Press Archives

Tuesday, 29 May 2012

Internet economy contributes 2% to South Africa's GDP; forecast to reach 2.5% by 2016

New Report by World Wide Worx provides the first and most comprehensive study of South Africa's quiet economic engine: The Internet

A shiny new sports car may look beautiful, but without the quietly purring engine under the bonnet, it is little more than a stationary lump of metal. So too, South Africa's economy, where flashy sectors like financial services are considered to be key drivers, when in fact it is what's under the hood – in this case the Internet – that is important. A new study has revealed exactly how crucial the Internet economy is to the country's future.

Tuesday, 29 May 2012

Internet economy contributes 2% to South Africa's GDP; forecast to reach 2.5% by 2016

New Report by World Wide Worx provides the first and most comprehensive study of South Africa's quiet economic engine: The Internet

A shiny new sports car may look beautiful, but without the quietly purring engine under the bonnet, it is little more than a stationary lump of metal. So too, South Africa's economy, where flashy sectors like financial services are considered to be key drivers, when in fact it is what's under the hood – in this case the Internet – that is important. A new study has revealed exactly how crucial the Internet economy is to the country's future.

The Internet Economic Impact Study, conducted by World Wide Worx for Google South Africa, has revealed the growing importance the Internet has as an enabling tool for business communications, collaboration and transactions.

Until this report, the size of the contribution made by the Internet to the overall economy has never been quantified. This study goes much further than simply highlighting the impact this has on the economy, however, providing a series of policy recommendations that it is hoped will assist its continued growth and development. Such recommendations are important when one considers that already, the Internet economy contributes some 2% to gross domestic product (GDP).

According to Arthur Goldstuck, MD of World Wide Worx, the study shows that the total spent by consumers, small and medium enterprises (SMEs), and government on products and services via the Internet in 2011, as well as on Internet access and infrastructure, is R59-billion.

"What is interesting here is that the largest contributor to this total is not, as most people would assume, the investment by service providers in infrastructure. While the mobile networks and fibre providers have certainly spent their fair share on infrastructure – a total of R13.5-billion – this pales beside the R29.2-billion spent on Internet presence and access," says Goldstuck.

"The study further indicates that e-commerce is growing at a rate of around 30% a year, and is showing no signs of slowing down. In fact, taking into account the fact that a number of major consumer brands and chains have not yet devised comprehensive online retail strategies, the scope for future growth is even greater."

He points out that certain sectors, notably the airline industry, have already fully embraced e-commerce. Airlines are already comfortable with e-ticketing and are rapidly migrating ticket sales online. This is demonstrated by 2011 sales of nearly R9-billion.

It is a surprise, continues Goldstuck, to learn that government spending on Internet infrastructure and access is comparatively low, coming in at a little more than R1-billion. It must be said, however, that general ICT spending runs into several billion Rand.

Luke Mckend, Google SA Country Manager, adds: "No business, industry or government can ignore the scale of the Internet and the impact it is having. It presents a host of opportunities. Small and medium enterprises (SMEs) have been uneven in their uptake, but they are moving online in increasing numbers and are committed to doing so."

This is clearly demonstrated by primary research conducted by World Wide Worx in the form of its renowned SME Survey, the original representative survey of small and medium enterprises in South Africa. The 2012 edition has highlighted the importance of the Internet to the economic wellbeing of this sector in particular.

"The survey shows that around 410 000 SMEs in South Africa have a website, representing 63% of active, formal SMEs. The full impact of these websites on the economy is placed in perspective by the number of SMEs that would not have survived without one. Approximately 150 000 SMEs in SA would go out of business, were it not for their Web presence. Since SMEs account for some 7.8-million jobs, this means that as many as 1.56-million jobs would be in jeopardy were it not for the Internet," suggests Goldstuck.

He adds that while the impact of the Internet is already significant, it is expected that it will increase even further in the coming years. This will be fuelled by both the growing awareness of the importance of the Internet across business and government, and rapid growth in the number of Internet users.

"Thanks to the smartphone explosion currently taking place in South Africa, access levels and awareness are increasing all the time. In fact, it is the smartphone users who represent the future potential of Internet growth in South Africa. By next year around half of all cellular phones sold in SA will be of the smart variety. Since smartphone users eventually become Internet users, we can expect the Internet user base to grow at an accelerated pace."

However, he cautions that according to the Digital Participation Curve, a model developed by his company, it can take up to five years before new Internet users gain the confidence and experience to become active participants in the Internet economy.

"Consequently, with the number of Internet users having begun accelerating in 2008, the number of experienced users will begin accelerating in 2013, and will continue to do so for the following five years. The result is that an Internet economy worth R59-billion in 2011 and making up 2% of the SA economy could grow to as much as 2.5% of the economy by 2016."

"To put this into perspective, the agricultural sector made up only 2.2% of GDP in the last quarter of 2011. Looked at it another way, it is likely that over the next five years, the Internet economy will begin approaching the size of the construction sector - an estimated R120-billion in 2011, suggesting this is potentially one of the new building blocks of the South African economy," concludes Goldstuck.

A copy of the report can be downloaded at www.internetmatters.co.za

Contacts:

· SME Survey spokesperson: Arthur Goldstuck (contact via e-mail arthur@worldwideworx.com )

· SME Survey media support: Debbie Whittaker (083 273 5337)

· SME Survey project manager: Kelly Conradie (contact via e-mail kellyc@coolcumba.com)


Thursday, 24 May 2012

SME Survey 2012: SME slow to harness Cloud

Despite the clear benefits of Cloud computing, ranging from reduced costs to improved efficiencies, small and medium enterprise (SMEs) have yet to embrace this approach to technology use.

According to the annual SME Survey, South Africa's longest-running survey of competitiveness in small businesses, just 9% of SMEs made use of the Cloud at the end of 2011. Cloud computing generally refers to accessing services and applications via the Internet that would previously have resided on the user's computer or internal network.

Thursday, 24 May 2012

SME Survey 2012: SME slow to harness Cloud

Despite the clear benefits of Cloud computing, ranging from reduced costs to improved efficiencies, small and medium enterprise (SMEs) have yet to embrace this approach to technology use.

According to the annual SME Survey, South Africa's longest-running survey of competitiveness in small businesses, just 9% of SMEs made use of the Cloud at the end of 2011. Cloud computing generally refers to accessing services and applications via the Internet that would previously have resided on the user's computer or internal network.

Arthur Goldstuck, principal researcher of the survey, says that this is not surprising, as the SME sector tends to follow in the wake of technology adoption among corporations. He adds that around half of all corporates in SA are still not making use of the cloud, so it is no shock to see how few SMEs are doing the same.

"Although the number of corporates expected to be using the Cloud this year will reach 52%, the number of SMEs doing the same will only reach 18%. While this does represent the proportion of SMEs using the cloud doubling this year, it will still mean that by the end of 2012 less than one in five SMEs will be utilising the Cloud," says Goldstuck.

"This means that SMEs are not benefiting from the multiple obvious benefits they stand to gain from cloud adoption. But it is clear why it's not happening, and it is for the same three key reasons that adoption has not been more pervasive among corporations.

Firstly, many of these organisations simply don't understand the concept of the Cloud, due to industry terminology shrouding it in jargon. This in turn means that they fail to see the real advantages it offers. And, as with the corporate hold-outs, many consider it to be unsecure. This is especially ironic, considering that most cloud solutions are more secure than the average SME's PCs."

Broken down by sector, communications (13%); education and financial services (14%) and IT & telecoms (16%) are all well above the overall rate of adoption. However, tourism, transport and healthcare (4% each), and retail (5%) are all sectors that are far below the mean. Goldstuck adds that some of these sectors are potentially the biggest beneficiaries of managing their processes via the cloud.

They could benefit both from driving down the operational and capital costs of IT, and from obtaining richer functionality and better business flexibility.

He points out that the age of the business plays a role in the likelihood of adoption, with only 5% of new businesses indicating that they utilise the cloud. Among all other age categories of SMEs, more than 8% have taken to the Cloud. Goldstuck says that this shows that new businesses are more cautious about adopting cloud services. This is again ironic, since start-ups have the most to gain from the cloud, as, for example, they would not need to invest heavily in infrastructure.

"Furthermore, there is a correlation between profitability and cloud adoption, with 11% of SMEs that are strongly profitable using cloud services. Conversely, of those breaking even or making a loss, only 7.5% utilise the cloud."

"There is certainly evidence that cloud computing offers more benefits than drawbacks to SMEs, yet a lack of understanding of these benefits means uptake continues to be slow. Despite this, there is a clear edge for those who do make use of it; after all, cloud computing is an enormous cost saver to any business, and cutting costs is a key element of profitability," says Goldstuck.

SME Survey is the original representative survey of small, medium and micro enterprises in South Africa. For more information, visit www.smesurvey.co.za

Contacts:

· SME Survey spokesperson: Arthur Goldstuck (contact via e-mail arthur@worldwideworx.com )

· SME Survey media support: Debbie Whittaker (083 273 5337)

· SME Survey project manager: Kelly Conradie (contact via e-mail kellyc@coolcumba.com)


Thursday, 26 January 2012

Website keeps 1 out of 5 SMEs alive

One out of every five small and medium enterprises in South Africa would not be able to survive if they did not have a website.

This is one of the startling findings delivered so far by the 2012 edition of the annual SME Survey, which focuses on assessing the factors behind SME competitiveness. The interim findings of the survey - it has reached the halfway mark - were presented by the survey's principal analyst, Arthur Goldstuck, at the launch of the Woza Online project last week.

19 January 2011

Google and Partners launch Woza Online to bring thousands of South African SMEs online

"Having an online presence has never been more vital to the long term sustainability of a business, as the general public's access to the Internet continues to accelerate," he said. He pointed out that SMEs have quickly realised the value of having their own website, with some 65% of formal South African SMEs reporting that they have an online presence.

"Even more interesting is the response we have received from a full 20% of those surveyed, who said that their businesses would not have been possible without a website."

"To put this into perspective, Elizabeth Thabethe, Deputy Minister for the  Department of Trade and Industry has stated that around nine million people in South Africa are employed by SMEs. In other words, had these SMEs not had an online presence, a further 1.8 million people would potentially be unemployed."

While many SMEs may have recognised the importance of on online presence, many are still put off by the cost and complexity of building and operating a website. However, a joint initiative by government and the private sector has now been launched with the aim of mitigating these issues. Woza Online is a joint initiative by Google, the Department of Trade and Industry, Vodacom and the Human Resources Development Council.

The project aims to bring thousands of SMEs online by enabling them to create their own websites and develop an online presence, at no cost, in under an hour. It is hoped that this project will stimulate the SME sector, accelerating the ability of SMEs to effectively reach their audience.

Speaking at the Woza Online launch event, Goldstuck, who is also the MD of research firm World Wide Worx, said that the project was a fantastic opportunity for SMEs.

"The interim results of the 2012 SME Survey have already indicated that there is a strong link between being online and being competitive, profitable and sustainable. Some 79% of SMEs with a website reported profitability, whereas only 59% of SMEs without a website reported the same," explains Goldstuck.

"Clearly these findings highlight the benefits of being online for SMEs. Now Woza Online means that small businesses across the country can join the digital revolution, at no expense. Interim results of the survey have also shown that a company website, as well as the use of cloud computing, is closely correlated with being highly competitive and strongly profitable."

He adds that those SMEs in business for 10 years or longer are far more likely (72%) to have websites than relatively new businesses, indicating that the survey shows that of those operating for less than three years, just 46% are online.

"Since it is the older businesses that tend to have the websites, it seems obvious that for a new SME to obtain the same advantages, it is crucial for it to build an online presence as quickly as possible. Also, since the majority of those online are saying they are very profitable, SMEs should take advantage of the opportunity presented by Woza Online. After all, there is little doubt that an effective online presence is the key to a successful business. Such success will, in turn, have a positive impact on the SA economy as a whole," he concludes.

Contacts:

· SME Survey spokesperson: Arthur Goldstuck (contact via e-mail arthur@worldwideworx.com )

· SME Survey media support: Debbie Whittaker (083 273 5337)

· SME Survey project manager: Kelly Conradie (contact via e-mail kellyc@coolcumba.com)


19 January 2011

Google and Partners launch Woza Online to bring thousands of South African SMEs online

Johannesburg, South Africa: Google today announced the launch of Woza Online, an initiative that aims to bring tens of thousands of small and medium South African businesses online. Businesses will have the opportunity to create their own websites at www.wozaonline.co.za and develop an online presence - for free, and in under an hour.

19 January 2011

Google and Partners launch Woza Online to bring thousands of South African SMEs online

Woza Online, in partnership with the Department of Trade & Industry (DTI), Vodacom and the Human Resources Development Council (HRDC), hopes to transform the South African SME landscape, and drive economic growth and job creation. This project is also supported by Lead SA, the Primedia Broadcasting and Independent Group of Newspapers initiative that aims to mobilise change among South Africans for the benefit of the country.

According to the interim results of the latest SME survey conducted by World Wide Worx (January 2012), there is a strong link between being online and being competitive, profitable and sustainable. 79% of SMEs with a website reported profitability, whereas only 59% of SMEs without a website reported the same.

  • Businesses participating in the initiative get:
  • a free easy-to-build professional website
  • a free sub-domain name and hosting
  • an automatic listing on Google Places which reflects in Google Maps
  • access to training material and workshops
  • free online support available via Google Chat and email
  • 1 year free top-level .co.za domain name for first 10,000 applicants

Commenting on the initiative, Elizabeth Thabethe, Deputy Minister for the Department of Trade and Industry, said, "The more small businesses are online the more customers they will be able to reach. We often hear entrepreneurs or business owners describing the challenges of building an online presence. With Woza Online removing those obstacles, SMEs are empowered to take that first bold step towards getting online."

'The HRDC has partnered with Google to provide entrepreneurs with free websites," said Dr. Blade Nzimande, Minister of Higher Education and Training. "Today having a website is as important as having a telephone, yet over a third of SMEs are not online, and businesses with a website are 4 times more profitable than those without one.  Many businesses think that having a website is expensive or complicated. The HRDC is a platform where social partners can jointly seek solutions to identified blockages and the provision of websites to entrepreneurs will provide them with a head start by making it quick and easy for them to have an online presence. Through initiatives such as this, the internet will help create jobs and foster economic growth and development in SA'.

Sipho Maseko, Managing Director at Vodacom said, "Being connected is essential to business growth  and possibly the most cost-effective means of marketing for most  SMEs.  This is a step towards economic freedom and growth for many who previously were denied due to cost, technology know-how and access. We look forward to seeing the creativity of South Africans as they embrace the technology and realise how it can develop and grow their businesses.

Also present at the launch event was Arthur Goldstuck, World Wide Worx, who said, "Woza Online presents a fantastic opportunity for SMEs across the country to join the digital revolution, at no expense.  Research has shown that a company website, as well as the use of cloud computing, are closely correlated with being highly competitive and strongly profitable.  We have also seen that, under tough conditions, many SMEs have only survived thanks to their online presence."

"We believe that the power of the Internet will help small businesses in South Africa to grow, and will help entrepreneurs thrive, by bringing more local information online and making it accessible," says Luke Mckend, Country Manager for Google South Africa. "The Woza Online process is simple and business owners can be online in less than an hour - whether you sell transport services, cakes, crafts or electronics, locally or internationally."

Carla de Freitas, co-founder of a grow-your-own-mushrooms kit business said "Having a website means that customers can find your business easily and quickly online, and that you can reach a much larger customer base.  Our business has grown thanks to the Internet, and we can receive queries and orders around the clock, even when we're not on duty."

The announcement was made at the Innovation Hub in Tshwane and was followed by demonstrations where small business owners - ranging from a Johannesburg cake business to a Soweto bird-watching company -  created their own websites.

Google has launched similar initiatives in 23 other countries around the world from Great Britain, Canada, and Australia to Brazil, Indonesia, France, and Poland, bringing 400,000 businesses online over 2 years.  In Africa, the programme was launched in Kenya and Nigeria last year, with these countries seeing over 20,000 businesses going online within the first two months.

For more information visit: www.wozaonline.co.za

-ENDS-

Notes to Editors

YouTube Clips: Examples of South African SMEs OnlineNote: these are examples of businesses that have benefited from having an online presence, but did not necessarily create their websites using Woza OnlineStreetwires: http://youtu.be/M_A4gMrD09o

Mushroom Factory: http://youtu.be/viHSSaauZRY

African Dream Marimba Band: http://youtu.be/A3bPbyiFWyY

Township Guitars: http://youtu.be/ztqRUksXgu8

Compilation of 4 SMEs (Streetwires, Mushroom Factory, Marimba Band, Township Guitars): http://youtu.be/B-_N1UkxtzM

About Woza Online

Woza Online is a joint initiative by Google, the Department of Trade and Industry, Vodacom, & the Human Resources Development Council, and other organizations to help SMEs create their first website and help them make the most of the opportunities offered by the Internet.  The Woza Online initiative has set a target of helping thousands of South African SMEs set up a website easily and for free, over the course of the next year.

Woza Online offers:

  • a free easy-to-build professional website
  • a free sub-domain name and hosting
  • a free listing on Google Places
  • the use of Google tools and resources
  • access to training material and workshops
  • free online support available via Google Chat and email
  • 1 year free top-level .co.za domain name for first 10,000 applicants

About Google Inc.

Google's innovative search technologies connect millions of people around the world with information every day. Founded in 1998 by Stanford Ph.D. students Larry Page and Sergey Brin, Google today is a top web property in all major global markets. Google's targeted advertising program provides businesses of all sizes with measurable results, while enhancing the overall web experience for users. Google is headquartered in Silicon Valley with offices throughout the Americas, Europe, Africa and Asia. For more information, visit http://www.google.com/africa and our Google Africa Blog: google-africa.blogspot.com.  You can also follow Google's Africa team on Twitter: twitter.com/googleafrica

About the dti

The Department of Trade and Industry (the dti) provides strategic direction in the development of policies and strategies that promote enterprise growth, empowerment and equity in the South African economy. The Department has prioritised entrepreneurship and the advancement of Small, Medium and Micro-sized Enterprises (SMMEs) as the catalyst to achieving economic growth and development. With the assistance of other government departments and institutions, the dti takes the lead in implementing SMME-related policies to ensure that adequate financial and non-financial assistance is awarded to the sector, for its long-term prosperity and that of the country as a whole.

About the Human Resource Development Council

The Human Resource Development Council of South Africa (HRDCSA) is a national multi-tiered and multi-stakeholder advisory body under the leadership and stewardship of the office of the Deputy President of South Africa. It is managed by the Ministry of Higher Education and Training. A number of Government Ministers sit on the Council as well as senior business leaders, trade unionists and representatives from academia and civil society. The HRDCSA,  acknowledges that human resource development is not the domain of Government alone and that all social partners have a role to play in ensuring that we develop highly skilled people that are able to participate meaningfully in the economy. The HRDCSA therefore provides a platform where all social partners can come together and mutually agree on solutions to address the human resource development issues facing South Africa.

About Vodacom

Vodacom Group Limited (Vodacom) is an African mobile communications company providing voice, messaging, data and converged services to over 40 million customers.  From its roots in South Africa, Vodacom has grown its operations to include networks in Tanzania, the Democratic Republic of Congo, Mozambique, and Lesotho and provides carrier and business services to customers in over 40 African countries.  Vodacom is majority owned by Vodafone, one of the world's largest mobile communications companies by revenue, and is listed on the JSE Limited under the symbol VOD.

