Red Hat ANZ Enterprise Mobile Index Reveals Mobile Adoption Is Steadily Rising

Redhat Logo While many organisations in Australia and New Zealand have established an enterprise mobile strategy, there is still work to be done to get the full benefits, according to findings from the ANZ Enterprise Mobile Index report, released today by Red Hat, Inc. (NYSE: RHT), the world’s leading provider of open source solutions.

The study, which provides a snapshot of enterprise mobile strategies and adoption across Australia and New Zealand, found that 65 per cent of respondents have an enterprise mobile strategy in place. Yet, just 15 per cent of respondents have a mobile-first strategy, which means that mobile devices and applications are used across the organisation as a means to transform business processes to drive innovation in a unified way.

To be successful in gaining the benefits from their mobile strategy, organisations should evolve in a way that supports both the agility of new mobile initiatives and the stability of core IT functions. Infrastructure that supports an agile approach to mobility-based business solutions gives organisations the capacity to quickly make changes and innovate.

Key findings from the Index include:

  • Many enterprise mobile strategies are internal-facing. 64 per cent of respondents are targeting employees with their mobile strategies, while 27 per cent are targeting customers. This suggests there is room for organisations to respond to increased demand from customers to engage with organisations via mobile platforms.
  • Security is a major challenge to enterprise mobility development. Almost 80 per cent of respondents identified security as a ‘high priority’ (45 per cent) or second ’high priority’ (33 per cent) challenge to the mature development of an enterprise mobile strategy. This is followed by back-end integration, with 23 per cent of respondents identifying it as a ‘high priority’ challenge. This is not surprising, given the close relationship between the two, as organisations must focus not only on securing data but also securely integrating apps into business systems. Many platform solutions and Mobile Backend-as-a-Service (MBaaS) platforms today are designed to address both needs.
  • IT skills shortages are preventing mobile maturity. Just over half (51 per cent) of respondents indicated that their companies do not have the right skills internally to develop and support their mobile enterprise strategy. This suggests the ANZ region is experiencing a skills shortage in the areas of mobile integration and application development. Organisations should consider using a central mobile platform to foster collaboration between internal and external third parties to help alleviate these resource and skills issues.

 Methodology

The Red Hat ANZ Enterprise Mobile Index canvassed the opinions of 150 senior IT and management decision-makers (89 in Australia and 61 in New Zealand). The Index was conducted by third-party marketing company Outsource and sponsored by Red Hat.

Supporting Quote

Max McLaren, regional vice president and general manager, Red Hat

“Enterprise mobility adoption is steadily rising in Australia and New Zealand as organisations find new ways to streamline operational efficiency, increase productivity, and collaborate more effectively. Over time, more and more organisations are expected to overcome the barriers holding back their mobile strategies, which we believe will lead to an increased focus on enterprise mobility in the coming years.”

 About Red Hat, Inc.

Red Hat is the world’s leading provider of open source software solutions, using a community-powered approach to reliable and high-performing cloud, Linux, middleware, storage and virtualization technologies. Red Hat also offers award-winning support, training, and consulting services. As a connective hub in a global network of enterprises, partners, and open source communities, Red Hat helps create relevant, innovative technologies that liberate resources for growth and prepare customers for the future of IT. Learn more at http://www.redhat.com.

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Minimal change to corporate tax rates expected in spite of global tax infrastructure reform says RSM research

RSM_Bird_Cameron_Logo@2xSydney, 1 December, 2014 – The majority of tax advisers globally expect corporate tax rates to remain relatively unchanged over the next three years, according to research by RSM, the seventh largest global network of independent audit, tax and advisory firms. This is in spite of global tax reform led by the OECD aimed at targeting tax avoidance by multinational corporations.

RSM analysed the views of its tax partners from 54 countries in its report, The Evolution of Tax. The report was developed in light of the increasingly global economy, which necessitates cross-border business. An international view of tax is vital for organisations to thrive.

Transfer pricing, increased information sharing between countries and a revision of the tax treaty framework are just three of the main areas where major changes are likely, according to the report. And while the focus of international tax authorities is currently on multi-national corporations, businesses of all sizes will need to plan their strategies accordingly.

Rob Mander, Director of Tax Services for RSM Bird Cameron in Australia, anticipates that the corporate tax rate will remain approximately the same in Australia over the next three years, which is in line with the majority of international advisors. Only eight per cent forecast a tax increase while 20 per cent expect tax rates to decline.”

In Australia, total tax revenue increased gradually as a percentage of GDP in the 35 years to 2000 but has fallen significantly since.

Rob Mander said: “Tax revenues have fallen following the impact of the global financial crisis in the late 2000’s and the subsequent challenge for the Australian government has been to find new sources of tax revenue to fund its expenditure requirements. Consequently we expect the highest marginal tax rate for individuals to increase by up to 5 per cent as governments deal with this revenue challenge.”

OECD tax reform challenges

Tax experts recognise that there will be huge challenges in implementing the OECD’s tax proposals. There is concern about the practicalities that governments will face because tax policy is a key component of their economic management and the OECD’s proposals involve giving up some of that national control in favour of a more global policy outcome. Detailed negotiations between countries on double tax agreements is also expected to be difficult.

