Industry Spotlight for August – Future of Work

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The Future of Work is here, now. Organisations were faced with unprecedented challenges of coping with the work-from-home model, when COVID-19 hit earlier this year. Many organisations managed the pivot very successfully, but all organisations were impacted in some way. Various trends have emerged over the last few months, that are likely to persist long after the immediate COVID-19 measures are removed by countries. In the Ecosystm Digital Priorities in the New Normal study, we find that organisations will continue to cater for remote employees (Figure 1) and keep a firm eye on employee experience (EX).

Organisations will continue to Enable Remote working 2020-21

August has seen these clear trends in the Future of Work

#1 Tech companies leading from the front in embracing the Future of Work

As the pandemic continued to spread across the globe, various companies adopted the work from home model at a scale never seen before. While it is still unclear how the work model will look like, many companies continue to extend their remote working policies for the remaining year, and some are even thinking of making it a permanent move.

Tech companies appear to be the most proactive in extending remote working. Google, Microsoft, and AWS have all extended their work from home model till the end of the year or till the middle of next year.  Earlier in the month Facebook extended its work from home program until mid-2021 and are also giving employees USD 1,000 to equip their home offices. This appears to be a long-term policy, with the company announcing in May that in the next 5-10 years, they expect 50% of their employees to be remote. Similarly, Salesforce and Uber also announced that they would be extending remote working till the mid-next year, and are providing funding for employees to set up the right work environment.

In Australia, Atlassian has made work from home a permanent option for their employees. They will continue to operate their physical offices but have given employees the option to choose where they want to work from.

Some organisations have gone beyond announcing these measures. Slack has talked about how they are evolving their corporate culture. For example, they have evolved their hiring policies and most new roles are open to remote candidates. Going forward, they are evaluating a more asynchronous work environment where employees can work the hours that make sense for them. In their communique, they are open about the fluid nature of the work environment and the challenges that employees and organisations might face as their shift their work models.

Organisations will have to evaluate multiple factors before coming up with the right model that suits their corporate culture and nature of work, but it appears that tech companies are showing the industry how it can be done.

#2 Tech companies evolve their capabilities to enable the Future of Work

Right from the start of the crisis, we have seen organisations make technology-led pivots. Technology providers are responding – and fast – to the changing environment and are evolving their capabilities to help their customers embrace the digital Future of Work.

Many of these responses have included strengthening their ecosystems and collaborating with other technology providers. Wipro and Intel announced a collaboration between Wipro’s LIVE Workspace digital workspace solution and the Intel vPro platform to enable remote IT support and solution. The solution provides enhanced protection and security against firmware-level attacks. Slack and Atlassian strengthened their alliance with app integrations and an account ‘passport’ in a joint go-to-market move, to reduce the time spent logging into separate services and products. This will enable both vendors to focus on their strengths in remote working tools and provide seamless services to their customers.

Tech companies have also announced product enhancements and new capabilities. CBTS has evolved their cloud-based unified communications, collaboration and networking solutions, with an AI-powered Secure Remote Collaboration solution, powered by Cisco Webex. With seamless integration of Cisco Webex software, Cisco Security software, and endpoints that combine high-definition cameras, microphones, and speakers, with automatic noise reduction, the solution now offers features such real-time transcription, closed captioning, and recording for post-meeting transcripts. 

Communication and Collaboration tools have been in the limelight since the start of the crisis with providers such as Zoom, Microsoft Teams and Slack introducing new features throughout. In August Microsoft enhanced the capabilities of Teams and introduced a range of new features to the Teams Business Communications System. It now offers the option to host calls of up to 20,000 participants with a limit to 1,000 for interactive meetings, after which the call automatically shifts to a “view only” mode.  With the possibility of remote working becoming a reality even after the crisis is over, Microsoft is looking to make Teams relevant for a range of meeting needs – from one-on-one meetings up to large events and conferences. In the near future, the solution will also allow organisations to add corporate branding, starting with branded meeting lobbies, followed by branded meeting experiences.

While many of these solutions are aimed at large enterprises, tech providers are also aware that they are now receiving a lot of business from small and medium enterprises (SMEs), struggling to make changes to their technology environment with limited resources. Juniper has expanded their WiFi 6 access points to include 4 new access points aimed at outdoor environments, SMEs, retail sites, K-12 schools, medical clinics and even the individual remote worker. While WiFi 6 is designed for high-density public or private environments, it is also designed for IoT deployments and in workplaces that use videoconferencing and other applications that require high bandwidth.