Vodacom Business Services– Leading convergence in an increasingly connected Africa.

Vodacom Business Services, a division of Vodacom SA, is a leading Next Generation Network provider operating on a single business driver that understands business voice, video and data requirements.

Established in 2008, Vodacom Business Services delivers total communication solutions tailored to the needs of the public sector, large, medium and small companies. Solutions extend from mobile to fixed line access mediums, Virtual Private Networks (VPNs), Voice over IP (VoIP), hosted facilities, cloud computing based hosted services, storage, back up, security and application solutions.

Visit us at vodacom.co.za/business.

About the SME Survey 2012: World Wide Worx

SME Survey 2012 is based on a randomly selected sample of decision-makers at South African small, medium and micro enterprises (SMEs), consisting of companies with from 1 to 200 staff. A total of 2000 SMEs will be included in the survey. At the interim stage, completed on 15 December 2011, 1007 decision-makers had been interviewed.

Interim results show that nearly two thirds of all registered SMEs – 65%– have their own websites, a massive increase since 2008 when just 45% were online presence

Those in business for ten years or longer are far more likely (72%) to have websites than relatively new businesses. Of those operating for less than three years, just 46% are online.

Results found a clear correlation between competitiveness and having a website. 68% of SMEs with a website regard themselves as generally competitive, with 45% regarding themselves as highly competitive. For those without a website, these figures are 59% and 38%.

The majority of SMEs operating in the IT and telecoms sectors have websites (89%). Similarly, a high number (76%) of those in the tourism and transportation sector have websites. Meanwhile, less than half (44%) in the financial services sector have any kind of online presence.

SME Survey is the original representative survey of small, medium and micro enterprises in South Africa. For more information, visit www.smesurvey.co.za

Contacts:

· SME Survey spokesperson: Arthur Goldstuck (contact via e-mail arthur@worldwideworx.com )

· SME Survey media support: Debbie Whittaker (083 273 5337)

· SME Survey project manager: Kelly Conradie (contact via e-mail kellyc@coolcumba.com)


Immediate release: Thursday, 12 January 2012

SME Survey 2012: Competitive businesses are online

Small and medium enterprises (SMEs) that embrace technology are more competitive than those that do not. Recent findings suggest that with the current economic situation, fewer SMEs consider their businesses to be competitive. Despite this, those small to medium organisations which have an online presence still believe that their businesses remain top performers.

Immediate release: Thursday, 12 January 2012

SME Survey 2012: Competitive businesses are online

These are among the core findings at the halfway stage of SME Survey 2012. Since its inception in 2003, the SME Survey has had the express intention of determining the impact of IT on competitiveness.

Principal analyst Arthur Goldstuck describes the importance of an online presence as a crucial finding. "Those with a website are also more likely to be users of Internet and related technology tools which, when used appropriately, can deliver substantial efficiency benefits," he asserts.

Determining competitiveness is based on four factors. These include a company's ability to grow profits; its ability to grow revenue; its ability to build market share or compete with similar organisations; and its ability to cut costs.

"The latest survey indicated that fewer SMEs today regard themselves as competitive, when compared to previous years. Only 65% of those surveyed considered themselves to be competitive, compared to 75% in the past. This is clearly a consequence of the recent recession and the global financial crisis," Goldstuck says.

However, some 68% of those with a website regard themselves as generally competitive, with 45% regarding themselves as highly competitive. For SMEs without their own websites, these figures were, respectively, 59% and 38%.

When considering profitability rather than perceived competitiveness, the difference is even more dramatic: 79% of SMEs with a website report that they are profitable, while only 59% of those without a website report profitability. And for those reporting 'strong profitability', "Of those with a website, 30% claim to be strongly profitable, compared to just 14% of those without."

Surprisingly, the 7% which reported that they are uncompetitive is in line with previous years' figures. "This suggests that more SMEs are sitting on the fence and view themselves as being neither competitive nor uncompetitive. Again, this is likely due to the current global uncertainty, with many organisations simply waiting to see exactly which way the economic wind blows," Goldstuck explains.

Perhaps more encouraging is that many of those sitting on the fence still view themselves as profitable; almost three quarters of all surveyed reported that their businesses are in the green, with a quarter of these claiming to be strongly profitable. "The likely reason is that many that no longer consider themselves competitive are still making profits, albeit at a lower rate," he says.

Goldstuck says that the contributions of the broader SME sector to the national economy should not be underestimated. As such, reduced overall competitiveness is a worrying finding, particularly against the backdrop of an under-fire economy in a country where rampant unemployment perpetuates economic inequality.

"The interim results indicate that there is indeed a correlation between being online and being successful. One might suggest that an online presence is becoming a necessary but not sufficient condition for doing business, given that more and more consumers than ever before are looking for their needs on the Internet," Goldstuck concludes.

SME Survey is the original representative survey of small, medium and micro enterprises in South Africa. For more information, visit www.smesurvey.co.za

Contacts:

· SME Survey spokesperson: Arthur Goldstuck (contact via e-mail arthur@worldwideworx.com )

· SME Survey media support: Debbie Whittaker (083 273 5337)

· SME Survey project manager: Kelly Conradie (contact via e-mail kellyc@coolcumba.com )


Tuesday, 10 January 2012

SME Survey 2012: Small businesses recognise the value of a website

As more and more consumers start their search for products and services on the Internet, and with more companies moving online and reaping the benefit of their web presence, savvy South African SMEs are taking the importance of an online presence to heart.

Tuesday, 10 January 2012

SME Survey 2012: Small businesses recognise the value of a website

As more and more consumers start their search for products and services on the Internet, and with more companies moving online and reaping the benefit of their web presence, savvy South African SMEs are taking the importance of an online presence to heart.

That's according to Arthur Goldstuck, principal researcher of the annual SME Survey, a unique study which assesses the competitiveness of this sector of the South African economy.

"Interim results show that nearly two thirds of all registered SMEs – 65%– have their own websites, a massive increase since 2008 when just 45% were online presence," he says.

Those in business for ten years or longer are far more likely (72%) to have websites than relatively new businesses. Of those operating for less than three years, just 46% are online. "While one might suggest that a website is something of a necessity which is being overlooked by the start-up, the research does indicate that nearly one in every two start-ups either have a web site when they launch or soon after," Goldstuck notes.

He says another essential finding emerging from this year's research is a clear correlation between competitiveness and having a website. "68% of SMEs with a website regard themselves as generally competitive, with 45% regarding themselves as highly competitive. For those without a website, these figures are 59% and 38%."

Differences are to be expected for various industry sectors; the majority of SMEs operating in the IT and telecoms sectors have websites (89%). Similarly, a high number (76%) of those in the tourism and transportation sector have websites. Meanwhile, less than half (44%) in the financial services sector have any kind of online presence. "SMEs in some vertical markets can be stuck in traditional ways of thinking. For example, those with a largely recurring customer base, such as auditing and accounting companies, may not yet see the value of a website," Goldstuck adds.

However, with the proliferation of smartphones, the number of people using the Internet can only increase. That carries with it an implication that unless your company is online, it may be left out in the cold. "Additionally, given the competition which broadly typifies the SME sector, it may be necessary to consider that a growing base of savvy online South Africans is emerging. As these consumers enjoy more affordable and accessible Internet access, so too will the necessity for an online presence as a necessary component of a competitive business emerge," Goldstuck concludes.

Contacts:

· SME Survey spokesperson: Arthur Goldstuck (contact via e-mail arthur@worldwideworx.com )

· SME Survey media support: Debbie Whittaker (083 273 5337)

· SME Survey project manager: Kelly Conradie (contact via e-mail kellyc@coolcumba.com )


Immediate Release: 17 November 2011

SME Survey 2011: Web-presence now crucial for the small business

South Africa is about to reach a crucial moment in the evolution of the Internet. Not only is Internet access becoming more affordable, it is also becoming more accessible as people from a variety of economic backgrounds are increasingly accessing the Internet using their mobile phones. "This will have a profound effect on how businesses provide information and services to a growing online savvy user base," says Arthur Goldstuck, MD of World Wide Worx.

Immediate Release: 17 November 2011

SME Survey 2011: Web-presence now crucial for the small business

South Africa is about to reach a crucial moment in the evolution of the Internet. Not only is Internet access becoming more affordable, it is also becoming more accessible as people from a variety of economic backgrounds are increasingly accessing the Internet using their mobile phones. "This will have a profound effect on how businesses provide information and services to a growing online savvy user base," says Arthur Goldstuck, MD of World Wide Worx.

Goldstuck, principal analyst for the annual SME Survey in South Africa, points to a coming watershed that will make it all the more crucial for small and medium enterprises (SMEs) to have an effective online presence.

"More than ever, the sustainability and competitiveness of SMEs in South Africa has become a critical component in an economy struggling to create jobs," says Goldstuck. "It is therefore vital to determine those factors that will ensure that SMEs are able to make an effective contribution to job creation, while ensuring their own survival and prosperity."

"Already, many consumers turn to browsers and search engines for assistance in finding the right product or service. This can be expected to increase exponentially as more people access the Internet on their phones. Therefore, those SMEs that are not online, or that have a limited or ineffective presence, could suffer," he reiterates.

Goldstuck intends to put this hypothesis to the test in the 2011 SME Survey, which has contributed original groundbreaking research into the forces shaping small, medium and micro enterprises since 2003. This year, he says, the researchers are interviewing some 2,000 such companies about Internet adoption, the role an online presence plays in increasing their competitiveness; and how that in turn contributes to the economic success of South Africa as a whole.

Other research conducted by World Wide Worx has already pointed to 2013 as a crucial year; Goldstuck says he anticipates a massive intensification in the demand for online services and information. It is a turning point which this survey intends to identify and to some extent, quantify.

"This is borne out by statistics that show that an acceleration of Internet growth began in 2008. This resulted in the number of Internet users in South Africa rising by more than two million in the next two years, from 4.6-million to 6.8-million in 2010. Further, this means that by 2013, there will be 4.6 million experienced users on the Internet, and the experienced user base will see the same acceleration that the overall user base began to see five years earlier. This means that there will be a fast-rising expectation for businesses to be ready for online demand for their services," he says.

Technology and connectivity have always shaped the SME Survey but the 2011 version is to be the most strongly Internet-oriented survey since the first iteration of the research in 2003.

"We are now going back to the core question that we originally asked: What's the impact of IT on the competitiveness of the SME? Only this time, we are focusing specifically on the growing necessity for an online presence – whether that is having a basic website, using social networks or advertising online."

Bearing in mind the importance of SMEs to the crucial macro issue of job creation, the results of this survey may be critical pointers as to how SMEs should conduct business in the future. "There is no doubt that successful small businesses are important to the larger national economy, and it would appear that the successful SMEs of the near future will be those that have an online presence," concludes Goldstuck.

SME Survey is the original representative survey of small, medium and micro enterprises in South Africa. For more information, visit www.smesurvey.co.za

Contacts:

· SME Survey spokesperson: Arthur Goldstuck (contact via e-mail arthur@worldwideworx.com )

· SME Survey media support: Debbie Whittaker (083 273 5337)

· SME Survey project manager: Kelly Conradie (contact via e-mail kellyc@coolcumba.com )


26 October 2011

Social media goes mainstream in SA

South Africans have embraced social media as a core pillar of Internet activity in this country, along with e-mail, news and banking.
MXit and Facebook lead the way in user numbers, while Twitter has seen the most dramatic growth in social networking in the past year, and BlackBerry Messenger is the fastest growing network in the second half of 2011.

These are among the key findings of a new study released today by Fuseware and World Wide Worx, entitled South African Social Media Landscape 2011.

26 October 2011

Social media goes mainstream in SA

South Africans have embraced social media as a core pillar of Internet activity in this country, along with e-mail, news and banking.
MXit and Facebook lead the way in user numbers, while Twitter has seen the most dramatic growth in social networking in the past year, and BlackBerry Messenger is the fastest growing network in the second half of 2011.

These are among the key findings of a new study released today by Fuseware and World Wide Worx, entitled South African Social Media Landscape 2011.

"The question of how many South Africans use each of the major social networks comes up so often, it became a priority for us to pin down the numbers," says Michal Wronski, Managing Director of information analysts Fuseware and co-author of the report. "The data was collected through a combination of Fuseware's analysis of social network databases, information provided directly by social networks, and World Wide Worx's consumer market research."

An analysis of Fuseware's extensive database of Twitter usage, in conjunction with World Wide Worx's consumer market research, shows that there were 1,1-million Twitter users in South Africa in mid-2011. This is a 20-fold increase in a little more than a year.
"One of the drivers of growth of Twitter is the media obsession with the network," says report co-author Arthur Goldstuck, managing director of World Wide Worx. "Most radio and TV personalities with large audiences are engaged in intensive campaigns to drive their listeners and viewers to both Twitter and Facebook. The former, coming off a very low base, is therefore seeing the greatest growth."
As in the global environment, not all Twitter users are active users, with only 40% tweeting, but probably as many simply watching, following and using it as a breaking news service.

MXit remains the most popular social network in South Africa, with approximately 10-million active users. Its demographic mix runs counter to the popular media image of MXit as a teen-dominated environment. No less than 76% of the male user base of MXit and 73% of female users are aged 18 or over.

A surprising finding emerged from analysis of Facebook data. Of approximately 4.2-million Facebook users in South Africa by August 2011, only 3.2 million had visited the site in the year-to-date.
"This is partly a factor of many users moving on once the novelty of the site had worn off, as well as a result of the fickle nature of the youth market," says Wronski. "Once BBM picked up significant traction in private schools, for example, many teenagers who had previously flocked to Facebook, opted for BBM's greater immediacy."
While LinkedIn, aimed at professional users, also reached the 1,1-million mark, it came off a far higher base – but still saw 83% growth of South African users from 2010 to 2011. Of these, 112 000 or 10% are business owners.

Consumer research analysed in the report revealed that future intention of usage of most social networks is strongly related to age. The younger the user, the greater the intention of usage.
"This is only one of many micro-trends shaping social networking," says Goldstuck. "MXit, Facebook and BBM statistics illustrate, for example, that as social networks become more mainstream, their penetration within all age ranges deepens. This, in turn, will result in the continual flattening of the age curve as social networks mature."

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Immediate release: Monday, 29 November 2010

SME Survey 2010: Diversify to boost resilience and profitability

Targeting a single sector of the market? Chances are that as an SME, you felt the pinch of the recession more than anyone else. That’s because new research from SME Survey 2010 reveals that those companies which have not diversified are at more risk than their counterparts who sell to a range of customer segments.

Sponsored by the National Youth Development Agency (NYDA), SME Survey 2010 for the first time examined diversity as a factor in competitiveness.

Immediate release: Monday, 29 November 2010

Diversify to boost resilience and profitability

According to principal researcher Arthur Goldstuck, SMEs need to diversify more actively if they are to be more sustainable, profitable and resilient to inevitable market changes; when he says ‘diversify’, Goldstuck doesn’t mean the SME should act as a conglomerate, but rather that it should address different customer segments if possible.

“The first recession to hit South Africa in over 17 years was instructive: those companies which didn’t have all their eggs in one basket are the ones which weathered the storm more effectively,” he says.

Goldstuck says it is a reasonable assumption that a level of diversity in who the customer is will have an effect on how a business fares in the face of changes to the economy.

“Those businesses which have a better spread of customers are able to cope with changes. It is unlikely that all customer segments will be affected equally by any economic event, such as the recession. So, it follows that businesses which serve corporations, the ‘man in the street’ and public sector, for example, will do better than the company which only does business with the man in the street.”

More diverse means more competitive, in short. “It goes to the reliability of the income stream and the health of the target market,” Goldstuck comments. “When one sector comes under pressure, it helps to have others to carry the business through tough times. Typically, however, if you serve corporations, you are likely to be more resilient and more profitable.”

Pointing to the research, Goldstuck says that 39% of SMEs in established markets typically have done business with corporate customers; but only 31% of businesses in emerging markets. Meanwhile, in established markets, 43% of businesses typically serve other SMEs, but only 32% in emerging markets.

Wholesale and retail is the one sector which procures the very least from SMEs. Zeroing in, Goldstuck points to the gap between the established SME which enjoys these businesses as customers (31%) and emerging companies (21%).

“This presents an issue, since BEE legislation encourages sourcing from small business and in particular, from emerging small business. That could make a case for more intervention from government in terms of enforcing procurement policy,” he notes.

Andile Lungisa, NYDA Chairperson, encourages corporate South Africa to consider its procurement policies carefully. “Economic development and emancipation is a key challenge of our time. We would like to see continued and accelerated participation from big business in supporting and developing emerging talent to achieve the capacity which is required by the procurement arms.”

To facilitate on a practical level and create procurement opportunities for youth owned enterprises, the NYDA launched the Buy Youth Campaign (BYC) which was initiated to address the challenge of market access faced by most emerging SMEs.

Lungisa adds, “Selected SMEs undergo training in supplier development, presentation skills, and B-BBEE procurement. The BYC is taking advantage of the B-BBEE strategy by enticing large entities to earn points and at the same time receive the value provided by SMEs after being developed. The Campaign is also intended to create a platform for industry buyers and youth owned SMEs to convene, engage and conduct business. Proudly South Africa supports the Campaign which is seen as a competitiveness driver and an activist for South Africa’s National Buy Local Campaign.”

Goldstuck however acknowledges commercial realities which have to be taken into account; wholesale and retail industries have very specific and stringent quality requirements which render it difficult for any supplier to gain approval. And, these organisations tend to procure on a massive scale.

In conclusion, Goldstuck says that it is clear that a diverse target market means not just sustainability, but also the improved likelihood of profitability. “There is a strong difference in diversity between established and emerging SMEs, especially in terms of corporate procurement. That could make a case for gearing policy towards promotion of emerging market businesses.”

SME Survey 2010 is sponsored by the National Youth Development Agency. Visit www.smesurvey.co.za

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Immediate release: 23 November 2010

SME Survey 2010: The South African SME and the environment - does it care?

Much is made, in big business, of the necessity for environmental responsibility and sustainability. But what about the SME – does the call for ‘green’ ways of doing business resonate with the South African small to medium enterprise owner? The answer to that question is definite – and perhaps not quite what you may expect.

That’s according to Arthur Goldstuck, principal researcher of SME Survey 2010, which is sponsored by the National Youth Development Agency (NYDA). He says the assumption is that peripheral concerns such as ‘being green’ might be of less interest than establishing a profitable business.

However, “We were proven wrong. Very wrong,” Goldstuck says.

Immediate release: 23 November 2010

SME Survey 2010: The South African SME and the environment - does it care?

For the first time in its eight year history, SME Survey asked how important environmental awareness is to doing business. “Overall, 78% reported that it is indeed important. That’s exceptionally high,” he notes.
Goldstuck says this is almost certainly a consequence of business owners bringing their personal viewpoints of the necessity for environmentally sound practices into the workplace.

Perhaps even more surprising, he continues, is that emerging businesses were slightly more concerned than established companies. “Businesses in established markets came in at 77%, while businesses in emerging markets were at 80%. That’s fascinating and flies in the face of ‘received wisdom’ which assumes that those businesses which are more established and enjoy access to technology and formal communications, might be more concerned about their impact on their surroundings,” Goldstuck says.

And, when asked ‘Do you disagree that the environment is important’, 6% of emerging business said they do disagree, while 20% of established companies said they disagree. “In effect, three times more people in so-called ‘first world’ businesses don’t think the environment is important. This turns on its head the notion that the first world is more concerned with the environment than the emerging world is.”

