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A guide for Southeast
Asian IT and Business
Managers
A compilation of featured articles including technical
tips & strategic advice written by technology experts
and advisors
A guide for Southeast Asian IT and Business
                                                                                                    Managers

                             Dear IT Professional,

                             In this e-guide we feature a selection of articles from our Asean focused
                             ezines over the last year.
     Contents
                             The Asean ezines have been running since March and we have been
     2014: New year, new     pleased with the high level of interest they have received from IT
     risks?                  communities in the region. Thank you to all those that have downloaded
                             them.
     Cloud’s endless
     possibilities           Since launching, the Storage, Security, Modern Infrastructure and Business
                             Information ezines for the Asean region have featured articles written by
     Holding back on cloud   locals for local readers.
     storage
                             The Asean region has its own unique challenges and opportunities when it
     Stricter data           comes to harnessing these technologies and we are trying to drill down on
     protection rules:       these issues with localized analysis. We also featured local case studies
     Hornet’s nest or new    because there is nothing more informative than finding out how local peers
                             are using IT, through real life examples.
     era?

     Cloud computing         For example the ezines have analyzed the cyber-security challenges facing
                             Asean CIOs, given examples of how and where cloud computing fits into
     lessons from Asia’s
                             Asean organizations, identified data protection issues to consider in storage
     first movers            projects, and described some of the pioneering uses of big data
                             technologies.
     Singapore library
     mines big data          Enjoy the read.
     Cloud storage and the   Karl Flinders
     law                     Editor

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A guide for Southeast Asian IT and Business
                                                                                                 Managers

                             Contents
     Contents                2014: New year, new risks?
                             ………………………………………………………………………………. Page 3
     2014: New year, new
                             Cloud’s endless possibilities
     risks?
                             ………………………………………………………………………………. Page 6
     Cloud’s endless         Holding back on cloud storage
     possibilities           ……………………………………………………………………………… Page 11
                             Stricter data protection rules: Hornet’s nest or new era?
     Holding back on cloud
                             ……………………………………………………………………………… Page 16
     storage
                             Cloud computing lessons from Asia’s first movers
     Stricter data           ……………………………………………………………………………… Page 20
     protection rules:       Singapore library mines big data
     Hornet’s nest or new    ……………………………………………………………………………… Page 24
     era?
                             Cloud storage and the law
     Cloud computing         ……………………………………………………………………………… Page 29
     lessons from Asia’s
     first movers

     Singapore library
     mines big data

     Cloud storage and the
     law

Page 2 of 35
A guide for Southeast Asian IT and Business
                                                                                                      Managers

                             2014: New year, new risks?
                             Phil Muncaster, Journalist based in Hong Kong

     Contents                Hactivists, state-sponsored spies, cash-hungry fraudsters, malicious insiders
                             – the cyber enemy facing organizations in 2014 is more diverse, more so-
     2014: New year, new     phisticated and more dangerous than ever before. Malaysia and Singapore
     risks?
                             sit at the hub of Asia- Pacific, one of the world’s most active regions for cyber
     Cloud’s endless         crime. So where do the risks lie for businesses in the region, what can chief
     possibilities           security officers (CSOs) do to successfully stem the tide of attacks, and are
                             governments taking a big enough leadership role?
     Holding back on cloud
     storage
                             The good news is that 2014 got off to a good start for Singapore. In January,
     Stricter data           global security supplier FireEye signed a landmark agreement to build a
     protection rules:       cyber security Centre of Excellence in partnership with the government’s
     Hornet’s nest or new    Infocomm Development Authority (IDA). The agreement will not only give
     era?
                             FireEye the ability to better secure its customers in Singapore, Malaysia and
     Cloud computing         beyond against regional attacks, but will see the firm working with local
     lessons from Asia’s     Institutes of Higher Learning (IHLs) and local ICT companies to develop at
     first movers            least 10 new tools to detect and prevent advanced persistent threats (APTs).

     Singapore library
                             APTs are a new breed of highly targeted attack. Malware is typically landed
     mines big data
                             covertly via a malicious email attachment or link and can often sit undetected
     Cloud storage and the   in an organisation for months or years, all the while taking sensitive internal
     law                     data.

                             FireEye’s APAC CTO, Bryce Boland, says the firm will train 100 full-time staff
                             to man the Singapore Centre of Excellence over the next year. “The idea was
                             to build it up to have a large capability to deal with the large amount of
                             APAC-specific malware,” he says. “In APAC there is a lot of malware activity
                             taking place. There are a lot of countries and many of them have tense
                             relationships, so we often see that boil over into cyber space.”

                             These “tense” relationships have most obviously been seen of late in
                             hacktivist battles between Indonesia and Australia, the Philippines and
                             Indonesia, and North versus South Korea. Singapore late last year incurred
                             the wrath of hacktivist collective Anonymous after a controversial new media

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A guide for Southeast Asian IT and Business
                                                                                                      Managers

                             regulation was touted by the government. Several sites were defaced or hit
                             by a distributed denial of service (DDoS) in retaliation, including some pages
                             on prime minister Lee Hsien Loong’s official site.
     Contents
                             Malaysia is also no stranger to high-profile hacktivist-style attacks. In early
     2014: New year, new     2013, bloody clashes with Filipino insurgents in Sabah led to Philippine
     risks?
                             hackers targeting numerous Malaysian sites. Later that year, human rights
     Cloud’s endless         activists and opposition party leaders were in uproar after a series of
     possibilities           distributed DDoS attacks took out their sites before election time.

     Holding back on cloud
                             IP THEFT A BIG RISK
     storage
                             Hacktivists are not the only threat facing organisations in Malaysia and
     Stricter data           Singapore. Intellectual property (IP) theft is a major and growing risk, often
     protection rules:       achieved through covert APT-style raids, according to Boland.
     Hornet’s nest or new
     era?
                             “The World Intellectual Property Organization (WIPO) says that three-fifths of
     Cloud computing         countries globally and 45% of WIPO patents are from APAC. There’s so
     lessons from Asia’s     much IP and a lot to be gained from stealing it,” he says.
     first movers
                             Asia-Pacific as a whole is twice as likely to be targeted by an advanced
     Singapore library
                             attack as the world as a whole, according to FireEye. In 2013, South Korea,
     mines big data
                             Japan and Taiwan were the top three most targeted countries in APAC, with
     Cloud storage and the   Singapore creeping into the top 10 countries at number 10. Malaysia does
     law                     not even make it into that list, but that doesn’t mean CSOs there can relax,
                             according to Boland. “In general, the richer the country, the more likely it is to
                             be targeted by both nation states and cyber criminals,” he says.

