Development Manager, Lenovo MEA

Small is Big in New IT Landscape The mobility market continues to evolve. Customers’ needs are as varied as the wide assortment of laptops, tablets and smartphones on the market. For vendors, these variations offer challenges on how to satisfy these disparate tastes as well as opportunities for innovation and growth sales.

Steven Chen, MSI’s regional sales director in notebook division for MEA and Africa says each customer generally choose their device according to their particular needs. From top managers in corporations and gaming hobbyists who want high performance and efficient machines to support their pursuits to the traveling business person who requires a light and portable netbook with long battery life. “But the typical customer is the light PC user who uses their computer mainly for internet, email and the occasional movie watching,” explains Chen. The latter will perhaps require an entry-level machine with minimal specs.

The average consumer may not care much about technical specifications, understandable because computers in the same price range generally offer similar specs. What they are 16

The Integrator | July 2012

typically more interested in are features according to Salim Ziade HP General Manager for Personal Printing & Systems Group. HP for instance “has an exclusive partnership with Universal Music Group that led to the creation of HP Play; Beats Audio by Dr. Dre; USB 3 capabilities for faster downloading of feature-rich content; and a range of screen sizes”, explains Ziade.

Djillali Lahiani, Lenovo’s MEA Channel Business Partner Development Manager concurs “Customers these days do not just demand but expect devices to be not just functional and packed with the fastest processors, but they want the devices to fit into their lifestyles rather than tying them down” These consumer driven trends are leading to rethinking of corporate strategies for instance the growing trend of “Bring Your Own Devices” to the work place.

Support and after sales service are now part of the package in any reputable computer sales transaction. MSI offers an international warranty and the travelling customer has an opportunity to execute their warranty in any of MSI’s offices

range Pavilion dv6/dv7 for customers who looking for an every-day PC that also offers entertainment features, and the premium line of Envy & Spectre laptops that deliver improved design and functionality features. HP’s top of the range netbooks includes the mobile HP Envy Sleek books with HP Play and the HP Envy Spectre. HP Play is the result of a partnership with Universal Music Group meant to bring customer an extensive digital music library from Universal artists.

and service centre anywhere in the world. MSI maintains 40 branches worldwide to support its operations including a local service centre in Dubai to service its warranties. “We have a policy of properly managing our TOT to make sure our customer receive fast-track service at any of our centres”, says Chen.

Mobility has become a major factor for customers who are looking for the sleekest, lightest and most portable device available. The industry has responded with ultrabooks. Lenovo’s newest range of ultrabooks, U310, U410 and U300s are set to launch later this year. Lenovo has also developed the ThinkCentre M92p for the business segment. The ThinkCentre tiny form factor is the first desktop of its size to use Intel vPro technology and can conveniently be positioned on a desktop, hung on a wall, or mounted under a desk. With choices of up to a 3rd generation Intel Core i5 processor, the tiny form factor is designed to fit in today’s shrinking office space without compromising on power and efficiency.

Standing out of the crowd in a market where all products are fundamentally similar, at least at first glance, is a challenge. And that is where ingenuity and novelty come to play. MSI was the first company to launch what was to become known as ultrabooks with the X-Series range of netbooks appearing in the market long before every other manufacturer did. “We were also the first to launch a targeted gaming netbook and thus creating a whole new idea in computing”, said Chen.

MSI’s strategy, according to Chen, is to target the high-end market as the lower segment is particularly competitive.

MSI’s gaming netbooks are equipped with high speed processors and large disc space to support the demanding needs of this market. The company’s Super RAID hard disc technology allows the netbooks to run several

Salim Ziade General Manager, HP

times faster than comparable laptops.

TruStudio Pro provides quality surround sound effects while the 3.0 USB allows for faster file transfer.

These netbooks, despite being targeted towards the gaming community, can be used by anyone and they get to enjoy these qualities.

Lenovo has a variety of laptops and ultrabooks to cater to both the business and consumer users in the region. For the business segments Lenovo offers the Think range of products provide such as the ThinkPad X1 Carbon available in the region. The ThinkPad X1 Carbon was meant to exceed ultrabook specifications by using a premium carbon fiber rollcage to create a durable ultrabook weighing less than three pounds. For the consumer segment Lenovo has recently launched the IdeaPad U310 and U410 ultrabooks that provides consumers with a thin lightweight and fast mobile computing in an affordable package.

Africa and East Africa in particular is experiencing remarkable growth in its IT industry. This has seen all major PC manufacturers establish bases there with distributors and resellers in the region. Lenovo’s Lahiani attributes this growth to a number of these countries embracing liberalization in their IT industries, rising internet penetration, falling prices, vendor and retailer promotions and widespread popularity of notebook computers and ultralight devices. “On the business front, local firms and Small-and-Medium Businesses (SMBs) in emerging markets are taking the opportunity to leapfrog their mature market counterparts by acquiring new technologies.” Lahiani says.