While the underlying reasons for this are obscure, Goldstuck ventures that a struggling business owner is likely to be focused across all elements of impacts on his organisation, including its place in the community and the environment. However, once more established, company owners tend to narrow the focus to those factors directly linked boosting growth and profitability.

Andile Lungisa, NYDA Chairperson, says that as issues of sustainability elevate in the national consciousness, it is noteworthy – and encouraging – that the small business owner factors the environment into his or her plans. “We have limited natural resources which must be preserved not only for this generation of young people, but the generations which come thereafter. The South African SME owner, and especially the emerging businessman, can therefore take a bow. The great majority know that looking after the environment is the right thing to do is, and they are applying that in their organisations.”

SME Survey 2010 is sponsored by the National Youth Development Agency. Visit www.smesurvey.co.za

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27 October 2010

SME Survey 2010: Connectivity is a big issue in the emerging SME market

More than a third (37%) of emerging small and medium enterprise (SME) businesses in South Africa have no Internet connectivity whatsoever. This startling statistic has emerged as part of the SME Survey 2010, sponsored by the National Youth Development Agency (NYDA). This is in sharp contrast to the 17% of established SMEs that have no connectivity.

According to principal researcher, Arthur Goldstuck, this alarming statistic jumped out at the researchers, due to the significance of its impact on SME growth. He suggests that this only increases the obligations on government and telco operators to explore ways of bringing affordable Internet access to the emerging SME sector.

27 October 2010

SME Survey 2010: Connectivity is a big issue in the emerging SME market

“From a government perspective, a concerted effort needs to be made by the Universal Services Agency (USA) to judiciously apply the many millions of rands available to it, in order to help solve this problem. The telcos already contribute money to the agency; what is required is for the agency to be given direction on where best to spend it – and that is clearly in connecting the unconnected,” says Goldstuck.

“The telcos themselves also need to put more effort into rolling out services in these underprivileged areas. Everyone harps on about the fact that the cost of data has come down dramatically, but this is of no use if the infrastructure does not exist. And if anything, infrastructure costs have gone up as operators try to deliver services to a wider geographic area.”

Goldstuck points out that these new statistics have come about through a change in the overall sample used in the survey. By obtaining access to NYDA’s emerging client base, a more thorough picture of the SME sector could be built, by speaking to those emerging SMEs that otherwise would not have appeared on the survey radar.

“By gaining insight into the emerging SME market, we have been able to get a far better sense of the differences between this segment and the more established SMEs. The comparison between these two shows that the digital divide exists among small businesses as much as it exists among the general public,” says Goldstuck

“There is also a direct correlation between connectivity and profitability because businesses that have connectivity are able to respond much quicker to business opportunities. The NYDA has therefore recognised the need to pursue partnerships with telecommunications organisations in order to complement the existing business support vouchers and provide a complete solution,” says Steven Ngubeni, NYDA CEO.

He says that of those that are connected, double the proportion of emerging SMEs (6%) as established ones (3%) use 3G as their primary means of connectivity. A further 2% in each of these categories uses their cell phones, in the form of GPRS connectivity, as their primary form of access.

“ADSL has long been accepted as being the most cost effective and efficient form of access for the SME sector. It is here that we once again see enormous discrepancies between the two sides of the SME market. Of the established SMEs, 74% are using ADSL, while only 51% of the emerging market does the same,” says Goldstuck.

The one positive that the survey recognises, he points out, is the fact that the death of dial-up – predicted already four years ago in previous editions of the survey - has all but become a reality. Only around 2% of the emerging sector and 1% of the established market still utilise this means of connectivity.

“It could also be viewed as a positive that half (51%) of the emerging SME market makes use of ADSL. However, the fact that half still do not have access to ADSL signifies just how much work remains to be done.”

“While the cost benefits for SMEs using ADSL are well understood, there remains a clear lack of penetration for fixed line and ADSL in many disadvantaged areas,” concludes Goldstuck.


27 October 2010

SME Survey 2010: Crime and competition the biggest headaches for SMEs

Crime still tops the list of the major worries for decision-makers at small, medium and micro enterprises (SMEs).

While there is no doubt that the financial crisis has caused sleepless nights for many business owners, according to the SME Survey 2010, sponsored by the National Youth Development Agency (NYDA), there are a number of other issues that also keep SME owners awake at night. Principal researcher Arthur Goldstuck says that, while the data suggests that many of the biggest factors have changed since the last survey, the number one issue remains the same.

27 October 2010

SME Survey 2010: Crime and competition the biggest headaches for SMEs

Crime is far and away the most important concern for SME decision-makers. However, a higher proportion of decision-makers at established SMEs have sleepless nights over crime – 50% of these respondents – than those at emerging businesses - still high at 27%. This is probably due to the fact that emerging businesses remain more focused on getting their businesses properly established, while those that are already established make more likely targets for criminals,” he says.

“After crime, the issue that causes the most sleepless nights is that of competition. In the emerging SME sector, 14% of businesses consider competition to be a major headache. The proportion is even greater among established SMEs (18%). This indicates that, in a tight economy, the same businesses appear to be fighting for a smaller piece of the pie.”

He suggests that in previous surveys, competition was not viewed as a major worry, so the current percentages indicate that market conditions are much tighter than before. This is clearly where the recession is biting hard, since there has not been an explosion of new businesses in the SME market.

“Another aspect that worries SMEs is the lack of credit. While it is far less of a worry than crime, it still pops up among 9% of emerging SMEs - but only for 3% of the more established businesses. A more serious issue is fear about cash flow. It affects 12% of emerging businesses and 7% of established SMEs.”

However, one worry that sat in the top five worst problems during the last survey has all but disappeared off the radar. Goldstuck points out two years ago, most SMEs were nervous about the high interest rates. This has now fallen away almost completely and is the one positive impact the recession has had on the SME space.

“This is not to say that there are no other positives. It is significant that most of the issues identified two years ago as being major worries - aside from crime and competition – have been dramatically reduced in 2010. Even crime has fallen back somewhat in comparison to the previous survey. Although the World Cup and the build up to the event may be the reason for this, thanks to an increased police presence, it may also be that SA is slowly turning the tide on crime,” concludes Goldstuck. “If it is the heavier policing surrounding the World Cup that led to this perception, then that in itself suggests the solution.”


27 October 2010

SME Survey 2010: World Cup a great success for SA, but not for the SME

With the excitement of World Cup 2010 subsiding, the unanswered question has remained whether the event had a positive impact on South African business. SME Survey 2010 reveals that the overall impact on small, medium and micro enterprises was negligible. And that is largely a factor of the policies of soccer's governing body FIFA and the complicity of government.

That is emerging from SME Survey 2010, sponsored by the National Youth Development Agency (NYDA). Principal researcher Arthur Goldstuck says that it is very easy to define the impact of the World Cup on small business. "In short: there was little in it for the SME."

27 October 2010

SME Survey 2010: World Cup a great success for SA, but not for the SME

That doesn't mean the World Cup wasn't a success or that it didn't bring benefits to South Africa as a whole, Goldstuck hastens to add. "Rather, what is clear is that FIFA locked down the economic benefits, making them available only to selected service providers. In effect, the little guy was frozen out almost completely."

Before the event, SME Survey showed that 86% of small businesses expected the World Cup to boost business in general. However, just 45% anticipated any benefit to their own businesses. This year's research bears that out: 92% believed the event as a whole was a success, while 42% felt that there was adequate support from business advice structures. "The significance of this – that expectations were closely matched to the outcome –is that the South African SME owner understands his or her business and its position in the macro-economy very well. Small business was not swayed by the hype," Goldstuck notes.

"Expectations were based on the kind of support which was accessible to the SME. Those who got support, benefited from it," Goldstuck says. This finding confirms the value of general support, which reinforces the ability of the SME to plug into and provide services to an event of this magnitude.

However, support did not translate into success.

The question which best sums up the massive obstacle represented by FIFA's regulations is that just 14% of SMEs say the World Cup had a material contribution to their success. In other words, just over one in ten small businesses felt the event had any direct impact on their business." What is also abundantly clear, Goldstuck adds, is that those organisations that received support from agencies like the NYDA, benefited more. A higher percentage (19%) of emerging businesses saw some benefit. At the same time, lower proportion of emerging businesses (75%) saw FIFA rules as an obstacle, perhaps because their informal status often meant they could operate a little outside of those strict regulations.

"The fact that entrepreneurs who acquired support benefited more gives us confidence that NYDA business development programmes such as the Business Consultancy Services Voucher Programme which offers young entrepreneurs access to business development support for just R200, are definitely enhancing the entrepreneurs business. In addition, striking partnerships with some of the country's smallest and biggest organisations has enabled us to support more young entrepreneurs. For instance, by partnering with CIPRO we have been able to enhance accessibility of CIPRO products, particularly registration of businesses for young entrepreneurs that the NYDA serves," says Steven Ngubeni, NYDA CEO.

The implication, Goldstuck says, is that government should perhaps pay less lip service to enterprise development and make more practical interventions to share economic benefits – when next an event requiring major business input comes to South African shores.

Drilling down into the vertical sectors and their direct benefits from the World Cup, it was found that specific sectors that expected major benefits but were let down included transportation, manufacturers and engineering firms, where only 10% felt direct benefit, construction, with only 8% benefiting, and retailers (13%). The sector that saw the least benefit was printing and publishing, at a mere 4%. On the other hand, 26% of respondents in the advertising industry, 30% in hospitality and accommodation and 30% in the Government sector said they had benefited – a lot higher, but still less than a third of respondents in those sectors. "This confirms the contention that FIFA had firm control of which businesses could participate in the benefits of the spectacle – and small business was certainly not invited to the party," Goldstuck asserts.

But were small businesses able to position themselves to take advantage of the World Cup? Only 25% say they were. Did the regulations from FIFA have a role to play in that? 81% said yes. "The regulations were designed to control the economic benefits of the event; for example, in the print and publishing industry, 98% of respondents say the rules shut them out," notes Goldstuck.


24 August 2010

SME Survey 2010: Was the World Cup all that?

According to principal researcher Arthur Goldstuck, the impact of the World Cup is the big question on the minds of many. “Enormous expectations were created in terms of what the event would do for the country. Our research last year showed that 84% of SMEs expected a positive impact on the economy. However, less than half expected that it would have an impact on their own businesses. This year, we will measure whether that impact occurred – and examine if it was in line with expectations,” he says.

24 August 2010

SME Survey 2010: Was the World Cup all that?

Any numbers in terms of World Cup costs and benefits right now are at best speculative, says Goldstuck, but he notes that as the World Cup drew closer, it became apparent to many SMEs that the optimistically-anticipated benefits might not materialise.

"Short term benefits really are unlikely for SMEs; much of the action was locked down for FIFA and sponsors. However, the sense is certainly that the World Cup will deliver benefits for years to come, in terms of goodwill owing to its success, as well as infrastructure which remains." He says it is obvious that a major positive impact on the country's image and its potential for foreign investors has resulted. Andile Lungisa, NYDA Chairperson, says the work of SME Survey is arguably more important than ever, given the economic challenges faced by the country.

"Many jobs have been lost with the impact of the recession. By understanding how government and the private sector can influence and stimulate the SME sector, there is the potential to elevate performance and grow employment opportunities for more South Africans. SME Survey 2010 will also test the extent to which SMEs have access to sustainable development initiatives – and extent to which they need such structures. Says Goldstuck, "To date, efforts at intervention and support have not focused on sustainable development but rather tended to be one-offs.

We need to unpack the sentiments of SMEs on the necessity for sustained intervention to guide understanding and policy on what will make SMEs more effective." Such interventions, he adds, can come from government, the private sector or a combination of the two in joint initiatives. With environmental awareness elevating in the national consciousness, SME Survey 2010 will gauge whether business owners agree with the need for environmental awareness.

"More than that, we will examine if our SMEs have embraced the concept of doing business in an environmentally friendly manner," says Goldstuck. He does point out, however, that such notions are only likely to become pertinent once a company has established itself and become profitable. "It is worth noting that many environmentally friendly options are tied to efficiency; in the face of escalating prices of energy, that provides some pragmatic forces." In addition to these three new research questions, Goldstuck notes that SME Survey will as usual address a wide range of topics and factors, including IT and connectivity and key issues which keep the business owner awake at night.

"We want to know what makes the SME more sustainable, what keeps it competitive and what it sees as threats and risks in the dynamic South African business environment," he concludes.


14 July 2010

NYDA’s poultry project opens doors for rural based youth

The establishment of the Rural Development and Land Affairs Department has reinforced government’s commitment to improving the lives of rural based South Africans. Today, the National Youth Development Agency (NYDA) in collaboration with the Mtubatuba Municipality will launch the Mtubatuba Poultry Project, which is specifically targeted at rural and peri-urban based young South Africans.

The project involves the full value chain of broiler production including a chicken abattoir facility. According to the NYDA Chairperson, Andile Lungisa, working with a number of government departments and agencies, such as Ithala Development Finance Corporation and the Department of Trade and Industry, will ensure that not less than 300 young people in co-operatives businesses benefit from this initiative.

Through this project the NYDA is encouraging young people to collaborate and form co-operatives because this will enable them to use their diverse skills, knowledge and resources to supply large quantities of chicken and its by-products to retail stores, prisons, colleges and mines.

“We hope that more partners will come on board so that similar projects can be rolled out throughout the country because we believe that it is one of the measures that can curb rural migration, promote sustainable development and ensure that rural based young people contribute towards developing their local economies by creating employment,” concludes Lungisa.

14 July 2010

PRESS RELEASE

Mtubatuba Poultry Project

NYDA’s poultry project opens doors for rural based youth

The establishment of the Rural Development and Land Affairs Department has reinforced government’s commitment to improving the lives of rural based South Africans. Today, the National Youth Development Agency (NYDA) in collaboration with the Mtubatuba Municipality will launch the Mtubatuba Poultry Project, which is specifically targeted at rural and peri-urban based young South Africans.

The project involves the full value chain of broiler production including a chicken abattoir facility. According to the NYDA Chairperson, Andile Lungisa, working with a number of government departments and agencies, such as Ithala Development Finance Corporation and the Department of Trade and Industry, will ensure that not less than 300 young people in co-operatives businesses benefit from this initiative.

Through this project the NYDA is encouraging young people to collaborate and form co-operatives because this will enable them to use their diverse skills, knowledge and resources to supply large quantities of chicken and its by-products to retail stores, prisons, colleges and mines.

“We hope that more partners will come on board so that similar projects can be rolled out throughout the country because we believe that it is one of the measures that can curb rural migration, promote sustainable development and ensure that rural based young people contribute towards developing their local economies by creating employment,” concludes Lungisa.

For media enquiries please contact:

Refilwe Mphane
National Youth Development Agency
Communications

011 651 7175
084 308 5860


30 October 2009

World Cup gap for SMEs

The promise of a World Cup windfall for South African business in 2010 is likely to fall dramatically short for Small, Medium and Micro Enterprises (SMEs). That’s one of the key findings of SME Survey 2009, which set out to gauge expectations of the event among SMEs. Small, medium and micro enterprise owners, it emerged, tend to be overwhelmingly positive for the country as a whole, but have a gap in expectations for themselves.

30 October 2009

World Cup gap for SMEs

Sponsored by Standard Bank, National Youth Development Agency (NYDA) and Fujitsu, SME Survey is in its seventh year and polls 2,500 SME business decision-makers on the issues they face and how they overcome these to remain competitive and sustainable in the current economic climate.

According to principal researcher Arthur Goldstuck, some 86% of SME owners believe that the World Cup will be positive for the country. “However, whether this benefit to the nation will filter down to the individual SME is more difficult to say. FIFA is known for its zealous protection of the rights of its sponsors to do business in zones surrounding match locations and therefore, to a large extent, works to exclude the participation of ‘outside’ organisations.”

Since sponsorships are far beyond the means of any SME, it does render direct benefit practically impossible. SMEs are well aware of this; just 45% believe the event will benefit their business directly. Goldstuck continues, “Visitors to the event are very likely to do more than just attend matches. That allows for some spill-over of benefits.”

“Even though not as many young people will benefit from 2010 opportunities as we had hoped, an opportunity exists for young people to use their creativity and offer tourists the African experience. Young entrepreneurs can attract tourists to their communities and offer services such as, accommodation, food and beverages and even sell cultural artefacts,” Andile Lungisa, the Chairperson of the NYDA.

An interesting fact that emerged from the research is that those companies that have applied for funding from the National Youth Development Agency (NYDA) tend to be more confident about the impact of the World Cup than the overall sample. Less surprising is that this group also tends to be more positive in terms of its perception of the relevance and effectiveness of Government support programmes for SMEs. Of those that have received support, 73% believe the World Cup will boost their own businesses, against 45% for the overall sample.
“They are also largely positive having seen that NYDA had a working relationship with the Local Organising Committee in terms of identifying and training volunteers for the FIFA Confederations Cup™ and now for the FIFA World Cup™, “said Lungisa.

Interestingly, when considering the impact of the World Cup by region, it emerges that the most confident is Limpopo province. Goldstuck says “The Peter Mokaba Stadium in Polokwane serves as a beacon of hope for many; it is relatively a lot more significant for Limpopo than, for example, the facility in Green Point is to the Western Cape, since it is just one of many tourist attractions in Cape Town.”

In Limpopo province and the Eastern Cape, 88% of respondents are positive about the impact of the World Cup on the country, while in the Western Cape it is 86% and Gauteng 84%. “In Gauteng, people are as aware of the disruptions as they are of the games,” Goldstuck remarks.

Similar figures to that of Gauteng emerges from Mpumalanga and KwaZulu-Natal. “Again, there is a lot of activity in these provinces; the World Cup is a major development for them, but amid ongoing development that is happening regardless.”

Surprisingly, the Free State and North West province come in far lower, at 81% positive. “That is still overwhelmingly enthusiastic, but it would appear that SMEs in these regions are less likely to believe there will be any direct or other benefit from the event,” Goldstuck notes.

In terms of SME turnover relative to  positive expectations of the World Cup, only one sector stands out; among those micro-enterprises with a turnover of less than R150 000 per annum, 93% are positive about the World Cup versus the average of 86%. “Two factors are suggested here; one is that owners of these small enterprises have seen a gap which they will take advantage of, the other is that they have hopes which may be unrealistic,” Goldstuck says.


October 2009

SME Survey: Beat the recession with business basics

Business basics will get you through the recession. That is the single most important piece of advice to emerge from SME Survey 2009, the latest edition of the annual study of the factors behind the success of small and medium enterprises in South Africa.

October 2009

SME Survey: Beat the recession with business basics

Sponsored by Standard Bank, Umsobomvu Youth Fund (now operating as the National Youth Development Agency) and Fujitsu, SME Survey is in its sixth year and polls 2,500 SME business decision-makers on the issues they face and how they overcome these to remain competitive and sustainable in the current economic climate.

Since getting through the recession is a challenge on the minds of every businessperson, the establishment of a blueprint for survival and prosperity was a key focus of this year’s study. The findings of SME Survey 2009 into the strategies and tactics which companies are employing to weather the storm, serves up advice which is as simple as it is profound: It is business basics which will see you through.

Principal researcher Arthur Goldstuck explains that the Survey asked respondents to rate the importance of strategies they were adopting to get through the downturn. “Based on the responses, we have a very clear picture of what SMEs are doing to keep the wolf from the door in trying times. We believe the results of this specific aspect of the research are the single most important set of findings to date, as it gives business owners practical recommendations to follow,” he says.

