Industry news

Atos, the payment transaction service will collaborate with KBC to deliver electronics payment transactions for the bank insurance group and its clients until 2016.

The contract will see Atos provide processing of payment relating to transactions between cardholders and merchants.

Bart Guns, KBC Group Payments senior general manager, said: "With this contract, KBC is opting for the continuation of the services by a very robust and reliable supplier of transaction services and a partner who is constantly striving for innovation."

Amazon’s cloud (AWS) made $500 million from sales in the first quarter 2012. The cloud service has grown significantly year-on-year with 2012’s first quarter up by $189 million from the same time last year.

The Amazon cloud has proven to be the fastest rising area of business in the company, with growth accounting for 61 percent compared to areas such as media at 19 percent and electronic business at 43 percent.

Werner Vogels, chief technology officer at Amazon, said: “Hundreds of thousands of businesses are using AWS today. The US federal government has a cloud first strategy and over 100 US agencies are using AWS.”

2,217 employees at HSBC are to be made redundant as part of the companies measure to increase efficiency and reduce costs.

In total 3,167 jobs will go but the creation of new roles will mitigate the permanent loss in job numbers to 2,217. The move comes from an announcement last year, detailing that the company planned to reduce its workforce by 30,000 jobs by 2013. This new announcement of job cuts come on the back of 700 jobs losses announced in June 2011.

A spokesman from HSBC said: “We will now be working with the individuals concerned to help them find alternative roles either within the wider group structure, or outside the organisation.”

Technology research group Gartner have released a survey that demonstrates that Customer relationship management (CRM) software has become a top priority for CIOs. The survey placed CRM software as the eighth most important consideration for CIOs in 2012.

CRM software has had greater focus placed on its application and that of social media, as customer experience becomes a key consideration in times of shrinking IT budgets and increased competition.

Gartner vice-president Ed Thompson commented that "In 2012, CRM executives are faced with the challenge of taking ‘social' more seriously – not as ‘just another channel'. but as a whole new way of doing business."

David Brennan, chief executive at the pharmaceutical company announced his resignation hours before a shareholder meeting. AstraZeneca has been hit by losses from a limited pipeline of new drugs on the market after poor drug trials and heavy competition from rival firms.

First-quarter profits dropped 40 percent, well under market expectation in addition to future negative predictions on AstraZeneca’s profits for the year.

Mr Brennan said: "I have decided that now is the right time to step down and allow a new leader to take the reins."

The recruitment services firm, Alexander Mann Solutions (AMS), has transferred its IT services onto a Cloud based platform in order to cut costs by 25 percent.

The recruitment firm employed Moldavian and Romanian based Endava to provide a cost reducing programme, while focusing on increasing the quality of services provided, which led to the Eastern European firm promoting Cloud based hosting.

John Wainwright, head of global IT at AMS, said: "We now receive service levels that deliver over 80% service call resolution at first point of support."

The government has announced £70 billion in potential public sector contracts for the next five years. The contracts cover multiple sectors including property, medical, emergency services and ICT with a potential £1.7 billion in contracts.

In publishing the potential contracts, the Government hopes to avoid investment gaps while promoting competitive bidding for new business. The G-Cloud is expected to receive £250 million of the potential investment.

Vince Cable, Secretary of State for Business, Innovation and Skills, said today: "Frankly, we’ve been too short-term in how we’ve done procurement in the past. Our key competitors in Europe already see procurement as an integral part of a proper industrial strategy

Cloud computing firm, Salesforce, has unveiled the Government Cloud for the US. The company hope that the new software will accelerate government’s transformation for the social era.

The Government Cloud will include a dedicated, multi-tenant instance of Salesforce’s cloud infrastructure that will allow U.S. federal, state, and local agencies to rapidly deploy the latest social and mobile technologies in compliance with US legislation. The Government Cloud also includes AppExchange for Government, a new app marketplace for the public sector where government agencies can find, try and deploy cloud apps that meet their needs.

Additionally, the Government Cloud includes the Salesforce Government Partner Accelerator Program, which will train an army of 1,000 integrators by the end of 2012 to rapidly transform government IT with Salesforce.

“The bureaucracy of legacy government IT is preventing agencies from embracing innovative technologies that deliver immediate value,” said Vivek Kundra, executive vice president, emerging markets, salesforce.com. “We must end the era where government spends millions of dollars and waits years for IT projects that never work. Now, salesforce.com offers a solution the government needs to break down barriers to innovation and eliminate wasteful IT spending.”

Yorkshire and Clydesdale banks have been hit by an IT glitch which has left customers unable to withdraw cash or make payments. IT is the fifth time in two months that the bank’s debit cards have been affected.

A spokesperson for the banks said: “Some customer card transactions were affected by an intermittent service issue earlier this morning. This was caused by a hardware issue at our supplier First Data, which is currently being investigated. Normal service was resumed by 10am. We apologise for any inconvenience caused.”

The problems started in early March when the banks transferred systems operations to First Data. However, the banks have stated that not all the problems were related to the outsourcer.

Software contributed nearly 90% of SAP’s revenue growth for the first quarter of 2012. The German application vendor’s revenue was up 11% from the respective period in 2011.

“We reported our ninth consecutive quarter of double-digit growth in non-IFRS software and software-related service revenue, with a strong contribution from SuccessFactors to our cloud business,” said Werner Brandt, CFO of SAP. “Free cash flow was very strong in the first quarter, increasing by 35% to €2 billion. This enabled us to return to positive net liquidity faster than expected.”

“We see strong momentum for our flagship in-memory platform SAP HANA, our cloud and mobile solutions, and our core applications and analytics products,” said Bill McDermott and Jim Hagemann Snabe, Co-CEOs, SAP. “Customers are embracing our high speed of innovation and the ability to orchestrate solutions across our entire portfolio. SAP continues to help companies run like never before – helping to solve fundamental business challenges with unmatched industry expertise. We’re confident that we’ll deliver on our business outlook for Q2 and the full year.”