Ben Uzor Jr
In the face of the worst economic depression of our generation, an Information Technology (IT) expert has advised Nigerian enterprises to adopt virtualisation solutions as they could tremendously improve an organisations ability to respond to new business challenges by providing the foundation for a more dynamic IT environment.
Virtualisation refers to the creation of a virtual (rather than actual) version of something, such as an operating system, a server, storage device or network resources. It allows enterprises run multiple virtual machines on a single physical machine, sharing the resources of that single computer across multiple environments. Chrystabel Davis, vice president, DBH Solution Limited, a indigenous IT solutions and services provider made this revelation while speaking to Business Day in Lagos recently.
According to her, the number of transactions and volume of information puts huge demands on IT infrastructure. To this effect, decision makers are seeking flexible IT infrastructure that can keep pace with demands and improve their business agility. But more importantly, by lowering organisations total cost of ownership (TCO) which includes cost associated with hardware purchases, maintenance and facilities, the novel technology concept can free up budgets for new initiatives, Davis explained.
In citing a recent IDC survey, she noted that customers that have deployed virtualisation were able to reduce their hardware costs by 20 percent. This reduction, Davis further revealed resulted in a savings of, on average, 23 percent over the past 12 months due to lower hardware costs, power and cooling savings, and real estate expense savings.
“Virtualisation is not a simple technology to deploy throughout an enterprise data centre but if implemented properly it can have spectacular results and reduce IT costs and improve flexibility. It can also enable organisation to simplify and optimise their infrastructure. This would assist business respond to new IT demands in a cost effective way while improving service and managing risk.
On the contrary, industry experts have advised enterprises to improve virtualisation deployment methods. In a recent report, Gartner warned that two-thirds of virtual servers will be less secure than physical equivalents over the next three years. The research company said that too many virtualised deployment projects are been undertaken without adequate involvement of security experts in the initial architecture and planning stages.
Gartner further reveals that the figure will drop to 30 per cent by the end of 2015, but urged businesses to take additional precautions when implementing the technology. With more firms set to adopt on-demand technology over the next few years, the need to address the security issues associated with virtualisation will become more critical to address, the company added.
Thursday, May 13, 2010
CBN’s directive on off-site ATMs dips banks’ fortunes
…As banks pass burden to customers
John Omachonu & Ben Uzor Jr
Revenues to banks’ vaults have continued to nosedive following withdrawal of Automated Teller machines (ATMs) from off-site locations, as directed by the Central Bank of Nigeria (CBN). Besides, the hope of some industry operators that CBN would extend again the deadline for withdrawal which expired March 31, has been dashed as the apex bank said there is no going back.
But, the development is impacting negatively on the finances of banks, which have decided to resort to commissions from the self service machines following their aversion to credit as a result of clean up which has heightened major flaws in their risk management.
In fact revenues from the transactions have been experiencing improvement despite complaints from customers who have lost their life savings to fraudsters. However, some of the affected customers have always alleged insider information. For instance, from a total of revenue of N99.6 million in November last year, moved to N108.3 million in December, but nosedived to N90 million in January this year. Unconfirmed source put the revenue in March to about N100 million
As a way out, some banks have decided to pass the burden to their customers. For instance, last week, one of the banks sent a text message to its customers saying, “Dear customers, CBN mandated non branch ATMs to be handed to a Trust. So all transactions outside …branch ATMs will cost N100 from 9/4/10”). Before now, card users, whose accounts are domiciled with the banks were not charged for using off-site ATMs, but customers only paid when they used other banks ATMs.
But situations have changed as banks are now exploring survival means in the face of depleting revenue, occasioned by lack of intermediation businesses. But, CBN insisted last week that it will not rescind its directive that all off-site located ATMs be withdrawn or handed over to independent handlers, saying that its action is based on the need to protect the customers and also maintain sanity in the system. According to Mohammed Abdullahi, CBN spokesperson, “CBN is not considering a rethink as this is the best practice worldwide. The essence is to ensure checks and balances in the operations of the ATMs”.
According to him there were occasions in the past where some fraudulent practices involving customers losing thousands of cash through ATMs were allegedly linked to insider information or collusion with staff of banks. Mitchell Elegbe, chief executive officer, Interswitch Limited pointed out last week that the management of off-site ATMs was not the responsibility of banks, adding that CBN’s directive on offsite ATMs was laudable. He however added that improper execution on the part of the newly licensed IADs could discredit the policy and further create disorder in the e-payment industry.