Topping the list is Maintaining good cashflow and Sound business administration and financial systems. Each of these two factors was rated by 93% of SMEs as key in supporting their survival. “Cashflow is hardly surprising; it is and always has been at the heart of business viability. A little more surprising is the prominence given to systems; this tells us that business owners know that it is vital to have a finger on the pulse of the business. Managing cashflow goes hand in hand with such systems,” Goldstuck remarks.

It is customers and their custom which results in top line performance. SMEs recognise this with loyal customers rated by 91% of respondents as important to surviving the recession. Winning new business achieved the same weighting, as did good staff. “You have to know how your company makes money and often staff are key to the value proposition,” Goldstuck says. “Meanwhile, high rankings for customer-related factors confirm the old adage that no matter what business you are in, you are in the people business. People buy from people; loyal customers and new customers are obviously essential to consistent income,” Goldstuck notes.

Cutting costs, which may appear to be an obvious tactic to support a better bottom line, was ranked by a somewhat surprisingly lower number of companies as important. “At 83%, this is initially perhaps an anomaly, until one considers it in light of the shocks which SMEs have already suffered through last year, including high fuel prices and interest rates. Those factors mean most SMEs have already cut overheads to the bone and are operating on a lean basis in terms of which further cost cutting may result in loss of value creation,” says Goldstuck.

“It is important for government funded institutions such as NYDA to be involved in initiatives such as SME Survey to help understand what makes SMEs successful and establish their needs. The majority of SME owners are youth and therefore it makes sense for NYDA to align its products and services with SMEs in order to be relevant and to make a lasting impact,” said Malose Kekana, National Youth Development Agency CEO. 

Lower rankings came in for access to finance at 81% and low or no debt at 80%. Location, location, location, a mantra of businesspeople of old holds true, with 79% of respondents indicating that they considered this essential for sustainability.

This contention is further borne out with the finding that good technology is ranked somewhere near the bottom of importance in recession survival, at 76%.

“This recession has forced a lot of companies to look into their operations in a lot greater depth,” says Jane Tully, Channel Manager at Fujitsu. “Of particular importance has been the search for increased efficiency with an emphasis on cutting unnecessary costs. Whilst many companies slashed their costs dramatically over the past two years, they are still looking at all aspects of expenditure very carefully. We are finding an increasing leaning towards incorporating IT Services into the total business solution to ensure that systems efficiency is maintained and also to assess the companies’ investment in technology to optimise utility.”

An indication, says Goldstuck, of the woefully inadequate government efforts to support small business can be seen in the mere 41% of respondents who felt this was a factor in getting through the downturn. “Those who have used government support rate it highly. For all others, it is irrelevant,” he notes.

The good news, Goldstuck stresses, is that survival simply means go right back to business basics. “There is no mystery, no elixir in this blueprint. Just sound business sense.


14 October 2009

SMEs have staying power

Small and medium-size businesses (SME’s) in key economic sectors are holding their own in the current economic downturn with a healthy 28% reporting that they are strongly profitable, a further 39% reporting that they are trading in the black and 24% breaking even, says Louis van Ravesteyn, Head of Small and Medium Enterprises at Standard Bank.

14 October 2009

SMEs have staying power

Of the more than 2 000 SME’s surveyed in the sixth annual SME Survey, of which Standard Bank is a major sponsor, only 5% indicated that they were unprofitable.

The sectors in which a higher than average proportion of SME’s reported that they were strongly profitable were:

Agriculture:
Communication:
Financial Services:
IT Software and services:
Wholesaletrade:
(with Retail trade tracking the average, at 27%)
40%
38%
41%
31%
36%

“In addition to the above results, SME’s reported that they were very confident in the future despite the current recession in the areas of Advertising (41%); Communications (46%); IT software and services (42%); and Wholesale (44%), with Communications, IT Software and Services, and Wholesale being the healthiest.

“It was significant that only 5% of SME’s reported low or no confidence in their ability to survive the recession, with only 1% saying they are not confident at all. A little over a third are neither pessimistic nor optimistic, which, in the context of a recession, is a positive. However, a massive 60% have high or very high confidence in their ability to survive.”

The SME sector had grasped the reality of recession, and was dealing with it, rather than denying it, and were further displaying their ability to weather the stumbling economy and its impact by working through the recession rather than relying on further loans and advances. This fact being displayed by requests for finance remaining at substantially the same levels as the previous year.

“Most have survived the stresses of the present recession by returning to the basics of business.  They have placed emphasis on tighter control of finances, optimising costs, and marketing and also concentrated on delivering higher standards of service. These are all major factors in ensuring sustainability and survival, van Ravesteyn said, adding that the areas of financial stress experienced in the SME sector is more evident in residential property and related areas (i.e. estate agents, builders, suppliers, and contractors), vehicle dealerships, restaurants and transport.

“The importance of the SME sector to the South African economy can be extrapolated from figures supplied by CIPRO, a division of the Department of Trade and Industry, which indicates that there are more than 2million close corporations registered in South Africa- vastly outnumbering the 3 445 public companies and 455 445 private companies. The fact that most report that they are strongly profitable or surviving the recession augurs well for the country and future employment,” said van Ravesteyn.

Aiding the responsiveness of the SME sector to the present economic conditions was   their size, agility, ability to make faster decisions and the entrepreneurial “ hands on style” and control of all aspects of the business.

Positive market factors which were starting to show signs of support to  the sector were declining interest rates, indications that inflation was being controlled and dropping steadily towards the acceptable level of six percent indicated by the Reserve Bank. These will all influence business confidence, whilst the real benefits will still follow in the months to come as there is a lag effect on the SME market.

“Although there are indications that there will be no further rate reductions in the near future, SME’s have benefitted through reduced rates to date. The reduction of 500 basis points over the last months has reduced the burden of loan repayments, with some of the savings being translated into available liquidity and becoming available for reinvestment.

“In the agricultural environment SME’s were able to out-perform their peers in some of the other sectors.  This is attributed to the fact that food remains a basic human need and demand remained moderately stable.  This relatively better performance of agric SME’s were accomplished through increased focus on cost management; optimal resource allocation and exploiting economies of scale, value addition and appropriate price hedging to ensure sustainability,” van Ravesteyn said.

SME’s with their ability to react faster to market changes than larger companies had also consolidated other aspects of their businesses.

 “The static requests for additional supporting finance have indicated that entrepreneurs are reducing their exposure. They are undoubtedly cutting costs on luxury items such as cars and digging in for the duration of the recession by focusing expenditure on the primary needs of their businesses,” said van Ravesteyn.

SME’s were relocating to cheaper premises, looking towards technologies like the Internet to expand reach and reduce costs, tightening up on financial controls and even offering favourable discounts to customers offering early settlement. 

“Many SMEs have moved swiftly back to business basics. Their ability to do so rapidly and effectively has no doubt contributed to the strong picture we see in a time when larger businesses are facing major challenges. Profitable business opportunities however also still exist, even in a recession and entrepreneurs whom explore these will definitely capitalise once the market improves,” van Ravesteyn concluded. 


30 September 2009

SME Survey: Potential financial woes worry SME owners

With the economy in recession for the first time in 17 years it comes as little surprise that small to medium business owners in South Africa are being kept awake at night by financial issues. This is among the key findings from the SME Survey 2009, which tracks the confidence and sentiments of this critical contributor to the national economy.

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30 September 2009

SME Survey: Potential financial woes worry SME owners

Sponsored by Standard Bank, Umsobomvu Youth Fund (now operating as the National Youth Development Agency) and Fujitsu, SME Survey is in its sixth year and polls 2,500 business decision-makers on the issues they face and how they overcome these to remain competitive and sustainable in the current economic climate.

According to principal researcher Arthur Goldstuck, a dramatic shift in the issues which keep the SME owner awake at night has emerged from this year’s research. “In 2008, crime was overtaken by electricity problems, high interest rates and the price of petrol as the key causes for concern. However, we’ve seen a dramatic shift to financial issues as a leading worry - but the concern is still not as deep as it was regarding the infrastructure issues which faced them last year.”

Crime returns to the top of the list of challenges to the sustainability of SMEs. “What comes close behind is a set of factors related to the global financial crisis, while interestingly, interest rates are the third most troubling issue for the average business owner,” Goldstuck notes.

While interest rates are presently at a 28-year low following a sustained downward trend, businesses are still experiencing something of a hangover from the rapid upward surge experienced between 2005 and its peak in 2008. “People were hammered so hard that the extent which it has come down has not yet allowed them to recover,” Goldstuck notes. “Meanwhile, the lending policies of the banks have changed quite dramatically; they are keeping lending policies very tight.”

Says Louis Van Ravesteyn, Head of Small and Medium Enterprises at Standard Bank, history has shown that the reduction in interest rates has a longer lag effect on SME’s than on individuals. Individuals are the first to experience the benefits of the reduced funding cost followed by SMEs. Access to finance is a complex issue. When dealing with the issue of granting finance, banks have to manage the challenge of having to balance risk and reward while protecting depositor and shareholder investments.

“The impact of the global financial crisis on consumer appetite has resulted in lower demand for many of the services and products provided by SMEs, impacting trade and resulting in financial distress on many local SMEs. It is however encouraging to note from SME Survey that most SMEs are still showing acceptable levels of profitability, business confidence and resilience to manage their businesses through this economic downturn. Business confidence is a critical aspect for economic growth as it is normally linked to business expansion and capital investment, with the final objective of financial success. We found that many SMEs held back on investment and expansion as demand dried up, however the findings in the survey indicate that SMEs are fairly well positioned to capitalise on opportunities when the economic upturn occurs. At Standard Bank we remain open for business and encourage SMEs to engage with their bankers around their funding needs to enable a win-win scenario.” Concludes Van Ravesteyn.

Despite this rather gloomy outlook, there is remarkable good news. “What is astonishing is the extent to which SMEs remain profitable and confident,” Goldstuck states.

Some 28% of SMEs are strongly profitable, 39% say they are ‘just profitable’, and 24% are breaking even. Just 5% are making a loss, while 4% report that they ‘don’t know’. “The confidence of SME owners correlates with these numbers, with only 5% saying they have low or no confidence in the future of their businesses,” he adds.

“The optimism shown by entrepreneurs during these challenges times is really encouraging. Supporting youth businesses and social enterprises that promote business development, job creation and income generating is in the heart of the NYDA’s mandate. The confidence shown by entrepreneurs, in spite of the prevailing economic climate, motivates the NYDA to focus more and support youth entrepreneurs even more so that they can contribute towards strengthening and expanding the South African economy thus assisting in reducing the unemployment rates. Says Malosa Kekana, CEO of NYDA

The question of confidence in the eye of what looks to be an increasingly deep recession is also telling; again, Goldstuck says the resilience of the SME shines through. “Most people are in no doubt of successfully bringing their company through the recession, with 59% saying they are very confident, with 36% neutral.”

However, he says that if things get worse, there are potentially a large number of businesses (those which are neutral) moving into the arena of low confidence and possible risk of failure. “There are two scenarios here; if the economy moves into recovery, SMEs are very well geared to prosper and continue to create employment and benefits for owners and employees alike. However, if it tilts the other way with rising fuel prices and an upward interest rate cycle, it could get quite grim.”

There are, Goldstuck agrees, always shocks in the system, but South African SMEs have proven their ability to respond saliently to the unexpected. “In our business climate, the unexpected happens all the time. Those companies which can make it through the tough times – and indeed, those which are forged in difficult trading conditions – can handle the shocks and are likely to prosper when the economy improves.”


20 August 2009

Compact and energy-efficient FUTRO S100 is a perfect entry to server-based computing and virtual workplace solutions

Fujitsu today announces that the FUTRO S100 is the company’s most energy-efficient thin client, providing an affordable entry to the world of server-based computing. An individual FUTRO S100 thin client and monitor combination consumes a maximum of 29 watts under full load, some 66 percent less than the consumption of even a green desktop PC and monitor. The entirely fan less and silent FUTRO S100 model is designed for cost-conscious enterprises looking to drastically cut the costs of their desktop infrastructure.

20 August 2009

Compact and energy-efficient FUTRO S100 is a perfect entry to server-based computing and virtual workplace solutions

Increasing numbers of organizations are realizing the benefits of thin clients; particularly call centers, insurance companies, banks, schools, libraries, and other organizations that want to maximize the number of PCs they can purchase on a capped budget. Thin clients are the efficient alternative to desktop PCs since they provide server-centric computing model where application software, data, and processing power are all based on a network server rather than on the desktop.

By switching to thin clients, organizations can save on both energy and maintenance costs. In addition to reduced power consumption, serviceable life is approximately double. Other advantages include high availability and minimal administrative effort. The Fujitsu FUTRO S100 is Fujitsu’s most energy efficient thin client, and is ideal for organizations where end-users are conducting mono-functional tasks, such as database access, call center and data entry work.

The FUTRO S100 is popular for its innovative design as well as its energy saving features. The FUTRO S100 helps to save space with its compact design and its “backpack solution” that allows the desktop unit be mounted behind a monitor. The FUTRO 100 has no moving parts, reducing noise as well as energy consumption.

Ross Olver, Portfolio Manager Business Clients at Fujitsu Technology Solutions says: “Thin clients are already energy efficient, and Fujitsu’s FUTRO S100 raises the bar even higher. It’s our most energy-efficient thin client, and it’s a perfect entry point for server-based computing and virtual workplace solutions. Making the switch to Fujitsu’s thin client line combines the benefits of high availability, near-silent operation and easy manageability with a very low total cost of ownership.”

For organizations that are on the brink of making the switch to server-based computing but have yet to take the plunge, Fujitsu also offers consultancy and cost-benefit analysis. Further details are available online at: http://ts.fujitsu.com/services/index.html.

The Fujitsu FUTRO S100 is compatible with a range of server client infrastructures including Linux-based eLux, and Windows CE 6.0. Powered by VIA Eden 500 and VIA VX800 media system processors, the FUTRO S100 supports 1GB of DDR2 system memory and has two USB 2.0 ports, a VGA port, fast Ethernet network and supports internal compact flash-based storage cards.

Further information is available online at http://ts.fujitsu.com/futro/

Images of the Fujitsu FUTRO S100 are available at: http://mediaserver.ts.fujitsu.com/


5 August 2009

Far ahead of legal and market standard in fulfilling material, energy consumption and recycling requirements

Fujitsu today announces the extension of its successful Green IT labeling scheme to the enterprise business, covering storage products under the ETERNUS brand. The Green IT label provides buyers a reliable and easy way to evaluate the “greenness” of IT products and introduces new standards far ahead of current legislation. Choosing storage products that are more energy-efficient can result in significant energy savings as well as lower replacement costs with cooler components lasting longer.

5 August 2009

Far ahead of legal and market standard in fulfilling material, energy consumption and recycling requirements

Fujitsu has been developing environmentally conscious products and processes for more than 20 years. In November last year it introduced its pioneering new Green IT label, initially covering PCs and notebooks, across EMEA. In March 2009, Fujitsu extended this classification scheme to servers and now it covers the entire scope of the enterprise business in EMEA by including storage systems.

The Green IT label makes it easier for buyers to separate green from less green products by providing a visible “green check” that confirms that the products are designed in line with the company’s far-reaching corporate goals on energy efficiency and sustainability. The criteria for labeling Green IT are so stringent that only few products currently meet the demanding requirements and are awarded the top accolade of three green stars. Fujitsu established these stringent guidelines as a stretch goal to achieve even higher environmental standards for future products while providing product management orientation and direction in the development phase.

The RAID systems ETERNUS DX60 and DX80 as well as the tape systems ETERNUS LT20 / LT40 and LT60 are among the first wave of storage products to receive the Green IT Label and are awarded with two stars, denoting that the products are in the vanguard of today’s Green IT technology.

The Green IT label reflects Fujitsu’s holistic environmental approach to consider materials, energy consumption and recycling. All Green IT labels, starting with the one star accolade, of course, recognize products that exceed current Green IT legislation and market standards.

Bernd Kosch, Head of Environmental Technology at Fujitsu Technology Solutions, explains: “Fujitsu’s Green IT labeling scheme was well received by customers and by the analyst community when it was first introduced and we are now moving on into another key area of the enterprise business by extending this successful label to storage products. Fujitsu’s Green IT label provides buyers with a simple and clear way to compare and understand the energy savings, materials and recycling aspects for the IT equipment they buy. Of course, all our labeling criteria are fully transparent and published on our web-site. Our stringent environmental guidelines underscore Fujitsu’s commitment to environmental contribution and leadership in developing responsible IT-technology and -processes.”


03 August 2009

SME Survey 2009: The end of dialup and the continued rise of ADSL

Dial-up served small to medium sized enterprises well but it is nearing its end as the connection of choice. While wireless broadband apparently held great promise, it has only achieved moderate penetration, with ADSL by far the connection of choice for the SME. This has emerged in the preliminary findings of SME Survey 2009, which confirms that ADSL now reigns supreme as the connection of choice for Internet savvy businesses owing to its reliability and relative low pricing.

03 August 2009

SME Survey 2009: The end of dialup and the continued rise of ADSL

Sponsored by Standard Bank, Umsobomvu Youth Fund and Fujitsu, SME Survey is in its sixth year and polls 2,500 business decision-makers on crucial issues affecting their business.

According to principal researcher Arthur Goldstuck, ADSL had almost precisely replaced dial-up as the primary form of Internet connectivity among SMEs. “ADSL had grown from 3% to 63% penetration of SMEs using the Internet in the period between 2003-2008, while dial-up dropped from 62% to 9.5% by last year. This year’s research shows that dialup has halved again to 4%,” he states.

This confirms the prediction made by SME Survey 2005 that dial-up would disappear as a viable connectivity option for SMEs. “ADSL is finally wiping out dial-up access as an alternative,” Goldstuck adds.

“We have seen a steady decline in the requirement for dial-up modems and on-board modems within our business clients product portfolio,” says Ross Olver, Portfolio Manager Business Clients at Fujitsu. “Interestingly enough, we have seen a substantial increase in the demand for portable mobile devices with built in 3G (UMTS) connectivity as users discover the benefits of high-speed connectivity. This backs up the preliminary findings of the SME survey.”

Wireless broadband has seen more leisurely acceptance, growing from a zero base to 10.5% of SMEs using it as their primary connection by 2008. “With 1 in 10 SMEs using it as a primary connection by 2008, wireless broadband appeared to be destined to compete with ADSL, while ADSL would continue growing,” says Goldstuck.

However, instead of wireless broadband gaining further traction, it fell back for the first time. “All forms of wireless broadband combined, including 3G, iBurst, WiMAX and municipal WiFi, dipped from 10.5% to 8% penetration as a primary form of Internet connectivity among SMEs,” says Goldstuck.

It also demonstrates the need for reasonably priced services. “ADSL simply offers more reliable and cost-effective broadband than any wireless option – and the cost of incremental usage is not as high as for 3G,” explains Goldstuck.

The findings show a clear reversal of wireless broadband growth as a primary form of Internet connectivity. That, says Goldstuck, is an indication that wireless broadband is not meeting the needs of the SMEs to the extent that ADSL does from both a cost and performance perspective.

“Furthermore, the research shows that smaller companies are more likely to use wireless broadband as a factor of the lower entry level cost, while larger ones use ADSL. It can therefore be expected that as companies grow larger, they will move to ADSL,” he notes.

The real opportunity for wireless broadband lies in backup connectivity. A growing trend is emerging where SMEs use a 3G card as a secondary connection when away from the office; from 27% in 2008, Goldstuck says this has grown to 38% this year.

