STATE OF ICT IN BERMUDA

2016

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STATEOFICTINBERMUDA

2016

Publishedby

GOVERNMENTOFBERMUDA

MinistryofEconomicDevelopmentDepartmentofICTPolicyandInnovationGovernmentAdministrationBuilding30ParliamentStreet,3rdFloorHamiltonHM12,Bermuda

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SAMPLE/METHODOLOGY

ResidentialStatistics

1. DepartmentofStatistics(December2016)

400householdsinBermudawereinterviewed.

Thesamplewasrandomlyselected.

Themarginoferrorforthissegmentis+/–5%.

2. E-CommerceResidentialTechnologyBenchmarkingResearch(November2016)

Computer Assisted Telephone Interviewing (CATI) was used to interview a representativesampleof402Bermudaresidentsaged18yearsandolder.

ThedatawasweightedtoberepresentativeofBermuda’spopulationonthefollowingfactors:age,gender,andnationality.

Themarginoferrorforthestudyis+/-4.9%.

CorporateStatistics

1. E-CommerceCorporateTechnologyBenchmarkingResearch(November2016)

ComputerAssistedTelephoneInterviewing(CATI)wasusedtointerviewarepresentativesampleof200Bermudaprofessionalsaged18yearsandolder.Wherepossible,theresultsobtainedin2016aredirectlycomparedtothe2015and2012results.

Themarginoferrorforthestudyis+/-7%.

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ContentsSAMPLE/METHODOLOGY..................................................................................................................................2ResidentialStatistics ............................................................................................................................................................2

CorporateStatistics ..............................................................................................................................................................2

Contents.....................................................................................................................................................................................3

INTRODUCTION ....................................................................................................................................................6HouseholdData:..........................................................................................................................................................................6

CorporateData: ...........................................................................................................................................................................7

RESIDENTIALFINDINGS.....................................................................................................................................9AttitudestowardTechnology ..........................................................................................................................................9

OverallTechnologyCompetence ................................................................................................................................. 11

HighCompetencyAreas ....................................................................................................................................................... 11

ModerateCompetencyAreas ............................................................................................................................................. 13

LowCompetencyAreas ........................................................................................................................................................ 13

Ownership,PurchasingHabits,andUsage.............................................................................................................. 14

ComputersandInternet-ReadyDevices ....................................................................................................................... 14

MobileTelephony.................................................................................................................................................................... 15

PurchasingHabits ................................................................................................................................................................... 16

GovernmentServicesOnline .............................................................................................................................................. 22

OtherUses .................................................................................................................................................................................. 23

Computer,MobileandInternetUsage ...................................................................................................................... 26

InternetAccess&Use............................................................................................................................................................ 26

Broadband/Connection....................................................................................................................................................... 28

ComputerUseandLocations ............................................................................................................................................. 31

Cellphone&SmartphoneUse ............................................................................................................................................ 33

SocialNetworkingandWebsites...................................................................................................................................... 35

BermudianApps ...................................................................................................................................................................... 36

OtherDevices/Activities:.................................................................................................................................................... 37

InternetSafety ..................................................................................................................................................................... 39

InternetSafetyatHome........................................................................................................................................................ 39

Cybertips.bm ............................................................................................................................................................................. 40

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PersonalInformationProtectionAct2016.................................................................................................................. 43

InternetSecurity...................................................................................................................................................................... 44

CORPORATEFINDINGS.................................................................................................................................... 47AttitudesandOverallTechnologyCompetence.................................................................................................... 47

AttitudesTowardsTechnology ......................................................................................................................................... 47

Technologycompetence....................................................................................................................................................... 48

OtherTechnologies44%ofbusinessprofessionalshaveahighlevelofcompetencyusingVoIP. ..... 49

Computer,MobileandInternetUsage ...................................................................................................................... 50

Ownership–Computing....................................................................................................................................................... 50

Laptops,Tablets,andHybrids ........................................................................................................................................... 50

AllLaptop-FunctioningDevices ........................................................................................................................................ 51

AllTablet-FunctioningDevices ......................................................................................................................................... 52

DesktopComputers................................................................................................................................................................ 52

Ownership–Telephony ....................................................................................................................................................... 53

IntentiontoUpgradeTechnologyProducts................................................................................................................. 53

AnnualITBudget..................................................................................................................................................................... 54

PurchasingTechnologyProducts–Locallyvs.Overseas....................................................................................... 55

SoftwarePurchases ................................................................................................................................................................ 56

HardwarePurchases.............................................................................................................................................................. 57

CorporateUseofTechnologyandtheInternet ..................................................................................................... 59

PopularUsesofMobileDevices ........................................................................................................................................ 59

DesiredApplications.............................................................................................................................................................. 60

InternetConnection ............................................................................................................................................................... 61

Domainnames .......................................................................................................................................................................... 63

OnlinePaymentFacilities .................................................................................................................................................... 63

SocialNetworking ................................................................................................................................................................... 64

BusinessUseofICT ................................................................................................................................................................ 65

DataProtection.................................................................................................................................................................... 68

InformationSecurity.............................................................................................................................................................. 68

CloudComputing ..................................................................................................................................................................... 71

PersonalInformationProtectionAct2016.................................................................................................................. 73

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DataHosting .............................................................................................................................................................................. 75

Back-UpsandDisasterRecovery...................................................................................................................................... 76

BringYourOwnDevice(BYOD)........................................................................................................................................ 78

InternetSecurity...................................................................................................................................................................... 79

SecurityEvents......................................................................................................................................................................... 81

OutsourcingServices/BusinessFunctions............................................................................................................. 84

OutsourcingIT .......................................................................................................................................................................... 87

HumanCapital ..................................................................................................................................................................... 89

TrainingProgrammes ........................................................................................................................................................... 89

ICT-RelatedPositionsandSkills ...................................................................................................................................... 93

CorporateTechnologyDevelopmentandInnovation ........................................................................................ 95

CompanyWishlist ................................................................................................................................................................... 97

BusinessUseofGovernmentServices.................................................................................................................... 102

AREASOFNOTE ...............................................................................................................................................107ContinuingObsessionwithMobile ............................................................................................................................... 107

InternetofThings,DataAnalyticsandCybersecurity.......................................................................................... 107

Cybersecurity ......................................................................................................................................................................... 108

Privacy ...................................................................................................................................................................................... 108

UniversalServiceObligation ........................................................................................................................................... 109

Fibre-to-the-Office/Fibre-to-the-Home .................................................................................................................... 109

Fintech ...................................................................................................................................................................................... 109

TechnologyEducationandComputerScience ........................................................................................................ 110

CONCLUSION/GENERALOUTLOOK ..........................................................................................................111

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INTRODUCTION

ThepurposeoftheDepartmentofICTPolicyandInnovation’sStateofICTinBermudaReportistoassesstheprevalenceofInformationandCommunicationTechnologies(ICT)inBermudafromaninfrastructure,usageandskillsperspective.GiventherapidlychangingnatureoftechnologyanditsimpactonandimplicationsforBermudaanditsresidents,regularandin-depthquantitativedataisgatheredandexaminedregularly.

