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Economic, Political Factors Impact CEE External Storage Market

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The last quarter of 2014 was the weakest quarter of the year for the external storage market in Central and Eastern Europe (CEE), with a 4.7% year-on-year value decline and only 15.9% capacity growth.

Market performance for the entire year was almost flat (-0.3%), with total value just below the 1 billion dollar threshold.

Overall capacity in the region jumped 23.9% from the previous year, almost reaching 1 Exabyte.

Spending in the small and medium-sized business (SMB) segment increased 15.2% year on year, which helped prevent a more significant decline of the total market.

These results were revealed in the Europe, Middle East, and Africa (EMEA) Disk Storage Systems Quarterly Tracker published recently by International Data Corporation (IDC).

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Factors shaping market trends could be viewed as reflecting two distinct groups: macroeconomic and political versus technological.

While the first has mainly short to medium-term effects, the effects of the second are more long-term, related to the ongoing transition to 3rd-Platform technologies.

The poor performance on Russia and Ukraine markets in the second half of 2014 was responsible for the overall CEE market decline.

Demand was strongly affected by international sanctions, plummeting oil prices, and currency devaluation, and the market will take a further hit from the imposed restrictions on big international vendors such as HP, EMC, IBM, and HDS from dealing with official partners in Russia and large government and corporate clients.

As a result, the importance of Chinese manufacturers (Huawei, Inspur) and local server and storage companies, which are unaffected by the sanctions is on the rise.

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The remaining CEE countries, particularly EU member states such as Poland, Romania, Bulgaria, and Slovakia, exhibit the long-term IT trends but are free of the socio-political inhibitors.

The additional support of EU funds allocated for 2014-2020 period and planned egovernment programs, resulted in a successful year in terms of storage spending.

Although SMBs buy significant numbers of primary and backup storage systems, these are typically entry-level products.

On the other hand, large organizations and service providers tend to invest in midrange solutions, flash-optimized storage, and software-defined storage (SDS) solutions, while the government buys high-end storage systems, which contributes strongly to the positive development of the market in these countries.

While currently subdued by the political and economic situation in CIS countries, the technology and market trends valid for the global enterprise hardware markets – i.e., a shift to lower-priced storage systems and the rise of flash, cloud, SDS, convergence, and hardware commoditization – can be observed in many CEE markets.

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The adoption of flash-optimized storage in datacenters started making an impact in the region in 2014. In the last quarter, even the more niche all-flash arrays recorded skyrocketing value growth and captured 4% of the total external storage market value.

The demand for flash solutions gave an additional boost to the recovering midrange segment and confirmed the decline of the high-end says “We forecast that flash-optimized arrays, both all-flash and hybrid flash, will account for 40% of the external storage market by the end of 2015, spurred by increasing competition and database online transaction processing, Big Data, virtual desktop infrastructure, and high-performance computing projects,” said Marina Kostova, storage systems analyst with IDC CEMA.

Cloud adoption in the region was mainly driven by public cloud spending among cost-conscious SMBs and private cloud deployments in larger enterprises that are concerned about security, governance, and data protection requirements. “Thanks to the proliferation of cloud and flash in the CEE region, the commoditization of hardware and SDS solutions will be the next datacenter strategy consideration for both vendors and end users,” added Kostova.

IDC’s Europe, Middle East, and Africa (EMEA) Disk Storage Systems Quarterly Tracker delivers timely intelligence and a comprehensive database detailing changes and trends in the storage market.

The tracker enables users to view data by volume, value, terabytes, country, year, quarter, vendor, product brand, model name, product category, topology, installation, protocol, OS, redundancy, storage class, and price band.

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IDC leads the innovation discussion through events, research, and consulting. For nearly five decades it has been giving IT and business professionals data and insight for making strategic and practical decisions.


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Ogbaga, Abuja Lawyer to Sue Telcos, DStv over Alleged Unfair Practices

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Ogba Ogbaga, an Abuja-based lawyer, has said that he has been instructed to institute legal proceedings against MTN Nigeria, Airtel Nigeria, Globacom, 9mobile and MultiChoice Nigeria, operators of DStv, over what he described as unfair consumer practices relating to expiring data bundles and television subscriptions.

Ogbaga, Abuja Lawyer to Sue Telcos, DStv over Alleged Unfair Practices

In a statement posted on Facebook, Ogbaga said his law firm, GIMBG Legals, received instructions from its client, KAA, also known as KaaTruths, to challenge the companies’ subscription policies in court.