“What is clear is that once businesses start using the Internet, it very quickly becomes an essential service. Those that may have started using a dial-up connection very quickly realised its limitations and seek a faster, more reliable connection, with an increasing number looking for an alternative to keep them connected even when travelling,” Goldstuck concludes.

SME Survey 2009 is sponsored by Standard Bank, Umsobomvu Youth Fund and Fujitsu.

The final results will be released at SME Survey’s Small Company, Big Voice FREE hosted in Johannesburg (14 Oct), Pretoria (15 Oct), Bloemfontein (20 Oct), Cape Town (21 Oct) and Durban (22 Oct).

Visit www.smesurvey.co.za to find out more.


22 July 2009

Preliminary SME Survey results: Small business coping with recession

While big business the world over reels under the weight of a deepening recession, the South African small to medium business environment is showing something of a silver lining. Preliminary findings of SME Survey 2009 indicate that these companies are coping well.

22 July 2009

Preliminary SME Survey results: Small business coping with recession

That’s according to principal researcher Arthur Goldstuck. “SMEs are holding up incredibly well in the face of the recession. Make no mistake, they are bowed, but they are not broken,” he says.

Sponsored by Standard Bank, Umsobomvu Youth Fund (now operating as the National Youth Development Agency) and Fujitsu, SME Survey is in its sixth year and polls 2,500 business decision-makers on crucial issues affecting their business.

Goldstuck explains that this year’s research set out to test the overall confidence of SMEs, their ability to be sustainable in a recession and to shed light on their profitability as a measure of current performance. “We want to provide a barometer of expectations for the coming year and assess how ready SMEs are to deal with the first recession in 17 years. It is a big deal for all businesses, but perhaps more so for SMEs, many of which have never had to deal with doing business in a shrinking economy.”

Louis Van Ravensteyn, Head of Small and Medium Enterprises at Standard Bank, says, “With company liquidations up and business registrations down, new entrants are limited, thus a repeat of recent growth in these segments is doubtful. It is also clear that the financial distress experienced by SMEs is more evident in certain industries or related sectors i.e. residential property, vehicle dealerships, restaurants, transport, etc. Recessionary periods like the current one have a natural effect of sifting the bad from the good, and it is reassuring to note that some SMEs are showing high levels of resilience in these challenging times. It is also comforting to note that the current environment has again forced SMEs to focus on the basics and place more emphasis on financial management and cost optimisation on the one side, and clever marketing and high levels of customer service on the other. At the end of the day the entrepreneurial flair and never say die attitude of SMEs will ensure sustainability of this critical business segment of the South African economy.”

Goldstuck says just 5% of SME owners report operating at a loss, whereas some 67% regard their businesses as profitable. “This number is incredibly high; the performance of SMEs leading up to the recession has been very strong, with 39% of this number saying they are just profitable while 28% are strongly profitable.”

Goldstuck believes these numbers are indicative of a resilient environment; they have not changed substantially from earlier years despite adversity. “In the last year prior to the onset of the recession, the SME has had to deal with substantial challenges, such as spiking fuel price and dramatic increases in the interest rate. SMEs weathered these storms effectively; the question that remains is how well these companies are able to cope with the new storm of recession.”

A slightly higher proportion (24%) of SMEs breaking even than in previous years [22% in 2008]. “This number is fairly high; it indicates that any additional shocks could knock these companies over the borderline. If they stick to strategies that are working for them, they should survive, all else being equal,” Goldstuck comments.

“These tough times should inspire entrepreneurs to maximise their resources and be more creative. However, entrepreneurs should not try too hard to save that they forget about key activities that increase sales such as marketing. The National Youth Development Agency’s Business Consultancy Services Voucher Programme has marketing related services such as the marketing voucher and the website development voucher which can assist in making the entrepreneur’s brand more visible” said Malose Kekana, the NYDA CEO.

On perceived readiness to survive going forward, Goldstuck says there is a direct correlation between unprofitable businesses and confidence. “5% indicated they have no- or very low confidence of riding out the recession; those that haven’t been making it, won’t make it in tougher times. The greater percentage, however, have managed to come through challenging periods and should survive what appears to be low-level recession. If it deepens, the situation could change,” he says.

A sobering note is that 36% report neither high nor low confidence. This, Goldstuck believes, is a further warning that additional adversity could drive these businesses over the borderline, “And this is a higher proportion than the percentage of those breaking even.”

However, despite the adversity, 28% of SMEs have high and 31% very high confidence in their ability to thrive. “These are very positive indicators of the resilience of the SME environment. We can see caution and concern, there are danger signs for some, but on the whole the market is poised to come out of the downward cycle and prosper in the inevitable better times that follow every downward part of the business cycle.

SME Survey 2009 is sponsored by Standard Bank, Umsobomvu Youth Fund and Fujitsu.

The final results will be released at SME Survey’s FREE Small Company, Big Voice Road show’s hosted in Johannesburg (14 Oct), Pretoria (15 Oct), Bloemfontein (20 Oct), Cape Town (21 Oct) and Durban (22 Oct). Visit www.smesurvey.co.za to find out more.


July 2009

The recruitment drive for 2010 World Cup volunteers now on

All the hard work has paid off, the FIFA President Sepp Blatter declared the Confederations Cup 2009 a success. During the duration of the tournament there was an air of excitement and patriotism with South Africans wanting to do their bit to make the tournament a success.

July 2009

The recruitment drive for 2010 World Cup volunteers now on

The over 4000 volunteers that Umsobomvu Youth Fund (now operating as the National Youth Development Agency) helped recruit were some of the dedicated people that worked tirelessly to ensure that everything was in place. Faith Rikhotso (22), a media studies and journalism graduate, was assigned to work with media, she handled photographers’ parking, allocated tickets and seating and any other queries. “The Confederations Cup 2009 was really great, actually, it was way more than I expected. South Africa hosted a world class event,” she said.

At first, Faith, who is now job-hunting, had reservations about being a volunteer. ”I thought that people would look down on us, but to the contrary everyone was very appreciative and wanted to find out how they can apply to become volunteers,” said Faith. South Africans will once again get a chance to give back when Umsobomvu Youth Fund (now operating as the National Youth Development Agency) starts recruiting volunteers for the long awaited 2010 World Cup in South Africa

Herbert “Puncho” Morajane, the Umsobomvu Youth Fund (UYF) Sports Programme Manager , explained that the recruitment drive for the 2010 World Cup Volunteers begins on the 20 July and will continue until 31 August 2009. “If you missed the opportunity to volunteer during the Confederations Cup then here is another chance. As South Africans we must rally together and do as much as we can to ensure that the 2010 World Cup is declared the best World Cup ever hosted,” Puncho indicated.

During the Confederations Cup 2009 the NYDA Youth Advisory Centres in the four host cities supported the interview for applicants who were shortlisted for training. YACs are walk-in centres where young people can get information about careers, starting a business, and learning about accessing the various UYF programmes and services. The organisation currently has 121 YACs dotted around the country.

The call centre that facilitated the volunteer registration process and handled queries from people that expressed interest in being volunteers during the Confederations Cup 2009 was also hosted by UYF under the auspices of the National Youth Service Programme. According to Puncho the UYF’s call centre and Youth Advisory Centres will once again be used to support the recruitment process.

“We hope that the murals that we painted across the country in townships such as, Seshego, Claremont, KwaGuqa and Mamelodi to highlight the work that the Confederations Cup’s Volunteers did will also inspire South Africans to take action. There is no turning back now, Ke Nako, he concluded.

For enquiries:

Refilwe Mphane: 084 308 5860 or refilwe.mphane@uyf.org.za
Linda Mbongwa : 082 315 3217 or linda.mbongwa@uyf.org.za


16 July 2009

Linux cluster of 2,157 nodes to achieve 200 teraflops

Fujitsu today announced that it has received an order from the Japan Atomic Energy Agency (JAEA) for a new supercomputer system which will be the most powerful in Japan when it goes online in 2010.

The Linux cluster, serving as the core of the new system, will employ the PRIMERGY BX900 blade servers that Fujitsu has positioned as a key product in the company’s global expansion. Comprised of 2,157 nodes, the core system will have theoretical peak performance of 200 teraflops (*1), making it the fastest supercomputer system in Japan (*2).

The new system is slated to commence operations in March 2010 and will be used in a variety of areas of atomic energy research, including nuclear fusion simulations. It will play an important role in ensuring the safe use of atomic energy.

16 July 2009

Background to the new supercomputer system

The JAEA was established in October 2005 as Japan’s sole research institution in the field of atomic energy. Its research has included fast breeder reactor cycles, high-level radioactive waste processing and disposal, atomic energy safety, nuclear fusion, neutron science, and the use of quantum beams.

Until now, the JAEA has utilized two supercomputer systems: a shared system (theoretical peak performance of 13 teraflops), and a system for use in its fast breeder reactor project (2.4 teraflops). The agency’s need to process massive amounts of data has placed a heavy burden on both systems, resulting in an urgent need for the upgrade. In response, the decision has been made to introduce a new system that combines the functions of the two existing systems and can handle the massive computational demands of nuclear fusion simulations and other atomic energy research.

The new system will be used for a variety of simulations involved in nuclear plant development, including studies on fusion and fast breeder reactors, as well as assessing nuclear facilities’ earthquake resistance. It is expected to contribute to the achievement of safer atomic energy and help address the problem of global warming.

About the new supercomputer system

The new system, built around a large-scale parallel computation cluster, will be a hybrid system consisting of three computational server subsystems, each intended for different purposes. Reaching 214 teraflops, the total theoretical peak performance for these three subsystems is approximately 14 times greater than the present system, which will make the performance of new system the highest in Japan. Key features of each subsystem are described below.

1. Large-scale Parallel Computation Cluster (theoretical peak performance: 200 teraflops)

This system will be Japan’s largest Linux cluster, employing PRIMERGY BX900 blade servers equipped with Intel® Xeon® X5570 processors (2.93GHz), for a total of 2,157 nodes and 4,314 CPUs (17,256 cores). Nodes will be connected using the latest InfiniBand™ QDR high-speed interconnect, resulting in a high-performance parallel environment. This subsystem will primarily be utilized in large-scale computing tasks, such as nuclear fusion simulations, in which one job requires at least 100 teraflops.

2. Next-generation Code Development Unit (theoretical peak performance: 12 teraflops)

This system will include a cluster of FX1 high-end technical computing servers, each equipped with SPARC64™ VII quad-core processors developed by Fujitsu, for a total of 320 nodes and 320 CPUs (1,280 cores). The FX1 will primarily be used for application development for a peta-scale computer.

3. Shared Memory Server (theoretical peak performance: 1.92 teraflops)

This system is configured using a SPARC Enterprise M9000 UNIX server equipped with SPARC64™ VII processors. It will primarily be used in simulation computations for developing fast breeder reactors.

The three subsystems are tied together using Parallelnavi, Fujitsu’s HPC middleware, which allows them to be managed as a single system and ensures a high level of operability.

Other equipment includes a 36-unit, large-scale ETERNUS DX80 disk array storage system, providing 1.2 petabytes of storage space.

Comment from Toshio Hirayama, Director of the Center for Computational Science and e-Systems, and Executive Officer of the JAEA

“Supercomputers are indispensible for the kind of scientific computations required in nuclear energy research and development. For that reason, I’m confident that the new supercomputer system will be fully utilized. In addition, since some of the features of this system will be the technological basis for the Next-Generation Supercomputer project in Japan, this new system will help us develop codes for the Next-Generation Supercomputer expected to begin operation in 2012.”

About the PRIMERGY BX900

The PRIMERGY BX900 is Fujitsu’s newest blade server and is positioned as a key product in the company’s global expansion. With a chassis density of 18 blades, allowing for a total throughput of 6.4 Tbps, it is an industry leader among x86 servers, eclipsing the performance of competing systems.

In addition to its use in supercomputers, the PRIMERGY BX900 blade server is well-suited for a wide range of applications, including in mission-critical corporate computing systems and server consolidation projects.

Fujitsu aims to have worldwide sales of 500,000 units for the PRIMERGY line as a whole in fiscal 2010. Winning this order represents an important step towards that goal.

Glossary and Notes:

1. Teraflop
One trillion floating-point operations per second.

2. Fastest supercomputer system in Japan
As of July 13, 2009, based on Fujitsu research.

For More Information:

Japan Atomic Energy Agency: http://www.jaea.go.jp/english/index.shtml

Fujitsu Technical Computing: http://www.fujitsu.com/global/news/publications/periodicals/fstj/archives/vol44-4.html

Blade Server PRIMERGY BX900: http://ts.fujitsu.com/products/standard_servers/blade/bx900/primergy_bx900_index.html

UNIX Server SPARC Enterprise: http://www.fujitsu.com/global/services/computing/server/sparcenterprise/

Storage System ETERNUS: http://www.fujitsu.com/global/services/computing/storage/eternus/

About Fujitsu

Fujitsu is a leading provider of IT-based business solutions for the global marketplace. With approximately 175,000 employees supporting customers in 70 countries, Fujitsu combines a worldwide corps of systems and services experts with highly reliable computing and communications products and advanced microelectronics to deliver added value to customers. Headquartered in Tokyo, Fujitsu Limited (TSE:6702) reported consolidated revenues of 4.6 trillion yen (US$47 billion) for the fiscal year ended March 31, 2009. For more information, please see: www.fujitsu.com


8 July 2009

New PRIMERGY TX100 S1, available with Microsoft Windows Server Foundation, is an ideal entry-level server for small enterprises

Fujitsu today announces the PRIMERGY TX100 S1, the successor of the Econel 100 S2. The TX100 S1 is the most affordable PRIMERGY server yet, perfect for small and medium sized enterprises (SMEs) that need an entry-level server to increase their operational efficiency, performance and security. Now SMEs can afford to move away from using a PC in combination with an external hard drive for storage and upgrade to a proper business class server.

8 July 2009

New PRIMERGY TX100 S1, available with Microsoft Windows Server Foundation, is an ideal entry-level server for small enterprises

For SMEs that may be risking their data and losing efficiency by using a PC as their server, the PRIMERGY TX100 S1 is a cost-effective and dependable server solution. For the price of a PC, the PRIMERGY TX100 S1 provides a reliable infrastructure with up to 4 TB of integrated storage, combined with the performance and data security of RAID 0/1. An optional tape drive for backup and archiving system enables customers to further increase data security and comply with governmental rules and regulations. With the PRIMERGY TX100 S1, companies can improve operational efficiency and performance by centralizing file storage, coordinating print jobs, supporting billing or purchasing applications, and supporting e-mail and Internet server applications.

In keeping with Fujitsu’s corporate responsibility guidelines, PRIMERGY TX100 S1 supports EPA guidelines and is compliant with ENERGY STAR 5.0, reducing operating costs and saving energy. In addition, due to careful engineering of the air flow, the server is also very silent in operation. This makes it perfect for small office spaces where employees may be working in close proximity to the server and need to avoid the noise pollution of a loud server system.

The PRIMERGY TX100 S1 is available with the new Microsoft Windows Server 2008 Foundation software. Windows Server 2008 Foundation provides a reliable framework for organizations to run most small business applications, and is an affordable platform for core IT capabilities, including file and print sharing, remote access and security features. A familiar Windows experience makes it easy for organizations to get up and running. As the heart of a true local area network, Windows Server Foundation lets employees exchange data very securely, without requiring e-mail or the Internet. Microsoft provides an easy upgrade path to higher-end versions of Windows Server, which allows customers’ IT solutions to grow as their business grows. Microsoft Windows Server Foundation is available in selected countries and languages*.

Richard Sutherland, Dynamic Infrastructures Portfolio Manager at Fujitsu Technology Solutions, says: “Many small enterprises today are using a standard PC as their server for cost reasons, believing that they can’t afford a server infrastructure system.  PCs however,  are not made for continuous operation and companies using this model risk losing their valuable data, along with facing reduced operational efficiency. With the new PRIMERGY TX100 S1, customers can now purchase a cost-efficient and reliable infrastructure that allows them to increase their operational efficiency.”

About Fujitsu

Fujitsu is a leading provider of IT-based business solutions for the global marketplace. With approximately 175,000 employees supporting customers in 70 countries, Fujitsu combines a worldwide corps of systems and services experts with highly reliable computing and communications products and advanced microelectronics to deliver added value to customers. Headquartered in Tokyo, Fujitsu Limited (TSE:6702) reported consolidated revenues of 4.6 trillion yen (US$47 billion) for the fiscal year ended March 31, 2009. For more information, please see: www.fujitsu.com

About Fujitsu Technology Solutions

Fujitsu Technology Solutions is the leading European IT infrastructure provider with a presence in all key markets in Europe, the Middle East and Africa, plus India, serving large-, medium- and small-sized companies as well as consumers. With its Dynamic Infrastructures approach, the company offers a full portfolio of IT products, solutions and services, ranging from clients to datacenter solutions, Managed Infrastructure and Infrastructure-as-a-Service. Fujitsu Technology Solutions employs more than 10,000 people and is part of the global Fujitsu Group, which delivers IT-based business solutions to customers in 70 countries through a workforce of 175,000 employees. Headquartered in Tokyo, Fujitsu reported consolidated revenues of 4.6 trillion yen (US$47 billion) for the fiscal year ended March 31, 2009.

For more information, please see: ts.fujitsu.com/aboutus


26 June 2009

Fujitsu to offer royalty-free Windows 7 upgrades on all new PCs and notebooks pre-loaded with Windows Vista

Details of the royalty-free Windows 7 upgrade program were announced today by Fujitsu Technology Solutions. From this Friday (June 26), end customers purchasing qualifying products will be offered an upgrade voucher that can be redeemed when the new operating system is launched by Microsoft later this year.

26 June 2009

Fujitsu to offer royalty-free Windows 7 upgrades on all new PCs and notebooks pre-loaded with Windows Vista

From June 26, purchasers choosing any Fujitsu system running either Windows Vista Home Premium or Windows Vista Business operating system – be it an ESPRIMO PC, an AMILO PC or an AMILO, ESPRIMO or LIFEBOOK notebook model – will receive a Windows 7 Upgrade voucher that can be redeemed from the time of the Windows 7 launch until the end of January 2010.

The program is royalty-free. However, shipping and media creation fees will apply. These vary depending on the country, and the number of upgrades. A single qualifying end-customer is entitled to a maximum of 25 upgrades.

Fujitsu is offering four upgrade paths: from the Windows Vista Home Premium 32- and 64-bit versions to the Windows 7 Home Premium 32- and 64-bit versions and from the Vista Business 32- and 64-bit versions to the Windows 7 Professional 32- and 64-bit versions.

Details of Fujitsu’s Windows 7 upgrade program will be available online from June 26 at http://ts.fujitsu.com/windows7upgrade.

About Fujitsu Technology Solutions

Fujitsu Technology Solutions is the leading European IT infrastructure provider with a presence in all key markets in Europe, the Middle East and Africa, plus India, serving large-, medium- and small-sized companies as well as consumers. With its Dynamic Infrastructures approach, the company offers a full portfolio of IT products, solutions and services, ranging from clients to datacenter solutions, Managed Infrastructure and Infrastructure-as-a-Service. Fujitsu Technology Solutions employs more than 10,000 people and is part of the global Fujitsu Group, which delivers IT-based business solutions to customers in 70 countries through a workforce of 175,000 employees. Headquartered in Tokyo, Fujitsu reported consolidated revenues of 4.6 trillion yen (US$47 billion) for the fiscal year ended March 31, 2009.

