MoU covers feasibility study on IoE business opportunities
IoE expected to drive US$64bil in value in Malaysia over next 10yrs
UTUSAN Melayu (Malaysia) Bhd, which publishes the popular Malay-language daily Utusan Malaysia, has signed a memorandum of understanding (MoU) with Cisco International Ltd to explore business opportunities around the ‘Internet of Everything’ (IoE).
“The MoU with Cisco is for the purpose of conducting a feasibility study of applying Cisco technologies to identify business opportunities to promote the concept of IoE,” Utusan said in its filing to Bursa Malaysia on Oct 10.
Cisco International Ltd is the UK arm of San Jose, California-based technology giant Cisco Systems Inc.
The MoU is believed to have positioned Utusan Melayu as one of the first newspaper companies in Malaysia to conduct a feasibility study on IoE, which Cisco defines as “a network connection of people, processes, data and things [devices],” saying it was the next evolution of the Internet.
The MoU will last for one year, unless extended by the written agreement of both parties. Either party can terminate the MoU by giving a 30-day notice period.
Both parties will also bear their own cost and expenditures arising from the MoU, Utusan Melayu said in its filing.
Help improve competitiveness
Although the feasibility study is still at the early stages, it is nevertheless a sign that Malaysian companies are starting to look at how IoE can benefit their business in the long run, according to Cisco Malaysia country manager Albert Chai (pic).
“In an increasingly connected world, businesses need to embrace the latest technological innovations to stay ahead of their competitors. This will not only create value for the company, but its customers as well,” he said when contacted by Digital News Asia (DNA).
Many newspaper companies globally are facing the challenge of declining circulation as readers gravitate to online content.
For the first half ended June 30, 2014, Utusan’s revenue fell by 18% to RM172.09 million, while its net loss expanded to RM30.85 million, against an RM6.89 million net loss in the first half of 2013. [RM1 = US$0.31]
The lower revenue was partly driven by lower newspaper circulation and book distribution, while the higher loss was partly driven by higher expenses incurred for its voluntary separation scheme exercise, the company has said.
IoE potential in Malaysia
It is not surprising that Malaysian companies are looking into IoE. According to a study conducted by Cisco, it is estimated that IoE in Malaysia is expected to drive a value of more than US$64 billion over the next 10 years.
Cisco’s IoE Value Index study defines ‘value’ as including the size of the market, as well as the savings and additional profits organisations can achieve by implementing IoE – that is, by capturing new value created from connecting the unconnected via IoE.
Cisco draws a difference between IoE and the more popular the Internet of Things (IoT), saying that IoT is a technology transition found within IoE.
“IoT focuses on things, while IoE adds people, process and data to that,” said Joseph M. Bradley, IoE evangelist and managing director of the IoE practice at Cisco Consulting Services, during his visit to Kuala Lumpur last month.
From the US$64 billion estimate, some US$53 billion of value is expected to come from the private sector, while the remaining US$11 billion will come from the public sector.
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