Hollywood popularized 3D a few years ago with the launch of several

HP’s strength lies in its broad variety of computers targeting almost every demographic.

This includes the Pavilion G for everyday computing needs, the midJuly 2012 | The Integrator

17

Cover Focus

Mobility

blockbuster movies, followed by computer games, whetting the appetite of an enchanted public. The computer is where an increasingly large number of people use for their entertainment needs, and the industry had to respond. 3D is however primarily for the consumer market as there exists virtually no application for this technology in the office currently. In this category, HP offers the HP 23-inch 3D LED monitor offering an immersive 3D experience. Expect to see more portable devices to offer 3D as this technology evolves.

The IT is an industry is dominated by large players, who compete in certain segments, and collaborate in others.

New competitors in the hardware space are a regular occurrence. For example, HP and Microsoft, while having one of the strongest relationships in the industry, already compete today on PC accessories, like mice and keyboards for example, as well as some areas of enterprise software.

MSI component product line includes motherboards that are meant for both the B2B market and the B2C sector. Under the B2B segment MSI manufactures motherboards under contract for other top brands. The B2C line caters for consumers who don’t buy branded PCs because

of their unique needs. This niche segment spends a lot of money to acquire different parts which they then assemble themselves. “The people in this market may spend 300US dollars just buying a high-end graphics card, an amount most people spend on buying a complete laptop” explains Chen.

There was a prediction that we were entering a post-PC world after the launch of the iPad and the ensuing popularity of tablets. This seems to have been an exaggeration though as netbooks and ultrabooks hold their own in the market. “Despite the rhetoric, tablets will never replace netbooks. The high performance customer will still need a powerful machine for their operations. Students also, a big market in itself, still require netbooks and desktops to do their homework. The tablets will undoubtedly grab some market from netbooks, but laptops are here to stay,” says Chen. In fact, tablets themselves face competition from smartphones in a battle far removed from the feared PC-tablet clash.

Tablets have definitely enjoyed high growth rates in retail in this region, mainly at the expense of the netbook segment according to Ziade. “However, the impact on standard laptops was minimal since the penetration of tablets in the commercial space is not material yet. Further, we’re finding that the tablet is not a replacement to notebooks, it is more of a second device for most users, and this is quite evident from the increasing sales of sleekbooks and ultrabooks in the market.”

Lahiani agrees. “It would be slightly misleading to compare the success of laptops and tablets as they cater to people with different, yet complementary, needs. While there are many new devices available, the traditional PC will not be replaced.

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The Integrator | July 2012

Steven Chen Regional Sales Director, Notebook Division, MEA & Africa, MSI

People still want a real keyboard and larger screen and we will continue to redefine this segment through innovation and make the PC even more energetic, fashionable and userfriendly.” Beyond the yet to be realized post PC world, Lenovo believes in a PC+ world, where people are connected by a multitude of devices, like tablets, netbooks, laptops, desktops and TVs, each with the heart of a PC, Lahiani explains. Portable devices like tablets and Ultrabooks would become the primary mode for digital access outside the physical confines of the home or workplace.

Channel Watch

Office Dynamics

Africa IT literacy in the region is very impressive. The decision by governments in the region to reduce costs of IT related goods by reducing the taxes due to them has gone a long way in supporting even poor households to invest in computer facilities. This will form the basis for sector development for next 15 to 20 years and the result will undoubtedly be the emergence of highly tech-savvy kids in our schools.

Sanjay Bhudia CEO, Office Dynamics

Office Dynamics has established itself as a leading channel partner in the expanding Kenyan IT sector with distributorship of major brands.

Sanjay Bhudia CEO at Office Dynamics spoke to The Integrator on the company’s future aspirations.

What brands do you carry and why those particular ones.

We have Konica Minolta, Anajet, Universal Laser Systems, Thermark and Geo knight. These are brands known for quality and perfection.

They have their own unique strengths and continuously research on better products and are market leaders worldwide.

What challenges do you face particular to East Africa?

We specialize with companies, small and large, that appreciate quality and efficient service. Counterfeits and sub-standard products end up in this market. Consumers cannot differentiate the price vs quality aspects of the product.

Discuss growth prospects in the region in coming year(s).

It sector is expected to grow but major changes in technology can easily lead to the downfall of other sectors. For instance, in the near future, there will be no more black and white printers, all will be coloured. Manufacturing

and other sectors will adopt to Digital Laser Material Processing Technology for all their needs for cutting, marking and engraving. It is similar to how digital printing on paper penetrated and affected offset printing. Similarly Digital Direct to Garment printing will affect screen printing and embroidery.