For more information, please see: ts.fujitsu.com/aboutus

Press contact:

Fotini de Keizer
Marketing Manager – Fujitsu Technology Solutions
Tel: 011 284 3331
E-Mail: fotini.dekeizer@ts.fujitsu.com

Lance Rothschild
Opportun(at)e
Tel: 011 782 5439
Mobile: 082 443 1530
E-Mail: lance@opportunate.co.za


9 June 2009

New ETERNUS DX60 and DX80 online storage systems raise the curtain on consolidated global portfolio of versatile, high-availability storage solutions

Fujitsu today introduces its new global storage portfolio under the ETERNUS brand name. It provides customers with a comprehensive range of storage arrays and data protection solutions for every type of business.

9 June 2009

New ETERNUS DX60 and DX80 online storage systems raise the curtain on consolidated global portfolio of versatile, high-availability storage solutions

Underlining its new worldwide focus, Fujitsu now introduces a standardized global storage portfolio, aimed at providing its growing customer base with class-leading versatile, high-availability ETERNUS storage systems

Joining the ETERNUS line-up are the new ETERNUS DX60 and DX80 entry-level RAID storage systems. These deliver new features such as reduced power consumption, simplified management and offer improved redundancy, meeting growing demand from mid-sized enterprises.

Fujitsu also announces version 4.1 of ETERNUS CS, the leading virtual tape product for large data centers formerly branded CentricStor VT, as well as ETERNUS LT entry-level tape systems. Both products offer customers practical data protection solutions and extend the range of archive and backup solutions available from enterprise-class virtual tape appliances through to highly cost-effective entry-level tape automation. The new ETERNUS CS version introduces significant performance improvements and updated hardware. Offering superior disaster resilience capabilities and tight integration of disk and tape, ETERNUS CS is now more scalable than ever.

"Organizations today need an IT partner that delivers a broad range of reliable yet innovative storage solutions to help them deal with rapid data growth and fast evolving information management needs," says Richard Villars, Vice President, Storage Systems and IT Strategies at IDC. “The globalization of Fujitsu's storage portfolio under the ETERNUS brand will allow the company to more effectively deliver a broad set of storage, backup and data protection solutions to its customers around the world."

“The new ETERNUS DX models mark the beginning of our global presence in the storage market under the ETERNUS brand and will continue the ETERNUS success story,” comments Richard Sutherland, Portfolio Manager Storage Business at Fujitsu Technology Solutions. “In line with ETERNUS brand values, the new models offer high data-center quality, reliability and flexibility.”

The ETERNUS DX60 and DX80, new entry segment products, are based on the previous generation FibreCAT SX60 and SX80 and ETERNUS 2000 systems, and exemplify high quality.

Both ETERNUS DX systems offer high availability, reliability and speed at an attractive price point. The models, which are scalable from 292 GB to 120 TB (DX80), not only have redundant components and 4 or 8 Gigabit per-second Fibre Channel technology, but also add a number of new functions that ensure greater availability and significantly faster recovery, including eight snapshots (which can be extended to 1024) to enable rapid backups. They also feature easy-to-activate encryption to prevent unauthorized access to confidential data. ETERNUS DX series models also introduce an EcoMode function, based on MAID (Massive Array of Idle Disks) technology, which allows disks that are no longer needed (such as disks planned for daily backups) to be shut down to conserve energy – a capability designed to contribute to green datacenters.

New technologies set standards in reliability and availability

The ETERNUS DX60 and DX80 protect the integrity of data on disk and in the system cache with Data Block Guard, a function that can detect and automatically correct data corruption. In addition, the systems have a CacheProtector feature which writes the contents of the RAID controller cache to flash memory if a power outage occurs. A capacitor helps to save power; unlike traditional batteries it recharges within minutes, allowing the cache to be used again very quickly. This means that the system remains protected in the event of a power failure and can again deliver full performance once power is restored. The systems also have a new “Redundant Copy” function, which reacts at the first signs of a disk failure and automatically copies data from the disk in question. This dramatically reduces recovery times.

Easy to install, easy to manage

Complex and time-consuming administration of IT infrastructures is a major pain point for companies. ETERNUS DX systems offer customers ultimate usability: a pre-installed management software with a graphic user interface ensures the smooth and trouble-free daily operation – with no special user-training required. In addition, the ETERNUS SF software simplifies storage system management and maintenance and provides for example centralized system control of SAN/DAS/NAS storage resources as well as enhances operation management efficiency

Backup to a suitable medium

The ETERNUS DX60 and DX80 are equipped with high-performance SAS and large capacity nearline SAS disk drives. Together with solid state drives, which will be available later this year, this offers an extensive set of data management options. Data can be saved on the appropriate medium according to the service levels involved to meet requirements such as cost, speed, access time, lifespan and easy usage. With the RAID migration feature, data can be moved dynamically between different RAID groups and hard disks.

The ETERNUS DX models have four ports and can connect to as many as 128 servers in SAN mode. Currently, these models are equipped with a Fibre Channel interface, but they will also be available with iSCSI and SAS interfaces shortly. 

The ETERNUS DX60 and DX80 models are suitable for a wide range of applications, including storage consolidation and critical company applications, such as access to databases or e-mail, archiving, and backup to disk. They are also ideal for use in virtual server environments under VMware VSphere and Microsoft Hyper-V.

Availability:

The ETERNUS DX60 and DX80 model will be available from July 1, 2009.

Press pictures are available at:

http://mediaserver.ts.fujitsu.com/ms/go.cfm?itemid=30248&jumpfactor=18

- Ends -

About Fujitsu

Fujitsu is a leading provider of IT-based business solutions for the global marketplace. With approximately 175,000 employees supporting customers in 70 countries, Fujitsu combines a worldwide corps of systems and services experts with highly reliable computing and communications products and advanced microelectronics to deliver added value to customers. Headquartered in Tokyo, Fujitsu Limited (TSE:6702) reported consolidated revenues of 4.6 trillion yen (US$47 billion) for the fiscal year ended March 31, 2009. For more information, please see: www.fujitsu.com

About Fujitsu Technology Solutions

Fujitsu Technology Solutions is the leading European IT infrastructure provider with a presence in all key markets in Europe, the Middle East and Africa, plus India, serving large-, medium- and small-sized companies as well as consumers. With its Dynamic Infrastructures approach, the company offers a full portfolio of IT products, solutions and services, ranging from clients to datacenter solutions, Managed Infrastructure and Infrastructure-as-a-Service. Fujitsu Technology Solutions employs more than 10,000 people and is part of the global Fujitsu Group, which delivers IT-based business solutions to customers in 70 countries through a workforce of 175,000 employees. Headquartered in Tokyo, Fujitsu reported consolidated revenues of 4.6 trillion yen (US$47 billion) for the fiscal year ended March 31, 2009.

For more information, please see: ts.fujitsu.com/aboutus


May 2009

The recession and the South African SME

Big business has taken a beating from the global financial crisis, but from car manufacturers to financial institutions worldwide, the possibility of government bailouts has provided a silver lining. There is no such option for the small to medium enterprise, owners of such concerns are compelled to look within their own resource nets to weather the storm. But how prepared and capable is the South African SME for survival?

May 2009

The recession and the South African SME

This is among the crucial issues which SME Survey 2009, sponsored by Standard Bank, Umsobomvu Youth Fund and Fujitsu, will explore.

Principal researcher Arthur Goldstuck, “The essential issue faced by all SMEs – indeed, all businesses – is the recession. We will seek to gauge the ability of SMEs to deal with a dramatically different operating environment from that of 2008. The economy is heading for a recession for the first time in 17 years, trading conditions have swung from boom times to bust with stunning rapidity.” he says.

“SME Survey will establish how this change is affecting SMEs, their readiness to deal with it and the strategies they may have in place,” adds Goldstuck.

Amrei Botha, Head of SME Propositions at Standard Bank, says, “Global economic turmoil hasn’t left the South African economy untouched and as the effects are felt locally, many SMEs are battening down the hatches and strategising smart survival strategies.”

Despite the challenges that come with an economic slowdown, SMEs have an advantage over larger companies – they are more likely to be able to adapt, innovate and cut costs quickly, particularly when compared to larger companies that are often weighed down by onerous processes and larger operating costs. It is this advantage that will enable small businesses to cope better.

The hypothesis says Goldstuck, is that SMEs are weathering the storm, but are anxious about the impact and the possibility of an extended period of depressed markets. “When times are hard, the old saying is that cash is king. We will therefore be exploring the extent to which SMEs are dealing with the cash flow issue, with credit far more difficult to secure and the possibility of increased bad debt.”

The SME Survey Roadshow in October forms a component of the Survey and will provide practical advice for SME business decision makers on how to address this and other issues.

Simultaneously – and almost paradoxically – there continues to be opportunity in adversity. “Some sectors are carrying the boom through, such as telecommunications and some elements of construction,” Goldstuck notes.

However, these are industries which can be difficult for the SME to break into; for example, construction is centred on large, government-driven infrastructure projects, while telecommunications brings the challenges of shifting legislative and regulatory requirements.

With the participation of the Umsobomvu Youth Fund for the first time in this year’s Survey, Goldstuck says the availability and impact of funding to SMEs will be explored. “Five years ago, we looked into government support and found it inadequate. We’d like to relook this and compare what has changed over the years and what changes for the SME when funding is available.”

“The global financial crisis is indeed affecting SMEs, especially those that are at an entry level. As a development funder Umsobomvu exists to balance market failure, support and address the burden faced by entrepreneurs. To ease the pressure, earlier this year we cut our base interest rates by 2.5%, we are also willing to negotiate loan repayment terms and have business development and a mentorship programmes. We hope that these initiatives will improve entrepreneurs’ chances of surviving the adverse economic conditions,” says Malose Kenana, CEO of Umsobomvu Youth Fund.

In addition, Goldstuck points out that in keeping with past research, the impact and consequence of financial and ICT-related issues on the competitiveness of SMEs will continue to be explored.

Jane Tully, Channel Manager at Fujitsu Technology Solutions says: “The recessionary environment places new challenges on businesses. It is in times like this that they need to be increasingly conscious of the efficiencies and competitive advantages that can be reaped from their technology solutions. With the ever-increasing power from technology innovation, businesses can get more out of their technology (often for less expenditure) by staying abreast with developments and investing in the appropriate solutions. At Fujitsu, we provide a comprehensive range of services to ensure that our customers get the optimum utility from their IT investment. This has never been more important to businesses than it is in the current economic climate.”

Now in its seventh year, SME Survey is sponsored by Standard Bank, Umsobomvu Youth Fund and Fujitsu. Research, some 2500 telephonic interviews are conducted with SME owners, is presently underway with interim findings expected end July and final results in October.

SME Survey 2009 is sponsored by Standard Bank, Umsobomvu Youth Fund and Fujitsu.

The final results will be released at SME Survey’s Small Company, Big Voice Roadshow of FREE seminars hosted in Johannesburg (14 Oct), Pretoria (15 Oct), Bloemfontein (20 Oct), Cape Town ( 21 Oct) and Durban (22 Oct).

Visit www.smesurvey.co.za to find out more.


21 April 2009

Best results in virtual machine performance, efficiency and reliability through optimized PRIMERGY support

Fujitsu Technology Solutions today announces optimized support for VMware’s new vSphere4 server virtualization technology on PRIMERGY rack and blade servers. All current-generation PRIMERGY server models from Fujitsu are tuned to deliver best results in performance, efficiency and reliability for VMware’s new virtualized computing platform, providing a solid foundation stone for datacenter consolidation projects.

21 April 2009

Best results in virtual machine performance, efficiency and reliability through optimized PRIMERGY support

Introduced today, vSphere4 from VMware supports Cloud-like server clusters within a datacenter. Fujitsu confirms that the hypervisor has been pre-tested and certified for PRIMERGY customers using blade and rack servers as platforms for virtualization, assuring PRIMERGY customers that the new software will deliver optimum results, out-of-the-box.

Says Richard Sutherland, Portfolio ManagerDynamic Infrastructures at Fujitsu Technology Solutions: “With virtualization going mainstream as the ideal way to consolidate existing server infrastructures, customers are turning their attention to three key topics – system performance, guaranteed headroom for growth, and of course, resilience.”

“The unplanned shutdown of a single physical server can have a domino effect in a virtualized system environment. Therefore, before awarding certification to VMware’s vSphere4, we wanted to confirm its full compatibility with our ServerView management suite. As a result, customers who base their virtualization scenarios on vSphere4 on PRIMERGY servers can be assured of an optimized solution.”


16 April 2009

Fujitsu to resell first storage system purpose-built to drive efficiencies in virtual datacenters

Fujitsu Technology Solutions today announces the immediate availability of the first new storage solution purpose-built to support virtual data centers, the EMC® Symmetrix® V-Max™ system.

16 April 2009

Fujitsu to resell first storage system purpose-built to drive efficiencies in virtual datacenters

Symmetrix V-Max, designed to provide massive storage scalability to the virtualized solutions, is a key building block for Fujitsu’s Dynamic Infrastructures strategy, which is based on solutions that are specifically designed for virtualized and automated environments.

Already EMC’s biggest Symmetrix partner worldwide, Fujitsu Technology Solutions has a 12-year partnership with EMC in EMEA. As a result of the strategic alliance, Fujitsu Technology Solutions resells selected EMC storage systems and software – as well as building in EMC solutions to its own offerings.

The new EMC Virtual Matrix Architecture™ delivers massive scalability – enabling systems that scale to hundreds of thousands of terabytes of storage, and supporting hundreds of thousands of virtual servers in a single federated storage infrastructure. Furthermore, the new Symmetrix V-Max system, the first built using the new architecture, allows users to cost-effectively meet the widest range of storage requirements for high performance and high capacity in a single system.

Ewald Meyer, Storage Specialist at Fujitsu Technology Solutions comments: “Fujitsu and EMC have a long history of providing our EMEA customers with flexible and scalable infrastructures. Adding the new Symmetrix V-Max system to our portfolio fits well with our Dynamic Infrastructures strategy since it will help customers reach new levels of efficiencies in virtualized datacenters.”

David Donatelli, President of the EMC Storage Division, says: “The EMC Virtual Matrix Architecture is a breakthrough new approach to high-end storage. It is the first high-end storage system architecture that combines the ability to both scale up and scale out so customers can start small and grow without limits and adapt to change automatically. Together, EMC and Fujitsu are working to meet the special requirements of the virtual data center and help customers bridge the old and the new -- from today’s physical world to tomorrow’s virtual world.”

About Fujitsu Technology Solutions

Fujitsu Technology Solutions is the leading European IT infrastructure provider with a presence in all key markets in Europe, the Middle East and Africa, plus India, serving large-, medium- and small-sized companies as well as consumers. With its Dynamic Infrastructures approach, the company offers a full portfolio of IT products, solutions and services, ranging from clients to datacenter solutions, Managed Infrastructure and Infrastructure-as-a-Service. Fujitsu Technology Solutions employs more than 10,000 people and is part of the global Fujitsu Group, which delivers IT-based business solutions to customers in 70 countries through a workforce of more than 160,000 employees. Headquartered in Tokyo, Fujitsu reported consolidated revenues of 5.3 trillion yen (US $53 billion) for the fiscal year ended March 31, 2008.

For more information, please see: http://ts.fujitsu.com/aboutus

EMC, Symmetrix, Virtual Matrix Architecture and Symmetrix V-Max are either registered trademarks or trademarks of EMC Corporation in the United States and other countries.

Press Contact: Fotini de Keizer
Marketing Manager – Fujitsu Siemens Computers
Tel: 011 284 3331
E-Mail: fotini.dekeizer@ts.fujitsu.com

Ewald Meyer
Storage Specialist – Fujitsu Technology Solutions
Tel : 011 284 3441
E-Mail : ewald.meyer@ts.fujitsu.com

Lance Rothschild
Opportun(at)e
Tel: 011 782 5439
Mobile: 082 443 1530
E-Mail: lance@opportunate.co.za

Microsoft gives the FibreCAT SX88 excellent test scores for the Efficient E-Mail initiative

The Fujitsu Technology Solutions’ FibreCAT SX88 storage solution has received outstanding marks from Microsoft. After completing the “Exchange Solution Reviewed Program (ESRP) – Storage 2.1” test series, the FibreCAT SX88 solution is now listed on the online reference page with storage solutions for Exchange environments. The ESRP tests and lists all the high-performance storage systems provided by the Gold Certified partners to help Exchange customers select the best products in the segment. To qualify, Microsoft partners are required to perform pre-defined load tests to determine the number of mailboxes that can be managed and the latency periods (delay periods) required for read and write operations.

16 April 2009

Microsoft gives the FibreCAT SX88 excellent test scores for the Efficient E-Mail initiative

The FibreCAT SX88 has proven enterprise functionalities and has demonstrated that it is powerful enough to handle 5,000 heavy mailboxes. When combined with the high-availability solution DuplexDataManager from Fujitsu Technology Solutions, it reduces the write latency value from 51 to 33 milliseconds. As a result, this storage solution achieves the same outcome as the competitors’ while requiring only half the number of hard disks. This means that customers can enjoy considerable cost savings while maintaining the same performance level. The FibreCAT SX88 proved this performance with the capacity to operate between 500 up to 1,500 mailboxes at optimal levels. In addition, it has the ability to scale and also have enough capacity for backup, archiving, virus scan and support of mobile devices.

New milestone for Efficient E-Mail

Dr. Helmut Beck, Vice President Storage Business at Fujitsu Technology Solutions explains, “With the inclusion of the Microsoft ESRP into the Efficient E-Mail initiative, Fujitsu Technology Solutions has achieved yet another milestone. Efficient E-Mail helps companies to manage the challenges of overwhelming e-mail growth accompanied by stricter legal regulations and retention periods. The initiative combines hardware, software and services to create a solution for an ideal Microsoft Exchange infrastructure. As a result, the corresponding storage hardware has to prove its performance even for very demanding Exchange installations.”

The FibreCAT SX88 is the premium storage model of the FibreCAT SX family for small and medium-sized enterprises. Compared to FibreCAT SX80, FibreCAT SX88 offers up to 50 percent more speed at top speed.

A description of the ESRP process and a list of all the products tested are available on the Internet at: http://technet.microsoft.com/en-us/exchange/bb412164.aspx.


April 2009

Thanks to the latest PC-over-IP™ technology, companies can provide full workstation performance via remote access to their employees or service providers

Fujitsu Technology Solutions presents a remote access solution for its workstations: all CELSIUS family models are now available with PC-over-IP™. This means that they can be integrated in a desktop centralization model. For example, if the actual workstation is located in the company's data centre or server room, the user can access the workstation via a CELSIUS Remote Access portal from his desk or from anywhere in the world. Connected via a standard IP network such as LAN or WAN, the user can view and edit data, access the entire graphics performance, and make full use of his workplace.

April 2009

Thanks to the latest PC-over-IP™ technology, companies can provide full workstation performance via remote access to their employees or service providers

CELSIUS Remote Access technology consists of a CELSIUS Remote Access host card for the respective workstation and a CELSIUS Remote Access desktop portal – a device on the user's desktop weighing only 0.86 kilos, and only measuring 22.6 centimeters high and 4.5 centimeters wide. The user enjoys full computing and graphics performance without unpleasant side effects such as fan noise and heat generation.

This scenario offers similar advantages to those in a virtualized workplace: data storage and system administration are not handled locally, but are managed in the data centre. This means that companies are less susceptible to viruses and data loss, as the user does not have access to the hard disk. The systems are also protected against damage or theft – an important factor in school or university environments.

