Friday Tech Round Up – Episode 91

Marketing 29th October 2021

Hello and welcome back to another episode of the Friday Tech Round Up – your weekly dose of the latest and greatest tech news!

Today we discuss a bank profits surcharge cut that will see FinTechs disadvantaged, the growing popularity of low-code and no-code and IBM’s new publicly traded company, Kyndryl.

If you’d rather a five-minute rundown of the news, jump over to YouTube and watch Episode 91 of the Friday Tech Round Up.

Friday Tech Round Up

 

Plans to cut bank profits surcharge has been hit with mixed reviews

The government’s plan to cut a surcharge on bank profits will disadvantage digital challenger banks, which face a steep rise in corporation tax.

With corporation tax rising to 25% in 2023, the government is giving something back to the big banks by cutting their profit surcharge from 8% to 3% for profits over £25m.

But because fintech banks are high investment and currently loss-making or making relatively low profits, they will miss out on the benefits.

Louise Beaumont, TechUK’s open finance and payments working group chair, has criticised the big banks for using their influence to secure unfair advantages from the government.

 

UK is to phase out a multi-billion-pound tax on tech giants after global reforms.

Last year the UK announced a 2% digital services tax on the likes of Facebook, Google and Amazon in response to concerns that multinational tech giants making money in the UK were shifting their profits overseas where they could be taxed at lower rates.

But the government said at the time that it would scrap the tax once a global solution was in place and now, under a deal agreed by 136 countries earlier this month, we can expect to see new rules come into force in 2023.

 

UK intelligence agencies sign up to the cloud

UK intelligence agencies have sealed a deal with Amazon AWS in order to speed up their espionage capabilities, with the contract being valued at around £500 million.

The news was first reported in the Financial Times, which said GCHQ drove the deal that was signed earlier this year, and the data will be stored in a high-security way.

It is also claimed by unknown sources that AWS itself will not have access to the data.

 

Low-code and no-code growing in popularity

Low-code and no-code are slowly being adopted by more and more organisations.

A recent study by the TechRepublic showed that almost half of enterprises use low-code and no-code, and from those not using it, 20% are thinking of adopting the technology in the coming year.

By doing so, companies will be able to open up analytic and decisioning app development to citizen app developers as well as accelerate development and iteration, driving innovation and digital transformation.

 

IBM announces a new spin-off

IBM’s board of directors have approved the separation of the tech giant’s managed infrastructure services business into an independent publicly-traded company, called Kyndryl, next month.

After the spin-off, IBM will focus on cloud software, hybrid cloud, artificial intelligence and other technology opportunities.

Kyndryl will focus on services to design, run and modernize customer technology environments, competing against the likes of DXC Technology.

 

Bonus piece:

Facebook CEO Mark Zuckerberg has announced the social media giant will change the name of its holding company to Meta, in a rebranding effort after a series of public relations crises.

Zuckerberg revealed the new name at Facebook’s annual AR/VR conference on Thursday, outlining the company’s virtual-reality vision for the future and his plans to build the “metaverse”.

 

ECS shoutouts:

A big thank you to everyone who attended our first hybrid DevOps Playground, either in the London office or on YouTube last night. It was such a great opportunity to learn more about containers from our brilliant partner Ondat and to meet some of you in person – make sure to keep your eyes peeled for the next DevOps Playground announcement!

We’re also super proud of the team for being selected as finalists for not one, but two categories in this year’s European Software Testing Awards. Winners are announced on November 9th so we will have our fingers crossed until then.

And that’s it! Make sure to come back next week for even more tech news.

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