These developments are already taking place in Western countries; it’s a matter of which organizations adapt to the new technology and how fast.

IT infrastructure in East Africa is relatively well developed in the major cities and towns. How do you operate in more rural areas where robust IT structures don’t exist?

I think the Kenyan Government has taken the right step finally and realized that once the infrastructure is present, everything falls in place. It is currently investing a lot of money in communication infrastructure as it is clear investors are going to locate businesses where IT infrastructure is already in place.

Explain the level of IT literacy in East

The economies of the countries in E. Africa are growing rapidly. Are you growing at par with the rest of the economy or above it?

I must say that we are growing faster as we have adopted products and technologies though not very widely appreciated, are returning excellent sales to our customers who have.

Our strategy has been to integrate IT products in daily lives of our population. Just like cocoa is grown in Ghana but best chocolates come from Switzerland, we want to use the American, European and Japanese technologies and come up with local solutions that are specifically adapted for our manufacturing and SME sectors.

Do you have plans to expand elsewhere within the region?

We believe that Kenya has the potential to become the hub of Africa. We are also waiting for political developments regarding the East African Community and then make appropriate growth strategies.

Discuss IT trends at play in the E African IT market.

East Africans appreciate and quickly adapt to changes in technology.

This has done well to pressure the authorities to prioritize developments of the IT sector.

How much of the market do you control in comparison to your competitors?

It varies from brand to brand. In some areas, we control as much as 90% of the market while in others, a marginal 5%.

July 2012 | The Integrator

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Interview

TwinMOS

are represented by our distributors and partners in many territories like Kenya, Tanzania, Uganda, Sudan, Ethiopia, Djibouti, etc. We are constantly looking for new partners for this relatively untapped region. Any interested partner is welcome on board to discuss possible partnership opportunity with us.

Which are the countries that you already have business in showing positive growth?

We have been successful in Kenya, Tanzania, Uganda & Sudan and now want to start focusing more on the larger East African markets starting from Ethiopia, stretching across Congo, Burundi, Eritrea, Rwanda & Somalia along with South Africa and the West African region.

Muhammad Ziaur Rahaman Assistant Manager, Business Development, TwinMOS ME

Discuss your strategies for East Africa operations?

We have country wide distributors in the region and re-exporters from Dubai who are catering to this region. Having long-term relationships with these distributors & re-exporters is the key to our strategy for the region so they can bring our quality products to their local markets with better support and competitive pricing. Low priced brands fail to provide quality product and reliable support. Our products might come at a small premium but our customers are assured of solid support on any technical or quality issues as all our products come with warranty.

Do you already have business partners in the channel there?

All our operations are routed through our head office in Dubai. Locally, we 20

The Integrator | July 2012

• TwinMOS Branded Product Lines that includes DRAM Modules for desktop, laptop, server & Apple products; Flash drive / Mobile Disk in USB 2.0 & USB 3.0; Memory cards such as compact flash cards, secure digital card & micro SD card; external / portable HDD (320 GB to 1TB) and SSD – SATA II & III (120 GB to 480 GB); Computer accessories such as USB hubs, HDD docking stations, PCI express cards, power supply, card reader/writer, etc.

• Distribution of other brands that include eScan Antivirus and internet security products for home and small office users; Huntkey Power Supply, Universal laptop adapters, car chargers, power banks, etc.

TwinMOS looks to East Africa for Growth TwinMOS is a leading manufacturer and distributor of upgrade memory modules; high end digital media, SSD and accessories. Muhammad Ziaur Rahaman, Assistant Manager, Business Development at TwinMOS ME discussed the company’s strategy for East Africa with The Integrator.

How do you supply your partners from Dubai?

We have two kinds of partners who represent us in the Africa, that is, re-exporters from Dubai and local distributors in the respective countries.

All of them are buying from us directly in Dubai through our head office, and orders are served by our warehouses in Bur Dubai and Dubai Airport Free zone.

Which product lines do you sell in East Africa?

We have been known for our own branded products, TwinMOS, for almost a decade now. Recently, we have sought to diversify our offerings to fulfill growing market demand and offer our partners a one stop solutions provider. We have thus distinguished our business into three major portfolios.

• Our general trading division handles Internal HDD for desktops and laptops for major brands like Samsung, Toshiba, Seagate and Western Digital. We also carry HP original ink and toner cartridges, Intel CPUs, motherboards, compatible toner cartridges; desktop & laptop PCs in all the major brands; LCD / LED monitors in major brands; keyboards, mice and other computer peripherals; mobile phones, tablet PCs, iPhone/iPad, etc.