#3 The Future of Work is driving up hardware sales

Ecosystm research shows that at the start of the crisis, 76% of organisations increased investments in hardware – including PCs, devices, headsets, and conferencing units – and 67% of organisations expect their hardware spending to go up in 2020-21. Remote working remains a reality across enterprises. Despite the huge increase in demand, it became difficult for hardware providers to fulfil orders initially, with a disrupted supply chain, store closures and a rapid shift to eCommerce channels. This quarter has seen a steady rise in hardware sales, as providers overcome some of their initial challenges.

Apart from enterprise sales, there has been a surge in the consumer demand for PCs and devices. While remote working is a key contributor, online education and entertainment are mostly prompting homebound people to invest more in hardware. Even accessories such as joysticks are in short supply – a trend that seems to have been accelerated by the Microsoft Flight Simulator launch earlier this month.

The demand for both iPad and Mac saw double-digit growth in this quarter. Around half of the customers purchasing these devices were new to the product. Apple sees the rise in demand from remote workers and students. Lenovo reported a 31% increase in Q1 net profits with demand surges in China, Europe, the Middle East and Africa.

 #4 The impact on Real Estate is beginning to show

The demand for prime real estate has been hit by remote working and organisations not renewing leases or downsizing – both because most employees are working remotely and because of operational cost optimisation during the crisis. This is going to have a longer-term impact on the market, as organisations re-evaluate their need for physical office space. Some organisations will reduce office space, and many will re-design their offices to cater to virtual interactions (Figure 1). While now, Ecosystm research shows that only 16% of enterprises are expecting a reduction of commercial space, this might well change over the months to come. Organisations might even feel the need to have multiple offices in suburbs to make it convenient for their hybrid workers to commute to work on the days they have to. Amazon is offering employees additional choices for smaller offices outside the city of Seattle.

But the Future of Work and the rise of a distributed workforce is beginning to show an initial impact on the real estate industry. Last week saw Pinterest cancel a large office lease at a building to be constructed near its headquarters in San Francisco. The company felt that it might not be the right time to go ahead with the deal, as they are re-evaluating where employees would like to work from in the future. Even the termination fees of USD 89.5 million did not discourage them. They will continue to maintain their existing work premises but do not see feel that it is the right time to make additional real estate investments, as they re-evaluate where employees would like to work from in the future.  

There is a need for organisations to prepare themselves for the Future of Work – now! Ecosystm has launched a new 360o Future of Work practice, leveraging real-time market data from our platform combined with insights from our industry practitioners and experienced analysts, to guide organisations as they shift and define their new workplace strategies.   


Ecosystm Principal Advisors; Tim Sheedy (Technology), Ravi Bhogaraju (People & Organisations), and Mike Zamora (Infrastructure & Offices) provided holistic view of what the Future of Work will look like.
Ecosystm Engage Future of Work

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Sustainable Cities: Going beyond Smart Cities

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Today nearly 56% of the global population lives in an urban environment. The city has finally become the dominant place to live. Given the changing environment and increasing technology, the city has begun to dramatically change in the past 5-10 years. And it will continue to evolve and change at an increasingly faster pace.

As technology has developed and influenced the city, the term “Smart City” has become prevalent. Technology is an important attribute of a city’s evolution. However, it is just one of the attributes. A more encompassing and enduring term could be a “Sustainable City”. The definition of a Sustainable City that I subscribe to is:

A vibrant community which can adapt and grow over the years, due to changing demographics and economic conditions. It is based upon multiple attributes.”

This definition begins to describe the holistic and long-term issues associated with the complexities of an urban environment. A Sustainable City has a goal of being an enduring and competitive place to work, live, learn, and play.  It requires many aspects.  Some of these are:

  • Purpose. Entertain, eat, work, live, learn
  • Activities. Walk, bike, play, work, learn, etc.
  • Scale. Human scale not mega blocks
  • Natural Environment. Location, terrain, water, etc.
  • Environmental Implications. Resource usage, output disposal, environmental footprint, etc.
  • Dynamic. Changing through the day/week as needed (festival, farmer’s markets, sporting event)
  • Transportation. Walk, bike, mass transit – beyond cars
  • Connectivity. Smart & effective infrastructure (utility & transportation coordination, etc.)
  • Built Environment. Smart & efficiently operated buildings, spaces, etc.

A city is also a three-dimensional physical puzzle. It is composed of multiple layers: Subterranean level (utilities, transportation, walkways, retail); Ground level (streets, walkways, public spaces, open areas, building entrances);  Concourse (walkways, retail, elevated rail, etc.); and Air Space (skyscrapers, bridges).  This three-dimensional layout adds a level of complexity.