“You don’t need anybody to tell you that it is wrong to see 15 ATMs in one location at the airport, that’s waste. So, the question is how did we get to a situation bank would put 15 ATMs in one location when at any point in time not more than one or two are been used, that’s unnecessary waste. I still can’t understand the logic of putting a bank of ATMs at the Hilton in Abuja when there are PoS terminals that accept card payments”, Elegbe said.
But banks have resolved to make up for the money spinning project, but which is supposed to be managed by the three independent ATM deployer s (IAD). Before the end of last month, out of a total of 10, 284 ATMs that were deployed by financial sector, 3, 485 (49 percent) were located outside the banks’ premises, with only 1,500 of the off-site figure, from UBA, First Bank, Diamond Bank, Wema and Ecobank, now being managed by ATM-C, the only independent ATM deployer (IAD) and operator of the quick cash ATM network.
CBN recently granted two Consortiums, Chams Access and CSS approval-in-principle to operate as ATM consortium in Nigeria, but are yet to commence operations despites CBN’s promise of conducting a post-approval-in-principle visit to the firms last month to ensure their readiness and compliance with the requirements.
But some bankers told Business Day last week that their expectation was that CBN will again extend the deadline to allow them choice of IAD to hand over their ATMs, which they spent millions of naira to acquire. Furthermore, some of the banks insisted that those that are handing over their ATMs to these IADs would have to conduct some level of due diligence to ensure that the right kind of companies are selected.
Business Day investigations have revealed that customers are paying for the short fall through excess charges. From the popular cost on transactions (COT) to commission on Automated Teller machines (ATMs), banks now send alert to customers indicating charges, sometimes for no transactions on regular basis. The customers’ woes are heightened by the current perceived excess liquidity in the system typified by the banks ‘ reluctance to expand their loan portfolio, and the attendant uncertainty which is making consumers to hold on to cash. Immediate implication is rising cases of defaults among individuals and corporate organizations, whose livelihood is being threatened by the charges.
But, Garba Mohammed, a customer of one of the banks said yesterday that the banks’ action amounts to transfer of aggression as these charges will further impoverish the investing public. Rasheed Shonubi, a bank customer said: “Every time I conduct ATM transactions outside ATMs, N100 is removed. I think that is outrageous for low income earners. This is one of the consequences of the removal of off-site ATMs. Let us be realistic, banks would have incurred a lot of costs in the process. Of course, they would definitely pass that cost to the end users.”
John Omachonu & Ben Uzor Jr
Revenues to banks’ vaults have continued to nosedive following withdrawal of Automated Teller machines (ATMs) from off-site locations, as directed by the Central Bank of Nigeria (CBN). Besides, the hope of some industry operators that CBN would extend again the deadline for withdrawal which expired March 31, has been dashed as the apex bank said there is no going back.
But, the development is impacting negatively on the finances of banks, which have decided to resort to commissions from the self service machines following their aversion to credit as a result of clean up which has heightened major flaws in their risk management.
In fact revenues from the transactions have been experiencing improvement despite complaints from customers who have lost their life savings to fraudsters. However, some of the affected customers have always alleged insider information. For instance, from a total of revenue of N99.6 million in November last year, moved to N108.3 million in December, but nosedived to N90 million in January this year. Unconfirmed source put the revenue in March to about N100 million
As a way out, some banks have decided to pass the burden to their customers. For instance, last week, one of the banks sent a text message to its customers saying, “Dear customers, CBN mandated non branch ATMs to be handed to a Trust. So all transactions outside …branch ATMs will cost N100 from 9/4/10”). Before now, card users, whose accounts are domiciled with the banks were not charged for using off-site ATMs, but customers only paid when they used other banks ATMs.
But situations have changed as banks are now exploring survival means in the face of depleting revenue, occasioned by lack of intermediation businesses. But, CBN insisted last week that it will not rescind its directive that all off-site located ATMs be withdrawn or handed over to independent handlers, saying that its action is based on the need to protect the customers and also maintain sanity in the system. According to Mohammed Abdullahi, CBN spokesperson, “CBN is not considering a rethink as this is the best practice worldwide. The essence is to ensure checks and balances in the operations of the ATMs”.
According to him there were occasions in the past where some fraudulent practices involving customers losing thousands of cash through ATMs were allegedly linked to insider information or collusion with staff of banks. Mitchell Elegbe, chief executive officer, Interswitch Limited pointed out last week that the management of off-site ATMs was not the responsibility of banks, adding that CBN’s directive on offsite ATMs was laudable. He however added that improper execution on the part of the newly licensed IADs could discredit the policy and further create disorder in the e-payment industry.