                             Another good indicator of how secure a country’s IP space is comes in the
                             form of Akamai’s quarterly State of the Internet report. The firm listed the top
                             source of attack traffic in Q3 2013 as China (35%), with Singapore (0.1%)
                             and Malaysia (0.2%) barely on the chart. This is important as it indicates that
                             there are relatively few machines in the latter two countries which have been
                             compromised and taken over by cyber criminals to launch attacks.

                             That said, local CSOs cannot afford to take their eyes off the ball in 2014,
                             according to Forrester senior analyst Manatosh Das. “Nearly 45% of the

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A guide for Southeast Asian IT and Business
                                                                                                      Managers

                             Asian organisations in our survey identified mobility as a high or critical pri-
                             ority for 2014,” he says. “As enterprises introduce mobility, the new access
                             points attached to the network create opportunities for attackers to break into
     Contents                the infrastructure directly or via mobile application portals that provide
                             gateways to protected, sensitive data.”
     2014: New year, new
     risks?
                             This especially relevant to Singapore, where there are twice as many mobile
     Cloud’s endless         phone subscriptions as people, and Malaysia, which led the world for the
     possibilities           highest number of devices accessing the corporate network in 2012,
                             according to a report from Citrix, with an average of six per employee.
     Holding back on cloud
     storage
                             Furthermore, strict new compliance requirements in the form of Malaysia’s
     Stricter data           Personal Data Protection Act 2013 and Singapore’s Personal Data
     protection rules:       Protection Act 2012 should focus CSOs’ minds, he says.
     Hornet’s nest or new
     era?
                             “The penalties for non-compliance in the Asia-Pacific region are growing and
     Cloud computing         it’s increasingly important to pay attention to local regulations… the
     lessons from Asia’s     repercussions can be severe.”
     first movers
                             CLOUD SECURITY
     Singapore library
                             For Frost & Sullivan analyst Vu Anh Tien, cloud computing remains a key
     mines big data
                             area of concern. “While Singapore remains a business hub, Malaysia is on
     Cloud storage and the   the way to becoming a datacentre hub in the region,” he says. “Hence it is
     law                     imperative that organisations in both countries implement strong cloud
                             security measures to protect data and privacy, especially for public
                             organisations.”

                             So what of the government response? Well, Malaysia’s National Cyber
                             Security Policy, launched in 2007, was widely seen as “one of the most
                             proactive measures of a government in the region”, according to Vu.

                             The Singaporean government has also been one of the more advanced
                             when it comes to anticipating the cyber threat. It’s had an Infocomm Security
                             Masterplan (ISMP) in place to map out how best to defend the city state
                             since 2005 and launched the most recent – the five-year National Cyber
                             Security Masterplan 2018 – last year.

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                             “Since the early days of computerisation in Singapore, emphasis has been
                             placed on ensuring the confidentiality, integrity and availability of information,
                             as well as the security of the underlying systems and communication
     Contents                networks,” says a government spokesperson.

     2014: New year, new     However, the final word should go to Vu: “Although governments in the two
     risks?
                             countries have been proactive and demonstrated leadership, it is the
     Cloud’s endless         responsibility of every organisation and individual to protect themselves from
     possibilities           cyber attacks. Only when awareness is improved will organisations be able
                             to defend themselves against threats in the era of the internet.” ■
     Holding back on cloud
     storage
                             Want more exclusive content?
     Stricter data           TechTarget is looking for IT pros to contribute their expertise to our ongoing
     protection rules:       research program. Because of your interest in this e-guide and endpoint
     Hornet’s nest or new    security topics covered within, we would greatly appreciate your valued
     era?
                             insights. By participating, you’ll help us better understand some of the
     Cloud computing         purchasing trends around various core technologies. Click here to participate
     lessons from Asia’s     in the Endpoint Security Research Program!
     first movers
                             Cloud’s endless possibilities
     Singapore library
                             Nancy Yap, journalist
     mines big data

     Cloud storage and the   Business agility, IT efficiency and the ability to focus on core competency are
     law                     the three most cited reasons for enterprises to embark on cloud initiatives.

                             “Endless possibilities” is how Glen Francis, CIO at Singapore-based Global
                             Logistic Properties (GLP), views cloud computing.

                             As more powerful cloud computing applications become available, Francis is
                             looking forward to leveraging them for mobile applications to enhance
                             business efficiencies and provide value-added services for GLP’s customers.
                             He plans to use the cloud to support internet of things (IoT) and analytics
                             projects next.

                             GLP, a global provider of logistics facilities in China, Japan and Brazil, has
                             been moving gradually to the cloud for both applications and infrastructure,

Page 6 of 35
A guide for Southeast Asian IT and Business
                                                                                                        Managers

                             says Francis. “On the applications side, our treasury management (Reval),
                             and communications (Lync) systems have been on the cloud platform since
                             2013,” he says, adding that Yammer was launched in late 2012.
     Contents
                             “These applications had the necessary functionalities required to run our
     2014: New year, new     business, plus there weren’t any legacy systems, which made choosing the
     risks?
                             cloud option easier,” says Francis.
     Cloud’s endless
     possibilities           The organization also reviewed cloud options for enterprise resource
                             planning (ERP), customer relationship management (CRM) and business
     Holding back on cloud
                             intelligence (BI), and is exploring a mobile BI solution in the cloud for its sales
     storage
                             function.
     Stricter data
     protection rules:       On the infrastructure side, the company moved its entire IT infrastructure in
     Hornet’s nest or new    Brazil to IBM in 2012 to be managed as a utility. This was to support its
     era?
                             acquisition of Prosperitas’ logistics facilities in Brazil.
     Cloud computing
     lessons from Asia’s     It made sense for the company to move its IT infrastructure and key
     first movers            applications, including SAP and Mastersaf, to IBM after evaluating several
                             options, says Francis.
     Singapore library
     mines big data
                             “Firstly, it was difficult, during that period, for our Asian team to be
     Cloud storage and the   operationally ready to support Brazil due to the time difference and distance.
     law                     Secondly, the acquisition had to be completed within a month of the contract
                             being signed,” he says.

