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Covid-19 helps enterprises rev up cloud spending in GCC

  • Overall enterprise IT spending in 2020 is expected to fall between 3% and 5% in the GCC; the biggest impact is in Saudi Arabia (4.3%) and the UAE (4%).
  • GCC public cloud market is expected to grow from $956m this year to $2.35b in 2024.
  • IaaS is expected to grow by about 33% and SaaS by 24% this year.

Dubai: The pandemic has impacted IT markets across the Gulf Cooperation Council (GCC) countries but there is positive momentum in cloud adoption, an industry expert said.

Jyoti Lalchandani, Group Vice-President and Regional Managing Director for the Middle East, Turkey and Africa at research firm International Data Corporation (IDC), said that work from home and disaster recovery are putting a new onus on cloud spending.

“Enterprise IT spending is expected to fall between three per cent and five per cent in the GCC, varying across the countries but the biggest impact is in Saudi Arabia (4.3 per cent) and the UAE (4 per cent), the biggest markets in the region,” he said.

GCC public cloud market (IaaS, SaaS and PaaS) is expected to grow from $956 million this year to $2.35 billion in 2024, at an annual growth rate of 25 per cent.

Only the positive trend, he said is the IaaS and SaaS segments.

“IaaS is expected to grow by about 33 per cent and SaaS by 24 per cent this year. In the long run, IaaS and PaaS are going to grow at a much faster pace,” he said.

However, he said that cloud adoption is the new platform for most of the enterprises for cost reduction, agility, efficiency and innovation.

Hyperscalers continue to open and announce new availability zones in the region due to strong demand.

IDC predicts that the contribution of “digital coworkers” will increase by 35 per cent by 2021 as more tasks are automated and augmented by technology.

By 2024, enterprises with intelligent and collaborative work environments will see 30% lower staff turnover, 30 per cent higher productivity, and 30 per cent higher revenue per employee than their peers.

Major shift in CIO re-prioritisation

There has been a significant shift in CIOs’ priorities, he said and added that the short- to medium-term priorities are changing.

 “We are seeing a three major shift in CIO re-prioritisation – cloud shift and infrastructure modernisation, distributed architecture and digital trust, and app modernisation and automation,” Lalchandani said.

As per IDC’s survey, 53 per cent of CIOs are accelerating their existing digital transformation efforts, even more, to meet new customer and operational agility needs while 48 per cent of organisations are expected to continue with digital transformation initiatives as planned at the start of the year.

“We see a lot of apps and services moving to the cloud as organisations speed up digital transformation journey in the region,” he said.

Investments by CIOs in the next 12-18 months, he said will focus on team collaboration applications, unified video communications and conferencing systems and digital workplaces.

Many organisations are increasing their investments in automation and robotic workers to reduce operational costs and improve efficiency, he added.

“The current crisis will accelerate workforce transformation as more non-human workers are expected into the workforce as the economy expands, building dynamic and hybrid workforce in the future. Hybrid cloud is emerging as the model for many CIOs and head of IT across the region,” he said.

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Dubai-based e-commerce platform Awok shuts down after seven years

  • Current global situation cited as reason for the closure.

Dubai: Dubai-based mass-market e-commerce platform Awok.com has shut down after seven years amid a boom in online shopping due to Covid-19.

Founded in 2013 by Ulugbek Yuldashev, Awok focused on low to mid-income segments as low as AED 1.

“Awok’s journey as a mass market e-commerce player has unfortunately come to an end, and the company has ceased operations. We are sad to inform you that given the current global situation it left the company no other choice than to close its platform for good,” company’s website said.

Awok used to offer close to 350,000 products on its platform across various categories.

In April last year, the company closed its $30 million Series A funding co-led by Dubai-based StonePine ACE Partners, Saudi-based Al-Faisaliah Ventures, and. Endeavor Catalyst.

The company’s website said the ambition of the company was to bring choice and affordability to everyone in the MENA region by building infrastructure and platforms to enable businesses, but this ambition did not survive the current business environment to come to fruition.

“We are proud of the positive impact Awok has had on our customers, partners, suppliers and grateful to everyone who has been part of the journey. A special thanks is directed to the Awokers who have provided continuous support to Awok through all their hard work and dedication,” it said.

Cognizant to buy 10th Magnitude to strengthen its US presence

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  • The company has been downsizing letting go of about 9000 employees during the last quarter.

Bengaluru: IT solutions and services firm Cognizant says it will acquire Chicago-based 10th Magnitude, a cloud specialist focused exclusively on the Microsoft Azure cloud computing platform.

