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A CONVERGED FUTURE

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Updated : April 5, 2015 00:31  am,
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img55Converged infrastructure promises to do away with many challenges of traditional datacenter architecture as it offers scalable integrated solutions

Converged infrastructure promises ease of deployment, central management, and optimization as it brings together storage, servers, networking, and management together. Leading vendors have been rolling out new converged infrastructure systems. Their objective is to offer a new way of integrated IT that radically redefines the way IT infrastructure is built and maintained and is geared to support cloud ready environments.

The value-propositions are quite appealing for both SMB and enterprise customers. It helps meet Technology expectations such as eliminate silos, simplify systems management, adopt efficiencies and effectiveness through virtualization, improve TCO alongside reduced footprints, improve automation as well as make the infrastructure far more agile.

Shams Hasan, Enterprise Product Manager, Middle East at Dell says, “Converged infrastructure is one of the fastest-growing segments of the IT industry.  Integrated infrastructure delivers ease of deployment, reduces capital equipment expenses, facilitates scalability and reduces management complexity.  Converged solutions are being widely adopted by large enterprises where infrastructure sprawl has chewed up budgets and made scalability a challenge, and as a method to speed delivery of IT services. They are also proving to be beneficial to IT-strapped small and mid-sized organizations, which often lack the skills and resources to keep up with increased business demands for IT services.”

According to Kartik Shankar, Senior Sales Manager, StorIT Distribution, as data centres and storage solutions continue to evolve, converged infrastructure is also taking the centre stage in modernization. Organizations that have invested in software-defined technologies for their data centre transformation are seeing value in converged infrastructure solutions.

He adds, “The trend towards converged infrastructure is primarily driven by TCO and performance objectives demands of emerging technology solutions. Sizing key components of the IT system infrastructure gets highly complex and challenging to meet the objective through the traditional way. Currently converged infrastructure is the most matured approach to address these challenges and backbone/infrastructure backbone of web 3.0.”

The traditional datacenters have seen the sprawl of technology silos of storage, networking, compute as separate racks. This is addressed through taking the convergence route to IT deployment.

Suda Srinivasan, Director for Product Marketing at Nutanix says, “Enterprise datacenters have become incredibly complex over the years. Every aspect of the legacy infrastructure lifecycle is a challenge, from buying and deploying to managing, scaling and support. At the heart of the problem is the traditional three-tier infrastructure model, with servers connected over a network to a shared scale-up storage solution. Converged infrastructure, or more specifically hyperconverged infrastructure, addresses this problem of complexity.”

There are two approaches to achieving the integrated systems infrastructure deployment. VCE, part of the EMC Federation champions the hardware-focused, building-block approach which is categorised as converged infrastructure whereas Nutanix, SimpliVity and recently VMware etc offer hyper-converged infrastructure, taking the software defined route. While converged systems are in general separate components that are designed to work well together, hyper-converged systems are modular. Hyperconverged solutions integrate compute and storage resources in a single x86-based server deployed in scale-out clusters.

Hyperconvergence in the ascent

Virtualization has pretty much become a standard for enterprise infrastructure except for a few legacy business critical applications. Converged or hyper-converged infrastructure can help realize greater benefits of virtualization.

Karthik says, “We can find enterprise setups managing both virtual and physical environment in many cases. This is majorly due to the limitations in the traditional infrastructure approach and support/compatibility challenges from the application vendor, etc. This is where converged infrastructure plays a major game changing role by providing custom engineered system components fine-tuned to run even legacy applications. This approach helps to balance and align the right system components to meet the business requirement, with improved performance and ease of infrastructure management.”

Hyperconverged infrastructure uses the webscale approach that is modular and scales up as required. This is well aligned with the needs of virtualization and cloud based infrastructure.

Shams says, “Once deployed, with web scale, the converged compute and local storage platform with distributed software technology can create extremely dynamic data centers that can easily be scaled.  This strategy and capability is crucial for the modern data center.”

According to Jan Ursi, Senior Director, Channel Sales & Marketing for EMEA and India at Nutanix, the traditional datacenter architecture with multiple components that need to be glued together manually is not built for virtualization or cloud. It is too complex, too rigid, scales in too large increments and slows down provisioning of new applications

He adds, “Virtualization is the default vehicle to Cloud, but the underlying IT infrastructure needs to change, learning from the most successful web companies like Google, Amazon, Azure, Facebook, etc. Simplifying the datacenter by virtualizing without a SAN, using a converged webscale virtual computing platform is critical for Virtualization and Cloud projects to live up to their promise.”