Many of the indicators used here are consistent with those used by the InternationalTelecommunication Union (ITU) in theMeasuring the Information Society Annual Report, whichrequiresthatcertainICTindicatorsbereportedannually.Otherindicatorsusedarealsoconsistentwith those of leading international organisations such as theWorld Economic Forum and theirNetworked Ready Index (NRI) Framework, the Economic Intelligence Unit’s Digital EconomyReadinessRankingsandthePartnershiponMeasuringICTforDevelopmentCoreICTIndicators.

ICT indicators track the state of a country’s digital economy andprogress by assessing elementssuchas infrastructureandpenetration ratesand theuseof ICTby individualsandorganisations.Theseindicatorsalsocanshowajurisdiction’sabilitytoinnovateorleveragetechnologytobenefitsocietyortheeconomy.

ThisanalysisoftheBermudaICTlandscapeusesbenchmarksdevelopedovertime,againstwhichprogress iscompared,shortcomingsarespottedandnewtrendsandopportunitiesare identified.The resulting reportprovides information forpolicy-makers,businessesandotherorganisations,educational institutions, technophiles and others, to assist with decision-making and forwardplanning.

Although we do introduce new questions in respect to recent developments in the technologylandscape,weemploycomparisonswithfindingsofprioryearswherepossible.

Highlightsinthe2016StateofICTinBermudaReportinclude:HouseholdData:InternetPenetration:92%ofresidentshaveInternetaccessathome.

GeneralAttitudestowardsTechnology• 99%of residents believe that in order to compete in the global economy,Bermudamust

continuetomeetorexceedglobaltechnologystandards.

• 98% of residents believe that it is important for Bermuda to continue adopting new

technologyproductsandservicesinordertoremaincompetitive.

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• 97% of residents believe that having a strong knowledge of technology is essential in

gettingaheadtoday.

TechnologyOwnership&Usage• 93%ofhouseholdsownatleastonecomputer.

• 91%ofhouseholdsownatleastonesmartphone.

• 90%ofhomeshaveacomputernetwork,88%ofwhicharewireless,afurther88%ofwhich

aresecure.

ICTEducation• 98% of residents indicated their strong belief in including computer science and

programminginthepublicschoolcurriculum.

ProtectionofPersonalInformation• 100% of residents believe that it’s important to protect personal information online and

offline.

• 98% of residents would prefer doing business with organisations that protect their

personalinformation.

• 91% percent were concerned that personal information was possibly being used in a

mannerwithwhichtheydidnotagree.

• 15%ofresidentsdonothaveaccesstotheInternetathomeforprivacy/securityconcerns.

CorporateData:GeneralAttitudestowardsTechnology

• 97%ofprofessionalsbelievethatinordertocompeteintheglobaleconomy,Bermudamust

continuetomeetorexceedglobaltechnologystandards.

• 96%ofprofessionalsbelievethathavingastrongknowledgeoftechnologyisessentialtoa

firm’ssuccesstoday.

TechnologyOwnership&Usage• 100% of businesses have Internet access, mostly using broadband connection speeds of

10MB(23%)and8MB(19%).

• 97%ofbusinessesowndesktopcomputers.

• 94%ofbusinessesusetechnologyforinternalfunctions.

• 94% of businesses use Government websites or local public service websites, such as

BermudaWeatherorBermudaAirport.

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Outsourcing• 98% of businesses do not intend to outsource any of their IT departments in the next 6

months.

ICTEducation• 96% of professionals believe that public education in Bermuda should offer courses in

computerscienceandprogramming.

InformationSecurity• 90%ofbusinesseshaveadisasterrecoveryorbusinesscontinuityplaninplace.

• 85%ofbusinesseshaveacommonserver,ofwhich98%aresecure.

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RESIDENTIALFINDINGS

AttitudestowardTechnology

In 2016, one new question was added to identify the extent to which residents believed thatcomputer science should be taught in Bermuda’s schools, specifically public schools. 98% ofresidentsindicatedtheirstrongbeliefinincludingthesubjectinthepublicschoolcurriculum.

Regardingtheotherquestions,answerscontinuetobeconsistent.

Howmuchdoyouagreewitheachstatement?

2012 2014/15 2016

PublicEducationinBermudashouldoffercoursesincomputerscienceandprogramming

n/a n/a 98%

Inordertocompeteintheglobaleconomy,Bermudamustcontinuetomeetorexceedglobaltechnologystandards

97% 94% 99%

Havingastrongknowledgeoftechnologyisessentialingettingaheadtoday

95% 90% 97%

ItisimportantforBermudatocontinueadoptingnewtechnologyproductsandservicesinordertoremaincompetitive

n/a 96% 98%

Technologyhelpsmetobemorecreativeorinnovative 90% 85% 87%Iliketobeamongthefirsttoadoptnewproductsandtechnologies

54% 66% 66%

Whilemostanswerswereevenbetweengendersandacrosstheages,thelaststatement(“Iliketobe among the first to adopt new products and technologies”) is not balanced betweenmales andfemales.

Abreakdownofattitudestowardstechnologyalonggenderlinescanbeseenbelow,togetherwithabreakdownalongageranges.

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OverallTechnologyCompetence

Residents were asked to rate their level of expertise in 25 technology areas relating to generalcomputing, internet usage, cell phones, smart phones, and other technologies. Based on theseratings,theywereclassifiedashavingeitherlow,moderate,orhightechnologycompetencebasedonthenumberofareasforwhichtheyexpressedahighlevelofexpertise.

Usingthisscale,onecannotethat:

• 53% of residents self-rated as having high technology competency, up from 45% in2014/15,

• 29%showedamoderateleveloftechnologycompetency,upfrom28%in2014/15,and• 17%showedalowleveloftechnologycompetency,downfrom28%in2014/15.