Interview

Western Digital

Staying on top Timothy Leyden Chief Operating Officer, Western Digital

Discuss WD’s focus on enterprise drives and the profitability vis-à -vis consumer product lines We have cut our teeth on two generations of enterprise drives and are now into the third generation drives.

They are seeing extremely good traction in the marketplace.

For Enterprise drives, you need to have robust testing techniques and a good firmware stack that is mature. The way to go about the firmware to mature would be to include them in products and go to market and make them acceptable. The buyers of enterprise drives are more discerning than the consumer segment buyers. In the final summary, customers decide the fate of products and every product family needs to commercially profitable.

How good is consolidation that has played out in the industry for the buyers?

It is going to be good for the customer.

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The Integrator | July 2012

As the demand for digital storage continues unabated driven by the digital content expansion in consumer and commercial applications, Western Digital continues to focus on growing its hard disk business and profitability. Timothy Leyden, chief operating officer of Western Digital discusses trends in the industry in the following interview

What we do in the disk drive industry is very complex. We bring together different disciplines in research and development. All of this happens at the nano levels. That requires enormous investments in engineering and in terms of capital, especially as get deeper into the nano levels. Manufacturers need cash flow in terms to invest in these Technologies. It is getting so complex that smaller manufacturers would be quite stretched to do justice to these required investments that can sustain the pioneering breakthroughs as we go ahead.

Probably, consumers got a little bit of insight into how central storage drives are to the Technology ecosystems as we saw during the Thailand Floods. We are trying to underpin the investment that is required to sustain developments in aerial densities, capacity, performance of the hard disk drives etc that is needed in the industry in the long term.

Storage market is approximately about 35-40 billion USD in revenues per year and at any point of time to service that market, a spend of 3-4 billion USD in capital is required and probably more of that would be used in the supply chain. That is a large number from an individual company’s point of view and a tough number from the cash flow perspective at the low level of margins offered for disc drives historically. If you need to build a wafer Fab, it would be in the region of 10-15 billion USD. That would be about 25% of the total revenues in a year of the industry.

How do you look at the SSD vs HDD debate?

If you look at SSD for instance as a Technology, you got to make it work scientifically, then economically and then from the point of view of ease of use. Making the Economics work for SSD in terms of having enough capacity

needed to store is therefore a pretty tough task. By far, the best alternative from availability, capacity of storage and class point of view, is the hard disk drive and that would be so for a foreseeable period of time.

What is your take on hybrid drives?

It marries the benefits of two technologies – robustness, portability, power on the top end from the SSDs and at the bottom end, availability, capacity, cost from HDDs, marry them together, it gives you caching ability, fast resume capability and the thinner and lighter options etc, it gives you a lot of possibilities.

What were the key lessons from the Thailand crisis?

It was an industry problem. A Lot of other industries were affected as well. We were all driven by the desire for efficiencies and this led to

concentration of factories. You want the parts supplier next door so that transportation costs are bare minimum.

You are trying to save costs as you are driven to by your customers.

When you de-risk the supply chain by sourcing from suppliers across different geographies, the component costs are going up. As a result that has to be reflected in the price of the drive going up.

Finally, the entire supply chain needs to realize that if you over focus on saving costs, probably you are at higher risk.

How valuable is the disk drive to customers shipping out large machines? The customer became more aware of the value offered in a disc drive that he wasn’t really aware of.

We also realized that some of the critical activities on the bottom floor

need to be taken up on higher floors.

Although this was an extraordinary event, we are building better defences and also collaborating with the government in such initiatives.

Did you consider or change any supplier?

We are in partnerships with these companies. Some of them are multinationals and some are smaller. A drive is an enormously complex device with 150 parts or so. Supply chain is an important part and we nurture the partnerships. Consequently, only if someone might be exiting the business, would we change a supplier.

Is the channel still a strong focus?

Different companies have different emphasis. WD historically has always been a channel friendly company and continues to be but the OEM business has been strong as well.

Storage Market Shows Momentum The disk storage market in the Middle East and Africa (MEA) posted double-digit growth in the first quarter of 2012, compared to the same quarter last year. According to the latest data from market research company IDC, revenue was up 17.25% year on year, reaching $2.26 billion. Capacity expressed in terabytes was up 41% year on year in 2012, and IDC expects further robust growth in capacity consumption by the end of the year. The development reflects the current increasing adoption of cloud technologies, the need for analytics, mobility trends, and prevalence of social networking.

"Mixed results were observed on a country-wide level, but overall, the region is in recovery mode. A tough economic climate coupled with recent political developments has made this traditionally deal-driven market adopt a conservative approach," says Research Analyst Arun Philip, IDC MEA. "Projects have been placed on hold and pipelines extended as the market opts to 'wait and watch' for calmer waters."

Deals across telecom, banking and manufacturing sectors have boosted the need for storage solutions owing to everincreasing volumes of data.

