e-Supply Chain

August 1, 2011
Massive Data Center Plans Expansion

Next Generation Data Centre (NGD), one of the largest data centers in the world, announced recently that it is expanding its facility in Wales to meet growing customer demand.

NGD is spending $20 million to build seven additional data halls by the end of 2011. It has contracts with customers worth over $33 million this year, including a Fortune 100 technology corporation headquartered in the U.S.

Tom Freeman, head of Jones Lang LaSalle’s Dallas-based Global Mission Critical Solutions practice, noted: “There are very few data center sites truly capable of providing global data hubs. What Next Generation Data is creating in South Wales is one of the only developments of its type outside of the United States that meets the suitability standards required by U.S. corporates. We are finding that our global clients are looking to extend their networks outside of North America and I suspect that the level of power, bandwidth, security and speed-to-market which NGD Europe can provide will make this site an extremely exciting prospect.”

According to Simon Taylor, chairman, Next Generation Data Limited, “The main driver for building the additional data hall capacity this year is to meet demand from large organizations based in Europe and, increasingly, North America where our targeted U.S. sales strategy is clearly starting to pay off handsomely. We are able to offer clients the highly secure world-class facilities they require, located well away from the space, power and security issues associated with the London area.”


Wal-Mart to Set Up e-Commerce Hub in Shanghai

Wal-Mart Stores Inc. has signed an agreement with the Shanghai government to establish a China e-commerce headquarters in the city, as part of its online strategy to gain a greater share of the country’s fast-growing retail market.

“The scale of online sales in China is expanding rapidly and is projected to match U.S. online sales in the next few years,” Wan Ling Martello, Wal-Mart’s Executive Vice President of Global e-Commerce said in a statement.

“We look forward to offering Chinese consumers a wider selection of quality products at good value with a great online shopping experience.”

Wal-Mart is relying on emerging markets, including China, Mexico and Brazil, for future growth as U.S. sales slow. However, the company has faced a number of challenges in the world’s fastest growing economy, including losing three top China executives in recent months.

The company’s China sales totaled $7.5 billion last year, accounting for just 2 percent of its $420 billion in global revenue. It operates more than 330 stores in China and had a 5 percent market share of megastore sales in 2010, while regional chains and mom-and-pop shops accounted for 73 percent, according to consulting firm Monitor Group.


DHS Warns of Malware in Imported Software, Hardware

An official with the U.S. Department of Homeland Security (DHS) told lawmakers last month that he was “aware of some instances” where foreign-made software and hardware components has been purposely embedded with malware that pose a security risk.

Greg Schaffer, acting Deputy Undersecretary of the DHS National Protection and Programs Directorate, explained to the House Oversight and Government Reform Committee that “we believe there is significant risk in the area of supply chain” and that he was aware of cases where foreign insertion of security risks had occurred.

“This is one of the most complicated and difficult challenges that we have,” Schaffer acknowledged. “There are foreign components in many U.S. manufactured devices.”

The overall concern is that these components may be widespread in a variety of devices and their insertions well-hidden, creating the possibility of mass and undetectable breaches of numerous networks throughout the country by a foreign entity.


U.S. Tech Industry Poised for Another Stellar Year

Last year, the U.S. tech industry grew about twice as fast as the U.S. economy, and more of the same is forecast for this year, according to Forrester Research.

Specifically, the U.S. tech industry is expected to achieve 8 percent growth in 2011, thanks in large part to companies’ investments in Cloud and Smart Computing solutions.

Globally, IT spending will grow to $3.7 trillion in 2011, as compared with the $3.4 trillion spent in 2010, stated research firm Gartner, with spending on public cloud services to hit $89 billion this year—up from $74 billion in 2010. 

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