Itisworthnoticingthecontinuoustrendinattaininghighercompetencylevels.Specifically,82%ofBermuda’sresidentsreportedamoderatetohighlevelofICTcompetence,whichshowsa12%increasefromprioryears:73%in2014/15whichitselfwasa12%increasefrom65%in2012.The2010figure(notshownhere)was69%.

This may be the result of the increased normalization and commodification of personal devicesincluding smartphones and tablets, which continue to perform ever-increasing numbers ofcomputer-likefunctions.

HighCompetencyAreas

Theareaswhereresidentsexpressedahighdegreeofcompetencyareshowninthechartbelow.Pleasenotethatmostrespondentswhoself-ratedthiswayfallinthe18to34year-oldgroup.

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Formoredetail,belowisalistofthetoptwomost-commonlymentionedareasofcompetency:

GeneralComputing1.Email:77%,upfrompastyears(63%in2014/15and43%in2012.)2.Wordprocessing:51%,whichwasalsoupfrompastyears(40%in2014/15and34%in2012.)

InternetUsage1.Onlinebanking/billpayments:71%,upfrompastyears(60%in2014/15and49%in2012.)2.Shoppingonline:69%,upfrompastyears(56%in2014/15and44%in2012.)

MobileDevices1.Makingandreceivingcellphonecalls:94%,upfrompastyears(75%in2014/15and74%in2012.)

2.Textmessaging81%,upfrompastyears(67%in2014/15and60%in2012.)

OtherTechnologies1.Usingatabletorsimilardevice:63%,whichwasupfromlastyear(51%)thisquestionhavingonlybeenintroducedthen.

2.Usingadigitalcamera59%,whichwasupfrompastyears(49%in2014/15and46%in2012.)

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ModerateCompetencyAreas

Theareaswhereresidentsexpressedamoderatedegreeofcompetencyareshowninthechartbelow.Amajorityofrespondentsinthiscategoryfellinthe45andupgroup(subgroupsbeing45-54,55-64,and65+).

LowCompetencyAreas

Theareaswhereresidentsexpressedalowdegreeofcompetencyareshowninthechartbelow.Pleasenotethatalloftheseareaspredominatelyreflectthe65+groupamongthesurvey’srespondents.

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Ownership,PurchasingHabits,andUsage

ComputersandInternet-ReadyDevices

Bermudacontinuestohaveahighcomputerownershiprateforresidents(93%thisyear,vs.85%in2014and90%in2012).

To this set of questions,wemade a few changes in the2016 study.Whilewe customarily askedabout“Wi-Fi-readydevices,”wedecidedtoobtainmorespecificinformation:whichkindofdevice,specifically.Indoingso:

• Weaddedonequerythatspecificallyaskedtheresidentsiftheyowneda“devicethatfunctionsas a laptop or tablet,” considering the increased presence of items like theMicrosoft Surfacewhichissuchahybrid,andwhichfallsintothiscategory.The“yes”answersamountedto61%oftheresidentspolled.

• Weaskedaboutthepercentageofhouseholdswhichownedadevicethatfunctionsasalaptoponly, which clarified that the upsurge in laptop ownership continues (83%, up from 77% in2014/15and71%in2012).Inprioryears,thiswastothedetrimentofdesktopownership.

• Lastly, we asked about the percentage of households which owned a device that functionspurelyasatabletsuchasaniPad.The“yes”answersamountedto81%oftheresidentspolled,upfrom78%in2014/15and54%in2012).

Unlike lastyear, therewasa surprisinguptick in theproportionof residentswhoownadesktopcomputer(50%)afteracontinuousdecreaseoverthepastfewyears(44%in2014/15and53%in2012and62%in2010.)

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MobileTelephony

While 87%of households still own a fixed telephone line,mobile telephone line ownership is at86%thisyear.

Continuing to make the distinction between regular cellphones and smartphones yielded thefollowingresults:thenumberofhouseholdsthatownasmartphonecontinuestoincrease(91%vs.

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85% in 2014/15, 78% in 2012, and 76% in 2010). Regular cellphone ownership continues todecrease(39%vs.46%in2014/15,50%in2012and63%in2010).

PurchasingHabits

Bermuda residents show high competency in online shopping. In dollar terms, respondentsindicatedanannuallocalonlineexpenditureof$804.55andanannualoverseasonlineexpenditureof$3,491.44,leadingtoatotalof$4,295.99fortheyear.39%percentofrespondentsarelikelytoupgradetoanewcomputingdeviceinthenext6months,withthemostdesiredcomputingdevicesbeinglaptops(26%)andApplecomputers(18%).

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ThebreakdownofhouseholdexpendituresonIT-relatedproductsisasfollows:

2016 2014/15 2012MonthlyspendingonCommunication(Internet,voice,otherdatadevices) n/a n/a $187

Services(includeInternet,cellphonebill,cablebill,Netflix,etc.) $2,641 $2,368 n/a

Phones(regularcellphonesandsmartphones) $581 $415 $319Computers(desktopsorlaptops) $357 $386 $388Software $185 $59 n/aTabletorsimilardevice $175 $194 $232OtherITproductexpenditure(specifiedinthechartbelow) $90 $39 $16

Gamingconsoles $43 $67 $83

TOTAL(ANNUAL)$

4,072$

3,527 $3,279

The4%“OtherITproductexpenditure”categorymentionedinthechartaboveincludesthefollowing:

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Intermsofdollarvalues,itwasfoundthatonaverage,residentsspend$4,072.41ayearonvariousIT-relatedpurchases,which represents an increase close to twice the increasebetween2014/15and2012.

ThenrespondentswereaskedtoestimatethepercentageoftheirannualbudgetthatisspentonIT.Eachrespondentgaveanestimatenumber(e.g.5%,10%,7%)whichwerethengroupedintorangesasshownbelow.The400individualresponseswerethenusedtoobtaintheaveragehouseholdspendonIT.

On average, it was found that residents spend 12.37% of their annual budgets on IT. Note theincreaseacrossallbudgetrangesoverlastyear’sfindings.

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When trackingonlinepurchasinghabits, itwas found that residents spend themostonoverseasonlinepurchases.Infact,theaggregateamountofonlinepurchasesiswitnessingadrasticincreaseyear-after-year,againsignificantlyincreasingbetween2014/15and2016.

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SpecificITequipmentpurchasesaredonebothlocallyandoverseas.Thetop3reasonsforchoosingtopurchaseITequipmentlocallyare:

• theaccessibility,ease,andconvenienceofdoingso,• thequalityoflocalcustomerserviceandtechsupport,aswellas• theavailabilityofwarrantyservices.