                             BIG BUSINESS BENEFITS
                             Francis believes the increased speed and reduced cost of rolling out
                             applications on cloud computing are the biggest business benefits. “In the
                             early days, we were concerned about latency and performance, especially
                             for mobile and in emerging countries such as China; customizations; and the
                             interface and integration of cloud and on-site applications,” he says.

                             The organization has since resolved those concerns and is seeing business
                             benefits of lower costs and support requirements from the virtual
                             infrastructure. “We now have a better back-end infrastructure as compared to

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A guide for Southeast Asian IT and Business
                                                                                                      Managers

                             an internal organization. Most mature cloud providers have better security
                             systems than most enterprises can afford,” he adds.

     Contents                And Francis sees the potential in the Infocomm Development Authority (IDA)
                             of Singapore’s Multi-Tier Cloud Security Standard (MTCS SS) for Singapore,
     2014: New year, new     which was launched in November 2013 to provide businesses with greater
     risks?
                             clarity on the levels of security offered by different cloud service providers:
     Cloud’s endless         “IDA’s security standard can help in many ways. It can give consumers of
     possibilities           cloud services more assurance of the service provider’s offerings. It can
                             create more consistency of what is offered.”
     Holding back on cloud
     storage
                             He is confident that it can also help to ensure better service level
     Stricter data           discussions, “saving both consumers of cloud computing and suppliers
     protection rules:       headaches when it comes to their ongoing operations once the system is
     Hornet’s nest or new    running”.
     era?

     Cloud computing         INNOVATION DRIVES IAAS ADOPTION
     lessons from Asia’s     In the past three years, Forrester Research vice-president and research
     first movers            director Michael Barnes has seen infrastructure as a service (IaaS) steadily
                             emerge as a top cloud workload in Asia-Pacific as organizations have begun
     Singapore library
                             to more clearly understand its use cases.
     mines big data

     Cloud storage and the   “While internal IT resistance based on security, data management,
     law                     availability and performance concerns remain, we expect project-driven,
                             opportunistic IaaS use to drive further adoption in Asia-Pacific over the next
                             18 to 24 months,” says Barnes.

                             He adds that the benefits of IaaS in reducing infrastructure costs and
                             allowing organizations to quickly ramp up business capabilities far outweigh
                             the risks.

                             “We’re starting to see the beginnings of a shift in perspective across the
                             region: Innovation, fuelled by easy access to cloud-based compute
                             resources, is replacing cost savings as the primary driver of IaaS adoption.”

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                             And as opportunistic IaaS use gives way to more strategic initiatives over the
                             next two to three years, Barnes expects the potential impact on both IT and
                             broader business strategies to rise.
     Contents
                             Forrester Research estimates the public cloud market across the ASEAN
     2014: New year, new     region – including Indonesia, Malaysia, the Philippines, Singapore, Thailand
     risks?
                             and Vietnam – will grow from US$230m in 2011 to US$1.6bn in 2020.
     Cloud’s endless
     possibilities           Barnes says the individual countries that comprise the ASEAN region vary
                             widely, not only in terms of IT maturity and relative cloud adoption, but in
     Holding back on cloud
                             other, more fundamental areas as well, including political stability, economic
     storage
                             transparency, geography and language.
     Stricter data
     protection rules:       Nonetheless, he expects these differences to become less pronounced as
     Hornet’s nest or new    the region continues to see strong, broad-based macroeconomic growth.
     era?

     Cloud computing         MALAYSIA: ADOPTING SAAS FOR FUNCTIONAL NEEDS
     lessons from Asia’s     In Malaysia, Forrester’s Research indicates that organizations are currently
     first movers            adopting software as a service (SaaS) and other public cloud-based services
                             without necessarily considering the need to create a comprehensive cloud
     Singapore library
                             strategy a top priority.
     mines big data

     Cloud storage and the   “Buyers in the Malaysian market tend to be more pragmatic, leveraging SaaS
     law                     solutions to meet clearly defined functional needs in areas like email,
                             collaboration and basic salesforce automation,” says Barnes.

                             Mayank Kapoor, Asia-Pacific lead for datacenter and cloud computing
                             practice at Frost & Sullivan, is seeing a similar state of cloud understanding
                             in the country.

                             “In Malaysia, many do not understand how to use the cloud. Government
                             healthcare is embracing cloud and new service providers are coming in with
                             offerings, but service levels need to be improved,” says Kapoor.

Page 9 of 35
A guide for Southeast Asian IT and Business
                                                                                                       Managers

                             SINGAPORE: HIGH CLOUD AWARENESS AND CONFIDENCE
                             On the other hand, cloud awareness and confidence are high in Singapore,
                             says Barnes, who has been in this area of research for over a decade: “Our
     Contents                research indicates that less than 20% of IT decision-makers in Singapore
                             currently rate cloud as a critical priority, but the percentage rating it as a high
     2014: New year, new     priority is well above the regional average, regardless of organization size or
     risks?
                             vertical.”
     Cloud’s endless
     possibilities           He believes this is an indication that Singapore IT leadership is increasingly
                             seeing SaaS and other public cloud-based offerings as simply another IT-
     Holding back on cloud
                             enabled capability available to be leveraged and not as a distinct strategic
     storage
                             initiative.
     Stricter data
     protection rules:       However, this is likely to increase with the launch of IDA’s MTCS SS, which
     Hornet’s nest or new    Barnes expects will drive greater transparency and make it easier for
     era?
                             Singapore-based organizations to evaluate cloud service providers in areas
     Cloud computing         such as security, data residency and reliability.
     lessons from Asia’s
     first movers            GROWING AT RAPID PACE
                             Gartner research director Arun Chandrasekaran has also seen cloud
     Singapore library
                             computing adoption in Southeast Asia growing at a rapid pace in the past
     mines big data
                             three years, although the growth is built from a small base.
     Cloud storage and the
     law                     He says early adoption in both Singapore and Malaysia is centered on IaaS
                             use cases such as e-business hosting, test and development, batch
                             computing and SaaS applications such as CRM, collaboration and expense
                             management.