Nutanix, the leader in the hyperconverged space deploys more hyperconverged infrastructure than all other players in this space together with a 52% market share, according to IDC. The EMEA region represents around 25% of the global Nutanix footprint.

“Hundreds of datacenters rely on Nutanix to run their critical applications already for many years. The Nutanix projects are a mix of size and verticals, serving SMB enterprises like ADD in Belgium to large organizations like Orange Business Services. The uses vary from running critical tier-1 server workloads like Microsoft SQL, Oracle, SAP, and Microsoft Exchange to others like VDI, Big Data, Branch Office and Disaster Recovery projects,” says Jan Ursi, Sr. Director, Channel Sales & Marketing for EMEA and India at Nutanix.

Nutanix offers a software-defined solution that does not rely on any purpose built hardware. The Nutanix solution runs on a commodity server architecture on top of any industry standard hypervisor (VMware, Microsoft hyper-v or KVM).

However, customers can also choose between a wide portfolio of Nutanix nodes with a different mix of compute and storage resources on board. Next to the native Nutanix NX series appliances, customers can also opt to source the Dell XC series converged webscale appliances powered by the Nutanix software.

Some divergence with the convergence

There are two approaches for converged infrastructure. One where a single vendor owns all the technology, bundles it, tests it and then sells it as a single bundled solution to the customer. The second approach is when different vendors collaborate to bring the latest and best solutions based around a validated reference architecture that describe configurations of server/storage/networking products, which is integrated into one unified solution that is assembled, integrated and tested before selling it to the customer.

The converged infrastructure space is populated by many of the large sized vendors including some new start-ups. The vendors in the fray include EMC, NetApp, Cisco IBM, Hitachi, HP, Dell, Oracle etc. Reference architecture offerings include NetApp’s Flexpod and EMC’s VSPEX. Hitachi offers both pre-fabricated solutions and reference architectures under its Unified Compute Platform (UCP).

The flexpods

Flexpod is a reference architecture that uses technology from NetApp and Cisco Systems. The FlexPod solution portfolio combines NetApp storage systems, Cisco Unified Computing System servers, and Cisco Nexus fabric into a single, flexible architecture.

“The FlexPod, is a combination of networking servers from Cisco, NetApp storage with software from VMware for virtualization. The result is an integrated stack which solves the problems companies had in the past of buying and building their solutions and trying to make them work. The FlexPod is configured to work from the get go and is typically used by customers wishing to build a private cloud and then start to move towards a hybrid public,” says Graham Porter MENA Channel Manager.

The Flexpod converged portfolio has three offerings. Flexpod Datacentre is designed for large environments. FlexPod Express is targeted at small and medium-sized businesses. Finally, there is FlexPod Select, which is targeted at high performance workloads, including Hadoop big data analytics. According to NetApp, FlexPod has seen a sharp uptake in deployments and is an area of growth for the company moving forward.

Fadi Kanafani Regional Director, MENA and Pakistan at NetAPP says, We have 50 validated designs between us and Cisco for this integrated stack which makes it the number one converged cloud-based solution in the market now, a market that now exceeds 3B dollars globally. We have in excess of 4000 customers on the FlexPod which is showing over 80% growth from 2013 to 2014. ”

The VCE way

VCE, one of the key players in converged infrastructure, is a company founded by EMC, VMware and Cisco and now owned largely by EMC. The company has an appliance based approach and offers Vblocks that are prefabricated in their factories according to customer requirements.

Tom O’Reilly, CTO – Middle East & Africa at VCE says, “Vblock is a highly engineered single product. We have determined the best possible way to configure networking, storage, software, compute and virtualization altogether into one product. We manufacture our Vblocks in the factory, where we build not only the physical box, wherein we rack, stack, power and cable everything but we also logically configure the entire v-block for a customer’s datacenter. We also do logical configuration survey (LCS) at the customer site before that to understand the environment as to how they want use the Vblock. So when our v-blocks arrive at the site, they are ready to powered on, connected to the switches, to the networking and all ready to deploy mission critical applications.”

The company provides customers support through the full lifecycle. It provides a one window support for different elements of the vblock.

He adds further, “Each v-block is a single product to us and since we built it, we are best placed to provide the support. We do the support for the entire stack that includes networking, storage, compute, networking, virtualization etc.”

