Does it make sense to invest in HD video conferencing systems?

01 Apr 2011

Cisco touts telepresense as next gen video conferencing

To answer this question you have to look at some key trends over the past few years. Video conferencing has been around for 30 years. In the past 20 years, the quality has become acceptable and video conferencing has become a useful business tool for a very small number of large companies. But, deployment has never really crossed the chasm and gone mainstream. This is due to a number of factors.

The continual evolution of standards, formats and data networks have been a challenge for most companies to keep up with.

Once you start making intra-company video calls, the chances of hitting an incompatible network or incompatible equipment rises fast, resulting in major reliability issues and disappointed users. I see so many disused video conferencing terminals in the board rooms of companies around the world, and I always ask why? The answers are always the same. ".... the person that bought that has left, no one knows how to use it", "... it never worked properly" or "....we only use phone conferences now, because that always works."

So complexity, fast evolving standards, and large numbers of failed calls have been the bane of the video conferencing industry for many years. Those that have persisted have generated a lot of value but for many users it has all been too much. When you rely on technology and it doesn't work, you have a very short tolerance level.

So back to the question, should you invest in Telepresence now? Well of course video quality has now improved dramatically with the advent of HD video coupled with high speed networks. However, what has not changed is the challenge of incompatible standards, the interoperability between hardware suppliers, the need to schedule a dedicated room, the requirement for high levels of bandwidth and dedicated support from IT.

So if you believe that quality is the answer to universal acceptance - think again. Think of a mobile phone, think of noisy lines, dropped calls, and having to reconnect multiple times.

Has this been a draw back to the explosion in mobile audio calls? No of course not. We tolerate massive quality issues compared to using a fixed phone. We tolerate these issues because using a mobile phone is easy, convenient, it nearly always works and has become an essential communications tool. Video conferencing is not essential. It never will be, and users always take the path of convenience and least resistance.

By all means invest in your expensive video networks, but be aware that it will only serve a very small number of people in your organisation. The majority of your staff will continue to collaborate via a phone (audio) conference, with an integrated web conference solution allowing data sharing. It is really all they need.

You should make sure that you are getting your performance gains from the simple no brainers first. Once you get the collaboration working practices in place, add a bit of video by all means, but it's not the place to start.

Tim Duffy is executive chairman at MeetingZone

Business on the cyber war frontline

22 Mar 2011

The Bunker's Simon Neal

A recent Cabinet Office report estimated that cyber crime costs the UK economy £27bn a year, with £21bn of that figure borne by British businesses, while a cyber attack by one state on another should be considered an "act of war", according to Tony Blair's former top national security adviser.

Historically, an enemy looking to destabilise the economy would target government, infrastructure and manufacturing sites with bombs. Now, the enemy might look to create similar chaos and operational paralysis by taking down a vital trading system, compromising personal records, or disrupting a high profile B2C organisation as a show of strength. In fact, Gartner predicts that by 2015 at least one G20 nation's critical infrastructure will be disrupted and damaged by online sabotage.

If significant targets such as banks and other financial institutions are attacked or dissuaded from operating within, for instance, the City of London, the impact on the UK will be significant - lost revenue for the banking industry, lost tax income for the Government, and lost confidence leading to lower future investment and the resulting impact on jobs and the population's general outlook.

With companies increasingly targeted for disruption rather than information theft, business is already on the frontline of today's cyber war. Companies need to change their security culture to deal with this new threat, because it's no longer just about safeguarding their own data assets - it's also about protecting the national and economic interest.

With the stakes raised, companies must address online security in three specific areas: physical - the measures to prevent attackers from accessing the facility where data is stored; digital - the software safeguards in place to protect applications and data; and human - the people with access to the systems and hardware. Only with all three bases covered can a company claim to be truly secure and to be ‘doing its bit' for the cyber war effort.

Of course, most companies can't be expected to build military-style security defences around their IT systems, which is why Gartner also predicts that, with 2011 set to be the year of the cloud, mass business migration to sophisticated and secure data centres will become inevitable. Businesses shouldn't have to go it alone in the face of the growing online threat - third party providers exist who can deliver the level of protection they need comprehensively and much more cost-effectively.