ThetopreasonsforchoosingtopurchaseITequipmentabroad,ontheotherhand,are:

• betterpricingand• abetterselectionofproductsoverseas.

ThetopreasonsforchoosingtopurchaseITequipmentbothlocallyandabroadare:• Moreaffordablepricingabroad,• Choosingwhereverthecheaperoptionis,and• Betterselectionabroad.

WhilethemostpopularITdevicespurchasedlocallyarecellulardevices,desktopcomputers,laptopsandtablets,themostpopularITdevicespurchasedabroadareamorefragmentedgroup,toppedbytablets,cellulardevices,andlaptops.

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GovernmentServicesOnline

51%percentofresidentsconfirmedusingonlineGovernmentservices,upfrom40%in2014/15.Ofsaidservices,themostpopularbyfarremainsTCD,followedbyPayrollTax,whichiswellinlinewiththelastsurvey’sfindings.The3rdmostpopularsite,whichwasLandtaxpreviously,isnowBermudaNIC,whichdealswiththeregistrationofthe“.bm”domainname.

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OtherUses

Residents use smartphones for a variety of purposes, which is increasingly allowing them toperform functions that were one only available through the use of computer. Smartphones areoften,conveniently,allowingsuchfunctionstobeperformedanywhereandon-the-go.

Beyondthenow-customary,multiplewaystocommunicate,residentsare increasinglyusingtheirsmartphonesforotherpurposes.Forinstance,therehasbeenamarkedincreasein:- Usingnavigationsoftware(27%increaseover2014/15’snumbers),- Purchasinggoodsorservices(24%increaseover2014/15’snumbers),and- Payingbills(21%increaseover2014/15’snumbers).

While there’s no comparison to prior years, the new question enquiring into the popularity ofwearabletechnologiessuchastheFitbitandtheAppleWatchshowedthat30%ofrespondentsuseit.

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Themost-commonlyusedapplicationsthataidincommunicationsareshownbelow.

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Theappsmentionedabove,whichaidinthedifferentkindsofcommunication,arelargelyusedonadailybasis.Others,suchasthosewhichassistinpayingbills,areusedlessfrequently.

Inmoregeneralterms,residentsalsouseavarietyofapps,primarilythesmartphone-embeddedcalendarandcalculatorapps.OtherapplicationsmentionedbynameincludetheStepCounter,iHeartrate,iTunes,andInstagram.

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Computer,MobileandInternetUsage

InternetAccess&UseThisreportrevealedabovethatBermudahasahighcomputerownershiprateforresidents(93%)andahighInternetpenetrationrate(92%)whichmakescomputerandInternetuseincreasinglycommon.

Demographically,Internetaccessisdistributedasfollows:

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Householderswereaskediftheyhad,inthepastthreemonths,used:• Acomputer(desktop,laptop,tabletorsimilar)fromanylocation,and/or• TheInternetfromanylocation.

Mostrespondents(89%)usetheInternetatleastonceaday.

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RegardingthepurposeofaccessingtheInternet,residentslistedseveral,themostpopularofwhichare:

• email(95%),• researchinggoodorservices(89%),• Internetbanking(82%),and• onlineshoppingforoverseasproductsandservices(76%).

Broadband/Connection

92%of residents have Internet access at home.When asked, thosewho do not have Internet athomeprovidedifferentreasonswhynot,mostcommonlythattheydonotneeditorthatit istoocostly.

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FixedbroadbandremainsthemostcommontypeofconnectioninBermudahouseholds.

Mostoften,householdsareusinga8Mbbroadbandspeedalthough78%confirmedthattheywouldupgradetofibre-to-the-homeifitwereavailable.

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Theabovechartconsistsofaggregatedata.However,thedistributionofthehouseholdsintermsofdemographicsisunpackedinthechartsbelow.

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58%ofresidentsusea3Gor3G+cellularnetwork(vs.47%in2014/15),followedbythoseusing4G(24%in2016vs.41%in2014/15).

ComputerUseandLocations

WhenaskedwheretheyhadaccessedtheInternetfrom,respondentsgavemoredetailwhichisinlinewith lastyear’s findings.The Internet ismost-commonlyaccessed fromhomeandwork,andon-the-go:

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Onaverage,residentsusecomputersmostlyatwork(26.76hr/wk),athome(17.60hr/wk),andontheirportabledevices(14.42hr/wk)toperformcomputerfunctionsanywhereon-the-go.

Itisworthnotingthatallofthosepercentagesrepresentaconsistentupwardtrendfromprioryears.

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Cellphone&SmartphoneUse

88%ofBermudaresidentsreportedusingamobiletelephoneinthelastthreemonths.

AsWi-Fi enableddevicesareundergoinga significant surge inpopularity, theirproliferationandthatoftheirfeatures,togetherwiththeabundanceofapplicationsthatcanbeinstalledonthem,hasincreasedtheirusabilityanduser-friendliness.

As a result, some features that did not exist until very recently (such as wearables) have takenBermuda by storm, now becoming widely-used commodities. Others, such as using messagingsoftware, saw their usage rates double from 38% in 2012 to 79% to 2016. For instance, “using

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navigation software (GPS)” increased from 26% in 2012 to 55% to 2016, while “bill payment”surgedfrom22%in2012to48%to2016.

Whenaskedaboutusageofcellphoneorsmartphonefeatures,89%referencedtextmessagingfirst(89% vs. 81% in 2014/15, 74% in 2012). 83% mentioned taking pictures (83% vs. 83% in2014/15,72%in2012)asthesecondmost-popularactivity.

Note that peer-to-peer technologies (mentioned in the chart below) include such applications asiMessageandFacetime.

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SocialNetworkingandWebsites

86%ofresidentsusesocialnetworkingapplicationsorsites.Itisworthnotingthatthepercentageofthoseusingsocialnetworkingincreasedby33%between2012and2014/15,thenbyafurther25%between2014/15and2016.

Equallyasnoteworthy is thegapbetweenthenumberofresidentswhodousesocialnetworkingandthosewhodon’t:fromamere5%in2012,thatgaphasshotupto38%in2014/15and72%in2016.

Of those who use social networking, 82% do so for the purposes of social interaction andinformationsharing,downfrom94%asperthepriorsurvey.

Notethesignificantincreaseinotherpopularusesofthesetools:

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- researchonconsumerproductsandservices(19%increase),- expressingopinions(13%increase),and- entertainment(12%increase).

Also,notetheincreaseintheuseofsocialmediaadvertisingbybusinesses.Additionalinformationispresentedinthecorporatesectionofthisreport.