In the Middle East, growth has been sluggish, owing to the tentative economic environment in the region.

Growth in sectors like government, education, banking, financial services, and health compensated for the apprehensive private sector.

There has been tremendous growth in the InfiniBand and iSCSI protocols in the MEA region, especially across the Dell and EMC models. This goes hand in hand with a gradual shift away from DAS and NAS protocols. RAID is still the de facto choice for redundancy purposes, with over 94% share of all shipped models.

Among vendors, EMC has maintained its top spot, with nearly 40% market share thanks to its solid standing in enterprise solutions across the MEA. Netapp has secured the number two vendor position, with more than 16% market share. HP placed third, with just over 14%, followed by IBM and Dell, with around 12% and 7%, respectively.

July 2012 | The Integrator

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Storage

Major Shift in Digital Storage Big Data means that new ways will have to be found to manage all this information.

Personal and cloud storage solutions will increasingly become important to store all the information overload

The desire to share content and to access it on multiple devices will motivate consumers to start storing a third of their digital content in the cloud by 2016, according to Gartner, Inc. Gartner said that just 7 percent of consumer content was stored in the cloud in 2011, but this will grow to 36 percent in 2016.

The increased adoption of cameraequipped smartphones and tablets is allowing users to capture huge amounts of photos and videos. Gartner predicts that worldwide consumer digital storage needs will grow from 329 exabytes in 2011 to 4.1 zettabytes in 2016. This includes digital content stored in PCs, smartphones, tablets, hard-disk drives (HDDs), network attached storage (NAS) and cloud repositories.

The bulk of the cloud storage needs of consumers in the near term will be met by social media sites such as Facebook, which offer free storage

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The Integrator | July 2012

space for uploading photos and videos for social sharing. Ms. Verma said that while online backup services are the most well-known cloud storage providers, their total storage allocated to consumers and "prosumers" is small relative to that maintained by social media sites.

Average storage per household will grow from 464 gigabytes in 2011 to 3.3 terabytes in 2016. In 2012, Gartner believes that the adoption of cameraequipped tablets and smartphones will drive consumer storage needs. In the first half of 2012, a shortage in supply of HDDs as a result of the floods in Thailand provided an impetus for cloud storage adoption, leading to an unusual overall growth rate between 2011 and 2012.

Consumers are expected to first try the basic package that is offered free by online backup companies.

These services will be offered as apps on tablets, smartphones and

broadband-connected TV because of partnerships between original equipment manufacturers (OEMs) and online storage and sync companies.

Cloud service providers (CSPs) will also increasingly offer cloud storage. The use of cloud online storage and sync services will provide the foundational experience for consumers to start using cloud storage as part of the personal cloud.

On-premises storage will remain the main repository of consumer digital content, although Gartner predicts that its share will progressively drop from 93 percent in 2011 to 64 percent in 2016 as the direct-to-cloud model becomes more mainstream. Cloud storage will grow at an aggressive pace during this period. A majority of this growth will come from North America and Western Europe. In the Asia/ Pacific region, Japan and South Korea will witness the highest growth in cloud storage, where CSPs have been offering online storage and sync services for some years.

DistriView

Redington

Please discuss the expanded focus on accessories and peripherals distribution with the new division The Lifestyle Division is a newly launched initiative of Redington that aims to cater to needs of the IT, Telecom & Electronics accessories market. Simply put, this new division is positioned to be a strategic supply chain distributor connecting leading peripherals & accessories brands with the channel and retail partners across the Middle East. As the leading IT and Telecom distributor, Redington has seen there is an opportunity in the accessories product lines which complement core IT products. Further, it was obvious that there is a gap in the market in terms of fulfillment to the retail and channel partners for

Saad Khan General Manager, Lifestyle, Redington

Redington Gulf has unveiled a new Business division to cater to the peripherals and accessories market. Saad Khan, General Manager,Lifestyle at Redington discusses the potential the distributor sees in the opportunity and the value it can offer.

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The Integrator | July 2012

with the advent of Smartphones and tablets brands. This growth coupled with Redington’s strong and established presence in the Middle East will help strengthen Lifestyle’s go to market strategy. The major challenge Retailers are facing a lack of regular supply of products dues to less stock availability with distributors. Redington with its proven track record in both these areas will be able to address this gap which will set Lifestyle apart from all its competitors. Furthermore, Lifestyle will have a dedicated Sales team which will differentiate and compliment the Lifestyle strategy.

What are major product lines / brands that you are currently handling under this unit?

Pursuit of a new frontier accessories was evident and hence the creation of the Lifestyle division.

Redington Lifestyle has in a short span of time been successful in penetrating into the major Retail accounts across the region with Brands like Belkin, Imation Targus and Xtreme Mac. Lifestyle Division will have focus teams in KSA and Egypt apart from UAE & OGCC markets. .