                             “Cloud computing is simple to use for most consumers. Although it
                             introduces some risks, the compelling opportunities surfacing through the
                             cloud make its use an almost inevitable requirement of successful
                             businesses,” says Chandrasekaran.

                             According to Gartner, the top five Asian countries in terms of cloud adoption
                             by revenues are Japan, China, Australia, South Korea and India. And the top

Page 10 of 35
A guide for Southeast Asian IT and Business
                                                                                                      Managers

                             five regional countries by percentage of businesses that have adopted public
                             cloud are Australia, New Zealand, Singapore, Hong Kong and Japan. ■

     Contents                Want more exclusive content?
                             TechTarget is looking for IT pros to contribute their expertise to our ongoing
     2014: New year, new     research program. Because of your interest in this e-guide and cloud topics
     risks?
                             covered within, we would greatly appreciate your valued insights. By
     Cloud’s endless         participating, you’ll help us better understand some of the purchasing trends
     possibilities           around various core technologies. Click here to participate in the Cloud
                             Infrastructure Research Program!
     Holding back on cloud
     storage
                             Holding back on cloud storage
     Stricter data           Gigi Onag, freelance journalist with 10+ years’ experience covering the
     protection rules:       technology industry across APAC
     Hornet’s nest or new
     era?
                             Cloud storage costs have declined rapidly in the past 18 months, but most
     Cloud computing         companies in the Asean region remain reluctant to store data and
     lessons from Asia’s     applications hosted externally.
     first movers
                             But some businesses in the region, such as insurance broker Lockton
     Singapore library
                             Companies, are planning for it.
     mines big data

     Cloud storage and the   Singapore is, so far, the only country in the Asean group where there is
     law                     significant adoption of cloud storage, says Mayank Kapoor, industry manager
                             for datacenter and cloud computing at Frost & Sullivan.

                             The broad status of cloud storage adoption in the region mirrors the situation
                             globally.

                             “Public cloud storage adoption for the enterprise is still at the early stages,”
                             says Henry Baltazar, senior analyst, serving infrastructure and operations
                             professionals at Forrester Research.

                             “Cloud storage is necessary to support cloud compute applications. Besides
                             basic storage capabilities, companies use cloud storage to expand the reach
                             of systems of engagement. For example, if a company does not have a

Page 11 of 35
A guide for Southeast Asian IT and Business
                                                                                                      Managers

                             physical presence in another country or continent, cloud storage and cloud
                             computing can be used,” he says.

     Contents                BACKUP AND CLOUD STORAGE
                             Insurance broker Lockton Companies, which has a significant Asean
     2014: New year, new     presence, is one organization that is now exploring cloud-based storage for
     risks?
                             its backup needs.
     Cloud’s endless
     possibilities           “The backup for our disaster recovery [DR] solution is reaching its full
                             capacity,” says Suk-Wah Kwok, Asia- Pacific CIO at Lockton Companies. “So
     Holding back on cloud
                             now I am thinking about whether to invest in another storage solution – which
     storage
                             is not cheap – or use this opportunity to look at cloud-based solutions.”
     Stricter data
     protection rules:       The company has eight key offices in the region, located in Hong Kong,
     Hornet’s nest or new    Singapore, China, South Korea, Australia, Thailand, Malaysia and the
     era?
                             Philippines, as well as three partner offices in Japan, Taiwan and Indonesia.
     Cloud computing         Kwok oversees the IT operations in these eight countries, supporting more
     lessons from Asia’s     than 600 users.
     first movers
                             “I am looking more at backup data because of timing – I have an imminent
     Singapore library
                             requirement. But I am not looking at backup data in isolation – more in
     mines big data
                             conjunction with a complete DR solution. For example, we are not planning
     Cloud storage and the   to have an internal DR solution and then have the storage for it externally. I
     law                     might as well look at cloud storage and DR together, which means adopting
                             a cloud-based DR solution is definitely an option,” says Kwok.

                             She believes it is essential to get an insight of other things around storage
                             before making an investment.

                             “I still fail to understand why you would look at cloud storage in isolation
                             without looking at other infrastructure components that use the storage,” says
                             Kwok. “Unless you run into a stipulation that some of them must be kept
                             internally, I don’t see why you would have the entire infrastructure in-house
                             and just the storage outside. Why not open up further?”

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A guide for Southeast Asian IT and Business
                                                                                                      Managers

                             ECONOMIC BENEFITS
                             Kwok is receptive to cloud storage because Lockton’s IT operations in Asia-
                             Pacific have been running on a private cloud model for years.
     Contents
                             “We have an internal WAN, we have centralized internal infrastructure and
     2014: New year, new     internal storage. Some people call that a ‘cloud solution’ because the data is
     risks?
                             not physically in the office. Most of the data in the Asia-Pacific region is
     Cloud’s endless         stored in an internal cloud – only that cloud is within the Lockton framework,
     possibilities           so to speak.”

     Holding back on cloud
                             The cloud option for the company’s backup data is attractive not only
     storage
                             because of the cost savings of paying only for what is consumed, but also for
     Stricter data           the high service level for minimal investment.
     protection rules:
     Hornet’s nest or new    “From a purely economic perspective, you tap into much better infrastructure
     era?
                             without having to build it yourself. You pay a fraction of the cost. Cloud
     Cloud computing         providers typically offer sophisticated and industrial-strength systems that are
     lessons from Asia’s     otherwise too expensive and ineffective for a single enterprise to build,” says
     first movers            Kwok.

     Singapore library
                             ADOPTION BARRIERS
     mines big data
                             But ironically, Frost & Sullivan says monetary issues are one of the major
     Cloud storage and the   obstacles for cloud storage deployment in South-East Asia. “Total cost of
     law                     ownership continues to be high, taking into account storage and bandwidth
                             cost for data that is accessed frequently,” says Kapoor.

                             Privacy and security concerns are also at the top of the list, along with data
                             compliance requirements.

                             Networking issues are also barriers to some. “Companies are also worried
                             about the performance levels of cloud-based storage that may arise because
                             of the distance between the user and the data, compounded by network
                             performance issues,” adds Kapoor.