BermudianAppsThis year, we included a question that specifically enquired about Bermuda-developed mobileapplications. Evidently, the threemost popular Bermuda-basedmobile applications used are theBermudaYellowPagesapp,theBermudaRadarapp,andHitch.

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OtherDevices/Activities:

Lookingatothertechnologies,themostpopularitemsownedbyhouseholdscontinuedtobe:

• televisions(98%,vs.96%in2014/15and98%in2012),• radios(89%vs.86%in2014/15and90%in2012)and• digitalcameras(73%vs.71%in2014/15and69%in2012).

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Worthnoting:- Usingstreamingvideoplayerincreasedmanifoldfrom10%in2012to61%in2016.- PossibleemergingtrendssuchasHDRTV(6%),the3DTV(4%)andthe4KTV(3%).- Mosttelevisionwatcherssubscribetocablevision(78%),closelyfollowedbyInternetTV

(54%).- ThereremainsasectionofhouseholdswhocontinuetohaveregularTVwithno

subscriptionattachedtoit(14%).

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Whenaskedspecificallyaboutcomputer-relatedactivitiesthattheyhavecarriedoutinthelastthreemonths,residentsprovideadditionalinformation.

InternetSafety

InternetSafetyatHome

90%haveacomputernetworkathome(vs.89%in2014/15and84%in2012),88%ofwhicharewireless(vs.85%in2014/15and79%in2012)and88%ofwhicharesecure(vs.84%in2014/15and74%in2012).78%havesecurity/virusprotectionsoftwareinstalledontheircomputer.

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Cybertips.bm

8%ofresidentsarefamiliarwithwww.cybertips.bm,adecreasefrom2014/15’s12%.Thosewhoknowaboutthewebsitesaythattheyvisit it toobtain informationabout fraudprotection,onlineprivacyprotection,andInternetsafetytips.

Residents were also asked where they would find that information outside of Cybetips.bm. Themajority of respondents did not know. Others said they would find the information elsewhereonlineorthroughGoogle.

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ItisbecomingclearthatincreasingnumbersofresidentsareconcernedaboutInternetsafetyareas,particularlycreditcardfraud,databreaches,andonlineidentitytheft.

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PersonalInformationProtectionAct2016

40% of residents are aware of the Personal Information Protection Act 2016 (PIPA) and 100%believethatitisimportanttoprotectone’spersonalinformationbothonlineandoffline.

Further, 98% would prefer doing business with organisations that protect their personalinformation.

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In fact, 91% percent were concerned that personal information was possibly being used in amannerwithwhichtheydidnotagree.

InternetSecurity

58%ofresidentsfeelthattheInternetissecureinBermuda,whichshowsamarkeddecreasefromlastyear’sfindings(62%).Similarlytolastyear,however,theanswerswereconsistentacrossrespondentages.

Do you feel that the Internet is secure in Bermuda? Total Male Female 18-34 35-44 45-54 55-64 65+ Yes 58% 60% 56% 58% 57% 56% 52% 65%

No 20% 17% 22% 17% 17% 23% 22% 21%

Don’t Know 22% 23% 22% 25% 25% 21% 27% 13%

Thosewho do not believe that the Internet is secure cited that the Internet is not 100% secureanywhere, andmentionedsecuritybreaches/hacking issues.Other reasonsare shown in thepiechartbelow.

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Whenaskediftheyreportsuspiciousemails,textsandcalls,andtowhom,only27%ofrespondentssaythattheydomakeareporttoanentityinBermuda,withthetopthreecontactsforsuspiciousemails/texts/callsbeingtheBermudaPoliceService,therespondent’splaceofemployment,andthebank.

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CORPORATEFINDINGS

Many of the questions asked show results according to company size. For reference, please notthembelow:

o Smallcompany:1to9staff.o Medium-sizedcompany:10to30staff.o Largestaff,over30staff.

AttitudesandOverallTechnologyCompetence

AttitudesTowardsTechnology

Thechartbelowdetailstheattitudesofprofessionalstowardtechnology.Respondentsweremorelikelytoagreethat:

• Inordertocompeteintheglobaleconomy,Bermudamustcontinuetomeetorexceedglobaltechnologystandards(97%),

• Havingastrongknowledgeoftechnologyisessentialtoafirm’ssuccesstoday(96%),and• PubliceducationinBermudashouldoffercoursesincomputerscienceandprogramming

(96%).

Itisworthnotingthattheareasthatsawadropintheresponsesin2012witnessedarebound:• Thecompanies’opennesstotechnologytraining(92%in2012,85%in2015,nowbackup

to92%),• The companies’ commitment to having the best technology products for their employees

(86%in2012,73%in2015,nowupto77%),and• Thecompaniesasearlyadoptersofnewproductsandtechnologies(59%in2012,44%in

2015,nowupto52%).

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Technologycompetence

Professionalswereaskedtoratetheirlevelofexpertisetoward18technologyareasrelatingtogeneralcomputing,internetusage,cellphones,smartphones,andothertechnologies.Basedontheseratings,theywerefoundashavingeitherlow,moderate,orhightechnologycompetencebasedonthenumberofareasforwhichtheyexpressedahighlevelofexpertiseasdetailedinthetablebelow.

Hightechnologycompetence Ratingof9or10across10+areasModeratetechnologycompetence Ratingof9or10across5-9areasLowtechnologycompetence Ratingof9or10across0-4areas

Usingthisscale:

• 55%ofprofessionalswereratedashavinghightechnologycompetencythisyear,upfrom33%in2014/15and52%in2012,

• 34%wereratedashavingamoderateleveloftechnologycompetency,upfrom30%in2014/15and22%in2012,and

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• 12%wereratedashavingalowleveloftechnologycompetency,downfrom37%in2014/15and26%in2012.

GeneralComputingThetoptwoareaswherebusinessesshowedthegreatestlevelofcompetencywereusinge-mailingsoftware(66%)andusingindustry-specificcomputerapplications(56%).

InternetUsageThetoptwoareaswherebusinessesshowedthegreatestlevelofcompetencywereusingtheInternetforbusiness-relatedinformationgathering(66%)andusingtheircompany’swebsite(48%)

MobileCellularDevicesThetoptwoareaswherebusinessesshowedthegreatestlevelofcompetencyweremakingandreceivingcellphonecalls(91%)andtextmessaging(89%).

OtherTechnologies44%ofbusinessprofessionalshaveahighlevelofcompetencyusingVoIP.

