Industry news

Autonomy Corporation plc, a global leader in infrastructure software, and Iron Mountain Incorporated, the information management company, has announced a definitive agreement for Autonomy to acquire selected key assets of Iron Mountain's digital division including archiving, eDiscovery and online backup for $380M.

Post-closing Autonomy expects to have a gross cash balance of at least $700 million and expected go-forward revenues of approximately $130 million to $140 million.

"We are pleased to announce this transaction, one we have been looking at for some time, which will bring significant advancements for customers," commented Dr. Mike Lynch, Group CEO of Autonomy. "Processing customer data in the cloud continues to be a strategic part of Autonomy's information governance business. We look forward to extending regulatory compliance, legal discovery and analytics to a host of new customers as well as enabling the intelligent collection and processing of non-regulatory data from distributed servers, PCs and especially tens of millions of mobile devices. This will afford the opportunity to bring to these customers the power of IDOL's meaning-based technology."

Dr. Lynch continued, "In 2007 we correctly predicted the merging of regulatory archiving and search, and we believe we are now seeing the next phase where the convergence of regulatory archiving, back-up and data restoration with operational processing of data in the cloud is coming to pass. This acquisition makes Autonomy the cloud platform of choice, processing and understanding 25 petabytes of customer information. IDOL will allow significantly more value, analytical insight and return to be generated for our customers from this cloud platform. This places Autonomy at the centre of the changes in the analytics of unstructured data, processing in the cloud-based platforms and desktop virtualization.

We've had the opportunity to buy strong assets at an attractive valuation, and through the application of our intelligent IDOL dark server technology will greatly increase the efficiency of this offering. Whilst others may be creating roadmaps around virtualizing the enterprise and processing information in the cloud, Autonomy is already doing it in the world's largest private cloud platform."

Multinational corporations (MNCs) have increased their uptake of cloud services by 60 per cent in the past 12 months, according to new Ovum report entitled What MNCs want: adoption of cloud services.

The survey questioned senior managers at 102 multinationals, each with at least three locations in different countries, and a minimum of 10,000 employees.

Some 45 per cent of multinationals are using the cloud for at least some element of their key IT services, the study found.

"We believe the majority of MNCs are currently between early and adolescent adoption phases of cloud-based services, with broader and deeper adoption being contemplated," said Evan Kirchheimer, practice leader, enterprise services, Ovum.

HP Enterprise Services has announced Dollar Thrifty Automotive Group has signed a three-and-a-half year, $72 million technology outsourcing services agreement to continue supporting DTG’s applications portfolio and managing its technology infrastructure as a foundation for the company’s future growth.

With this agreement, DTG will move to a hybrid delivery model using a combination of dedicated HP onsite support and leveraged services. This delivery model allows DTG to build, manage and consume technology services that will optimize planning, deployment and management.

“In today’s competitive market, our technology needs to evolve in a way that increases its flexibility to grow with us while continuing the reliability with which we are accustomed,” said Rick Morris, executive vice president and chief information officer, Dollar Thrifty Automotive Group. “Together with HP, we will continue creating innovative solutions to help us deliver outstanding results to our shareholders and customers.”

Advice on alternative ways of delivering public sector services is to be offered by the Co-operative Group.

The company said it had set up a joint venture with law firm Cobbetts and the Westminster Bridge consultancy to help people considering setting up an enterprise.

The move is part of the Co-operative Group's ethical plan, launched earlier this year, to support the growth of co-operatives.

Chief executive Peter Marks said: "We have heard a great deal from all the mainstream political parties about the co-operative model delivering public sector services but up until now we've lacked a one-stop shop where people can get the advice and assistance necessary to turn great ideas into practical solutions.

"We know the co-operative model works. Indeed, we have been around since 1844 and in recent years we have enjoyed a renaissance which has seen us double sales, profits and membership.

"However, we have a purpose beyond profit, with a vision of creating a better society and we believe this new venture will enable us to help communities across the UK deliver important services in an alternative way."

Leading sourcing adviser joins forces with Chinese research and consulting firm to advise sourcing parks, local governments on adopting global standards.