This is its sixth cloud-related acquisition in 2020, highlighting continued acceleration and execution of its cloud strategy. According to a statement by Cognizant, the acquisition will expand the Microsoft Azure expertise within the company’s new Microsoft Business Group, adding development and managed services hubs in major cities throughout the US.

10th Magnitude, one of Microsoft’s Azure-centric partners, offers advisory and managed services, including data centre transformation, application modernization, and data intelligence with AI-driven analytics and insights.

“Modernizing business platforms by shifting to the cloud is a key priority for our clients,” said Greg Hyttenrauch, President, Cognizant Digital Systems and Technology.

“The ability to pivot, innovate, remain flexible and resilient, with remote access to key applications, is especially important in these uncertain times,” said Alex Brown, Chief Executive Officer, 10th Magnitude.

The moves comes amidst a revival in business after initial setbacks due to Covid-19 and the ransomware attack. The company has been downsizing letting go of almost 9000 employees during the last quarter.

Both companies have not revealed the financial terms of the agreement. Cognizant reported Second-quarter revenues of $4 billion even as it reported that revenues across its business segments were affected by the coronavirus pandemic and the ransomware attack in April.

While it took a hit in its financial services, insurance, retail and  communications, Media and Technology clientele, revenues from healthcare clientele increased by 2-2 per cent.

Samsung unveils phone of the future. Prices it at $1,999

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  • The Galaxy Z Fold2 has a 6.3 inch screen on the front and will open up into a 7.6 inch display inside.
  • The device will be available in around 40 markets from September 18, 2020

Bengaluru: Samsung Electronics has unveiled its latest new smartphones – the Galaxy Z Fold2, that could well go on to define what smartphones could look like during the next decade.

The South Korean firm unveiled the second edition of the Fold series on Tuesday, revealing more details about the premium device that is expected to hit the global market in the middle of September.

The Fold2 has a 6.3 inch screen on the front and will open up into a 7.6 inch display inside. While the front screen has HD+ Infinity-O Super AMOLED display the inside screen is QXGA+ Dynamic AMOLED flexible glass display.

New innovations

“Our journey towards the next generation of mobile devices is full of originality and innovation,” said Dr. TM Roh, President and Head of Mobile Communications Business, Samsung Electronics.

“With the launch of the Samsung Galaxy Z Fold2, we closely listened to user feedback to ensure we were bringing meaningful improvements to the hardware, while also developing new innovations to enhance the user experience. Further strengthened by our industry-leading partnerships with Google and Microsoft, we’re reshaping and redefining the possibilities of the mobile device experience,” he added.

According to Samsung the Fold2 features a new innovative sweeper technology where the space for the sweeper structure is even smaller than on the Galaxy Z Flip. The Hideaway Hinge it says features slim cutting technology, modified fiber composition and adjusted fiber density.

Customers can even opt to customise their devices using an online tool with four distinct colors – Metallic Silver, Metallic Gold, Metallic Red, and Metallic Blue.

The Fold2 features a notch less front camera and has 5G band compatibility and 4,500mAh battery and super fast charging. The first edition of the Galaxy Fold was launched last year.

The Galaxy Z Fold2 will be available in Mystic Black and Mystic Bronze, in around 40 markets including the US and Korea, on September 18, 2020, with pre-orders from September 1, 2020 starting with select markets including the U.S. and Europe. 

Customised options will be available for users on Samsung.com in select markets with four distinct colours for the hinge: Metallic Silver, Metallic Gold, Metallic Red and Metallic Blue.

The Galaxy Z Fold2 Thom Browne Edition will be available for pre-order beginning September 1, 2020 in select markets with general availability on September 25.

Former Google chief warns of China’s dominance in AI

  • US lack a long-term plan and government funding to win the AI race.

Bengaluru: Former Google CEO Eric Schmidt has called on the US to invest more in artificial intelligence (AI) research and development or else China will lead the world.

“China is on its way to surpass us in many, many ways, and they’re cleverly run in a way that’s different from the way we would ever want to run,” Schmidt said speaking on a Bipartisan Policy Centre webcast. “We need to take them seriously. They’re going to end up with a bigger economy, more R&D investments, better quality research, wider applications of technology, and a stronger computing infrastructure.”

He said that China is pulling ahead of the US and the American government lacks a long-term plan and adequate funding to win the race.

“If we don’t act now, in 10 or 20 years we’ll say, How could we have missed this?” he said.

 It’s no secret that China wants to topple the US as a global economic superpower, he said and added that China has been open about its ambitions.

In 2017, the State Council of the People’s Republic of China (also known as the Central People’s Government) published the Artificial Intelligence Development Plan.