CELSIUS Remote Access technology can be particularly profitable in environments where several service providers – possibly international – are working on confidential company data. For example, a company could be working on a development project with various international design studios and engineering companies simultaneously. All the service providers involved, whether they are in New York, Rio or Tokyo, can directly view but not copy, delete or modify the current data. This protects the intellectual property. The system also makes it easier to collaborate with service providers or employees who are located in countries with difficult customs authorities, as data does not cross borders – not even virtual frontiers – and remains centrally archived in the data centre. CELSIUS Remote Access technology is also the ideal solution for conventional remote workstations, and for outsourcing design jobs that call for high graphics performance.

How it works: the CELSIUS Remote Access host card can be integrated easily into existing CPU architectures. It encodes the entire desktop environment and transfers it in real time to the CELSIUS Remote Access desktop portal via an IP network, such as a company LAN. Every PC-over-IP™ system user benefits from the full PC performance and user experience, while also enjoying the advantages of centralized computing.

The Remote Access portal is prepared for connecting two displays. The workstation connection supports Dual DVI with a resolution of 1920x1200, meeting the requirements of the most challenging of graphics tasks. The portal does not require drivers or an operating system and is extremely energy-efficient; all the applications run as before on the original computer.

"Fujitsu Technology Solutions is using CELSIUS Remote Access technology to further equip its workstations for the requirements of an international and flexible business environment, expanding application possibilities, for example, for design and construction jobs,” says Richard Sutherland Portfolio Manager at Fujitsu Technology Solutions. “Centralized computing is a secure and highly efficient option to provide users with full desktop performance and maximum security via remote access."

The CELSIUS Remote Access solution is available immediately as an option for all CELSIUS workstations.

More product details are available on the internet at:

http://ts.fujitsu.com/products/deskbound/workstations/index.html

Pictures will be available for download at:

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April 2009

Fujitsu Technology Solutions introduces three powerful new workstations

The CELSIUS M470, CELSIUS R570 and CELSIUS R670 will be based on the latest Intel® processor technology and, with optimized computing and graphics power, taking workstation performance to the next level.

Fujitsu Technology Solutions has introduced a new generation of workstations which offer a new level of computing and graphics performance: The CELSIUS M470, CELSIUS R570 and CELSIUS R670 will be based on Intel®’s latest workstation platform, codename: Tylersburg, which Intel® announced this week. With Intel®’s latest Xeon® processor 3500 and 5500 series Nehalem EP / WS as well as the new 1S Intel® X58 and 2S Intel® 5520 chipsets on board, the new CELSIUS family members deliver superior performance which makes them the ideal choice for compute-intense, multi-core optimized workstation applications. These are the first product innovations introduced under the Fujitsu brand following Fujitsu Siemens Computers’ integration into Fujitsu as a wholly owned subsidiary on April 01, 2009.

April 2009

Fujitsu Technology Solutions introduces three powerful new workstations

Achieving best-in-class benchmark scores, the new workstations offer a better balanced architecture and an enormous performance boost – in complex modelling and simulation for example single application performance can be increased up to four times. Also, the new CELISUS range is certified and optimized for all leading workstation ISV applications.

All three workstations can be configured with a complete range of up to two next generation, professional OpenGL graphics sub-systems and are launched in a new functional design which provide a new dimension of performance and shader features suitable for the most demanding graphic tasks in environments such as 3D Computer Aided Design (CAD), Computer Aided Engineering (CAE, Simulation) and Digital Content Creation (DCC) or even High-end Visualization, Post-processing or in Geo Sciences.

In terms of usability and Green IT features, Fujitsu Technology Solutions has even further upgraded its new workstation highlights. Thanks to an improved cooling technology, noise level and heat dissipation have been further reduced: The new CELSIUS models boast best in class noise emission and, in fact, provide whisper quiet operation. In addition, their high efficiency power supply reduces their energy consumption and fit for ENERGY STAR® 5.0 (in preparation).

Superior reliability is granted by a system board engineered and manufactured in Germany, by extended lifetime components for a trouble-free operation around the clock and by a sophisticated premium status LCD that displays the system status at any time and delivers comprehensive diagnostic information for problem resolution as well as customer specific information like system serial numbers – even without the Operating System running.

“Our new CELSIUS workstations are a breakthrough in terms of computing and graphics performance and underline Fujitsu Technology Solutions’ capability to deliver high-end infrastructure products and solutions to our customers as soon as the latest technology is available in the market”, says Richard Sutherland Portfolio Manager at Fujitsu Technology Solutions. “Our powerful and reliable workstations have become indispensable equipment in the demanding workstation target markets. Based on the new Intel® platform and with the improved cooling system, the latest models – now under the Fujitsu brand – will be even more appreciated as a personal supercomputer which provides not only double performance, but also the perfect user experience for professional workstation users.”

„With the new Xeon® processor 5500, Intel® has achieved another key milestone in its approach to increase the power while reducing power consumption in workstations” says Christian Morales, Vice President and General Manager Europe, Middle East and Africa at Intel®. “Customers can unleash the power and energy efficiency of the new Intel® Xeon® processor 5500 series now, as vendors such as Fujitsu Technology Solutions have the technology ready to make it available immediately in its latest high performance workstation models.”

The new workstation models at a glance:

CELSIUS M470

This high performance, multi-core workstation is designed for mid-range 3D CAD, CAE and DCC applications. It supports up to 2 ultra high-end graphics subsystems, is equipped with the latest Intel® Xeon® processor and memory capacity of up to 24 GB. This makes it the best choice single-processor workstation for engineers, architects, animators or analysts.

CELSIUS R570

The CELSIUS R570 is the compact Dual Xeon mid-range workstation and the ideal choice for high-end 3D CAD, DCC and FSA applications. It supports up to two ultra high-end graphics subsystems as well as SLI technology and offers up to 48 GB memory. This compact dual-processor workstation delivers highest performance for ambitious tasks in almost any workstation segments.

CELSIUS R670

With the CELSIUS R670, Fujitsu Technology Solutions introduces a high-end, dual Xeon® workstation for high-end CAE, VR/VIS and GIS applications; it is even suitable for demanding EDA users. It supports up to two ultra high-end graphics subsystems and SLI technology, but offers up to 96 GB. For best I/O, the CELSIUS R670 is equipped with an integrated SAS controller. Its ultimate performance level makes it the perfect partner for most demanding multi-threaded tasks and for personal supercomputing.


1 April 2009

As a wholly-owned subsidiary, Fujitsu Technology Solutions offers EMEA access to a worldwide portfolio of Dynamic Infrastructures

Today Fujitsu Siemens Computers becomes a 100 percent subsidiary of Fujitsu Limited and is renamed Fujitsu Technology Solutions (Holding) B.V. The new company is operating jointly with Fujitsu Services and a unified management under the Fujitsu brand. Both companies extend a comprehensive portfolio of products, solutions and services offering on a global scale to corporate customers in the EMEA region.

1 April 2009

As a wholly-owned subsidiary, Fujitsu Technology Solutions offers EMEA access to a worldwide portfolio of Dynamic Infrastructures

The full integration of Fujitsu Technology Solutions, with its strong presence in EMEA, is the catalyst for Fujitsu’s transformation into a truly global company. With this goal in mind, Fujitsu is making substantial investment in its European operations, leading its way into the world from its new European bridgehead.

“With the capabilities and global perspective that Fujitsu Technology Solutions brings, we can transform the very way Fujitsu does business,” said Kuniaki Nozoe, president of Fujitsu Limited. “We can ‘Think Global’ from the inception of new products, and then ‘Act Local’ to serve the needs of our customers. The integration of Fujitsu Technology Solutions will enable the Fujitsu Group to offer fully integrated products and solutions worldwide.”

Investing in Europe

Together, Fujitsu and Fujitsu Technology Solutions will bring innovative and cost-competitive products to market worldwide by optimizing platform product research and development. In the course of this collaboration, Fujitsu Technology Solutions will become one of the major linchpins of global research and development within Fujitsu. With a workforce of more than 10,000 employees extended across the EMEA region and more than 1,000 engineers, it will use its proven engineering expertise to lead the development of global platform products, software and services for the Fujitsu Group. From its business locations in Munich, Paderborn and Augsburg, Fujitsu Technology Solutions is driving the global development of IA (Intel Architecture) server and storage products. To enforce this plan, Fujitsu has committed to investing into R&D capacities in Europe, in particular in Germany. In Augsburg, the company is bringing together and centralizing the complete Fujitsu Group’s R&D for IA servers. Japanese experts are supporting German engineers in a new, unified global R&D centre.

Global business lead for IA servers and storage

Within Fujitsu's strategy of driving global business based on products and services, the IA server plays a major role as a core platform for future growth. To underline its commitment to European engineering and quality, Fujitsu Technology Solutions has been nominated to host the global IA server business and will develop, manufacture and market the global range of IA servers. In addition, the company is to unify the manufacturing and testing structure to prepare for globalized mass production, consolidating production at the Augsburg and Fukushima ( Japan) sites. These measures support ambitious goals: With its new global approach, Fujitsu is raising the bar even higher. Having already sold 240,000 IA servers in 2007, Fujitsu has made the IA server a core part of its platform products strategy, with an initial target of doubling worldwide sales to 500,000 units by 2010.

Customer benefits and channel access

With regard to customers and channel, the integration of Fujitsu Technology Solutions will also be a rewarding investment. Fujitsu has access to Fujitsu Technology Solutions’ broad EMEA customer base and from this, is moving forward in the expansion of its presence in emerging markets. In addition, the global group has access to a well-kept channel base of approximately 1,700 direct and 43,000 indirect partners, and will be able make use of Fujitsu Technology Solutions’ long-lasting channel expertise and experience and share best practice to enhance Fujitsu’s channel business worldwide.

Reciprocally, customers and channel partners benefit from global access to a combined broad portfolio of products and services. They profit from the strength and reliability of the fourth-largest IT services vendor in the world. At the same time, they enjoy the familiarity of doing business with their well-known local contacts and can depend on solutions tailor-made from the complete Fujitsu portfolio for their individual needs.

These promising prospects make the integration of Fujitsu Technology Solutions a perfect example of the Fujitsu corporate value of global perspective and its motto to think globally and act locally.

Delivering Dynamic Infrastructures in EMEA

In November 2008, Fujitsu Technology Solutions introduced its Dynamic Infrastructures strategy, consisting of delivery models built around the company’s products and services as well as higher level packaged solutions and Managed Infrastructures for the Office and the Datacentre. In addition, the company is developing new offerings around “Infrastructure-as-a-Service.”

As a fully-owned subsidiary of Fujitsu, Fujitsu Technology Solutions can now offer corporate clients in EMEA access to a worldwide portfolio of Dynamic Infrastructures built around IA servers and combined with innovative services, along with integrated products and IT solutions tailored in a joint effort with Fujitsu Services.

The Dynamic Infrastructures’ focus for corporate clients is fully in line with Fujitsu’s business strategy, in which the Technology Solutions segment – consisting of IT platforms and services – provided 57 percent of consolidated revenues and 68 percent of Fujitsu’s profit in FY2007.

Global Business Transformation for Fujitsu Group

Richard Christou, corporate first senior vice president and chairman of Fujitsu Technology Solutions, has executive responsibility for transforming and executing the Fujitsu Group’s business strategy for markets outside Japan. He has formed the Fujitsu Global Business Group, headquartered in London, UK, and heads it as President. This group comprises all Fujitsu operations outside Japan, among them Fujitsu Technology Solutions and Fujitsu Services, and hosts consolidated global functions such as global marketing, global delivery and global client management. Fujitsu’s EMEA business is divided into three business regions: UK and Ireland, Nordic, and Continental Europe. The Central Europe region covers most of Fujitsu Technology Solutions’ territory and is headed by CEO Kai Flore, who also remains President & CEO of Fujitsu Technology Solutions.

Integrating Fujitsu Technology Solutions is a major step in the strategy to expand the Group’s business outside Japan, with a focus on developing the global IT services business to meet increasing customer demand. While appreciating the German engineering and the successful business approach, Fujitsu also appreciates the special values that the integration of Fujitsu Technology Solutions adds to the Fujitsu culture and the “Fujitsu way” of doing business.

Fujitsu Technology Solutions will integrate easily into the Fujitsu family as both companies have had many values in common from the start. Kai Flore, President & CEO of the new Fujitsu Technology Solutions explains: “With Fujitsu we have a strong and reliable parent company that fully supports our own business strategy and goals. Fujitsu is a pioneering IT company with research and development in its DNA—and so are we. Becoming part of the Fujitsu Group is the perfect match for Fujitsu Technology Solutions."


November 2008

SME Survey 2008: ADSL comes of age

Five years since its launch, ADSL has finally replaced dialup completely as the connection of choice for the South African SME. This was among the key findings of SME Survey 2008 on the use of information and communication technologies by small to medium South African companies.

“Acceptance of ADSL connectivity has been rapid since its introduction in 2003; in 2005, SME Survey anticipated that it would steadily replace dialup as the connection of choice, but the speed of acceptance has been surprising,” says Goldstuck.

November 2008

SME Survey 2008: ADSL comes of age

Today, for the first time, less than 10% of SMEs that use computers connect to the Internet via dialup, while ADSL is favoured by 63% - exactly the proportion using dial-up five years ago. Wireless broadband as the primary connection moves above 10% for the first time at 10.1%.

“This is a confirmation that ADSL is not a hype-driven technology. While it was originally seen as expensive, users soon discovered that in terms of overall cost, it is far cheaper than dialup; the value proposition has gradually become clearer and today it is a no-brainer for the SME owner or director,” says Goldstuck.

Another technology-related issue where the value proposition should be crystal-clear is that of data backup. However, while Goldstuck says just about every computer user understands and appreciates the value of their data; he says only 49% of SMEs backup data daily or continually. “Some 10% make continual backups, and 39% do a backup daily. These are the only business owners who are taking good care of themselves and ensuring no loss of productivity,” he comments.

Worryingly, says Goldstuck, nearly half of SMEs are not sufficiently diligent. “The 20% who make weekly backups are at some risk, but the danger of data loss is magnified dramatically for the 16% who do it monthly. Then there is the 9% who don’t know if or when backups are made at all – they are a disaster waiting to happen.”

The implications of this negligence is made clear by the fact that power failures were the single biggest factor in data loss for SMEs in the past year, with 15% saying they had suffered as a result.

Additionally, Goldstuck says only 46% of the businesses surveyed have a disaster recovery plan.

He says this is a glaring gap in the SME landscape and is an opportunity for solution providers to assist SMEs to improve their processes where data protection is concerned.

Staying with the theme of protection, SMEs generally protect their data quite well in terms of usage. Goldstuck says the research indicates that 84% of these businesses have antivirus software – an appreciative majority, but that still leaves 16% vulnerable to an obvious and inevitable threat. Spyware protection is used by 78% of SMEs. “This is a more specialised form of protection; it is built into most antivirus suites but is still sometimes a separate application,” he notes, suggesting that SMEs have picked up fast on this issue. But with just 61% of SMEs using a firewall – which is provided as a feature of most Windows operating systems – he says that may indicate that users don’t know how to initiate this tool in the operating system.

Danny de Beer, business development director at Fujitsu Siemens Computers, says he believes SMEs are increasingly taking advantage of what the ICT sector has to offer in support of improved convenience and productivity. “With more SMEs using ADSL, it is apparent that they are taking advantage of the Internet to support their objectives. The ICT industry has also adjusted its focus to bring more systems and technologies to market that are specifically geared at the SME, delivering advantages such as simple set-up and maintenance, further supporting the ability of SME owners to get more done in less time.”

SME Survey is sponsored by Standard Bank and Fujitsu Siemens Computers. It is in its sixth year and tracks trends and opinions of more than 5 000 South African small, medium and micro enterprises.


October 2008

SME Survey 2008: Micro-enterprises bear brunt of financial turbulence

South African SMEs are feeling the pinch of higher interest rates, as the cost of capital and bad debt begins to rise. While the majority of SMEs appear to be confident in their ability to weather the storm, it is the start-up and micro-enterprise that finds itself at most risk in the face of adversity.

This has emerged from the findings of SME Survey 2008, which explored the impact of infrastructural challenges on SMEs during a time of increasing inflation, interest and petrol prices.

October 2008

SME Survey 2008: Micro-enterprises bear brunt of financial turbulence

According to principal researcher Arthur Goldstuck, SMEs tend to get off the ground without troubling banks for business-specific loans, looking instead to existing sources of capital such as mortgage bonds. This tactic, however, leaves especially start-up companies with particular sensitivity to interest rate fluctuations.

“Although a large proportion of SMEs across the board are concerned by the impact of interest rates on their businesses, it is the micro-enterprise – companies with one to five employees – that appears worst affected,” he says.

The changing economic circumstances are reflected in whether or not companies are taking or intend to take loans. While one out of every five SMEs surveyed took out a loan in the past year, just 6% of companies surveyed indicated plans to borrow money in the coming year – and it tends to be the more established organisation that seeks funding for expansion.

“The survey suggests that micro-enterprises at the one end of the scale and larger businesses at the other are least likely to borrow, but for different reasons. The micro-enterprise owner may not qualify for a loan or is funding the business from existing resources, such as a bond, while the larger company is likely able to fund itself. Less than 4% of micro-enterprises and 13% of those with 6-10 employees plan to take a loan in the coming year. That figure rises steadily, reaching 18% of companies with 51 to 75 employees that will borrow. However, for the larger enterprises in the survey, those with more than 100 employees, the figure falls to just 4%. This suggests that the larger a company is, the better it is able to fund expansion from its own operations,” Goldstuck says.

Micro-enterprises are also most likely to fret over cash flow, with 20% of these companies indicating this to be a big issue for them. That drops to between 16 and 17% for those SMEs with up to 100 employees, and drops to 13% for those with more than 100 staff. “This shows that the micro-enterprise has the least resilience; they are not as diverse and do not enjoy the established cash flow of a more substantial organisation,” says Goldstuck, “Bad debt of course has an even more dramatic impact on cash flow for these businesses.”

However, he says, having a positive cash flow has no impact on whether the SME decision-maker has sleepless nights over high interest rates. “That is spread evenly over those SMEs with positive and negative cash flows. This makes clear the fact that SMEs are universally concerned over the precariousness of the market as it relates to the higher cost of living and doing business.”

Returning his attention to bad debt, arguably a major threat as higher interest rates restrict money supply, Goldstuck says this has increased by 31% for those companies with a negative cash flow and by a lower margin of 22% for those with a positive cash flow. “Bad debt is clearly a factor in not having a positive cash flow and is a headache for any SME,” he notes.

SME Survey is sponsored by Standard Bank and Fujitsu Siemens Computers. It is in its sixth year and tracks trends and opinions of more than 5,000 South African small, medium and micro enterprises.


October 2008

South African SMEs show resilience in the face of adversity

Turbulent times have characterised the environment for South African small, medium and micro enterprises (SMEs) in the past year – but most have come through with their competitiveness intact. This emerged with the announcement of the results of the annual SME Survey which indicates that in the main, SMEs have held up remarkably well.

October 2008

South African SMEs show resilience in the face of adversity

That’s according to principal researcher Arthur Goldstuck, who says rising fuel prices, inflation spikes, interest rate hikes, and infrastructural challenges such as crime and power outages have combined to dramatically change operating conditions for all businesses. “Despite this deluge of new problems, SME Survey 2008 shows that while these businesses are feeling the pressure, most are generally well-equipped to cope.”