Page 13 of 35
A guide for Southeast Asian IT and Business
                                                                                                     Managers

                             Lockton is anticipating this potential network connectivity problem for its
                             Asean users should it make a move towards cloud storage, as the company
                             has to weigh the different impacts on IT users before making a decision.
     Contents
                             “In implementing any cloud solution, the number one technical difficulty is the
     2014: New year, new     network connectivity between those countries and to where that cloud is. So
     risks?
                             you might be looking at whether any network accelerators could be put in
     Cloud’s endless         place to speed up the access,” says Kwok.
     possibilities
                             But for Kwok, the real barrier to cloud storage adoption does not lie with
     Holding back on cloud
                             technology.
     storage

     Stricter data           “I am quite confident that cloud is mature enough to be a mainstream
     protection rules:       service. The challenges are internal. With privacy, security and compliance
     Hornet’s nest or new    requirements, we have to make sure the cloud solution will be able to satisfy
     era?
                             all that. These governing rules are not set by IT, but by the security and
     Cloud computing         compliance teams within Lockton. Due diligence has to be done,” she says.
     lessons from Asia’s
     first movers            Forrester’s Baltazar says cloud providers appear to be making progress in
                             meeting their customers’ compliance and security requirements. “Encryption
     Singapore library
                             and key management are major mechanisms for securing data in the cloud. I
     mines big data
                             talked with a stealth startup recently that was working on creating virtual
     Cloud storage and the   container technologies to isolate workloads in a public cloud,” he says.
     law
                             Frost & Sullivan’s Kapoor says companies can ensure they have the right
                             environment for their data by conducting regular third-party audits, using
                             access control and sign-on, implementing flow control over the data
                             lifecycles, and putting policies in place for data handling and archiving.

                             “It is also essential to understand how the service provider will react in case
                             there is a security breach/hacking incident. The speed of response to fix the
                             issue and identify what data has been compromised will be an essential
                             parameter to threat management,” says Kapoor.

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                             MOVING FORWARD
                             Both industry analysts predict cloud storage adoption in Asean enterprises
                             will speed up in the years ahead.
     Contents
                             “The elasticity and rapid provisioning of cloud storage will accelerate
     2014: New year, new     adoption. With cloud storage, you only pay for the resources you consume.
     risks?
                             This is attractive, especially if a customer has a workload [with peaks and
     Cloud’s endless         troughs],” says Baltazar.
     possibilities
                             In Southeast Asia, Kapoor sees the growing share of primary data stored in
     Holding back on cloud
                             the cloud with the changing market trends, with social, mobile and software
     storage
                             as a service adoption increasingly driving more data into the cloud. But he
     Stricter data           adds that security, privacy and cost considerations are keeping pure cloud
     protection rules:       storage adoption in check.
     Hornet’s nest or new
     era?
                             Kapoor expects the hybrid storage model to be the likely scenario for most
     Cloud computing         Asean companies in the coming years. “The hybrid storage model is most
     lessons from Asia’s     likely to dominate the next three to five years as organizations look to take a
     first movers            pragmatic approach of leveraging a mix of in-house and cloud-based
                             storage.”
     Singapore library
     mines big data
                             Baltazar advises those eyeing cloud storage for their companies to plan to
     Cloud storage and the   leave when they join a service. “While it is relatively easy to move data up to
     law                     a cloud, transferring data to another cloud or bringing it back on-site is not
                             always easy. Some providers such as Amazon have dedicated networks to
                             connect to your site or co-location site. These links could accelerate data
                             movement should you decide to move your data somewhere else,” he says.■

                             Want more exclusive content?
                             TechTarget is looking for IT pros to contribute their expertise to our ongoing
                             research program. Because of your interest in this e-guide and cloud topics
                             covered within, we would greatly appreciate your valued insights. By
                             participating, you’ll help us better understand some of the purchasing trends
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Page 15 of 35
A guide for Southeast Asian IT and Business
                                                                                                       Managers

                             Stricter data protection rules: Hornet’s nest or new era?
                             Tao Ai Lei, written about the technology industry for 10+ years

     Contents                Data protection and privacy issues are receiving greater focus in Asia as
                             both Malaysia and Singapore enact their own data regulations, propelling
     2014: New year, new     organizations into action.
     risks?

     Cloud’s endless         The need to regulate the use and storage of data has never been greater, as
     possibilities           technology has become more intelligent, making it easy for personal data to
                             be collected, used and transferred. Such activity can border on being
     Holding back on cloud
                             intrusive and consumer data can be more easily misused.
     storage

     Stricter data           Besides the introduction of a Personal Data Protection Act (PDPA) in
     protection rules:       Malaysia and Singapore, the Philippines Data Privacy Act 2011 was passed
     Hornet’s nest or new    by the Senate and House of Representatives and Taiwan’s PDPA became
     era?
                             effective in October of the same year.
     Cloud computing
     lessons from Asia’s     The acts in both Malaysia and Singapore are seeking to regulate the
     first movers            collection, use, disclosure and management of personal data, says Chan
                             Kheng Hoe, an advocate and solicitor with Malaysian law firm Kheng Hoe &
     Singapore library
                             Partners.
     mines big data

     Cloud storage and the   However, there are differences between the acts in the two countries. For
     law                     instance, the Singapore PDPA has a Do-Not-Call (DNC) Registry to exclude
                             marketing calls, while Malaysia does not have an equivalent service.

                             “Personal data protection legislation differs from country to country,
                             depending on the cultural and social background of the country,” says Bryan
                             Tan, technology media and telecommunications partner at law firm Pinsent
                             Masons in Singapore.

                             “The Singapore PDPA has a unique feature – the set-up of the Do-Not-Call
                             Registry where persons making marketing calls must first check with the
                             registry. This is unique because most countries have this as separate legis-
                             lation,” he says.