Our current focus is to offer accessories & peripheral products which enhance the performance and functionality of the hardware. This covers the need of various categories of home, office, car and personal gadgets such as smart phones, tablets, Ultrabooks, Laptops, consumer electronics. The Leading brands signed up are Belkin, Imation, Targus and Xtrememac.

How would it be advantageous for the channel and vendors to work with this unit across the region?

In the midst of the recent economic & political gridlock in the Middle East, research indicates that, healthy growth will be fuelled by increased consumer spending on IT, mobile & electronics goods. The different countries in the region have exhibited a continuing increase in penetration rates for both internet and mobile segments especially

Discuss some immediate initiatives being planned for the launch in the channel?

Our plan for the next 12-18 months is to provide a consistent availability and supply of products to all the partners across the region and to penetrate into all retail and channel partners and be the “Preferred accessories distributor”.

Our strategy of adding new brands will be based on the opportunity available and the new technology advancements.

M-Commerce

Citibank

New Mobile Money Initiative Kenya has showed the world how technology can be utilized to drive economic and social change through its M-Pesa mobile money service.

Now the world is following suit.

Gone are the days when East Africa was the technology backwater of the world.

Today Kenya has become a model for global mobile money technology solutions as M-Pesa continues to inspire similar initiatives all over the world.

Recently, the U.S. Agency for International Development (USAID) and Citi announced a global partnership to broaden financial inclusion by fostering the rapid adoption of “mobile money” technology in developing countries.

Of the five billion mobile phone users worldwide, nearly two billion lack access to banking services, instead relying on cash transactions that expose them to potential theft, fraud or loss, and high-cost lending and remittance providers that leave them vulnerable to endless debt and high fees. USAID and Citi will work with governments, donors, industry and other participants in the payments system. USAID expects to continue to support local mobile money platforms with over $23 million, and Citi will integrate its core banking services with mobile money platforms to provide seamless integration between banking and last-mile, mobilebased payments services.

The partnership will expand current USAID efforts in mobile solutions and focus on implementing a set of principles in nine countries, with an initial emphasis on Colombia, Haiti, Indonesia, Kenya and the Philippines.

The initiative uses M-Pesa as a template for mobile money success, where mobile phones now connect more than 70 percent of households to the financial system. Millions of Kenyans

who previously operated largely on a cash-only basis are now able to rely on mobile money for many of their financial activities. For example, PATH, a leading health technology organization and implementing partner of USAID in Kenya, is now able to electronically distribute payments directly to M-Pesa users through CitiDirect, a Citi’s electronic banking system. Funds are able to flow from their source through financial “pipes” to end users, without ever being converted to cash. The same technology now makes it possible for users to also receive salaries, make deposits, receive and repay credit-building loans, and pay bills – all without cash.

“Mobile money is a game-changing endeavor with the potential to improve lives, create jobs, catalyze new enterprises and expand financial inclusion, particularly in the emerging markets that are critical to the growth of the global economy,” said Citi CEO Vikram Pandit. As we approach our 200th anniversary on Saturday, we are proud to work with USAID to accelerate mobile money adoption with tools and solutions that eliminate barriers to access, improve security, and enhance education.”

“Public-private partnerships are the future of health innovation, information-sharing, and communication technologies for communities with scarce resources,” said Steve Davis, president and CEO of PATH. “PATH and our partners are looking at ways mobile money platforms can expand health coverage in appropriate, scalable, and sustainable ways in Indonesia, Kenya, the Philippines, and other countries.”

Vikram Pandit CEO, Citibank

USAID and Citi seek widespread transition of payment streams from cash to mobile money requiring the participation of government entities, often the largest providers of payments, in most markets, including salaries and benefits. A principal aim of the USAID-Citi collaboration is to support the inclusion of mobile finance into strategic plans, support for conducive and appropriate environments for adoption, and development of the structure that will form the foundation for a safe, trusted and convenient mobile money system. Together, USAID and Citi will use their relationships and resources to create in-country networks composed of local experts in mobile money, governments and organizations with major cashbased operations to promote dramatic uptake of mobile money.

July 2012 | The Integrator

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Eyetech

Acer Windows 8 PC Lineup Overview

Acer has announced its series of Windows 8-based products, which includes the premium Aspire S7 Ultrabook, ICONIA W Series tablets, and Aspire U Series all-in-one (AIO) desktops.

Jim Wong, Corporate President of Acer Inc. comments, “Acer collaborated closely with Microsoft Corp. and has taken the lead to engineer new products that will be great with Windows 8, demonstrating our product development efficiencies and taking advantage of our ability to provide an enhanced and satisfying computing experience. By focusing on ergonomics and style, we are addressing key consumer demands.”