This strategy is part of the even bigger national “Made in China 2025” plan and will also be linked to the new (digital) Silk Road.

With these plans, China aims to become the world’s largest economic power and to provide its people with adequate prosperity guaranteed by a politically stable system. In addition, China is ensuring that economic, military and diplomatic interests are safeguarded in this way.

Mature start-up ecosystem

China now has a mature and efficient start-up ecosystem on which younger AI companies are building. There is sufficient capital from both the state and private sector for the establishment, scaling and growth of AI start-ups in China.

Schmidt believes a world where China controls AI and trade would not be a very nice place to live. He urges the US government to agree on a long-term, well-funded plan to counter the Chinese surge.

The US reportedly currently invests only 0.7 per cent of GDP on scientific research and development funding. That’s apparently the lowest percentage since the 1960s. For reference, the US spent 3.4 per cent of GDP on defense in 2019.

Spending on space research and development also rose to two percent of GDP in recent years.

Schmidt says the US needs to double down on tech R&D spending over the next five years. He adds that the Trump administration’s current approach of going into a trade war with China and putting sanctions and executive orders on Chinese companies isn’t the best way to stay ahead of China.

Martijn Rasser, senior fellow for public policy at the Center for a New American Security (CNAS), an influential think tank, shares Schmidt’s view. He said that his group is urging the US.to spend $25 billion annually on A.I. research by 2025.

For comparison, the White House said in February that it would increase non-military AI research  spending to $2 billion annually by 2022.

China may have gained a healthy lead in the AI race, but there’s still enough field for the US to play. However, if the US government doesn’t act now, Schmidt said that China will pretty much be running the show from now on.

Which is the best selling smartphone in first half of this year?

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  • Apple’s iPhone 11 is the king in the first half by outsells nearest rival by 26m units
  • Huawei fails to make the top 10 list while Samsung’s premium devices also fail to make a mark.
  • iPhone XR was ranked first last year.

Bengaluru: Apple’s iPhone 11 was the world’s most-shipped smartphone in the first half of this year with 37.7 million units.

Like iPhone XR last year, the cheapest of the 2019 iPhones ranked first in global shipments this year.

According to research firm Omdia, iPhone 11 shipped 10.8 million more units than last year’s No. 1, iPhone XR. A key driver for the success of iPhone 11 is the lower starting price.

 iPhone 11 launched $50 cheaper than the previous iPhone XR while adding significant hardware improvements, like a dual-lens camera. iPhone XR did not feature such upgrades.

The addition of iPhone SE (2020) to Apple’s portfolio in April of this year helped the company position four models in the global top 10 list.

iPhone SE, a new budget iPhone, shipped 8.7 million units in the second quarter – good enough for fifth in first half shipment volume.

Growing consumer anxiety over the economic downturn due to Covid-19 and consumer demand for a small-sized iPhone are key drivers of successful market entry of iPhone SE.

iPhone 11 Pro Max and Pro, the premium models of the iPhone 11 series, ranked seventh and tenth, respectively.

Shipments of these two models decreased compared to the previous iPhone Xs Max and Xs, but their rankings improved.

Apple shipped 13 per cent more iPhones in the second quarter this year compared to the previous year due to the success of the iPhone 11 and the newly-released iPhone SE.

More Xiaomi models on the list

On the other hand, only one Samsung model made the top 10 this year. Like last year, a mid-end smartphone, the Galaxy A51, took the second place with a total of 11.4 million units shipped. This is a significant shift for Samsung, as this list featured four Samsung’s models last year. No Samsung flagship device reached the top 10.

Xiaomi has four top 10 this year – all from the Redmi line of devices. Xiaomi replaced Samsung’s entry-level and mid-range devices with its own models in this year’s top 10.

Xiaomi doubled the number of models in the top 10 from last year’s list. Redmi Note 8 and Redmi Note 8 Pro models took thirrd and fourth place, respectively.

The two models were priced at $132 and $162, respectively. In addition, Xiaomi’s Redmi 8A and Redmi 8, ranking 8th and 9th, were priced at $85 and $97, respectively. The performance of lower priced smartphone models is leveling upwards and consumers’ preference for low-end models is growing due to the economic recession, this makes Xiaomi smartphones popular in emerging markets.

Lastly, total shipment leader in the second quarter of this year Huawei, failed to make the top 10 list with any of its devices for the first half of this year. Huawei’s smartphone business is under increasing pressure from US sanctions, impacting the company’s overseas business. Other OEMs not making this top ten list include Oppo and vivo.