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Computer,MobileandInternetUsage

Ownership–Computing

97%ofbusinessesowndesktopcomputerswhile81%ownlaptopdevices,53%owndevicesthatfunctionasalaptopandtablet,76%owndevicesthatonlyfunctionasalaptop,43%owndevicesthatonly functionasa tablet,and65%Wi-Fior Internet readydevicessuchas tabletsorsimilardevices.

Laptops,Tablets,andHybrids

Thisyear,wedecidedtomakethedistinctionbetweenthreepopulardeviceswhichareincreasinglyactingasone:

- laptops,- tablets,and- hybrids,whicharetabletsthatactaslaptopsandviceversa.Anexampleofthatisthe

MicrosoftSurface.

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AllLaptop-FunctioningDevices

Itisworthnotingthatcompanyownershipof4ormoredeviceshasseenasignificantspikeupto55%,bouncingbackfromthedipdownat36%in2014/15from46%in2012.

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AllTablet-FunctioningDevices

Companyownership of 4 ormoredeviceshas seen a significant increase to36%,bouncingbackfrom 22% in 2014/15 from 30% in 2012. In parallel, companies who answered “none” to thequestion saw their numbers drop from 53% in 2014/15 to 35% in 2016, indicating increasedcomputerizationoftheBermudianworkplace.

DesktopComputers

Companyownershipof4ormoredesktopsisat72%,from80%in2014/15from77%in2012.Inparallel,companieswhoanswered“none”tothequestionsawtheirnumbersstayat3%in2016.

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Ownership–Telephony

Only33%ofbusinessesownoneormoreregularcellularphone,totheadvantageofsmartphoneownership:89%ofbusinessesownoneormoresmartphonedevices.

IntentiontoUpgradeTechnologyProducts

Whenasked,only30%ofbusinessesrespondedthattheywerelikelytoupgradetonewcomputingdevices in the next 6 months, with the top two most-often mentioned devices being desktopcomputersandlaptops.

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AnnualITBudget

RespondentswereaskedtoestimatethepercentageoftheirannualbudgetthatisspentonIT.Eachrespondentgaveanestimatenumber(e.g.5%,10%,or7%)whichwerethengroupedintoranges

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asshownbelow.The200individualresponseswerethenusedtoobtaintheaveragespendonITrelativetocompanies’annualbudget.

Onaverage,businessesspend9%oftheirannualbudgetsonIT,whichisinlinewiththe8%foundinthe2014/15study.

PurchasingTechnologyProducts–Locallyvs.Overseas

Themajorityof businesses (61%of respondents)purchase technologyproductsboth locally andoverseas.

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SoftwarePurchases

Themostpopularreasonsforchoosingtopurchasesoftwarelocallyvs.overseasareshownbelow.

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HardwarePurchases

Themajorityofbusinessespurchasedhardwareproductslocallyandoverseas(57%).

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Themostpopularreasonsforchoosingtopurchasehardwarelocallyvs.overseasareshowntablesbelow.

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Thetopthreeelementsintothedecision-makingprocess(whethertomakethepurchaselocallyoroverseas)are:

1.availabilityoftheproducts,2.whicheverlocationoffersthebestprice,and3.thereisbetterpricingabroad.

CorporateUseofTechnologyandtheInternet

PopularUsesofMobileDevices

Asexpected,themostcommonapplicationsusedbyemployeesontheirmobiledevicesareemail,socialmedia,andInternetbrowsers.

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DesiredApplications

Theapplicationsthatbusinesseswouldliketoseedevelopedaredetailedinthetablebelow.

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InternetConnection

100%ofbusinesseshaveInternetaccess,mostlyusingbroadbandconnectionspeedsof10MB(23%)and8MB(19%).

Trackingbroadbandspeedsovertime,itbecomesclearthatthoseof10MBandlowerhavedecreasedinpopularityafter2012,whilehigherspeedshavebecomemorepopular.Subscriptionstospeedsabove10MBareaarespiking,showingaclearappetiteforfasterconnectionsovertime.

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The“other”categoryincludesthefollowingspeeds:T1lines,100MB,20MB*2Circuits,35MB,40MB,55MB,70MB,amixtureofIPLC's,andBroadbandaggregatedover30MB.

60%ofrespondentswouldupgradetofibre-to-the-officeifitbecameavailable.Moredetailsareshowninthetwochartsbelow.

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Domainnames

Whenaskedabouttheirdomainnames,53%oflocalcompaniesrespondhavinga“.bm”followedby32%whooperatea“.com.”

OnlinePaymentFacilities

22%oflocalbusinesseshaveanonlinepaymentfacilityontheirwebsite,withthemajorityusingAuthorize.netorButterfield.

Asisshownbelow,thedistributionofprovidersofsaidonlinepaymentfacilitieshavedramaticallychangedsince2014/15.

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SocialNetworking

Whenitcametosocialmedia,73%ofbusinessesconfirmedhavingacorporatesocialnetworkingpresence.Thisrepresentsanincreasefrompreviousyearsandapredictabletrendupwards.

Accordingtorespondents,andsimilarlytothefindingsofthe2014/15survey,themainreasonforhavingacorporatesocialnetworkingpresencewasforadvertisingtheirproductsandforthepromotionandmarketingoftheirservices.

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Belowaretheanswerstothesamequestion,forthe2014/15survey:

BusinessUseofICT

Themajority of businesses use technology for internal functions (94%) followedbyBusiness-to-Businesswork(91%).

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Asshownbelow, the top three“other”ways thatbusinessesused technologyarecommunication,researchand“everything.”Thevarietyofsaidusesreflectsthewidepaletteofusesthatcompaniesfindand/orcreatetoassisttheminachievingtheirobjectives,anotherindicatorofhowpervasivetechnologyistoday.

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DataProtection

InformationSecurity

85%ofbusinesseshaveacommonserver,ofwhich98%aresecure.

82%haveaserverthatcanbeaccessedremotely,mostpopularlythroughsecureaccessovertheInternet(43%),throughavirtualprivatenetwork(35%),andontheCloud(12%).

“Other”responsesinclude:RDP,Citrix,multipleencryptedmethods,remotedesktopconnection,VPN&CitrixandVMwareVDI.

66%ofbusinesseshaveadefinedtechnologysecuritypolicy.

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Ontheotherhand,48%ofbusinessesdonothaveadefinedcybersecurityframework.Thisnewsetofquestions,addedonlythisyear,alsoshowsthatcompanies,insmallernumbers,useframeworksotherthantheoneslistedinthequestion,includingsomethatareinternallydeveloped,aswellasCOBIT,ISO,andNIST(barelyacombined8%).