Some 5 000 SME decision-makers were polled on a range of issues relating to their competitiveness, performance and the business enabling environment.

The most encouraging finding of all was that 81% of SMEs surveyed had a positive cash flow, given the environment, says Goldstuck. This was a somewhat surprising result, but it tied in with the 74% of respondents who believed that their organisations were competitive. He cautions, however that a positive cash flow did not always make for a competitive business, if operating margins were too tight.

In the prevailing tight economic times, Goldstuck says that a prime concern for any company is the heightened possibility of bad debt. “More than one in five, or 22% of respondents indicated an increase in bad debt over last year, however, an almost equal number [19%] reported a decrease. This shows the SME is managing debt well,” he says.

Furthermore 37% of respondents report an increase in outstanding revenue, while only 14% indicate a decrease in their debtor’s book; this shows that customers are taking longer to pay, as a result of financial pressures of their own.

Amrei Botha, head of SME propositions at Standard Bank, says that most SMEs provide goods and services to end consumers. Hence as consumers come under pressure due to rising fuel prices, inflation and interest rates, SMEs are faced with a decline in both the volume and value of their sales. It is therefore critical for SMEs to manage their debtors more carefully and rigorously in these economic times. Proper invoicing, keeping track of outstanding payments and putting a collection process in place will go a long way to ensure that SMEs regularly collect payments from their clients.

“SMEs should constantly strive to improve their cash flow – it should be a way of doing business and not a once off event when the business is under pressure,” she says.

Turning his attention to infrastructural challenges, Goldstuck says the shadow cast by load shedding persists. “37% of those surveyed say the load shedding of the first half of 2008 had a high impact on their business and only 11% said it had no impact. That compares to 21% who had said, at the halfway stage of the Survey in May, that load shedding had no impact. This shows that the full effect of load shedding only became clear in retrospect.”

While 14% of SMEs had already acquired a generator in 2007, a further 15% only bought one in the first quarter of 2008, and another 11% intended to buy one this year. “This indicates that SMEs are sensitive to infrastructural problems but respond quickly,” says Goldstuck. “When we add up all the severe challenges faced by SMEs and look at how quickly they respond, it brings to mind the old saying, ‘what doesn’t kill you makes you stronger’.”

While 5% of the respondents regarded themselves as uncompetitive and were in danger of going out of business, he added, the rest were generally learning to adapt to changing circumstances.

Danny de Beer, Business Development Director at Fujitsu Siemens Computers notes that the turmoil compels SMEs to review their efficiency and performance. “We see many SMEs looking to increase their efficiency and optimise their performance with many finding the benefits of new technology which allows them to optimise their processes and to respond more rapidly to market forces. This not only makes them more resilient in these challenging times, but also ensures that these businesses will be more favourably positioned for the long-term correction in the economy.”

SME Survey is sponsored by Standard Bank and Fujitsu Siemens Computers.

It is in its sixth year and tracks trends and opinions of more than 5 000 South African small, medium and micro enterprises.


August 2008

Crime a daily reality for South African SMEs

One in four small businesses in South Africa has been a victim of crime more than once in the past year, according to the interim findings of SME Survey 2008, the latest edition of South Africa’s largest annual survey of small, medium and micro enterprises.

This shock finding underscores recent police statements that small businesses have increasingly become victims of crime.

August 2008

Crime a daily reality for South African SMEs

The interim findings of SME Survey 2008 are released halfway through the process of 5,000 interviews with decision-makers at SMEs in South Africa, to give an indication of key findings that will be contained in the final report. The project is sponsored by Standard Bank and Fujitsu Siemens Computers.

Comment from sponsors here.

“Some small companies that have been impacted by crime have lost more than just their hardware,” says Danny de Beer, Alliances Director at Fujitsu Siemens Computers. “They have lost vital information assets, due to not having either the storage capacity or data backup policies in place to protect and secure their vital information.” De Beer adds that many organizations do not consider the value of backup, recovery and archiving solutions until it is too late. “Storage prices and storage complexity has reduced substantially over the past few years and SMEs today have access to enterprise-class solutions – at an SME affordable price. And whilst this doesn’t act as a deterrent towards the crime situation, it most certainly minimizes the impact of crime on the continuity of the enterprise.”

According to principal researcher Arthur Goldstuck, the fact that there is no change in the reported impact of crime from 2007 to 2008 is an indication that crime has not diminished for the SME. “We asked what keeps the SME owner awake at night. 27% of respondents have again indicated that crime is a key worry, which mirrors exactly the findings of last year.”

“An astonishing 45% of SME owners have been victims of crime, with more than a third having experienced a crime in the last two years,” he says.

Crime, Goldstuck states, is a daily reality for SMEs. “Perhaps more shocking is that one in four SMEs have been victims of crime more than once. This shows how vulnerable businesses are and how difficult protection is, as you tend to increase preventative measures after any incident. But with such a high level of repeat victim, the findings show that crime cannot be beaten at the individual business level.”

The only saving grace, such as there is, is that the impact on the business itself is not as great as the extent of the occurrence of incidents would suggest. The Survey has found that 15% of SMEs have lost more than 1% of annual turnover to physical crime, while 71% have lost up to 1% of turnover. Only 7% have lost more than 1% to fraud.

“Physical crime, such as robberies, is a more serious issue and the monetary cost is not as severe as the human consequences,” says Goldstuck. “A lot of the crime we are seeing might be ‘small fry’ in terms of cash value, but that comes with an enormous human cost in terms of psychological and physical effect.”


2008

SME Survey 2008: Adapting to infrastructure challenges

Are small to medium enterprises coping with power cuts and the prospect of erratic supply for the next half-decade? What about crime? Are other infrastructures failing the SME?

These are among the crucial questions SME Survey 2008 raises as it gauges the competitiveness and profitability of small to medium enterprises which are frequently seen as the engine room of growth in South Africa. Sponsored by Standard Bank and Fujitsu-Siemens Computers, the Survey is in its 6th year and measures sentiment, confidence and the factors which contribute to the competitiveness of an SME.

2008

SME Survey 2008: Adapting to infrastructure challenges

Arthur Goldstuck, principal researcher for SME Survey, notes that the economic landscape in South Africa has changed dramatically in just six months. “From a buoyant economic climate and abundant availability of credit, from a relatively reliable and stable power supply and the assurance that the water from the tap is arguably the best in the world, companies today find themselves cash strapped,” he says.

“In examining the infrastructure challenges which business must today cope, we are referring to the physical environment in which the SME operates. This includes roads, electricity, traffic lights and congestion, transport costs and more. These elements are changing in front of our very eyes and all have an impact on how the SME is likely to perform,” says Goldstuck.

SME Survey 2008 will strongly focus on infrastructure owing to the crisis which is created by load shedding and which has highlighted the lack of planning in certain key infrastructural areas, Goldstuck continues, with research intending to measure the impact from the point of view of the SME.

“We will look at the ability of the SME to deal with these new rules of doing business. Questions that must be asked include the impact that load shedding has had on profitability and competitiveness. Methods of coping with these problems, such as the purchase of laptops or 3G connectivity, will also be explored,” says Goldstuck.

Among the new rules of doing business is the issue of crime. “Government does not need to be told that crime is reaching crisis levels; however, there is a perception that crime against businesses is faceless. It is not. The business owners are people, and crime has a material impact on them and their ability to run a competitive and profitable operation,” Goldstuck says.

According to Scott Gilmour, Head of Customer Strategy for Personal and Business Banking at Standard Bank, small business are impacted by infrastructure challenges.

“However it would be incorrect to imply that the current economic environment is placing significant stress on all small and medium-sized businesses.  Consumer-dependent businesses are more susceptible in the current economic environment as consumer spending comes under pressure, but in general it is reassuring to see that businesses have been holding up fairly well, “says Gilmour.

“Participation in research initiatives such as the SME Survey helps Standard Bank better understand the changing needs of small businesses as they adapt to infrastructure challenges. This increased understanding assists us in developing relevant solutions and disseminating value-added business and banking information that support our business clients, “ adds Gilmour.

Danny de Beer, business development director at Fujitsu-Siemens Computers says: “The questions which this year’s Survey asks are hard-hitting, but there is no question that business, big and small, has been hard hit by changing circumstances,” says Danny de Beer, business development director at Fujitsu-Siemens Computers. “The SME has to deal with a new set of challenges that arguably threaten their ability to survive and prosper. Knowing how these issues are affecting business, and how they are coping, is essential.”

Goldstuck notes that many of the issues raised by the SME Survey have been addressed which is rewarding. The research and its findings can have an influence. “We do ask questions that evaluate how well government is serving the SME. It is reassuring to see the restructuring of and rethinking behind many government support programmes.”


July 2008

Cash Crunch hits SMEs

South African SMEs haven’t forgotten crime, but something more pressing is causing sleepless nights – a cash crisis. This is the shocking interim finding of SME Survey 2008, which indicates that rising fuel and interest rates have surpassed crime and even blackouts as the leading challenge facing small and medium businesses today.

July 2008

Cash Crunch hits SMEs

SME Survey 2008 is sponsored by Standard Bank and Fujitsu Siemens Computers.

According to principal researcher Arthur Goldstuck, a central question posed to more than 5,000 SME owners is ‘What keeps you awake at night?’ “This provides a profile of the issues facing small businesses which they see as serious challenges. In 2007, crime was way above everything else, with 27% saying this was an issue for them; 19% said cash flow. Back then power failures were a problem for a mere 9%,” he says.

This year, he says a dramatic transformation has occurred in SME owners’ experience of the environment – although the impact of crime has not been reduced at all. “Crime remains a steady concern at 27%, but what leaps to the top is the cost of petrol, with 34% of SME decision-makers saying it is giving them sleepless nights, and rising interest rates, at 30%. These are issues which have come from nowhere, barely featuring on the radar last year at below 12%.”

Goldstuck says that, until just two years ago, the financial environment was relatively benign for small businesses. “The cost of money and fuel were not high; however, many companies have now been caught out by the sudden and relentless rate of both elevation of interest rates and fuel prices,” he says.

With the cost of living going up dramatically, exacerbated by the interest rate, Goldstuck points out that it is not just the cost of capital that is increasing. “The SMEs’ customers are under pressure too. People suddenly have to think much more carefully about spending, especially on credit. The retail cycle is turning and that affects the SME first.”

Thys Buitendag, Director of Business Banking at Standard Bank says, “The huge interest rate hikes, fuel and food prices have had an effect on SME’s cash flow. These effects would certainly give them sleepless nights considering the increase in their operating expenses, debtors and bad debts. Standard Bank is committed to supporting SMEs and wherever possible, assisting them through these tough times. Our advice to them is to take heed of the effects of defaulting on their repayments and the implications it would have on their future credit rating.” It is in the interest of SMEs to talk to their banks in the event that they are unable to meet their financial obligations.

“As SMEs come under increased pressure and as they slow down on spending, they also become far more discerning in their purchasing decisions,” says Fred Saayman, Channel Director, Fujitsu Siemens Computers. “We have noticed that SMEs are far more constrained when purchasing hardware and they are looking to get increased bang for their buck when they consider purchasing. One of the key issues that SMEs need to understand in considering IT procurement is the Total Cost of Ownership (TCO) of the equipment that they are buying. After all, it’s no use having a system that fails on reliability, or that requires substantial maintenance and support. We assist customers by taking a holistic look at their requirements and then providing best-in-class solutions to address the very specific requirements of each customer.”

SME Survey 2008 is sponsored by Standard Bank and Fujitsu Siemens Computers

The final results will be released on 23 October 2008 at SME Survey’s Small Company, Big Voice Road show of FREE seminars. Visitwww.smesurvey.co.za to find out more.


Fujitsu Siemens Computers and Makro team up to dispose of e-waste

Fujitsu Siemens Computers and Makro have partnered in a joint initiative to provide consumers and businesses with a safe and environmentally-sensitive method of recycling electronic waste (e-waste). E-waste poses a potential environmental threat and this initiative underlines Fujitsu Siemens Computers and Makro’s commitment to protect the environment for the future.

Fujitsu Siemens Computers and Makro team up to dispose of e-waste

“As a pilot project, an e-waste recycling hub has been placed at Makro’s Woodmead store and we are encouraging people to bring us their e-waste for recycling,” says Bruno Persic, Consumer Channel Manager at Fujitsu Siemens Computers. “People can make use of this hub to recycle all electronic waste including notebooks, PC’s, monitors, cellular phones and calculators, irrespective of brand. We plan to roll this project out at all of Makro’s stores nationwide within the coming months.”

The average computer monitor contains over 10 times the lead that a car does. This could pose an environmental hazard if incorrectly disposed, and the impact would be extremely long-term. Disposing of e-waste in the recycling hub will result in the item being stripped, recyclable elements recycled, and hazardous materials disposed of in an environmentally-correct manner.

“When one considers that about 240 000 notebooks and 120 000 PC’s are sold through the retail channel in South Africa annually, there is the potential for a great deal of e-waste posed by the devices and units that these are replacing. We see it as our responsibility to facilitate the disposal of as much as possible of this waste in an environmentally-correct manner,” concludes Persic.

“As a large retailer of electronic products in South Africa, we believe that it is our duty to facilitate the recycling and environmentally-safe disposal of electrical goods,” says Derick Kalan, General Merchandise Director of Makro Stores. “We are mindful of the potential hazard of e-waste and we believe that by providing this facility, we can make it easier for our customers to dispose of their old equipment.”

NOTE – High resolution images are available from Lance Rothschild – lance@opportunate.co.za


TPC benchmarks validate superior price/performance results for PRIMERGY TX300 S4 server

Setting a new world record, the PRIMERGY TX300 server from Fujitsu Siemens Computers has shaved a huge 25 percent off the industry standard benchmark* for On-Line Transaction Processing (OLTP) in the efficiency bracket. The TPC Benchmark™ E (TPC-E) is a new OLTP workload developed by the Transaction Performance Council (TPC), a non-profit corporation founded to define transaction processing and database benchmarks.

TPC benchmarks validate superior price/performance results for PRIMERGY TX300 S4 server

The new world record is one of the first benchmarks to be achieved using Microsoft SQL Server 2008 – available from August 30 th 2008 – with the PRIMERGY TX300 S4. Built from the ground up to deliver optimum efficiency, lab results validate the PRIMERGY TX300 S4’s performance when coupled with SQL Server 2008, as the industry-standard server goes straight into the top spot on the TPC’s TPC-E price/performance tables. Benchmark tests produced a result of 317.45 tpsE – the number of transactions per second the server can sustain over a period of time – and a price per tpsE of US $523.49. This price per tpsE is some 25 percent lower than the second-placed system, available since April 8 th, with a price per tpsE score of US $694.08, and 295.27 tpsE throughput.

“Our customers benefit directly from our investment in extensive testing in our benchmarking laboratories,” says Monique de Klerk, Portfolio Manager Dynamic Data Centre at Fujitsu Siemens Computers. “Our focus on fine-tuning systems ensures that PRIMERGY servers deliver their best performance in the real world. The new TPC benchmark provides independent validation of our leadership in an area that is very important to datacentre managers and financial controllers alike: the industry’s best price-per-transaction figures.”

Tests were carried out in Fujitsu Siemens Computers’ benchmarking laboratories in Paderborn, Germany, under certified TPC conditions. The results were achieved with a server PRIMERGY TX300 S4 running Microsoft Windows Server 2008 Enterprise x64 Edition and Microsoft SQL Server 2008 Enterprise x64 Edition, with 64GB RAM, and some 188 SAS 3Gb/s 73GB hard drives.

Full details of the test results are available on the TPC web site: http://www.tpc.org/tpce/tpce_price_perf_results.asp

* The TPC test is based on portraying the activity of a brokerage firm, with workload centered on the activity of processing brokerage trades.

About Fujitsu Siemens Computers

Fujitsu Siemens Computers is the leading European IT infrastructure manufacturer and at the same time market leader in Germany. With its strategic focus on innovative mobility and dynamic data centre products, services and solutions, the company offers a unique range of products – from notebooks and desktops up to IT infrastructure solutions and services. Fujitsu Siemens Computers is present in all key markets in Europe, Africa and the Middle East – its Infrastructure Services division is active in 170 countries. The company benefits from the global cooperation and innovation power of both its shareholders, Fujitsu Ltd. and Siemens AG. The focus is on the specific requirements of its customers, be they large, small or medium-sized companies or private consumers.  Fujitsu Siemens Computers is one of the pioneers in using environmentally friendly technologies and processes throughout the entire lifecycle of a product. It is also a member of the Climate Savers Computing Initiative, Green Grid organizations as well as the United Nations initiative "Global Compact".

For more information on Fujitsu Siemens Computers, please visit: www.fujitsu-siemens.com, for Corporate Social Responsibility please see www.fujitsu-siemens.com/aboutus/sor/index.html.


SA research chosen for global small business conference

SME Survey, the largest annual study of factors influencing the competitiveness of small and medium enterprises in South Africa, has scored an international coup. A paper based on the findings of the 2007 edition of the study has been selected for inclusion in the prestigious International Council for Small Business (ICSB) World Conference to be held in Canada in June.

TPC benchmarks validate superior price/performance results for PRIMERGY TX300 S4 server

The paper, entitled “The blueprint for a successful SME in South Africa”, is based on interviews with more than 5,000 decision-makers in small, medium and micro enterprises in South Africa.

“This is a great opportunity to showcase the resources used by competitive SMEs in a developing country such as South Africa,” says the study’s principal researcher, Arthur Goldstuck, who will present the paper at the conference. “SME Survey has always produced groundbreaking insights into issues affecting SMEs in South Africa. Having our 2007 findings presented at a high-level international conference is an indication that the findings have relevance for other developing countries too.”

This will be the 53 rd ICSB World Conference and the theme of the conference is “Advancing Small Business and Entrepreneurship: From Research to Results”. A key aim of the conference is to bridge the gap between research and action.

All papers submitted for the conference are subjected to a peer-review process, with a selection panel scoring the submissions and selecting the highest-scoring papers for presentation at the conference. Researchers, educators, policy makers and business service providers from around the world will attend the event, to be held at the World Trade and Convention Centre in Halifax, Nova Scotia, Canada from June 22-25 2008. 

Scott Gilmour, Head of Customer Strategy for Personal and Business Banking at Standard Bank, says: “Standard Bank is thrilled to learn that local research will be shared at such a renowned platform. This provides a great opportunity for South African entrepreneurs to benchmark themselves against other developing countries, and facilitates an exchange of information that could help accelerate the development of small business in the country.”

Dumisani Mtoba, Portfolio Manager Services at Fujitsu Siemens Computers South Africa, adds: “Fujitsu Siemens Computers is delighted to be able to play a part in the SME Survey 2008. This year we will focus on communicating our proposition for SMEs which is: “Enterprise-class Solutions for Small Business.” This theme concentrates on our holistic offering which sees us complement our comprehensive platform portfolio with services. This enables us to ensure that customers have the added peace-of-mind of our broad range of IT Infrastructure Services, ensuring that they have the best possible solution for their business situation. It’s another way that we deliver on our ‘we make sure’ undertaking.”

The research for SME Survey 2008, presently under way, focuses on the infrastructure challenges faced by SMEs in South Africa. The 2007 research was made possible through the sponsorship of Standard Bank and Fujitsu Siemens Computers, who have also sponsored the SME Survey 2008 project.

Please visit http://www.icsb2008.org/ for more conference details

Please visit http://www.smesurvey.co.za/ to get more information on the 2007 findings