TPI, an Information Services Group company and the largest sourcing data and advisory firm in the world, today announced the formation of a partnership with Devott, a well-known Chinese outsourcing research and consulting firm, to encourage sourcing parks and local governments across China to adopt global standards and best practices.

TPI and Devott have created Sourcing International Operational Protocols, a program designed to help attract more leading service providers to the region and make buyers more confident about outsourcing services to China. The program consists of an in-depth review of the current outsourcing environment, the development of improvement plans, and an online self-assessment.

The self-assessment will be available on the popular ChinaSourcing portal (www.chnsourcing.com) beginning next month. The firms will also jointly publish an Annual Global Best Sourcing Parks report, an in-depth study highlighting best practices and services around the world. The 2011 report will focus on China.

“TPI is excited to contribute our sourcing expertise and knowledge of both the Chinese and global sourcing markets to this partnership,” Michael Rehkopf, Partner & Director, North Asia, TPI. “This partnership will build on our success establishing sourcing protocols with the Chinese central government and local governments since 2009. Together with Devott, we look forward to helping China develop into a thriving destination for outsourcing.”

The Chinese market bears similarities to where India was ten years ago, before it began its rise to a major player in the global sourcing industry. China’s large, underpenetrated domestic market, growing scale and experience, and potential buyer in the government present opportunities for significant future growth. Global trends such as the increased prevalence of offshore delivery and multi-sourcing could also serve as catalysts.

“For China to become a prime location for sourcing service providers from around the globe, market participants here must follow international protocols,” said Haitao Qi, CEO of Devott. “We are partnering with TPI because it shares our commitment to helping improve the sourcing environment in China for both the sell side and the buy side of the industry.”

Imperial College London and University College London are to set up the “smart cities” centre this year in Shoreditch, east London, that will work with commercial partners.

Mr Osborne said the centre would focus “on the massive amounts of data - energy data, transport data, social data - being generated in the world’s metropolises”.

“This ‘smart cities’ research centre will develop new technologies, in partnership with leading companies, to harness and exploit these huge new data sets.

Peter Walker, Information Builders UK country manager:

“We’re rapidly entering a world where everything can be monitored and measured. However, the big problem is going to be the ability of non tech users to analyse and make sense of the data.”

“It is great to see the government taking positive steps to recognise the true benefits of data analytics. With this approach, key departments will be able to access statistical and other reporting tools that expose the hidden data that is driving change and growth.”

However, Dr Giles Nelson, deputy CTO for Progress Software, believes the government must now look forward to adopting real-time technology:

“For the government, the flow of data currently being dealt with is enormous. While there can by no denying that today’s announcement is a positive move to handle the explosion of data, the next step will be to capture data in real-time in order to proactively respond to events. Only by learning how to apply real-time technology effectively will the government be able to get a true handle on data.”

Mitchells & Butlers, the leading operator of restaurants and pubs in the UK, has tasked Fujitsu with transforming its IT infrastructure to use a private cloud service and managed network.

The multi-million pound outsource will create a hybrid private cloud to deliver a range of on-demand services to improve customer service, such as dynamic menus, queue management and interaction with customer devices such as smartphones, as well as delivering further efficiency savings. Fujitsu’s managed network service will connect the head office to retail outlets via the cloud, and provide a hosted voice platform to cut the cost of accessing telephony services.

The deal builds on an existing relationship with Fujitsu, which has maintained and supported Mitchells & Butlers’ tills and associated hardware for five years.

Fujitsu will standardise M&B’s server infrastructure within its own secure and resilient data centres, linked by a wholly owned, secure network. The IT applications will be virtualised for scalable hosting on Fujitsu’s Infrastructure-as-a-Service (IaaS) and Storage Managed Service offerings, housed in twinned Fujitsu Cloud Centres near London to keep customer information safe in the UK. Fujitsu will be fully accountable for the infrastructure and network.

Robin Young, commercial director at M&B stated: "Our approach needed to be radically different, to continue with the ambitious growth plans for the company, while reducing the central overhead. We needed technology that didn't require migrating our entire IT estate to the cloud overnight, but a move over time to reflect business needs.

“Most importantly, we needed a genuine partner who could align across our entire estate and work with Mitchells & Butlers not only in the technology space but contribute to the wider business goals.”