“You don’t need anybody to tell you that it is wrong to see 15 ATMs in one location at the airport, that’s waste. So, the question is how did we get to a situation bank would put 15 ATMs in one location when at any point in time not more than one or two are been used, that’s unnecessary waste. I still can’t understand the logic of putting a bank of ATMs at the Hilton in Abuja when there are PoS terminals that accept card payments”, Elegbe said.
But banks have resolved to make up for the money spinning project, but which is supposed to be managed by the three independent ATM deployer s (IAD). Before the end of last month, out of a total of 10, 284 ATMs that were deployed by financial sector, 3, 485 (49 percent) were located outside the banks’ premises, with only 1,500 of the off-site figure, from UBA, First Bank, Diamond Bank, Wema and Ecobank, now being managed by ATM-C, the only independent ATM deployer (IAD) and operator of the quick cash ATM network.
CBN recently granted two Consortiums, Chams Access and CSS approval-in-principle to operate as ATM consortium in Nigeria, but are yet to commence operations despites CBN’s promise of conducting a post-approval-in-principle visit to the firms last month to ensure their readiness and compliance with the requirements.
But some bankers told Business Day last week that their expectation was that CBN will again extend the deadline to allow them choice of IAD to hand over their ATMs, which they spent millions of naira to acquire. Furthermore, some of the banks insisted that those that are handing over their ATMs to these IADs would have to conduct some level of due diligence to ensure that the right kind of companies are selected.
Business Day investigations have revealed that customers are paying for the short fall through excess charges. From the popular cost on transactions (COT) to commission on Automated Teller machines (ATMs), banks now send alert to customers indicating charges, sometimes for no transactions on regular basis. The customers’ woes are heightened by the current perceived excess liquidity in the system typified by the banks ‘ reluctance to expand their loan portfolio, and the attendant uncertainty which is making consumers to hold on to cash. Immediate implication is rising cases of defaults among individuals and corporate organizations, whose livelihood is being threatened by the charges.
But, Garba Mohammed, a customer of one of the banks said yesterday that the banks’ action amounts to transfer of aggression as these charges will further impoverish the investing public. Rasheed Shonubi, a bank customer said: “Every time I conduct ATM transactions outside ATMs, N100 is removed. I think that is outrageous for low income earners. This is one of the consequences of the removal of off-site ATMs. Let us be realistic, banks would have incurred a lot of costs in the process. Of course, they would definitely pass that cost to the end users.”
Social agitation grows on Facebook as 1.14 million Nigerians connect
Ben Uzor Jr
In greater depth, the potential of Facebook as an online tool for social agitation has become prevalent in Nigeria by way of the increasing number of protest community groups springing up and the complex socio-political issues debated on the social networking site, Business Day can now reveal.
With the population of Nigerians on Facebook surpassing the 1.14 million mark as at March 2010, there are burly indications that the social media platform could eventually become a strong meeting point for social protest going by its growing popularity amongst Nigerians and strong participatory elements through comments, ratings or other mechanisms.
But more importantly, it offers a great platform to reach million of Nigerians with amazing targeting possibilities including age, gender, interest and behavioral markings, experts have argued. BusinessDay has also learnt that youths, civil and human rights groups are already engaging the platform for constructive social criticism.
Only recently, the issue of the practice of Islamic law in northern states sparked off heated debates on Facebook. The Civil Rights Congress (CRC) of Nigeria, a Kaduna based human rights organisation began the debate on Facebook and Twitter asking members their opinion over the amputation of a peasant farmer’s hand in March 2000 after he was convicted by the Islamic court for stealing a cow.
To this effect, an Islamic court order was issued to CRC ordering them to shut down its chat forums on Facebook. Another good example of social agitation online is the ‘Enough is Enough’ campaign on Facebook originally designed to inquire about ailing president Umaru Musa Yar’Adua whereabouts.
As regards demographics, latest statistics derived from Facebook show that globally the most popular age demographics on the social media platform was 35-49. The report further revealed that the platform was amongst the top three most visited sites by Nigerians. Conversely, women still represent the majority of users (51 percent to 45 percent) and whilst younger users still represent the majority of active users on the service, users over 55 are driving most of Facebook’s current growth.
On the global scene, countries like China, Syria and Iran have banned the use of Facebook from their web sphere at one point or the other by their government. On the contrary, the United States has embraced this technology. The social networking platform was instrumental to the victory of Barack Obama as great support was mobilised via Facebook during his campaign.