VCE also have a proprietary software called pro vision intelligent operations (Vision IO). This helps customers to manage the Vblocks as a single set of resources rather than have a tool to manage software, storage, networking etc separately. It gives them a view of the entire datacenter. In addition, VCE also has the Release Configuration Matrix (RCM) – essentially a firmware level for the v-block.

Tom says, “When we ship the vblocks from our factory, they are in a known good state; we know that they have been configured correctly and everything has been tested and validated. When a release is come from EMC, Cisco or VMware, customers may want to do updates for security or performance reasons whatever, we on a regular basis release a RCM – so that customer can have an entire firmware level update for the v-block instead of customers teasing and doing each update on their own. We do the testing and validation in our labs before we release the RCM so that spares the customer the hassle. This is true convergence as we approach it.”

The EMC Federation appears poised to take advantage of the growing demand for converged systems, especially in data centres. So the companies that are part of the Federation operate as separate entities while they have integrated product development.

Tom adds, “When we became part of EMC, anything that was part of converging technologies was put under the VCE umbrella. Today there is EMC VSPEX- which is reference architecture, EMC VSPEX blue- which is their hyper converged solution that they just announced and is built upon VMware’s EVO:RAIL,  and then there is the VCE Vblock. These solutions all provide some rapid ways of achieving some standard goals from customers and wrap the customer expectations around the solutions. The go to market strategy remain the same- VSPEX and VSPEX blue remain EMC products – it is just that their Marketing and Engineering will be under the VCE umbrella and report to the VCE Management. They go through the EMC channel. Our go to market stays the same with the VCE channel.”

VCE is now expanding its lineup of integrated infrastructure solutions with the VCE Foundation for Federation Enterprise Hybrid Cloud. This integrates VMware’s NSX network virtualization technology and vRealize management and orchestration software. In addition, the solution includes EMC’s ViPR software-defined storage (SDS) product.

Tom adds, “We are going to offer VCE foundation for enterprise hybrid cloud. Software defined storage, software defined networking and management orchestration tools will be pre-fabricated in a v-block from our factory. That will speed up the customer’s path to deploying enterprise hybrid cloud. That will be offered to the channel.”

The outlook

Adopting either of the key approaches, through convergence or hyperconvergence, the end goals are better alignment of the IT infrastructure in line with need to rapidly provision computing resources but only as required, to reduce footprint and eliminate sprawl, achieve pooling of resources in a seamless way and have the ability to scale. Vendors are betting on significant growth in terms of demand for such integrated systems.

MarketsandMarkets forecasts the converged infrastructure market to grow from $11.53 billion in 2014 to $ 33.89 billion in 2019 at a Compound Annual Growth Rate of 24.1%. MEA is also expected to experience significant growth during the forecast period. For the channel, those who have a strategic client base and have a great understanding of their client’s organization and their business needs, will hold the interest of value add distributor and vendors looking to take these solutions to market.

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Establishing data sovereignty in a ‘datafied’ world

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By: Omar Akar, Regional Vice President for Middle East & Emerging Africa, Pure Storage

Data is the currency of the digital domain, and with every passing day, the world is getting increasingly ‘datafied’. Billions of gigabytes of digital data pertaining to citizens, businesses, governments, and institutions are generated, collected, and processed every day. Understandably, there are concerns about how we can protect personal data, business data, as well as sensitive data that has implications for national security.

Challenges associated with data sovereignty

It is possible that a company based in a certain country uses cloud infrastructure from a provider abroad, and that cloud provider also has customers in other countries and regions. If data collection, data storage, and data processing happen in different countries, it will be subject to the data sovereignty rules of all those countries. Many of the concerns surrounding data sovereignty pertain to ensuring data privacy and preventing data that’s stored abroad from violating the laws of that country. Many countries have therefore introduced new laws, or modified the existing ones, so that data is kept within the boundaries of the country where the individual or entity is based. However, verifying that data indeed exists only at permitted locations can be very difficult.

On the other hand, storing huge amounts of data at only a few locations can increase the risk of data loss and data theft through cyberattacks, which can have huge ramifications on the financial health and reputation of businesses.

Moreover, data sovereignty makes it complex to share data across international borders. This can increase cost and inefficiencies for any business that operates across multiple countries and requires flow of data between its offices. Such businesses must now establish infrastructure in local data centers to comply with data protection regulations in each country. Companies also need to keep in view the data sovereignty requirements of each country and international data sharing agreements while wanting to share data which can impact business operations.