Key Stakeholders in a Sustainable City

Another important layer to consider consists of the four main players that need to work together:

  • People (employees, students, families, tourists)
  • Businesses (large, small/medium, start-ups, etc.)
  • Built Environment (developers, real estate investors, consultants, designers, engineers, etc.)
  • Government (local and regional)

For a city to be enduring and sustainable, the four main players need to work in a concerted effort. They need to  discuss, advise, decide and provide for an environment which can change or be modified based upon a particular city’s needs. No one player truly has the ability to control how the city develops over time. Instead all of them work together along with the marketplace and land economics to determine the success of a city in the long run. Idea generation can come from any of these players and is tested in the marketplace. Figure 1 shows the interactions between these four key stakeholders. When all the groups work together, they are able to attain that “Sweet Spot” which enables a location to have the characteristics of a sustainable Global City. In the most simplistic terms, the Sweet Spot for a Sustainable City is the on-going quality of life that the city provides to its occupants.  

Sustainable Cities: Players, Roles and the sweet spot

The Dynamic Nature of a Sustainable City

Some believe that once a city or regional masterplan has been developed and approved the only thing left is to implement and enjoy. As a city and its inhabitants are dynamic, a longer-term sustainable view might be that the completion of the environment is just a starting point. The cases in point are the great global cities whose origins have started many generations ago, such as London, New York, Berlin, Tokyo, and so on  This means that through use, the environment and space will constantly be assessed to evaluate if they are meeting the changing needs of the city or location. The appropriate adjustments or modifications are required over time. This is what has been done over the past centuries for many global cities. The difference between then and now is that with technology permeating everywhere, the ability to assess and adjust the environment will now be done at a much faster rate.

As builders and/or occupants of the environment we are just the current Stewards of the urban environment. Stewardship is a delicate balance between Return on Investment and Return to Society. The city is a dynamic environment which will continue to evolve over time based upon its changing needs. We have to determine whether we are going to change and improve the environment or just “pluck the fruits” from the existing assets. We should make sure that when we design and develop the urban environments it is with long-term sustainability in mind.


Download Report: The Top 5 Cities of the Future trends for 2020

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Top 5 Cities of the Future Trends for 2020

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Tech Spotlight for June – Cloud

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5/5 (1) As organisations stride towards digitalisation, re-evaluate their business continuity plans and define what the Future of Work will look for them, Cloud adoption is expected to surge. In June, there were several announcements that indicate the market is responding to this increased interest.

Cloud Providers Gearing up to Enable Economic Recovery

Global economies are slowly gearing up for a technology-led recovery phase and several organisations are taking advantage of the disruption to start or accelerate their digital transformation plans. Many are looking at this as a good opportunity to replace their legacy systems. Cloud providers are expected to lead from the front when it comes to helping the economy recover.

Government agencies have been immensely impacted by the COVID-19 crisis and will need to shift fast into the recovery mode. Salesforce launched a multi-tenant dedicated Cloud infrastructure for their US Federal, state and local government customers, government contractors, and federally funded research and development centres. Hosted on AWS GovCloud and FedRAMP compliant, it provides customers with a compliant and secure environment to deploy Salesforce’s CRM platform and industry solutions. The launch is expected to empower government agencies with the ability to deliver better services, scale to unprecedented demands and connect to citizens on their channel of choice.

Initiatives such as the UK Crown Commercial Service (CCS) and Google Cloud agreement will also help in the recovery phase. This allows qualified public sector agencies to avail of a discounted price for their Google Cloud deployments. Earlier in the year CCS entered into a price arrangement with Microsoft as well. If Cloud has to be the vehicle for economic recovery, such arrangements will benefit cash-strapped public sector organisations.

The recovery will also require the entire technology ecosystem to engage not only with large enterprises but also small and medium enterprises (SMEs). Alibaba Cloud announced an investment of US$ 283 million to revamp its global partner program. They plan to introduce new partner-customer communication processes to enhance response time and bring more opportunities to independent software vendors (ISVs) managed service providers (MSPs) and system integrators (SIs) as partners.

Europe Emerging as a Cloud Hub

As a fallout of the current political scenario, Europe is pushing for more cloud independence and to become an innovation hub as a vendor-neutral network for cloud computing providers and their customers.

GAIA-X Foundation is a federated data infrastructure project initiated to build a unified system of cloud and data services to be protected by EU Laws – including GDPR, the free flow of  non-personal data regulation and the Cybersecurity Act. France and Germany kicked off the GAIA-X cloud project last year and the system is open for participation to national and European initiatives for exchange of data across industries and services such as AI, IoT and data analytics. GAIA-X took another step towards becoming a real option for European organisations with the establishment as a legal entity in June. Various organisations – including Dassault, Orange, Siemens, SAP, Atos, Scaleway and Deutsche Telekom are a part of this non-profit platform, working together on Cloud applications, high-performance computing as well as edge systems. The project is expecting to release a working model by early 2021 and will be further enhanced in phases.

