Technology Trends Return on Investment

www.zylog.cawww.zylog.ca 2
For the Society of Service Executives
Presentation prepared for the Society of Service Executives
A Professional Society in the Technical Services & Support Industry
http://www.servicexecutives.com/

Topics
 About Zylog
 “Who we are” and why we are invited to share this with you
 Technology Innovator Trends
 SMB Industry Trends
 Service Trends
 Economic Trends
 The Next Big Steps for Your Bottom Line
 Best Practices for Return on Investment

 Professional Staffing Services
 Specializing in IT and Engineering
 Government and Commercial, Fortune 500
 Payroll Processing and Consultant Contract Management
 Outplacement and Consultant Career Path Management
 Application Development
 SAP, Microsoft, Open Source
 Virtualization, Consolidation, and Migration Services
 Field Service Management, Reverse Logistics, Dispatch, and Warehouse Management
 Recycling, Sustainability, and Regulatory Compliance
 Knowledge Management, Wiki, Blog, Social Networking, and collaborative Business Intelligence
 Banking and Finance
 Health Records and Hospital Management
 Mobile / SmartPhone Applications
Zylog Products and Services

Zylog Worldwide

Combine Global Coverage with Local Experience
 Zylog intellectual capital is the foundation
of specialized knowledge in a broad range
of business and technology.
IDEA LAB Research and Development Centre in Chennai, India
 Proven delivery methodology for
Pharmaceuticals, Finance & Banking,
Insurance, Telecommunications, Marketing,
Retail, Transportation & Logistics, and
Consumer Electronics
 Globally positioned with Local Experience

Sharing Best Practices across many markets
 Zylog has a unique ability to integrate and share best practices
between diverse business verticals
 Field Service Management
 Warehouse Management
 Inventory Management
 Environmental Compliance
 Insurance
 Claims Processing
 Financial / Banking
 Risk Mitigation
 Telecommunications
 WiFi
 Cloud Computing
 SaaS
 Migrating Legacy Applications (Power Builder and FoxPro, for example
 Pharma
 Health Care
 eGovernance
 ePolice
 Consumer Surveys
 Creative Practices (Marketing)
 Mobile Computing
 Enterprise Social Networking
 Managed Services
 Energy Monitoring and Reduction
 RFID
 And client specific experience

Zylog Strategic Alliance Partners
 Zylog has strategic alliances with the following partners:
 SAP/Business objects
 Compellent
 Dell
 HP
 IBM
 JBoss
 Microsoft
 Motorola
 Orange
 Redhat
 Sage Software
 SAS
 Sonicwall
 Sprint
 Sun Micro
 Ubuntu
 VMware

Zylog is among the fastest growing companies
 Established in 1995, Publicly Traded in BSE/NSE : Ticker (ZYLOG)
 Earned a reputation as a respected leader in providing technology-
based business solutions and services
 Ranked # 244 in Top 500 companies
 Ranked # 76 Fastest Growing companies in the U.S
(Source: CRN Fast Growth 100)
 Internationally ranked in Top 100 Global Recruitment Consultant Industry,
and one of the top professional staffing firms for IT and Engineering
 “The companies that are included on the Fast Growth 100
are channel industry leaders. They offer business-oriented
IT consulting and work closely with their customers to
integrate multivendor IT solutions as well as cutting-edge
technologies. In addition, they understand the importance
of strong sales philosophies. We congratulate ZSL on their
well-earned success”
- Robert C. DeMarzo,
Senior Vice president and editorial director for Everything
Channel

Technology Innovator Trends
 What are successful Technology Innovators doing now?

Technology Innovator Trends
 To be ranked in the IW500, companies with
revenue in excess of $250 million or more
must complete a rigorous application of
technology strategies.
 The process is quantitative and qualitative.
Applications are reviewed by a panel of editors.
 The selection identifies companies that have
made a demonstrable impact on the way that
their organizations conduct business.
 Zylog ranked # 237 (Microsoft ranked #234)

InformationWeek 500 Technology Innovators
 Budgets are not “cut – cut – cut” as during recession.
IT budgets are focused on empowering employees to use business
intelligence and network with customers.
 57% expect budget increases this year
 53% of the IW500 innovative companies are deploying Business
Intelligence as the key initiative to improve productivity this year
 Analytics are being used to improve profitability

InformationWeek 500 Technology Innovators
 40% of technology innovators plan to introduce new products and
services this year
 25% of CIO’s have formal responsibility for innovation in addition to IT.
That is up from 16% last year
 27% of CIO’s are responsible for business process improvement,
expanding the role of the CIO in the business
 58% of technology innovators use offshore resources
 49% make global support and development part of the regular IT jobs
 22% are considering desktop virtualization

Innovation Plans
 Technology Innovators
are investing to make
business processes more
efficient, especially using
business intelligence to
 Engage Customers
 Engage Employees
 Engage Vendors and
Suppliers
 IT investments are targeted for Business Results