Ways to ensure data sovereignty and elevate data performance

Although establishing data sovereignty is undoubtedly challenging, there are some best practices and approaches that can help in achieving it and elevating data performance. Organizations should conduct a comprehensive audit of their data, including where it is stored, processed, and shared. This is the first step in identifying potential data sovereignty risks and ensuring compliance with the relevant laws and regulations of the concerned countries. It is also necessary to adopt data protection measures — such as encryption, access controls, and monitoring — to prevent unauthorized access and use of data, whether it is in transit or at rest.

The company’s data protection policy should define protocols for handling and storing data as well as measures for protecting it. This policy should be regularly reviewed and updated to keep up with any changes in data protection laws and regulations. If an organization has a footprint spanning multiple regions, it is a good idea to take the strongest data sovereignty laws among them and implement it across all regions. Cloud providers can be of assistance in this regard.

Benefits of working with cloud service providers

Most cloud providers have data centers in multiple countries. Organizations should go for a provider whose data residency provisions are aligned with their own data sovereignty requirements. Today, leading cloud providers also offer other features, including data encryption, that can help in achieving data sovereignty. To take it one step further, companies must introduce strict data governance processes in the cloud. This will ensure regulatory compliance, risk assessment, and risk mitigation at all times.

Data sovereignty laws apply not only to data but also to data backups. It is therefore important to understand how your organization backs up information — whether it is done on-premises or using dedicated cloud services or public cloud services. Adopting cloud-ready solutions and leveraging the benefits of all-flash storage is one of the ways to future-proof your organization’s data storage infrastructure. Uncomplicating storage will help in reimagining data experiences and powering the digital future of the business.

Finally, it is important to view data sovereignty holistically, and not as the exclusive responsibility of any one individual or team. The need to comply with data regulations extends across the board, from businesses to suppliers to the end-users. From a business perspective, ensuring data sovereignty calls for robust governance, holistic risk management, and concerted efforts on the part of the IT security, legal department, procurement, risk managers, and auditors — under the guidance and supervision of the company’s Chief Information Officer. It is a good way to build digital trust in today’s business environment.

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HOW FSI INCUMBENTS CAN STAY RELEVANT THROUGH THE GCC’S PAYMENTS EVOLUTION

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By Luka Celic, Head of Payments Architecture – MENA, Endava

Banks and payment services providers (PSPs) have been the region’s engines of economic growth for as long as anyone can remember. It is therefore jarring to imagine that this dominance is now under threat. After all, venerable banks and credit card companies have elegantly embraced the Internet, mobile banking, and the cloud to deliver self service banking to millions of customers. But consumers, especially digital natives, have never been known for congratulating an industry for a job well done. Instead, with each convenience, their expectations only grow. The siege reality of the pandemic accelerated a shift in consumer behaviour, and Middle East banks and PSPs now face challenges on three fronts.

The first is FinTechs. from Saudi Arabia’s BNPL (buy now, pay later) pioneer Tamara and Qatar’s unbanked oriented platform cwallet, to online financial services, Klarna, tech startups have been able to tap into rapidly changing consumer markets. New companies find it easier to pivot. And like speed boats racing against aircraft carriers, they weaved effortlessly to fulfil a range of desires amid high smartphone connectivity rates and a range of other favourable market conditions. By one estimate from 2022, BNPL alone accounted for US$1.5 billion (or 4%) of the Middle East and Africa’s online retail market.

The second threat is open banking, which comes in many forms, but one example is the instant-payments platforms being introduced by central banks such as those in Saudi Arabia and the United Arab Emirates. To get a sense of how this could play out, we need only look to Europe, where players who once relied on payments through card schemes are now pivoting towards open banking enabled payments. Closer to home, Al Ansari Exchange recently announced its customers can now transfer money and settle bills via the recipient’s mobile number, enabled by the UAE’s Aani IPP.

And finally, comes big tech. To augment its e-wallet service, Apple has signed up to an open banking service in the UK. The open banking framework which banks enabled through their investments is being exploited by a Big Tech firm that has access to 34% of UK smartphone users. Unsurprisingly, this sparked a fierce antitrust complaint by UK’s banks. Other big names will surely follow as they continue to craft ways of offering the digital experiences that garnered them user loyalty in the first place.

THE BALANCE

Apple Wallet is aimed at blending payment methods, loyalty cards, and other services into a single experience. But such moves have raised regulators’ eyebrows regarding a lack of interoperability and the preservation of competitive markets. Hence, Apple’s open banking foray — a gesture to calm the nerves of a finance market that fears having to compete with a company armed with countless millions of user transactions from which to draw insights. The massive user bases of tech giants will give any FSI CEO goosebumps. How does a traditional bank lure an Apple user? Open banking initiatives open the door to greater competition and innovation, both of which are good for consumers. But the only way to ensure both is by building an ecosystem that balances innovation with regulatory oversight.