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                             Singapore also excludes business contact information from being identified
                             as personal data, whereas the Malaysian act’s definition of personal data is
                             wide enough to include business contact information.
     Contents
                             The Malaysia PDPA, passed in December 2013, affects any person who
     2014: New year, new     processes personal data for commercial purposes in Malaysia. Companies
     risks?
                             have to comply with the seven principles laid out in the PDPA, which means
     Cloud’s endless         they may have to invest in compliance systems.
     possibilities
                             WHO IS AFFECTED?
     Holding back on cloud
                             These new regulations will affect any company that sells directly to
     storage
                             individuals, collects personal data for business and deploys cold calls, short
     Stricter data           message service (SMS) or fax marketing.
     protection rules:
     Hornet’s nest or new    “In a nutshell, the PDPA affects organizations which collect, use and disclose
     era?
                             personal data. It does not cover government entities. There are also
     Cloud computing         obligations on how the personal data is protected, transferred overseas and
     lessons from Asia’s     retained or disposed of,” says Tan.
     first movers
                             “The most common areas affected are employment data, visitor data and
     Singapore library
                             customer information. Consumer-based marketing organizations – real
     mines big data
                             estate agencies, call centre marketing, hospitals, insurance companies – are
     Cloud storage and the   likely to be the most affected, but most organizations, if not all, are likely to
     law                     be affected to some extent.”

                             In Singapore, an organization found to be non-compliant may face the
                             maximum financial penalty of S$1m, while companies found to have violated
                             the data protection rule may face fines of up to S$10,000 per customer
                             complaint.

                             The penalty is also stiff in Malaysia, where companies will face a fine of up to
                             RM500,000 and/or imprisonment for up to three years. The directors and
                             officers can be personally liable, in addition to the corporate bodies.

                             The PDPA has prompted Says.com, a Malaysian social news site, to
                             reconsider how it manages its customers’ data to ensure compliance. The

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                                                                                                     Managers

                             site runs on a service-oriented architecture (SOA) with services all around
                             the world with different suppliers – including cloud and software as a service
                             (SaaS) providers and dedicated or virtual servers outside of Malaysia and
     Contents                Singapore.

     2014: New year, new     “Customer data movement is the biggest challenge we are facing,” says
     risks?
                             Arzumy MD, chief technology officer (CTO) and founding team member at
     Cloud’s endless         Says.com.
     possibilities
                             “With an SOA, our user data moves from one location to another to be
     Holding back on cloud
                             processed. We have to ensure that the personal data protection landscape in
     storage
                             the country where the data moves to is compatible with ours,” he says.
     Stricter data
     protection rules:       To ensure compliance, Says.com moved all its user data to a single user
     Hornet’s nest or new    account management service. It enables a single sign-on for all Says.com
     era?
                             apps, providing a single place for users to manage their personal data. This
     Cloud computing         has made it easier to manage user data instead of having to ensure that all
     lessons from Asia’s     different apps that store user data are in compliance with the PDPA.
     first movers
                             “Because Malaysian and Singaporean acts are compatible with each other,
     Singapore library
                             there’s nothing much else we have to do once we are compliant with one set
     mines big data
                             of regulations,” says Arzumy.
     Cloud storage and the
     law                     DO-NOT-CALL REGISTRY
                             In Singapore, the full implementation of the Personal Data Protection Act
                             happens in July 2014, although the DNC Registry came into effect in January
                             this year.

                             The DNC Registry allows consumers in Singapore to opt out of unsolicited
                             phone calls, faxes and advertising messages from telemarketers. To do so,
                             they have to register their Singapore mobile or fixed-line numbers with the
                             Do-Not-Call Registry.

                             In turn, organizations need to check to confirm that a number is not listed in
                             the DNC Registry before making a marketing call to the phone, or even

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                             sending a fax, SMS or multimedia messaging service (MMS). The penalty for
                             DNC non-compliance is S$10,000.

     Contents                As of May 2014, more than 600,000 telephone numbers had been registered
                             with the DNC Registry.
     2014: New year, new
     risks?
                             Tighter data privacy regulations such as the DNC Registry have made it
     Cloud’s endless         harder for property agents in Singapore to tap new prospects through cold
     possibilities           calls. They have had to spend more to reach potential buyers.

     Holding back on cloud
                             “The DNC Registry has affected many property agents. We try not to take
     storage
                             this as a problem; there are still many who are willing to receive marketing
     Stricter data           calls,” says Kelvin Fong, a property agent who heads a team at PropNex, the
     protection rules:       largest agency in Singapore with around 5,300 agents.
     Hornet’s nest or new
     era?
                             Instead, PropNex property agents have signed up for SpiderGate, a DNC
     Cloud computing         management system. When an agent makes a call from a smartphone,
     lessons from Asia’s     desktop or IP-PBX phone system, the system automatically checks the
     first movers            number against the national DNC Registry. If the number is on the list, the
                             caller will be informed and have the choice whether to proceed or to cancel
     Singapore library
                             the call.
     mines big data

     Cloud storage and the   Fong has also taken the innovative approach of paying S$100,000 to
     law                     develop a smartphone app to connect clients and agents. “This way, we don’t
                             have to call the client. They can download the app, and get information on
                             property listings and new launches,” says Fong.

                             Moving forward, organizations in both Malaysia and Singapore will have to
                             go through the initial pain of developing practices and policies to ensure that
                             the internal processes and procedures of collecting and using personal data
                             comply with the PDPA.

                             Ultimately, the introduction of these new data protection regulations bodes
                             well for both countries, as it provides organizations with the obligation to
                             ensure good governance surrounding the collection and use of personal

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                             data. These moves will help to positively boost the business reputation of
                             both countries.

     Contents                The PDPA has started to make a difference. In a poll of 1,000 consumers
                             conducted in March by Singapore’s Personal Data Protection Commission,
     2014: New year, new     which administers the DNC Registry, 70% said they had noticed a drop in the
     risks?
                             number of unwanted marketing messages received. A total of 60% said they
     Cloud’s endless         had seen improvements in organizations’ practices, as the firms seek users’
     possibilities           consent and include contact information in the marketing messages sent. ■

     Holding back on cloud
                             Want more exclusive content?
     storage
                             TechTarget is looking for IT pros to contribute their expertise to our ongoing
     Stricter data           research program. Because of your interest in this e-guide and data
     protection rules:       protection topics covered within, we would greatly appreciate your valued
     Hornet’s nest or new    insights. By participating, you’ll help us better understand some of the
     era?
                             purchasing trends around various core technologies. Click here to participate
     Cloud computing         in the Data Protection Research Program!
     lessons from Asia’s
     first movers            Cloud computing lessons from Asia’s first movers
                             Nancy Yap, journalist
     Singapore library
     mines big data
                             The Singapore National Library Board (NLB) was an early adopter of cloud
     Cloud storage and the   computing. It moved its web archive to the cloud in 2006, and has since
     law                     moved more business-critical IT from on-premise to the cloud. But what can
                             other organizations in the Asean region learn from the NLB?

