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E-Business

Public or Private Cloud Adoption in Manufacturing Sector Grows – IDC

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The transition to “cloud also” or “cloud first” is well under way for manufacturers around the globe according to new survey results from IDC.  In fact, in the United States, 41% of manufacturing respondents indicated they are accessing IT resources via the public cloud, based on the IDC Global Technology and Industry Research Organization IT Survey, 2014.

This new IDC study, “Worldwide Cloud Adoption in the Manufacturing Industry,” (Document#MI255221) analyzes the current trends and future plans for cloud adoption among manufacturing enterprises worldwide, based on several IDC surveys including the 2014 IDC CloudView Survey.

The advantages of cloud computing for manufacturers are significant, as line of business leaders and their IT organizations increasingly rely on cloud to flexibly deliver IT resources at the cost and speed the business requires.

Traditional IT spend is clearly on the decline, and manufacturers must update their cloud roadmaps to ensure their investments benefit the business.

According to the IDC European Vertical Markets Survey, 2014, almost 50% of European manufacturing respondents noted they have adopted or will adopt ERP in the public cloud.

And in Asia Pacific, 49% of manufacturing respondents are using cloud – public or private – or intend to use cloud, based on the 2014 IDC Manufacturing Insights Asia Pacific Business and IT Priorities Survey.

Key findings from this new report include:

A majority of manufacturers worldwide are currently using public (66%) or private cloud (68%) for more than two applications, according to the respondents that qualified for our 2014 IDC CloudView Survey

“Cloud Also” remains the most common strategy for new and replacement IT investments in the public cloud; 61.6% indicated their company’s posture for net new IT services is “cloud also”, and the number is only slightly lower for replacing IT existing functionality (56.8%).

IT operations are the primary benefactor today from manufacturers’ cloud strategy, and only 30 – 35% of respondents indicate operations, supply chain and logistics, sales, or engineering expect to benefit.  And only 41% of respondents believe giving business units more direct control over sourcing their own IT services is a top 4 driver for moving to the cloud.

Cloud services and cloud architecture’s share of the annual IT budget allocation is going to increase 27% in the next two years for manufacturing respondents in the 2014 IDC CloudView Survey.

Cloud computing will become the de facto standard for new operations (through organic or acquired growth) over the next 10 years for manufacturers that want to operate and serve customers globally. Manufacturers will increasingly rely on enterprise and industry clouds for access to information, technology resources, and operational support. To prepare, manufacturers will also need to review their underlying network and communication infrastructures.

 “Manufacturers are in the midst of a digital transformation, in which 3rd platform technologies are absolutely essential to the way they do business and in the products and services they provide to their customers.  Consequently, a strategic approach to adopting cloud is absolutely essential,” said Kimberly Knickle, research director, IDC Manufacturing Insights. “Because of cloud’s tremendous value in making IT resources available to the business based on business terms –speed, cost, and accessibility- manufacturers must  ensure that the line of business and IT management work together in defining their requirements.”

According to the report, one of the ways in which cloud will bring significant value to the business is in allowing manufacturers to more easily make use of the data that will be connected from sensors throughout the manufacturing operations with IP-based connectivity and the Internet of Things.

Essentially, data from sensors on connected products, on equipment in use in the plant, and on assets and inventory in the supply chain, is most valuable if that data can easily be accessed and analyzed by various organizations within the enterprise or even by partners in the value chain.

In the short term, IDC Manufacturing Insights expects that manufacturers may opt for private clouds as a means of extending internal IT infrastructure without raising significant concerns over data security, for the cost saving and operational agility.

However, capacity will likely shift to more cost-effective public clouds for noncritical efforts and even more over the long term as confidence (and technology) increases in security via the public cloud. 

Data from IDC’s 2014 CloudView Survey provides context for understanding why cloud remains an area of heightened attention at the highest levels of manufacturing organizations.

Data includes 593 manufacturers from the following countries – United States, Canada, United Kingdom, Germany, France, Sweden, China, India, Malaysia, S. Korea, Australia, Japan, Mexico, The Netherlands, Spain, Italy, and Brazil.  Respondents that qualified for the survey participate in decision to invest in cloud or are knowledgeable about their company’s cloud purchasing decisions.

They also had to be at least generally educating themselves about the public Cloud model, and currently using public Cloud or Private Cloud for more than 1 or 2 small apps/workloads.  Manufacturing Respondents by title include 437 or 73.7% with IT titles and 156 or 26.3% with line of business (LOB) titles.