Web Technologies – Social Networking
 Increasing collaboration
with Wikis, Blogs, and
networking tools
 The most significant increase in trends is the use of Social Networking to
facilitate collaboration, communication, and business intelligence between
employees, customers, vendors, and suppliers.
 Social Networking offers familiar tools, easy to use, and fast information
access

SocNet Business 2.0
 New Knowledge Management tools combine the best practices of Blog, Wikis,
Social Networking, Cloud Tags, Reporting, etc. Tools are easy and familiar

Web Technologies – OPEX over CAPEX
 More Technology
Innovators are using
Software as a Service
 Software as a Service
(subscription) operational
costs are flexible and
adjustable to the business,
as opposed to License Fees
(fixed capital expense)
 Cloud Computing offers Virtualization of Hardware. Use what is required as
opposed to purchasing equipment to accommodate the highest necessary
capacity (adjustable Operational Expense rather than high Capital Expense).
 Especially for business that has seasonal trends (pre / post holidays, etc)

30 Cloud VARs that GET IT
 Zylog Recognized on the
Everything Channel CRN Fast
Growth 100 List.
(Four years in a row)
 Zylog recognized as one of 30
VARS that get Cloud Computing

Improved Productivity Results
Technology Innovators are
getting results from
 Collaborative Software
 Business Intelligence
 Unified Communications
 Engaging the Field
 Productivity is being improved by leveraging familiar tools to enhance
collaboration and communication to share and access business
intelligence. Better business with better information.

SMB Industry Trends
SMB Industry Trends
 “6 in 10 SMBs agree that new technology is
key to staying ahead of the competition”
- Bryan L’Esperance

IT Budget Allocation
Small to Medium Business is
investing in
 Data Storage, Security,
and Backing Up Data
(Could save with Cloud Computing)
 Customer Experience
through the Web
(Could be more effective with Social
Networking tools)
 Control Costs of Upgrading
Software
(Should use SaaS Subscription
Software as a Service) Challenges of the SMB market are the
same as Technology Innovators.
The difference is the selection of solutions.

More Budget and Purchase Scrutiny
Tight budgets mean more
scrutiny before investment
 Product Demonstration
 Team to Study
 Total Cost of Ownership
 Return on Investment
 Trial Basis before Purchase
 Requests for Proposals
 The process of selecting and investing in
new technology is more formal and
detailed than ever before

A more formal approach to evaluating technology
SMBs indicate they are taking a more
formal approach to evaluating and
purchasing emerging technologies.
28% in
2009
28% in
2009
49% in
2010
49% in
2010
With more structure comes an
increasing likelihood to develop
approved vendor lists.
35% in
2009
35% in
2009
41% in
2010
41% in
2010
But, the desire to explore the full range of options means that approved vendor lists don’t
mean as much (33% extremely likely to look beyond lists, compared to 21% in 2009).

Key Drivers for Adopting Emerging Technology
Small to Medium Business
deciding factors for
adopting new technology
 Replace outdated and
ineffective technology
So what is the biggest obstacle to
adopt new technology?
 Application and Data Migration.
Did you know that as much as 70% of
legacy applications can be migrated
with automation?
(Typically only 30% needs manual validation)

Software as a Service
Small to Medium Business is
rapidly adopting Software as
a Service for applications
that grow (or shrink) with
the business
 Storage & Security
 CRM (example: SalesForce)
 Accounting Applications
 Applications and related expense adjust to business
operational requirements and growth

Social Media
The reasons Small to Medium
Business invest in Social Media
 Knowledge Access
 Communication
 Engagement
 Marketing
 Business Intelligence
 The reasons for small to medium business to invest in social
networking are the same as technology innovators.
The difference in success is in the selection of the tools.

Cloud Computing
Reasons SMB are using
Cloud Computing
 Reduce Capital
Expense
 Cut Costs
 Need new features or
rapidly deploy new
technology
 Operational Efficiency
 Small to Medium Business is beginning to realize the cost efficiency
of cloud computing for reducing capital expense and the ability to
deploy new technology (especially software as a service)

Service Trends
Trends in ServiceTrends in Service
 Adapting Technology to ImproveAdapting Technology to Improve
ProfitProfit

Historical Service Trends
 Use Web and Technology to
educate consumers
 Use Web and FTP to conduct
online transactions
 Consolidate Spare Parts
Inventory & Management
 Centralize Service and Repair
in a single Depot location
 Use Technology to enhance
Operational Efficiency
 VMI (Vendor Managed Inventory)
 3PL Reverse Logistics

Current Service Trends
 Use Web and Technology to
educate consumers
 Use Web and FTP to conduct
online transactions
 Consolidate Spare Parts
Inventory & Management
 Centralize Service and Repair
in a single Depot location
 VMI (Vendor Managed Inventory)
Current Service Trends
 Use Social Media tools to
interact with consumers
 Use Web and XML to conduct
real time transactions
 Virtual consolidation of Spare
Parts Inventory (best location)
 Virtual decentralized
workforce (on-demand labor)
 VMI (Virtual Managed Inventory)