Technology has revolutionised the UK economy, opening up whole new industries that wouldn't otherwise exist, irrevocably altering existing business processes, and creating a whole new set of security risks. Yet our reliance on round-the-clock access to information makes cyber attacks the perfect weapon for those who wish to do us harm. Companies need to ask themselves: what price peace of mind during wartime?


Simon Neal is chief operating officer at The Bunker

IT's role in avoiding another banking crisis

27 Sep 2010

The banking industry is built on technology; the regulation that governs it should be as well. 

There is a very real danger that policy-makers will overlook one critical factor in their regulatory offensive on the banking industry; the role of technology – especially IT.

High-profile issues such as the inquiry into competition; the possible split up of the banks as a response to fears of systemic risk; and the examination of a perceived lack of finance for the UK’s businesses represent just a small cross-section of the regulatory pressures that the industry is currently facing. There are many more.

It is not unreasonable to fear that if this one key factor is ignored, the foundations upon which reforms of this breadth and scale are built will crumble.

It is technology that underpins the 5.7 billion automated payments that are made through the UK’s banking system on an annual basis and without which the 40 million online bank accounts that are registered in the UK would not be able to function. It is IT of varied sophistication and application that underpins a multitude of front and back office functions in every financial services organisation in the world.

It is technology, therefore, that should be front and centre of policy makers’ considerations when they examine the regulatory options that will shape the industry for years to come. Unfortunately, this is not currently the case.

By facilitating greater, more accurate flows of information within and between banks, technology can diminish the threat of bank failure and systemic risk. Many Intellect members believe that had regulators been able to view the build up of systemic risk at an earlier stage and act appropriately, a real possibility with today’s technology, the negative effects of the 2008 banking crisis could have been significantly reduced.

Moreover, in the event of such a failure, the processes that will be in place to ensure that customers are guaranteed to get their money back rely on IT. It is these systems, when implemented, that will play a significant role in increasing customer confidence in their banks, tapering fear for the safety of their money and reducing the chance of another run on a bank.

By allowing new entrants to go to market with technology-enabled banking products and services, there is also the prospect of greater competition and choice for consumers. Indeed, technology can tread where regulation dare not – by helping to make it commercially viable for banks to lend to a wider cross section of suitable SMEs.

However, there are also technology-based risks that equally need to be understood so that, where possible, they can be mitigated. The 'Flash Crash’ of May 2010, where the Dow Jones Industrial Average plunged 600 points and then recovered in the space of 15 minutes demonstrated how a system that relied upon technology to function could potentially be destabilised by this very reliance, with knock-on effects for the economy. Similarly, the intertwined legacy IT systems that many established banks’ business-critical operations are built upon, represent an obstacle to business change to meet ever-evolving regulatory, consumer and market pressures.

It is common sense, therefore, that if policy-makers and regulators are to ensure that regulation is effective, but not unnecessarily restrictive, they must have an understanding of how the IT in banks works. It is now fundamentally impossible to do this without appreciating the technology that not only underpins existing banking institutions, but will drive changes to their operational and business strategies, the way that they interact with customers and the role they must play in the rejuvenating and driving the wider economy.

This is a call to action. Both to policy-makers and regulators who could do more to understand the cornerstone of the 21st century banking system, but also to the IT industry which needs to step up and provide a sounding board to match technology capability with regulatory proposition. From the vendor community that provides these systems, to the CIOs within the banks, they are the natural source of expertise that will allow the ‘art of the possible’ to be realised.

John Higgins is director general of Intellect, the trade association for the UK IT industry.

IT is increasingly invisible so does it no longer matter?

16 Aug 2010

When you spend most of your working day advocating for the IT industry, as I do, it is very easy to believe that IT is the answer to almost every question. However, a recent conversation with my counterpart in Washington DC caused me to take stock.

He’s worried that the IT industry is becoming less and less relevant. Although he’s thinking about its relevance to US federal government policy makers, it prompted me to think about our relevance in a wider sense.

It may be seven years since Nicholas Carr wrote his now infamous piece “IT Doesn’t Matter” but much of what he says there still resonates. As IT has becomes ubiquitous it has become “invisible”.

To understand this I find it helps to divide IT into three categories: enhancing technologies, enabling technologies and transforming technologies.

Enhancing technologies let us continue doing the things we normally do, but more efficiently. Enabling technologies change the way we do things: they enable new processes, new ways of working.