The Aspire S7 Ultrabook, the premium model in the S Series, boasts a sleek aluminum unibody design. The 13.1-inch model is currently the thinnest Full HD touch Ultrabook and features glossy tempered glass, while the 11.6-inch model is the smallest Full HD touchenabled Ultrabook. Both devices are kitted out with the innovative Acer Twin Air cooling system for best thermal

comfort, as well as a light-sensing keyboard that adjusts its backlight to facilitate typing, even in low light.

Key Features

• The ICONIA W510 is equipped with a 10.1-inch display and has tri-mode touch, which allows users to touch, type and view.

• It delivers up to 18 hours of battery life and headlines Always On, Always Connect technology.

• Sports an 11.6-inch Full HD touchscreen with high-quality 1080p images.

• The 27-inch 7600U has an ultra-slim 35 mm profile and a Full HD edge-to-edge screen with Dolby Surround Sound.

This AIO features multi-user touch, and can be tilted from 0 to 90 degrees. The screen can swivel in all directions when laid flat. The 23-inch 5600U is the slimmest AIO PC that can tilt from 30 to 85 degrees,.

The Samsung Series 5 14.0” Ultrabook Overview

Samsung have launched the new Serie 5 14.0” ultrabook. The laptop comes with the latest ExpressCache hard drive technology which combines the fast performance of solid state and the large storage of a hard disk drive.

The ultrabook also has Fast Boot allowing the computer to boots-up in just 20 seconds while Fast Start wakes it from sleep in two seconds. Plus Fast Browsing makes frequently viewed web pages run two times faster.

Samsung excels at picture quality. The high-definition LCD screen features SuperBright technology, for a brilliant 300-nit screen (up to 40% brighter than many traditional PCs) and stunning range of color (up to 16 million colors).

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The Integrator | July 2012

Key Features

• Intel Core i5-2467M Processor 1.6GHz CPU Clock Speed (Max.) 3MB L3 CPU Cache • 14 inch 1366 x 768 Resolution Screen • Has 4GB DDR3 System Memory and 500GB Hard Drive Capacity with Express Cache, Intel HD Graphics 3000 • DVD +/-RW Super Multi Dual Layer (S-ATA) 3 W Stereo Speaker (1.5 W x 2) and a 1.3MP HD Webcam and an Optical Disk Drive • 1 Year Standard Parts and Labor warranty

Galaxy S3

Overview

The Galaxy S3 GS3 contains innovative features over the Galaxy Nexus. For one it’s bigger at 5.4 inches tall and 2.8 inches wide with a 4.8-inch HD Super AMOLED screen at a 1,280x720-pixel resolution. Samsung's new flagship phone is one of the first handsets to use Corning's Gorilla Glass 2, a thinner, lighter, more responsive cover glass material lets colors shine brighter. And then there's S Voice. Samsung's answer to Apple's Siri, S Voice is a personal assistant that revvs up Android's built-in Voice Actions into a more personal format. The S Voice can launch apps and turn-byturn navigation; switch into driving mode; voice-dial; tweet; get the weather; compose a memo; search contacts; and schedule tasks. It can also take a photo, place and answer calls, search the Web, adjust the volume, send e-mail and text messages, record voices, and launch the native music player.

It also ties into Android 4.0's lock screen security, so you can use your voice to unlock the phone.

4.0 Ice Cream Sandwich, 4G LTE/HSPA+ 42 capability, a fast dual-core processor, and a strong 8-megapixel camera • It has a large, vibrant HD display; a sharp 8-megapixel camera; 4G LTE or HSPA+ support; a and 16/ 32GB User memory plus microSD slot (up to 64GB) of internal memory and 2GB RAM. • It has front and rear cameras with face zoom with Buddy photo share for instant photo sharing • Comes with Google Mobile Services like Google Search, Google Maps, Gmail, Google Latitude, Google Play Store, Google Play Books, Google Play Movies and more

Key Features • The Samsung Galaxy S3 comes fully loaded with Android

The IdeaPad U310 Overview

The IdeaPad U310 offers up an attractive design and all the basic bells and whistles of a 13-inch ultrabook including plenty of USB ports and Ethernet. The IdeaPad U310 is a an update to the IdeaPad U300s, with a significantly heavier and thicker chassis and a standard magnetic mechanical hard drive instead of a solid-state drive (SSD) wrapped in aluminum shell available in multiple colors. It has InstantResume which starts from sleep mode in little more than one second. For entertainment there’s a Dolby Home Theater v4 with 2.0 stereo speakers and Intel Wireless Display (WiDi) technology which enables users to project a notebook PC’s display to a TV wirelessly in full HD resolution,

using a dedicated WiFi (802.11n) connection. The AccuType keyboard is comfortable and also boasts anti-theft technology Key Features • Has a 1.7GHz Intel Core i5-3317U processor, 4GB, 1,333MHz DDR3 Memory, 500GB 5,400 HDD Hard drive and Intel HD 4000 Graphics • Windows 7 Home Premium (64-bit) Operating system

• Dimensions are 13.1x8.8 inches with a 13.3 inches Screen size and weighs in at 1.6 kgs.