                             For more than half a year now, Singapore NLB CIO Lee Kee Siang has been
                             using the time saved on traveling to meetings for more strategic projects.
                             This change came on the back of the agency’s implementation of cloud-
                             based unified communications (UC) in mid-2013.

                             A team of about 70 users participated in the first roll-out, with initial
                             productivity gains from tools including video conferencing. “We often conduct
                             meetings at different locations and sometimes hold urgent discussions at ad
                             hoc hours to troubleshoot issues,” says Lee. “With unified communications,

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A guide for Southeast Asian IT and Business
                                                                                                     Managers

                             we have been able to arrange [Cisco] WebEx meetings at short notice
                             without the need to travel.”

     Contents                Unified communications has enabled the NLB team to communicate through
                             mobile devices, PCs and notebooks, allowing team members to collaborate
     2014: New year, new     with internal and external parties through conference calls.
     risks?

     Cloud’s endless         “NLB is currently testing room-to-room video conferencing in two rooms and
     possibilities           it aims to increase that capacity to another four rooms this year,” says Lee.

     Holding back on cloud
                             MORE APPS IN CLOUD BASKET
     storage
                             According to Lee, the library’s web archive system was the first application
     Stricter data           that went on the cloud, in 2006. It tapped into the national grid computing
     protection rules:       resources, which substantially reduced the time taken for web crawling and
     Hornet’s nest or new    costs.
     era?

     Cloud computing         In 2008, the library placed its Enquiry Management System (EMS) on a
     lessons from Asia’s     hybrid cloud, which allowed sensitive data to be processed in-house, while
     first movers            non-sensitive data resided in the cloud. With the EMS, Lee recalls that the
                             cloud computing option halved implementation time, from six months to
     Singapore library
                             three.
     mines big data

     Cloud storage and the   In the same year, the library embarked on its private cloud journey by using
     law                     virtualization technology. That resulted in reduced datacenter space and
                             energy consumption. Today, the private cloud also supports its unified
                             communications.

                             For successful cloud implementations, Lee believes it is important that IT
                             professionals understand what the service providers are offering and their
                             own risk appetites.

                             “Businesses need to have their own contingency plans. Outsourcing to a
                             cloud service provider is no different from outsourcing to any other supplier.”

                             As the library continues to seek cost-efficient products, Lee is reviewing the
                             possibility of migrating less sensitive applications to the cloud, such as the

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A guide for Southeast Asian IT and Business
                                                                                                      Managers

                             library databases it subscribes to. “Today, the library systems that are in the
                             cloud are standalone ones, as information security is a key consideration for
                             us.”
     Contents
                             Nonetheless, he is exploring how cloud service provider applications can
     2014: New year, new     integrate seamlessly with the library’s internal system.
     risks?

     Cloud’s endless         CLOUD-BASED EFFICIENCIES
     possibilities           Gartner research director Arun Chandrasekaran believes government
                             agencies, such as NLB, can greatly benefit from cloud-based productivity.
     Holding back on cloud
                             “The big challenge is balancing the risks and returns of outsourced services
     storage
                             and, for governments, the answers are often different from those for the
     Stricter data           private sector.”
     protection rules:
     Hornet’s nest or new    As government agencies are bigger, more rule-bound and risk-averse, and
     era?
                             forced to offer an extremely diverse portfolio of services, he says, movement
     Cloud computing         to the cloud may be more difficult and time-consuming. “However,
     lessons from Asia’s     governments also face less volatility in demand, making cloud-based agility
     first movers            somewhat less important, or at least less urgent.”

     Singapore library
                             Chandrasekaran says most analysis in government focuses on jurisdiction-
     mines big data
                             by-jurisdiction initiatives. “However, some opportunities are best assessed
     Cloud storage and the   when national, regional and local leaders work together, especially to
     law                     address data standardization and integration issues.”

                             One example is Singapore’s private government cloud (G-Cloud), which all
                             government departments can use. Chandrasekaran says G-Cloud is one of
                             the first projects of its kind, based on the size of the project, the scope of
                             requirements (security in particular) and the public-private partnership (PPP)
                             model the Infocomm Development Authority of Singapore has adopted to
                             implement it.

                             In addition, multinational companies (MNCs) – outside the regulated
                             industries such as banking – and small and medium businesses have also
                             been the early adopters of cloud computing in Asia, he adds.

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                             In Asia, Singapore is a leader in cloud implementations, and industries
                             including manufacturing, services and retail are the dominant vertical
                             industries for cloud adoption, says Chandrasekaran.
     Contents
                             ALL ABOUT PERCEPTIONS
     2014: New year, new     Chandrasekaran believes the critical factor in resisting cloud computing is IT
     risks?
                             organizations’ lack of confidence in public cloud services having the qualities
     Cloud’s endless         necessary to host business-critical applications. “Even if a service provider is
     possibilities           able to demonstrate that a service is built on architecture and processes that
                             are more robust than private infrastructure, Asian businesses are still
     Holding back on cloud
                             unwilling to trust their applications to the public cloud,” he says.
     storage

     Stricter data           The most obvious reason for this distrust is the nature of cloud computing’s
     protection rules:       multi-tenant outsourcing model. The key challenges Chandrasekaran sees in
     Hornet’s nest or new    the adoption of cloud computing in Asean are:
     era?

     Cloud computing                Crafting a cloud computing strategy that is forward-looking and
     lessons from Asia’s             agreed on by various functions;
     first movers                   Mitigating security and data privacy challenges that have wide
                                     visibility across various teams, including legal, compliance and
     Singapore library
                                     senior management, within the organization;
     mines big data
                                    Building a true hybrid cloud where off-premise clouds are seamlessly
     Cloud storage and the           integrated with on-premise infrastructure;
     law                            The long-term costs of cloud are not transparent, and are further
                                     compounded by exit costs.