 


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OpenAI Eyes Chrome Acquisition if Google is Forced to Sell

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Nick Turley, OpenAI’s Head of Product, testified in Washington that the company would be interested in acquiring Google’s Chrome browser if antitrust enforcers succeed in forcing Alphabet to sell the popular web browser.

This testimony was part of a high-profile trial in which the US Department of Justice is pushing to break up Google’s monopoly in the online search and advertising markets, Reuters reported on Tuesday.

The DOJ’s case centres on Google’s dominance in online search, which it argues unfairly stifles competition. A key aspect of the DOJ’s proposed remedies includes requiring Google to divest assets, including its Chrome browser, to restore a more competitive search environment.

According to the report, Turley’s statement provided insight into OpenAI’s competitive positioning within the generative AI space.

He noted that Google’s refusal to partner with OpenAI for access to its search technology within ChatGPT had pushed the company to explore alternative partnerships, particularly with Microsoft’s Bing.

Turley had previously written that ChatGPT leads the consumer chatbot market and did not consider Google its biggest competitor, according to an internal OpenAI document presented by Google’s lawyers during the trial.

He clarified that the document was meant to inspire OpenAI employees and emphasised that the company would still benefit from distribution partnerships, Reuters reported.

Earlier in the day, Turley testified that Google rejected OpenAI’s bid to use its search technology within ChatGPT.

OpenAI had reached out to Google after experiencing issues with its own search provider, Turley said, though he did not identify the provider. ChatGPT currently uses Microsoft’s Bing for search.

“We believe having multiple partners, and in particular Google’s API, would enable us to provide a better product to users,” OpenAI had told Google in an email shown at the trial.

OpenAI first reached out in July, but Google declined the request in August, citing concerns about competition. “We have no partnership with Google today,” Turley said.

The trial also highlighted Google’s internal strategy, including efforts to secure exclusive search agreements with major Android device manufacturers like Samsung.

According to Turley, such exclusivity could hinder the development of competing AI technologies, like ChatGPT, which depend on a range of search and data sources.


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Digital Consumers are Driving a New Era of Online Shopping, Transforming how Nigerian Youth Buy

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The digital revolution is hitting Nigeria’s retail scene fast, and it’s being powered by the country’s youth. Armed with smartphones and a demand for affordability, they’re shaping the e-commerce industry where convenience reigns supreme.

Nigeria’s internet users, reaching more than half its population, creates a strong foundation for e-commerce growth. This growth is significantly fueled by the nation’s youth, a substantial 160 million (70% of the population), whose tech-forward nature drives the popularity of platforms like Temu, satisfying their demand for accessible and budget-friendly online retail.

This generation has flipped the retail script. Value is their compass, price comparisons their weapon, social media their guide, and convenience their non-negotiable. This isn’t just shopping; it’s a calculated pursuit of savvy options, the widest selection, and the best value-for-money deals.

The power of finding a good deal is undeniable, especially for these shoppers watching their wallets. Social media is a testament to this, filled with posts celebrating the newfound ability to purchase items once considered luxuries.

Take Anwulika Udanoh (@Anwulika Udanoh on Facebook), for example. Her recent post, detailing her shopping experience on Temu, is a perfect snapshot of this online shopping revolution. She stumbled upon affordable jewelry on the platform, swayed by glowing reviews, and took a chance. What followed was a delightful surprise: customised earrings bearing her name, a feat once thought impossible.

Even her son’s friend jumped on the personalisation trend with custom pendants. ‘Their prices will shock you,’ she wrote, with genuine excitement. And despite any concerns about longevity, the sheer joy of affordable, personalised style at good quality won her over. That’s the power of this shift.

This goes beyond mere bargain hunting; it’s about empowerment. It’s about unlocking the ability to express your unique style without sacrificing your financial stability. It’s about finding those small sparks of joy, like personalised jewelry that feels uniquely yours. For many, these platforms are a portal to a more colourful and individually tailored life.

Then there’s the spirit of adventure, captured in a simple tweet by Steph (@steph on X): ‘ordered a couple of desk items, wish me luck.’ It’s the essence of a generation eager to discover new ways to elevate their everyday life.