In Nigeria, it is also evident that some governors, public office holders and prominent Nigerians use the social media platform to connect with their friends, family and associates. Also, some politicians have already started using Facebook to declare their interests in the forthcoming 2011 general elections.
Kenneth Omeruo, founder of TechTrends Nigeria, a leading ICT empowerment blog who spoke to Business Day in a telephone chat said: “If you understand the dynamics of Facebook, you will know that the potentials are limitless. Facebook is indeed a tool for social change; it was instrumental to Obama’s victory at the polls. A lot of individuals were mobilised online.
“Coming back home, the opportunities are rife as lots of youths are already engaging the social media platform for constructive social criticism. For example, the ‘enough is enough campaign’. Though, it is going to take some time to be very effective, we will definitely get there. We still need to get a lot of people to use the tool. We need to get more people connected to the internet because our internet penetration is still very low. The way we can achieve this is to continually encourage investment in broadband infrastructure”, the internet marketing expert stated.
In the same vein, Lanre Ajayi, president, Nigerian Internet Group (NIG) also agrees that Facebook could foster social change because of its interactive and participatory elements, adding that socio-economic development would be dictated by the level of broadband internet connectivity in the country. “The future outlook of broadband infrastructure deployment in Nigeria looks good, if the right environment is created for investment in this area”, he posited.
In greater depth, the potential of Facebook as an online tool for social agitation has become prevalent in Nigeria by way of the increasing number of protest community groups springing up and the complex socio-political issues debated on the social networking site, Business Day can now reveal.
With the population of Nigerians on Facebook surpassing the 1.14 million mark as at March 2010, there are burly indications that the social media platform could eventually become a strong meeting point for social protest going by its growing popularity amongst Nigerians and strong participatory elements through comments, ratings or other mechanisms.
But more importantly, it offers a great platform to reach million of Nigerians with amazing targeting possibilities including age, gender, interest and behavioral markings, experts have argued. BusinessDay has also learnt that youths, civil and human rights groups are already engaging the platform for constructive social criticism.
Only recently, the issue of the practice of Islamic law in northern states sparked off heated debates on Facebook. The Civil Rights Congress (CRC) of Nigeria, a Kaduna based human rights organisation began the debate on Facebook and Twitter asking members their opinion over the amputation of a peasant farmer’s hand in March 2000 after he was convicted by the Islamic court for stealing a cow.
To this effect, an Islamic court order was issued to CRC ordering them to shut down its chat forums on Facebook. Another good example of social agitation online is the ‘Enough is Enough’ campaign on Facebook originally designed to inquire about ailing president Umaru Musa Yar’Adua whereabouts.
As regards demographics, latest statistics derived from Facebook show that globally the most popular age demographics on the social media platform was 35-49. The report further revealed that the platform was amongst the top three most visited sites by Nigerians. Conversely, women still represent the majority of users (51 percent to 45 percent) and whilst younger users still represent the majority of active users on the service, users over 55 are driving most of Facebook’s current growth.
On the global scene, countries like China, Syria and Iran have banned the use of Facebook from their web sphere at one point or the other by their government. On the contrary, the United States has embraced this technology. The social networking platform was instrumental to the victory of Barack Obama as great support was mobilised via Facebook during his campaign.
In Nigeria, it is also evident that some governors, public office holders and prominent Nigerians use the social media platform to connect with their friends, family and associates. Also, some politicians have already started using Facebook to declare their interests in the forthcoming 2011 general elections.
Kenneth Omeruo, founder of TechTrends Nigeria, a leading ICT empowerment blog who spoke to Business Day in a telephone chat said: “If you understand the dynamics of Facebook, you will know that the potentials are limitless. Facebook is indeed a tool for social change; it was instrumental to Obama’s victory at the polls. A lot of individuals were mobilised online.
“Coming back home, the opportunities are rife as lots of youths are already engaging the social media platform for constructive social criticism. For example, the ‘enough is enough campaign’. Though, it is going to take some time to be very effective, we will definitely get there. We still need to get a lot of people to use the tool. We need to get more people connected to the internet because our internet penetration is still very low. The way we can achieve this is to continually encourage investment in broadband infrastructure”, the internet marketing expert stated.
In the same vein, Lanre Ajayi, president, Nigerian Internet Group (NIG) also agrees that Facebook could foster social change because of its interactive and participatory elements, adding that socio-economic development would be dictated by the level of broadband internet connectivity in the country. “The future outlook of broadband infrastructure deployment in Nigeria looks good, if the right environment is created for investment in this area”, he posited.
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