                             BUSINESS FACTORS SHAPING CLOUD COMPUTING
                             Forrester Research vice-president and research director Michael Barnes
                             says software-as-a-service (SaaS) demand has increased sharply across all
                             major markets in Asia- Pacific and Japan (APJ), and not just in traditionally
                             strong markets such as Australia, New Zealand and Singapore.

                             According to Barnes, regional firms are aggressively reacting to economic
                             growth opportunities and competitive pressures, optimistic business outlooks
                             and a push among organizations to expand beyond their core markets, either
                             regionally or globally. “For example, the economies in less mature Asean

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                                                                                                      Managers

                             markets such as Indonesia, Malaysia and the Philippines are becoming more
                             open, and regional competition is starting to intensify, particularly in areas
                             such as light manufacturing and distribution.”
     Contents
                             He says across key markets in Asean, complete IT resistance to SaaS has
     2014: New year, new     steadily given way to more pragmatic discussions, even if IT has come to the
     risks?
                             table grudgingly. “Over the next two years, Forrester expects that many
     Cloud’s endless         SaaS solutions, particularly those that cross business and functional
     possibilities           boundaries, will be rapidly subsumed in the broader IT portfolio, even if they
                             were originally sourced outside IT.”
     Holding back on cloud
     storage
                             Barnes says IT can add value and support SaaS adoption where
     Stricter data           organizations are augmenting existing on-premise technology, which is very
     protection rules:       common among MNCs operating in Asia.
     Hornet’s nest or new
     era?
                             “[IT should] proactively engage with the business around contract
     Cloud computing         negotiations, functional evaluations, service-level agreements and other
     lessons from Asia’s     areas where IT can provide clear value and link with existing application
     first movers            portfolio management initiatives and the organization’s overall business
                             application strategy,” he says. ■
     Singapore library
     mines big data
                             Want more exclusive content?
     Cloud storage and the   TechTarget is looking for IT pros to contribute their expertise to our ongoing
     law                     research program. Because of your interest in this e-guide and cloud topics
                             covered within, we would greatly appreciate your valued insights. By
                             participating, you’ll help us better understand some of the purchasing trends
                             around various core technologies. Click here to participate in the Cloud
                             Infrastructure Research Program!

                             Singapore library mines big data
                             Tao Ai Lei, written about the technology industry for 10+ years

                             As guardians of books, text and data, it appears natural for libraries to be
                             among the first to explore the potential of big data technologies.

Page 24 of 35
A guide for Southeast Asian IT and Business
                                                                                                      Managers

                             One such example is Singapore’s National Library Board (NLB), which has
                             put big data technologies in to optimize its library collection to meet customer
                             needs, to recommend books and to make library resources more accessible.
     Contents
                             The NLB comprises 25 public libraries and one national library. Combined,
     2014: New year, new     these facilities have a collection of more than 1.5 million titles and 8.5 million
     risks?
                             other items, generating more than 30 million loans per year.
     Cloud’s endless
     possibilities           In view of the huge and complex datasets it is dealing with, the NLB decided
                             to use big data technologies to derive actionable insights across the entire
     Holding back on cloud
                             organization at strategic, tactical and operational levels, says Kia Siang
     storage
                             Hock, deputy director of technology and innovation at the National Library
     Stricter data           Board.
     protection rules:
     Hornet’s nest or new    “With millions of users accessing tens of millions of physical and digital
     era?
                             resources across Singapore, the NLB possesses a treasure trove of valuable
     Cloud computing         data,” says Kia.
     lessons from Asia’s
     first movers            “The proper mining of such data unearths hidden treasures that can lead to
                             productivity gains through better decision-making, customer satisfaction
     Singapore library
                             improvements through better service, and better use of NLB services and
     mines big data
                             resources,” adds Kia.
     Cloud storage and the
     law                     Hide and seek
                             One issue that had to be faced was the sheer quantity and variety of books
                             and items in the NLB’s collection, which it realized would hinder the efficiency
                             of searches. With so much data available, it had to grapple with the question
                             of whether busy users can find the information they require.

                             The NLB did not want to put its users through a complicated and tedious
                             search process, but wanted to make relevant information more readily
                             available to them. To do this, it realized it needed to connect up the huge and
                             growing volume of structured and unstructured information resources in its
                             repositories.

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A guide for Southeast Asian IT and Business
                                                                                                       Managers

                             It decided this was where big data technologies should come in. Applying
                             collaborative data mining techniques and text analytics to past loan
                             transactions as well as books’ bibliography records can help its employees
     Contents                and library users generate better search results and recommendations.

     2014: New year, new     “We started exploring text analytics in 2013,” says Kia. “We took a phased
     risks?
                             approach, and started putting recommendations onto electronic resources
     Cloud’s endless         such as Infopedia (June 2013), Singapore Memory Portal (August 2013),
     possibilities           PictureSG (September 2013), and cross-recommendation from Infopedia to
                             PictureSG (November 2013).”
     Holding back on cloud
     storage
                             The NLB has created a title recommendation service that offers more
     Stricter data           relevant data to its users on its websites and portals, enabling customers
     protection rules:       who search for a book to receive information about the book, plus data on
     Hornet’s nest or new    related book titles. To do this, the NLB used a combination of internal and
     era?
                             external resources.
     Cloud computing
     lessons from Asia’s     “We built up basic internal capabilities, and leveraged partners and vendors
     first movers            in many of the big data implementations,” says Kia. “Project teams were
                             formed for each big data implementation, and each project team would
     Singapore library
                             identify the data requirement.”
     mines big data

     Cloud storage and the   The system uses collaborative filtering technology – a data mining technique
     law                     – to mine reading patterns based on the libraries’ past three years’ loan
                             records. The NLB also uses content-based filtering of the books’ bibliography
                             records to generate another list of recommended books under the heading
                             “similar titles you may also enjoy”, a service similar to that offered on
                             Amazon.com’s website.

                             The system now generates recommendations for 89% of fiction titles and
                             53% of non-fiction titles, reflecting the fact that fiction titles are loaned more
                             frequently.

                             The NLB uses Mahout text analytics software operating on a Hadoop cluster
                             from the Apache Software Foundation. This automatically connects its rich

Page 26 of 35
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