EvolvingTrends in Service
Historical Service Trends Focused on
 Logistics
 Service & Repair
 Spare Parts Management
 Technical Labor Skills and Certifications
Current Service Trends focus on using Technology to improve Business
and the bottom line (ROI)
 Compare Vendor / Suppliers Availability and Costs in real time
 Service & Repair are being replaced by Field Replaceable Units (FRU),
Consumer Replaceable Units (CRU), Advance Exchange, and Disposal
 Components and whole unit exchange in lieu of spare parts
 Virtual workforce and field service management in lieu of technicians

New Challenges for Service
New Service Trends and New Service Challenges
 Price reduction of products means cost compression for service
 Virtual inventory and field service management mean better
collaboration and integration of diverse systems
 Need to consolidate multiple ‘functional specific’ software
applications into consolidated integrated operational applications
 New H1B Hiring Rules in US restrict hiring, impacting access to
contingent workforce and labor market

Green IT
 More replacement / disposable product means more recycling
 Recycling Regulations and Legislation require more tracking
Environmental Compliance.
The latest challenge for the
service industry is the most
significant opportunity for
strategic differentiation and
future growth.
Providing solutions for regulatory
compliance, reuse, responsible
recycling, and downstream
tracking will involve all
economic operators.

Economic Trends
Economic TrendsEconomic Trends
 Recession Response and ForecastRecession Response and Forecast

Economic Trends: Recession
We are here
Compared to previous periods of economic recession. (27 Oct, 2010)

Economic Trends : Recession and Stock Market
Comparing performance of the S&P500 to the same time period
(30 months of recession compared to 36 months stock performance)
Economic trends and
recession created
pressure to cut
spending, reduce
budget, cut costs,
and reduce labor.
New growth pressures
demand flexible
operational
expense

Economic Trends : Risks indicate Slow Recovery
US Unemployment over 9% (the “New Normal” WSJ)
USA Home Prices not stabilized, another decline likely
Home price decline likely to impact consumer confidence, slow spending, and
extend the recession in the US. Early recovery appearing in Canada.

Best Practices
Best PracticesBest Practices
 The Next Big Steps for Your Bottom Line

Best Practice investments in Technology today
 Risks of extended recession, or even “double dip” decline before
recovery, demand flexible approach for investing.
 Operational Expense over Capital Expense
 Software as a Service, subscriptions over license fees
 Open Source as a cost effective alternative for Middleware
 Cloud Computing, virtualization of hardware to accommodate
growth when needed and as much as needed, with the ability to
scale down when appropriate
 Automated Application and Data Migration to minimize cost of
transition, allow rapid deployment of new technology that supports
integration with current technology, customers, and vendors
 Migrate from legacy end-of-service-life hardware before it is too
late

Be Best Practice for your Clients
 Establish a competitive advantage by being a Technology Innovator
for your clients. Improve their bottom line and yours.
 Knowledge Management leveraging Social Networking (SocNet)
 SharePoint, Blogs, Wikis, and familiar web tools
 Collaboration and Communication with Web Tools
 Collect and Strategically Share Business Intelligence
 Empower employees with access to information and easy tools
 Leverage Partners with collaborative technology, enabling virtual
networks, expanded virtual workforce, and minimize logistics
 Engage your vendors and suppliers in your technology roadmap
 Become a flexible Operational Expense vendor or supplier for your
clients by leveraging web tools, virtual workforce and technology

www.Zylog.ca

Zylog in Canada
 Feb 2010 Zylog acquired Brainhunter, one of the top two technology
staffing and solutions companies in Canada
 Preferred Vendor status with over 100 prestigious Canadian & US firms
 Preferred government contractor status, Top Secret Security Clearance,
NATO Security Clearance, Federal and Provincial Contracts
150+ Employees
1,600+ Contractors
35+ Years in business (includes acquisitions)
Offices in Toronto, Ottawa, and Montreal
Feild Operations in Calgary, Vancouver, and India
US Operations Headquarters in Edison, New Jersey

Zylog Clients

Offshore Development Center (ODC) - INDIA
82/40 First Main Road, CIT Nagar
Nandanam, Chennai 600 035
T. +91 44 2435 1600, 4212 8400
F. +91 44 2432 6420
F. salesindia@zsl.com
US Head Quarters
85, Lincoln Highway,
Edison, NJ 08820
T. +1 732 549 9770
F +1 732 767 6644
E. sales@zsl.com
Europe Head Quarters
18 Mansell Street
London, UK, E1 8AA
T. + 44 (0) 207 954 4250
F. +44 20 8741 5296
E. saleseurope@zsl.com
Canada Head Quarters
2 Sheppard Avenue East
Suite 2000
Toronto, ON M2N 5Y7
T. 416.225.9900
F. 416.225.9104
E. canada@zsl.com
Zylog Systems Asia Pacific Pte. Ltd,
#1 North Bridge Road,
# 06-27 High Street Centre
Singapore 179094
T. +65 6238 1401
F. +65 6238 1402
E. salessingapore@zsl.com
Ducont FZ LLC
#201, Building No 3,
Dubai Internet City, Dubai
United Arab Emirates
T. +971-4-3913000
F. +971-4-3913001
E. salesap@zsl.com

Technology Trends Return on Investment

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