Commenting on the new offering, Jon Wolfe, business unit director at Fujitsu UK & Ireland, said: “With consumers ever more choosy about where they spend their money, M&B is making sure it is delivering a quality service that differentiates itself in the marketplace, as well as driving down costs. Fujitsu’s offering will enable M&B to do just that, allowing it to focus on the core business of attracting consumers to its outlets and providing a great customer service.”

Mike Sackman, CIO at Mitchells & Butlers, added: “Over the past year, we’ve refocused our core business to generate greater revenues in food, and plan further expansion over the coming months. We require an agile IT infrastructure to underpin that growth, and Fujitsu has proved through its existing relationship with us, that it is the right partner for the job.”

The EOA are delighted to announce Invest in Spain and Scottish Development International as new sponsors of the 2011 European Outsourcing Association (EOA) Summit & Awards.

Hosted by the EOA’s Spanish chapter, the 2011 EOA Summit & Awards will take place in Madrid on 20th & 21st June 2011. It will look to build on the success of the 2010 event by bringing together Europe’s leading outsourcing suppliers, end-users and support service providers for a two day conference focusing on the latest innovations, trends and developments in the European outsourcing market.

Other sponsors include: PromoMadrid, Omnext, Outsource Magazine, The OUT Group and Valueshore.

For more information on the agenda, how you can enter the awards, register for your place or sponsor, visit the website at: www.eoasummit.co.uk. Alternatively please call the EOA team on +44(0)207 292 8686.

Lancashire County Council and BT have formed a partnership agreement that will deliver millions of pounds of savings for taxpayers.

The contract for a new strategic partnership – which creates a joint venture company called "One Connect" – was signed recently following the first board meeting of the new partnership at County Hall. One Connect will deliver services on behalf of Lancashire County Council from Monday, 16 May.

The strategic partnership will enable the county council to save £10 million per year over the next ten years, with One Connect taking on the delivery of services such as HR and payroll, ICT support and the customer service centre.

The partnership has been created in a way that will allow other public sector organisations including councils, universities, police and fire and rescue services to also choose to join it in future.

Additional potential savings of £30m per year through better buying, quicker delivery of services and improved access to services using the latest technology are among the improvements residents will see through the partnership.

Lancashire County Council and BT have been working closely over recent months to ensure that the transition to One Connect is as smooth as possible. The first benefits of the partnership are already being seen with the introduction of a new "self-service" HR system, 12 months ahead of schedule.

County Councillor Geoff Driver, Leader of Lancashire County Council, said: "Improving county council services and providing value for money for taxpayers is crucial to everything we do and the strategic partnership is a key part of this.

"We have a long track record of delivering excellent services to the people of Lancashire and the strategic partnership will help us build on the good work we've done and deliver even better value for money for Lancashire's taxpayers.

"By using our combined expertise and technology, we will cut red tape, simplify processes used for carrying out many day-to-day tasks, and provide services far more quickly and efficiently. We will also use our strategic expertise to plan to make further savings in the long-term.

"We've been working very closely with BT over the last few months and are looking forward to working with them in this new partnership. Now we have signed up to the partnership we can move forward together to revolutionise the way county council services are delivered."

Neil Rogers, President Government & Health, BT Global Services, said: “We are delighted to have signed a strategic partnership with Lancashire County Council. We are drawing on our extensive knowledge of the local government sector to provide a truly innovative approach. We look forward to delivering excellent service to the people of Lancashire over the next decade. This is a key contract for BT and extends our footprint in this crucial market sector.”

British outsourcing firm Xchanging reported solid trading since January amid an overhaul of its business and said it expected revenue improvements in the second-half of the year.

Xchanging, which is undergoing cost cutting measures and a review of its troubled Cambridge IT business, said on Monday trading in its seasonally quieter first quarter had been solid.

The company, which runs back-office activities such as invoice processing and paying staff, said its financial services and insurance businesses, excluding its U.S. operation, had performed slightly ahead of its expectations.

"Since announcing our four part action plan at the time of our preliminary results we have been very active and have made good progress," acting Chief Executive and Chief Financial Officer Ken Lever said in a statement.