Enabling technologies include a whole series of technologies based on virtualisation, including in-silico testing and modelling and paperless office technologies.

Transforming technologies however, change fundamental behaviour. They change what we do, stimulate innovation and drive new business models.

The internet, and in particular broadband, is a classic transformative technology. It has allowed the growth of dependent technologies and allowed new business models to be created. Think of all the businesses that only exist on eBay.

Transforming technologies are rare – perhaps once in a generation. When those technologies come along they change the game in a whole host of ways.

The environment in which these technologies are enhancing, enabling or transforming is constantly changing too. At its most basic the switch from an “invest to grow” world to a “cut to survive” world has a marked impact on the receptiveness of customers to IT – of any flavour.

Much of the private sector though is moving back into the “invest to grow” world but with perhaps less tolerance for IT suppliers who think they’re more relevant than they are, and promote enhancing technologies as transformational, for example.

In the coming months I’m going to be exploring further how the industry and its constituent companies can become more relevant. But a number of themes are already clear.

Technology is only part of any business change project. Success depends as much on how that technology is integrated into the processes of an organisation and whether the workforce has bought into the project and has the skills to adopt it. Really understanding the customer’s business and talking to them in their own language is more important than ever.

However excited we may be about a whizzy new web 2.0 feature, demonstrating a thorough understanding of the customer’s own business environment and their particular needs is vital to forging a lasting and mutually rewarding relationship.

But great relationships need to go further than that. IT companies need to be using their solutions to lead their customers to entirely new business opportunities.

It can be difficult for companies to develop these skills and insights. In fact members tell us that a significant extra benefit from regularly attending Intellect’s market facing group meetings, such as healthcare or financial services, is the deeper insights they gain of the developments, issues and trends in those markets. Insights they find increasingly valuable to their customer relationships.

I would be very interested in readers’ views. Is our relevance on the wane? Does it matter and if so what can we do about it? I look forward to hearing from you - john.higgins@intellectuk.org.

John Higgins, director general, Intellect

ICT is not like chocolate biscuits

01 Jul 2010

So the age of austerity has begun. The ICT industry has already had to confront the reality of the moratorium on new public sector contracts but we will also have to deal with ongoing project reviews.

On top of this the Chancellor has announced that there would be a further £17 billion of savings to be found from departmental spending. That £17 billion is apparently on top of £6 billion George Osborne and David Laws (remember him) announced just after the election. The real detail of how this will work will be in the spending review in the autumn.

It is only right that government wishes to realise efficiencies in its technology spend. It is perhaps understandable that in an atmosphere of heavy cost cutting that the new government would want to hit the pause button to think about how to move forward with ICT projects.

Listening to some of the less well informed members of the coalition government you would think that they think of ICT in the same category as chocolate biscuits. If you are used to ordering chocolate biscuits for all your meetings and you find you need to save money – you might switch to a cheaper, plainer brand or more likely you would stop ordering biscuits altogether. It’s an incidental cost that is easy to cut out. What is more, chocolate biscuits do not make your meeting more productive nor did they make it more efficient. ICT on the other hand is different; you can’t just decide that you don’t need it anymore.

Intellect is working with the Cabinet Office to work through some of these issues - our members are willing to meet with their customer departments to discuss ways in which requirements can be removed or simplified and what savings can be made. At the same time we are pressing government to follow a “do it once” approach – sharing services and re-using assets.

 We are also keen to see progress on the Government ICT strategy and other cost-saving programmes which the industry and government have worked on. Moving the conversation on to discussions of how ICT could be used more effectively to enable real savings in the operational costs of public sector delivery.

I won’t pretend that it is easy to make this case to government departments preoccupied with shaving money off their operational costs but the reality is that although change programmes and technology have an upfront cost, they can deliver significant long term savings and efficiencies that could make an appreciable difference to the UK government’s structural deficit over medium to long term. Freeing front line staff for administrative burdens using technology can mean resources are used more efficiently without harming the quality of the service.

On the other hand, there are some reasons to be cheerful. Cabinet Office minister Francis Maude has identified the problems around public procurement as one of his priorities. Government’s cash constrained environment will make this an imperative.

Concentrating minds on making the procurement process cheaper, more efficient and easier to manage for both officials and suppliers is long overdue.

John Higgins, director general, Intellect