According to him, the proposed suit will question whether telecom operators and DStv’s subscription models comply with provisions of the Federal Competition and Consumer Protection Act (FCCPA) 2018 and other applicable laws.

Ogbaga alleged that telecom providers operate internet data services that are unfair to consumers, claiming subscribers sometimes do not receive the services they paid for but still lose their subscriptions once the validity period expires.

He also criticised DStv’s subscription model, arguing that consumers lose paid viewing time due to factors such as power outages, adverse weather conditions and service interruptions, while subscriptions continue to count down regardless.

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“Our clients have complained that MTN data services are unduly one-sided,” Ogbaga said, adding that the legal action would also extend to other telecommunications providers and DStv.

He said the court action would seek judicial determination on whether the companies’ subscription practices comply with consumer protection laws.

The lawyer also invited interested legal practitioners to collaborate on the case, saying his firm would provide updates as the matter progresses.

In a separate Facebook post on Wednesday, Ogbaga said previous policy discussions, town hall meetings and debates at the National Assembly had failed to address the concerns raised by consumers.

He argued that telecom operators regularly carry out maintenance and network upgrades that temporarily disrupt services without extending customers’ subscription periods, while DStv subscribers also lose viewing time because of electricity outages and weather-related disruptions.

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NAICOM Issues New Licences to 43 Recapitalized Insurers

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The National Insurance Commission (NAICOM) has commenced the issuance of new licence certificates to insurance companies that successfully met the industry’s new minimum capital requirements, marking the formal beginning of a new regulatory era aimed at strengthening the financial capacity, governance and global competitiveness of Nigeria’s insurance sector.

At a ceremony held at the Commission’s headquarters in Abuja, the Commissioner for Insurance, Olusegun Ayo Omosehin, presented the new licence certificates to compliant operators, describing the exercise as a major milestone in the industry’s recapitalisation programme.

According to the Commission, a total of 43 insurance companies declared compliant with the new capital requirements are expected to receive the new licence certificates in phases.

Omosehin congratulated the successful companies, saying the issuance of the new licences signals the beginning of a stronger regulatory framework anchored on improved capitalisation, sound corporate governance, innovation and sustainable growth.

He urged operators to leverage their enhanced capital base to develop innovative insurance products, improve operational efficiency and deepen insurance penetration across the country.

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The Commissioner said the Commission expects the recapitalised companies to deliver stronger financial performance while maintaining high standards of professionalism and customer service.

He also announced that NAICOM’s next major regulatory initiative would be the implementation of the Risk-Based Capital (RBC) framework, under which insurers’ capital levels would be aligned with the risks inherent in their respective business portfolios.

According to him, the new framework will further strengthen the industry’s resilience by ensuring that insurers maintain capital commensurate with the risks they underwrite, thereby enhancing policyholder protection and boosting market confidence.

Omosehin reaffirmed the Commission’s commitment to removing regulatory impediments where necessary while maintaining effective oversight to safeguard policyholders and strengthen confidence in the insurance market.

The issuance of the new licence certificates marks the commencement of a phased transition to higher capital standards aimed at improving the financial capacity, solvency and claims-paying ability of insurance companies operating in Nigeria.

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Nigeria CommunicationsWeek Retracts Story on Pan African Towers Litigation

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Management of Nigeria CommunicationsWeek Media has withdrawn its publication titled “Adefolarin Ogunsanya and the Allegations of Shareholder Interference and Self-Dealing at Pan African Towers,” which was published on its platform.

Nigeria CommunicationsWeek Retracts Story on Pan African Towers Litigation

The decision to retract the story follows an editorial review to ensure that the platform maintains the highest standards of accuracy, fairness and responsible journalism in reporting matters that are the subject of ongoing judicial proceedings.

Nigeria CommunicationsWeek acknowledges that the issues raised in the publication remain before the courts and have not been finally determined.

Accordingly, the organisation has decided to remove the article from its platforms pending the conclusion of the legal processes or the availability of additional verified information.

The publication regrets any inconvenience or misunderstanding the report may have caused to readers or any individuals or organisations mentioned in the story.

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Nigeria CommunicationsWeek remains committed to the principles of balanced, factual and ethical journalism and will continue to uphold professional standards in its coverage of judicial and corporate governance matters.

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