Launched in the country in November 2024, Temu offers a diverse selection that aligns with the dynamic needs of young Nigerians. The direct-from-factory online marketplace is known for cutting out layers of middlemen and their associated markups and costs, passing on savings to consumers. Serving more than 90 markets globally, Temu has become one of the most visited e-commerce sites worldwide and a top Apple-recommended app of 2024.

Let’s be real: budgets matter. In a country where every naira is carefully considered, competitive pricing and accessible payment methods, aided by partnerships like Temu and Verve, empower Nigerian shoppers with greater choice and freedom to embrace trends while making the budget go beyond. It’s like opening up a world of possibilities.

Adding to the appeal is a user experience designed for the mobile age. With 193.9 million cellular connections, smartphones are the gateway to this digital world, and intuitive platforms allow for seamless browsing and purchasing on the go, perfectly aligning with the dynamic rhythms of young Nigerian life.

This mobile-first approach is further amplified by the power of social proof. In a nation of 31.60 million social media users, reviews and recommendations carry significant weight, transforming satisfied shoppers into passionate brand advocates.

A growing digital environment, particularly in urban areas, presents a rich opportunity for platforms that resonate with the aspirations of young people. They seek more than just products; they want to build online communities, create digital identities, and shape their lifestyles.

Real stories like those of Anwulika and Steph show that Temu isn’t just a place to shop, but a platform that’s unlocking joy, creativity, and financial freedom for Nigeria’s youth. Whether it’s personalised jewellery, playful desk accessories or everyday essentials, Temu is turning everyday purchases into moments of empowerment — proving that with the right platform, anything is possible.


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Gold Hits Record High Amid U.S. Dollar Weakness and Trade Tensions

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Gold prices surged to a fresh record high on Monday, April 21, while the dollar weakened and global stock markets presented a mixed picture, as concerns mounted over former President Donald Trump’s escalating tariff strategy and his ongoing confrontation with the Federal Reserve.

Amid subdued activity due to continued Easter holiday closures in several markets, investors focused on the potential fallout from Trump’s latest trade moves and looked ahead to key economic data releases later this week that may shed light on the broader impact of the evolving U.S.-led trade war.

The administration’s tariff campaign has triggered swift responses from major economies. While some, like Japan, are reportedly seeking accommodations to ease Washington’s trade levies, China issued a sharp warning to governments not to negotiate at the expense of its interests. A spokesperson for China’s commerce ministry said Monday that appeasement and compromise would fail to win peace or respect, calling on nations to avoid sacrificing broader interests for temporary gains.

Beijing’s tone contrasted with Trump’s comments last Thursday in which he signaled ongoing discussions with China, expressing optimism about reaching a deal. However, tensions remain high, with China facing tariffs of up to 145 percent on some goods, and retaliating with duties of 125 percent on U.S. exports.

The growing uncertainty over the global economic outlook has driven investors toward safe haven assets. Gold climbed above $3,384 per ounce, buoyed both by the geopolitical instability and a weakening U.S. dollar. The dollar’s decline has been exacerbated by concerns over Trump’s comments directed at Federal Reserve Chair Jerome Powell, who warned that the tariffs could lead to a temporary rise in inflation and downplayed prospects for interest rate cuts.

Trump criticized Powell for his remarks and hinted at the possibility of removing him from office, stating: “If I want him out, he’ll be out of there real fast, believe me.” Powell has maintained that he will not step down and emphasized the legal foundation of the central bank’s independence.

The dollar fell against major currencies, with the yen and euro gaining strength. France’s finance minister Eric Lombard said Trump’s tariff policies had already damaged the credibility of the U.S. currency and warned that undermining the Federal Reserve would further shake investor confidence. Chicago Fed President Austan Goolsbee underscored the importance of central bank independence, calling it a near-universal principle among economists.

Asian stock markets reflected the uncertainty, with Tokyo’s Nikkei falling 1.2 percent, while gains were seen in Shanghai, Seoul, Singapore, Manila, and Jakarta. Oil prices declined amid renewed fears over global demand, with West Texas Intermediate and Brent crude both dropping 1.7 percent.

Investors are now watching closely for April manufacturing data from key economies, which are expected to provide early signals about the tangible effects of the tariffs. Analysts warn that U.S. fiscal and monetary policy are increasingly being viewed as volatile geopolitical forces rather than stable economic anchors. Stephen Innes of SPI Asset Management said the reputational damage to the U.S. economic brand is becoming entrenched, with global markets and allies adjusting expectations accordingly.


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