Companies will be burdened by issues such as the requirement to disclose their transfer pricing policies in far greater detail. They will also be challenged by proposals to neutralise the impact of hybrid tax mismatch arrangements, where double deductions are obtained for the same amount, for instance, which require detailed cross-border understanding and agreement between countries.

Jean Stephens, Chief Executive Officer of RSM International, said: “The global tax system was built for an industrial age dominated by western powers and is no longer fit for purpose in the increasingly globalised, internet-driven, economy. We applaud the OECD’s unprecedented reform objectives and its inclusion of developing economies in its proposals, but it is clear that agreement and implementation will be very tough for governments and companies across the world.”

Changes will be required to domestic Australian tax laws as well as the international tax rules. These international changes will not occur evenly across various countries, and this will significantly increase the risk of double taxation.

Craig Cooper, Director of Tax Services for RSM Bird Cameron in Australia said: “The scope of the OECD’s Base Erosion Profit Shifting (BEPS) project is nothing short of a complete re-creation of the international tax architecture. Internationally active organisations need to be planning for the forthcoming changes, or risk being caught out with superseded and ineffective tax structures and arrangements.”

Much of the global tax debate has been about how to tax the ever-pervasive digital economy appropriately. RSM’s tax partners fully anticipate changes to the taxation of the digital economy to be part of an overall package of reform. Nearly three quarters (70 per cent) of the tax partners agreed with this statement.

Craig Cooper said, “Given the ability for digital businesses to extract significant value from a source country’s economy, without the need for any, or any significant physical presence in that country, it is no longer acceptable to many countries to exclude the ‘market’ as a right to tax a foreign company interacting remotely with that jurisdiction’s economy.”

Rob Mander said, “Locally, we’d like to see a Tax Ombudsman established to take up the cause of taxpayers unable to get a fair hearing from tax authorities in relation to requests for the reduction of corporate tax instalments and invalid tax assessments driven by tax audit revenue-targets.

“Globally, international tax is in a process of evolution that will bring many changes over the next few years. At a practical level, countries, administrators, businesses and advisers will face the challenges of dealing with major tax changes that seek to manage the global economy and digitisation far more effectively. Tax has a key role in assisting economic growth, and it will be critical that, whilst working to shape a new global tax infrastructure, governments don’t remove incentives to innovate, invest and grow business.”

ENDS

About RSM International

RSM International is the seventh largest network of independent audit, tax and advisory firms, encompassing over 100 countries, 700 offices and 35,400 people internationally. The network’s total fee income is US$4.5 billion.

In September 2014, RSM was awarded the prestigious Network of the Year 2014 award at the International Accounting Bulletin annual awards. The award recognises networks that have demonstrated strong growth and operational excellence over the past 12 months. Last year, at the March 2013 International Accounting Bulletin annual awards, RSM was awarded the prestigious Editor’s Special Award for Global Initiative of the Year for its worldwide initiative – RSM World Day – which was praised for being a unique and powerful cross-network initiative that enhanced both employee and client engagement.

RSM International actively engages in promoting and celebrating the very best in entrepreneurship, championing the role of the entrepreneur in today’s world economy. RSM International is the lead sponsor and corporate champion of the European Business Awards promoting commercial excellence and recognition of entrepreneurial brilliance.

RSM International is a member of the Forum of Firms. The objective of the Forum of Firms is to promote consistent and high quality standards of financial and auditing practices worldwide

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2014 marks an exceptional year for RSM International as it celebrates its 50th anniversary.

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Control premiums soar on the back of the GFC

21 September, 2010, Australia – RSM Bird Cameron’s Control Premium Study, released today, has found that there has been a significant increase the level of control premium in Australian Takeovers and identified some clear trends emerging for control premiums paid in Australia’s leading industries. The study found that on the back of the global economic downturn average control premiums soared in 2009 and 2010 to 42% and 40%, compared to the 5 year average of 31%.

The study analyses 212 successful takeover offers and schemes of arrangement over the 5 year period ending 30 June 2010 involving companies listed on the Australian Securities Exchange. In addition to providing an analysis of how control premiums vary by industry and in the time period under review, it also provides an insight into how control premiums vary by nature of the consideration, and assesses what impact pre offer shareholdings held by acquirers in targets and bid speculation have on the level of control premium paid.

“Control Premiums have always been a popular topic of conversation in the context of takeovers but ASIC’s pending regulatory guide regarding amongst other things how Independent Expert’s should measure control premiums in valuations has put them firmly back in media spot light. As stock markets around the world continue to experience a period of significant volatility and uncertainty, determining an appropriate level of control premium to be used in valuations is becoming increasingly more scientific and difficult,” said RSM Bird Cameron director Andy Gilmour.

“Our study through providing an analysis of control premiums in Australian transactions over the last five years seeks to highlight the key areas, buyers, vendors and the corporate advisory community should consider when determining control premiums in equity valuations. Traditionally valuers have used a widely accepted average range when reflecting control premiums, hopefully our study will help stakeholders derive a more specific and focused transaction by transaction methodology in this regard.”

About RSM Bird Cameron

RSM Bird Cameron is the largest mid-tier accounting firm in Australia and offer a full range of specialist advisory services, including business consulting and advisory, assurance and advisory, taxation consulting, corporate consulting and turnaround and insolvency. RSM Bird Cameron is a core member firm of RSM International, the sixth largest network of independent accounting and consulting firms in the world.