Additionalquestionsshowthatforthemajorityofbusinesses(68%)technologysecurityexpenditurehasnotincreasedoverthepast12months.

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Only18%orrespondentsindicatethattheirbusinesseshadatechnologysecurityincidentinthepast12months,themostcommontypesofwhichwereRansomware(e.g.CryptoLocker)(51%)andinfectionsbyvirusorothermalicioussoftware(40%).

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CloudComputing

70%ofrespondentssaytheircompanyusescloudcomputing,usingitmainlyforOffice365,email,andforbackuppurposes.

Askedabouttheircloudcomputingserviceprovider,responsesindicatethatthetoplocalproviderisFireminds,whilethetopoverseasproviderisMicrosoft.

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Whenaskedaboutconcernsovercloudcomputing,73%ofrespondentsmentionsecurityand77%makereferencetoprivacy.Thisshowsanincreaseinbothcategoriesovertime.

PersonalInformationProtectionAct2016

When asked if their organisation was aware of the Personal Information Protection Act (PIPA)whichwaspassedinBermudainJuly2016,53%ofrespondentsansweredyes.

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Whenaskediftheirfirmhadaninternalprivacypolicyorpoliciesinplacetoprotectpersonalinformation,only46%respondedyes,whichisverymuchinlinewithresultsfromthemostrecentsurvey.

Whenaskediftheirfirmissubjecttoanyforeigndataprivacyregulationsorlawspertainingtopersonalinformation,24%saidyes,whichisalsogenerallyinlinewithfindingsfromprioryears.

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Whenaskedtoprovideevenmoredetails,respondentslisted:• Confidentiality(45%)• Standardprivacypolicy(9%)• Personalinformationisheldinasecureareaandisnotshared(7%)• EmployeeAct/Internalguidelines(5%)• Contractofemployment(4%)• Passwordsecured(4%)• Donothavepersonalinformationoncomputer(3%)• InformationSecurityandInformationClassificationandProtectionPolicies(3%)• Creditcardandpersonalinformationisnotstored(3%)• Limitedaccesstofiles(3%)• Stafftraining(3%)• Barrister'scode(1%)• Govt.ITO(1%)• EUcompliance(1%)• Infocannotbeaccessedoutsidethenetwork(1%)• PCIcompliance(1%)• PIPA(1%)• Onlyshareinformationifcompelledbyregulators(1%)• Requireandtrackaccessauthorization(1%)• Throughparentcompany(1%)

DataHosting

Themajority of businesses continue to have their data hosted locally (79% in 2016 vs. 73% in2014/15and82%in2012).

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ThemostpopularcountriesforhostingbusinessdataweretheUS(48%)andCanada(29%).

Back-UpsandDisasterRecovery

90%ofbusinesseshaveadisasterrecoveryorbusinesscontinuityplan inplace.Thatpercentageclimbsto100%forlargeorganisations.

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Themostpopularmethodsfordataback-uparenetworkattachedstorage/storageareanetworksin-house(36%)ormanagedserviceprovidersthatareinBermuda(28%).

Weaddedtwonewquestionstothisset,specificallyenquiringaboutcompaniesbackinguptheirdataonthecloud,andwhetherthecloudservicesproviderislocatedlocallyoroverseas.Thisallowedforaclearerdistributionofinformation,separatingoutthethird-partyserviceprovidersmorevisibly.

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Asafollow-up,wefoundoutthattheUSAisthepreferredlocationbothforbusinesseswhobackuptheirdataoverseas(68%)andthosewhobackuptheirdataonthecloud(36%).Itisworthnotingthatforthatlattercategory,BermudafollowsasaclosesecondtotheUSA(22%).

BringYourOwnDevice(BYOD)

37%percentofbusinesseshaveaBringYourOwnDevicepolicy(BYOD),anotable increasefromourmostrecent findings(23%in2014/15).Whenasked formoredetail,halfof therespondentsexplainedthattheirrespectivecompaniesdidnothaveaneedforsuchapolicy(50%),followedby24% who expressed that their companies preferred supplying the device itself, in the form ofapprovedtechnology.

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InternetSecurity

19%ofbusinessesdonotfeelthattheInternetissecureinBermuda,asteepdeclinefromthe39%expressedin2014/15.Notethatthe“Don’tKnow”categoryshowsaproportionateincrease(30%in2016vs.11%in2014/15).

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Those who do not believe that the Internet is secure believe that the Internet is not secureanywhereanyway(71%)whichismadeevidentbytherelevantincidentsthathavebeenreported(15%).

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Notice that 3% of the respondents intimated that they believed that Government has nothing inplace for regulating Internet security. In fact, when asked the direct question, 59% of allrespondentsmade clear theirbelief that legislation is required to imposeminimumstandardsofInternetsecurity.

SecurityEvents

12% of respondents have experienced a security event which resulted in data loss or a serviceinterruption.

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Ofthosewhohaveexperiencedasecurityevent,27%reportedittotheirITservicesproviderand18%reporteditinternally.Internalreportingincludesreportingtotheexecutiveteam,totheboardofdirectors,toseniormanagement,ortotheITDepartment.

Noticeably,32%didnotreporttheincidenttoanyone.

22%notifyotherorganisationsaboutinformationsecuritythreats.

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Whenasked“whatotherorganisationsdoyounotifyofinformationsecuritythreats/events/incidents?”respondentshavediverseanswers,mostcommonofwhichis“Internally”(37%).ThatcategoryincludessuchelementsastheinternalITteam,thecorporatesecurityteam,or,moregenerally,theheadoffice.

Notably,theBermudaPoliceServiceisonlycontactedin4%ofthecases.

57%ofrespondentsbelievethatitwouldbebeneficialtoreportallsecurity-relatedincidencestoacentralrepository.

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Inresponsetoanothernewquestion,regardingwhethersufficientinformationisavailableforcompaniestoproactivelyimplementproperprotectionmeasures,44%ofrespondentsbelievethatyes,thereisenoughinformationavailabletothem.

OutsourcingServices/BusinessFunctions

Inanincreasefromtheprioryears’findings,46%ofbusinessesnowoutsourcedepartments(vs.39%in2012and38%in2014/15).

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Follow-upquestionsdelveintowhichdepartmentswereoutsourcedwhere.In2016,businessesprimarilyoutsourcedlocally.

Themostpopularmotivatorsforoutsourcingwerethesizeoftheorganisation(58%)andcostpressures(42%).