FROM INCUMBENT TO INNOVATOR

Yes, smaller businesses have freedom of movement that larger incumbents do not. But that does not mean that there are no paths for banks and PSPs. There are, in fact, several strategies that larger FSI companies can employ to capitalise on the open banking revolution.

The first of these is collaborating to create ecosystems that provide users with frictionless experiences. Established FSIs already have access to a wealth of information about their customers and must now consider how to integrate data sources to create highly streamlined and frictionless workflows. A customer applying for a loan could then see their details auto populated, and credit history already accounted — all without the hassle of lengthy phone calls, application forms, or submission requests. In an age when instant is everything, it’s easy to see why the former approach could foster loyalty, while the latter would only serve to drive customers towards more capable competitors.

Card companies and issuer banks could also work with acquirers to smooth out the rough landscape that has arisen from the advent of digital payments. Acquirers traditionally acted on behalf of the merchants that accepted payment methods to recoup funds from the PSP through the issuing bank. This system has served the industry well, but with more payment methods emerging, acquirers have branched out into mobile wallets, QR codes, and gateway services. Gradually the relevance of established players has dwindled as their lack of representation at the critical checkpoint has diminished their significance. Incumbents must work to turn back the tide by recognising that acceptance and acceptance ownership are becoming increasingly important for maintaining market relevance.

Another strategy is diversification. Veteran FSIs may feel like they’ve lost ground to nimble start-ups and Neo Banks, but history shows value in patience — established FSI players now benefit from the investments of early innovators, and double down on payments innovations which have already shown the most promise. Moreover, if they diversify their portfolios through acquisitions, innovations, and partnerships, they can secure their future. Mastercard presents an excellent example with their US$200m investment into MTM payments. This single move has given the company access to MTM’s 290 million strong subscriber base, allowing these customers to become familiar with Mastercard products before getting entrenched with mobile wallet alternatives.

WHO’S ON TOP?

If we look at the rise of BNPL services, we see an origin story with — at least — major supporting roles for large card providers. But open banking has sidelined them in just a few years. BlackBerry was a stock market darling just five years before it sought a buyer. Traditional FSI players must innovate; they must collaborate with emerging disruptors; they must diversify. They can survive and thrive if they do these things — after all, they already have much of the infrastructure, and experience required for success. Middle East banks and PSPs have the existing user bases, so they have the scale to get out in front in the era of open banking. All they lack is the kind of compelling use cases that will entice the banking public. PSPs and their issuers could offer embedded payments, for example. The right services at the right time will be warmly received by consumers, no matter the scale of the offering institution, so there is every reason to believe that incumbents will come out on top against FinTech and Big Tech.

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SEC paves way to approve spot ethereum ETFs

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By Simon Peters, Crypto Analyst at eToro

Ethereum spot ETFs took a significant step forward to being available to US investors last week with approval of the 19b-4 applications, allowing US exchanges (namely Cboe BZX, NYSE Arca and Nasdaq) to list and trade ethereum spot ETFs.

On the back of this, ethereum has been one of the best performing cryptoassets this week, gaining 19%.

According to a recent survey by eToro with retail investors in the UAE, over 74% respondents agreed that the prospect of an ethereum ETF will significantly influence their decision to increase, decrease or maintain their current ethereum allocation.
Focus now turns to the S-1 registration statements from the ETF issuers, as these still need to be approved by the SEC before the ethereum spot ETFs can actually launch and investors can buy them.

As to when the S-1s will be approved we have to wait and see. It could be weeks or months unfortunately.

Nevertheless, with the 19b-4s out of the way, it could be an opportunity now for savvy crypto investors to buy ethereum in anticipation of the S-1s being approved, frontrunning the ETFs going live and the billions of dollars potentially flowing into these.

We’ve seen what happened when the bitcoin spot ETFs went live, with the bitcoin price going to a new all-time high in the months after. Could the same happen with ethereum? The all-time high for ethereum is $4870, set back in 2021. We’re currently at $3650, about 35% away.

We’re also going into a macroeconomic climate with potentially looser financial conditions, i.e. interest rate cuts and a slowdown of quantitative tightening, conditions where risk assets such as crypto tend to perform well price-wise.

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