Global Cloud leaders are also focusing on expanding their presence in Europe. In February, Microsoft announced a new data centre in Spain leveraging Telefónica infrastructure. In a similar move, Google Cloud announced its plans to expand in the region in partnership with Telefónica. Telefonica and Google are expected to jointly work on Spain’s digitalisation through edge infrastructure and 5G for consumers and telecom infrastructure.

Cloud Providers Bolstering their Cybersecurity Capabilities

2020 has witnessed a host of cybersecurity threats and data breaches. While Cloud providers have always evolved their cybersecurity capabilities, it has become important for them to become vocal about these measures to build trust in the industry.

To complement the Microsoft Azure IoT security, Microsoft acquired IoT security specialist CyberX, last month. The acquisition will enable greater security for the IoT devices connected to the Microsoft network and will help their customers to gain visibility through a map of devices thus allowing them to gather information on security risks associated with thousands of sensors and connected devices. This will enhance smart grid, smart manufacturing and digital assets and profiles and reduce vulnerabilities across production and supply chain.

In another move which will benefit the ISV and SI ecosystem, NetFoundry’s zero trust networking API is now available on RapidAPI. RapidAPI’s marketplace enables developers to easily find, connect to, and manage the APIs they need to build a range of applications. Now the ISV and developer community can access NetFoundry’s software-only, zero trust models on RapidAPI.

More Partnerships between Software/Industry Solutions Providers and Cloud Providers

The COVID-19 crisis has had a far-reaching impact on several industries. The technologies that are expected to see the most uptake are IoT and Future of Work technologies.

Ecosystm Principal Advisor, Kaushik Ghatak says, “COVID-19 has brought to the fore the need for managing risks better. And the key to managing risks is to have better visibility and drive data-driven decisions; the sweet spot for IoT technologies.”

Last week, Microsoft and Hitachi announced a strategic alliance to accelerate the digital transformation of the Manufacturing and Logistics industries across Southeast Asia, Japan and North America. The first solutions are expected to be made available in Thailand as early as this month. Hitachi brings to the table their industry solutions, such as Lumada, and their IoT-ready industrial controllers HX Series. These solutions will be fully integrated with the Microsoft cloud platform, leveraging Azure, Dynamics 365 and Microsoft 365.

Another sector that has seen significant disruption is Real Estate. Ecosystm Principal Advisor, Andrew Milroy in his blog Proptech: Driving Digital Transformation in the Wake of COVID-19 sees a real opportunity for the sector to transform. “Many activities within the property ecosystem have remained unchanged for decades. There are several opportunities for digital engagement and automation in this sector, ranging from the use of robots in construction to the ‘uberisation’ of the residential property customer journey.”

June saw Honeywell and SAP partner to create a joint cloud-based solution based on Honeywell Forge and SAP cloud. The cloud solution is aimed at real estate operators and customers providing aggregated financial and operational insights in real-time. The solution leverages the Honeywell Forge autonomous buildings solution and the SAP Cloud for Real Estate solution, enabling facility managers and building owners to reposition their real estate portfolios through parameters such as cost savings and energy efficiency and help improve the tenant experience.

As organisations struggle to maintain operations during the ongoing crisis, there has been an exponential increase in employees working from home and relying on the Future of Work technologies. Ecosystm principal Advisor, Audrey William says, “During the COVID-19 pandemic, people have become reliant on voice, video and collaboration tools and even when things go back to normal in the coming months, the blended way of work will be the norm. There has been a surge of video and collaboration technologies. The need to have good communication and collaboration tools whether at home or in the office has become a basic expectation especially when working from home. It has become non-negotiable.”

AWS and Slack announced a multi-year partnership to collaborate on solutions to enable the Workplace of the Future. This will give Slack users the ability to manage their AWS resources within Slack, as well as replace Slack’s voice and video call features with AWS’s Amazon Chime. And AWS will be using Slack for their internal communication and collaboration.

Delivering excellent customer experience in the midst of the crisis has proved to be difficult for organisations. Customer care centres have been especially impacted by high volumes of customer interactions – through voice and non-voice channels. This will see a major rise in adoption of cloud contact centre solutions. Contact centre providers are ramping up their capabilities in anticipation. Genesys selected AWS as their preferred cloud partner to deliver new features to customers and build a global and secure infrastructure.

 

The industry can expect more news from Cloud providers in the next few months as they ramp up their capabilities and channel their go-to-market messaging.

 


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