• There’s an integrated 720p HD webcam with face tracking, Lenovo BootShield technology, for fast boot time and an Intelligent TouchPad while a USB 3.0 port allows for fast file transfer

July 2012 | The Integrator

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Stats & trends

PC Volume to Grow Almost 5% in 2012 The worldwide PC market is expected to grow 5% year over year in 2012, in what is likely to be a challenging year. According to the International Data Corporation (IDC) Worldwide Quarterly PC Tracker, nearly 383 million PCs will ship into the market this year, a slight improvement over the tepid growth seen in 2011 as PCs continue to vie for growth amidst intensifying competition from alternative devices, global political uncertainty, and a still bumpy economic roadmap.

In addition to rising consumer saturation in mature regions, economic uncertainty as well as the launch of Windows 8 and growth of competing tablet devices are key factors affecting the market outlook. With the threat of a relapse into recession in several markets adversely affecting public spending and business confidence,

the forecast for several key segments has been reduced, especially among small and medium-sized firms.

Windows 8 could help to reinvigorate a consumer market that has lost a degree of enthusiasm in recent years.

Consumer PC shipments are expected to see modest growth in 2012 with the revamp of a sleeker Wintel platform fueling additional growth in 2013 through 2016. IDC expects the forecast period to culminate with total PC

shipments topping 528 million units in 2016.

The outlook for emerging markets has become more mixed with Central Europe, Middle East and Africa (CEMA) increasing its outlook while Asia/Pacific (excluding Japan) and Latin America will experience slower growth in the short term.

PC Shipments by Region and Form Factor, 2011-2016 (Shipments in millions) Region Emerging Market Emerging Market Emerging Market Mature Market Mature Market Mature Market Worldwide Worldwide Worldwide

Form Factor Desktop PC Portable PC Total PC Desktop PC Portable PC Total PC Desktop PC Portable PC Total PC

2011 Units 98.9 110.1 209 56.1 99.4 155.5 155 209.5 364.5

2012* Units 100.8 123.6 224.5 57 101.1 158.2 157.9 224.8 382.6

2013* Units 104.3 140.7 245 57.2 111.4 168.6 161.5 252.1 413.6

2014* Units 107.6 162.6 270.2 56 124.7 180.7 163.7 287.3 450.9

2015* Units 110.1 187 297 55.6 138 193.6 165.7 324.9 490.6

2016* Units 112.4 213.7 326 53.8 148.7 202.5 166.2 362.4 528.5

Source: IDC Worldwide Quarterly PC Tracker, May 2012 Forecast data Mature Markets include U.S., Western Europe, Japan, and Canada.

Emerging Markets include Asia/Pacific (excluding Japan), Latin America, Central and Eastern Africa, Middle East and Africa.

One Counterfeit Part Every 15 Seconds More than 12 million parts have been involved in counterfeit incidents during the period spanning the start of 2007 through April 2012, according to Rory King, director, supply chain product marketing at IHS, citing data from ERAI (a privately held global information services organization that monitors, investigates and reports issues that are affecting the global supply chain of electronics). King delivered the news to an audience of electronics industry participants attending the ERAI Executive Conference, co-hosted by IHS. In his presentation, King noted that reported incidents of counterfeited parts amounted to 1,363 in 2011.

However, each incident can include thousands of separate parts, adding up to 12 million over the past fiveand-one-quarter years. This equates to slightly more than 1 counterfeit part every 15 seconds.

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The Integrator | July 2012

“Last year there was a record number of counterfeit incidents reported,” King said. “Altogether, the last five years has seen an all-time high in counterfeit reports.”

While the rise in semiconductor counterfeiting is often laid at the feet of China, King noted that the country actually is not the location where most counterfeits are reported.

“Companies in two countries accounted for two-thirds of counterfeit incident reports in 2011,” King

said. “China was actually No. 2, while the United States was No. 1. The two countries were neck and neck, with China at 32 percent and the U.S. at 33 percent. So, in terms of counterfeiting, the enemy is also within.”

Countries where counterfeit incidents were reported in 2011 (Percentage of worldwide total)

Source: IHS + ERAI Market Intelligence, 2012

Australia Austria Canada France Germany India Israel Japan Malaysia Philipines Singapore South Korea Taiwan Ukraine China United States