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Asseenabove,themostcommonly-outsourcedbusinessfunctionsarefinance/accounting,HR,andIT.Afewotherfunctionsarealsooutsourced,thoughnotascommonly:

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• Workpermitapplications• Assistancewithdesignservices• Engineering• Marketingandsales• Claimsprocessing• Pre-press• Reservations• Securitymonitoring• Specializedtraining• Websitesupport

Thejurisdictionswherebusinessesmost-oftenoutsourcetheirdepartmentsaredetailedbelow.

OutsourcingITNotably,andalongthesamelinesaspreviousyears,98%ofbusinessesdonotintendtooutsourceanyoftheirITdepartmentsinthenext6months.

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Onaverage,50%percentofcompanyITneedsareservicedinternally,35%arecontractedouttoanITcompanyinBermuda,andonly10%arecontractedouttoanITcompanylocatedoverseas.

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HumanCapital

TrainingProgrammes

While themajority of employers (47%) still do not offer any formal technology training to theiremployees,35%percentdoprovidelocalin-personcoursetraining.Overall,mosttrainingthatdoestakeplace,takesplaceinBermuda.

Thetablebelowdetailstheareasinwhichbusinessesoffertechnologytraining.

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Othertechnologytrainingofferedcoversthefollowingareas:• Businessanalysis• Businessmarketing/advertising• Manufacturertrainingforsalesandaftersales• Mediation• Onlinebookkeeping/QuickBooks• PropertyManagement• Publicspeaking• Salestraining• Studentmanagement

Specificapplicationswerealsomentioned,asananswertothemoregeneral“technologytraining”question:

• Designsoftware• Renweb(grading)• Greatplainsdynamics• Constructionmanagementsoftware• FileSite• Internationalbusinessapplications• GoogleAppstraining• NCRHQ

• INFORSunSystems• Proprietary apps used to configure

productsthatwesell• PSO• VolvoECU• RaisersEdgedatabase• Smartboard• Web,mobileandgraphicprograms

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• Pastoral• Virtuallearningenvironment• Howtomaximizethebenefitofsocial

media• HTML• CCS• Python

• Java• A+• CCNA• VMWARE• MicrosoftDynamics• Automototroubleshooting

Thissurveyalsoasks“Doesyourfirmreceiveothertechnologytraining?”inordertogleanasmuchinformationaspossible.Thisyear,thefollowingwerealsomentioned:

• 20/20• Adobe• Air• AutoCAD• Birchstreet• BluebirdAutoRentalSystem• CampusmanagementERP• CCNA• Codingandprogramming• CRM• Customerinformationsystems• Datamanagementsystems• Databaseandaccounting• DDMSsoftware• Educationapplications• EQE• Filesite• Jonas• LinkLend

• Mediaanddesignsoftware• Office365• Opera• PClaw• Pitstop• PMS• Quorum(clientdatabase)• RDPPronet• Renweb• Riskmodeling/insuranceaccounting• RMS• Salesforce• SAP• SMEservicemanagement• StudentManagementSystems• Taleo• VCare• WordPress

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ThissurveyalsoaskedabouttrainingprovidedtoITstaffspecifically.Accordingtotherespondents,62%ofbusinessesdonotofferanyatall,while20%offeroverseasonlinetrainingand19%offerlocalin-personcoursetraining.

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ICT-RelatedPositionsandSkills

10%ofbusinesseshaveentrylevelITpositionsintheircompany,whichisaslightincreasefromlastsurvey(6%in2014/15and11%in2012).ThemostcommonentrylevelITpositionishelpdesk/support/ITservicedesk.

Whenaskedwhatotherpositionstheirworkplacehas,respondentsansweredthefollowing:

• ITmanager/ITdirector(27%)• Helpdesk/Desktopsupport(11%)• Networkadministrator(5%)• CTO(4%)

• Softwaredevelopers(3%)• Projectmanagers(3%)• Networkmanager/Networkassistant

(3%)

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• Analyst(3%)• Infrastructure/Softwareengineers

(2%)• Business/Systemanalysts(2%)• CIO(2%)• L3/L2/L1(2%)• Assistantmanager(2%)• ITEngineer(2%)• Webdeveloper/designer(2%)• Operations/Programming(2%)• Security(2%)• Systemsadmin(2%)• BA(1%)• SA(1%)

• PM(1%)• Fieldservice(1%)• GeneralITservices(1%)• Audiovisualmanager(1%)• Infrastructurearchitects(1%)• Marinemechanics(1%)• Computertechnician(1%)• Softwaremanager(1%)• Graphics(1%)• Seniorconsultants(1%)• Seniormanagers(1%)• Socialmedia/Facebookassistant

(1%)• Qualitytesting(1%)

RespondentsalsoprovideddetailsabouttheITtrainingorcertificationsthatarerequiredfortheirITstaff:

• Microsoft/MicrosoftEngineering(13%)

• VMWare(11%)• Cisco(10%)• Networkcertificate/Network+(7%)• MCSE(6%)• A+certificate(4%)• Generalknowledge/Relevant

experience(4%)• CollegeDegree(4%)• BachelorsinComputerScience(4%)• CCNA(3%)• CCIE(3%)• QuickBooks/Accountingsoftware

(3%)• ApplicationDevelopmentcertificate

(1%)• ITsecuritycertificate(1%)

• Citrix(1%)• VBA(1%)• Unifiedcollaborations(1%)• CCSE(1%)• HP(1%)• ASE(1%)• CISSP(1%)• Checkpoint(1%)• MCT(1%)• MSSQL(1%)• CCN(1%)• ACMT(1%)• Maximo(AssetManagement)(1%)• RedHat(1%)• Oracle(1%)• DBA(1%)• Bachelor’sDegree(1%)

AskingaboutthemostusefulITtrainingthatbusinesseswouldlikeifcostwasnotanissueresultedinalonglistthatwastoppedbyMicrosoftOfficetraining(25%ofrespondentsmentionedMicrosoftOffice(Excel/PowerPoint/Word/Outlook).Therestofthewishlistisbelow:

• QuickBooks/Accountingsoftware • CISCO

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• Basictraining/Troubleshooting• IT/Cybersecurity• Networking• Oracle• Databasemanagement• Firewall• Howtousesocialmedia• POSsystemtraining• Serveradmin/Support• Websitedesign/Management• Graphics• CCNE• SQL• Networkcertifications• Applicationdevelopment• Contentcreation• Datamodeling• Cloudcomputing• SharePoint• MBA

• MCSE• CCIE• CCSE• HP• CISSP• Conferencecalling• Networksecurity• SCADA• RedHat• Maximo• Productivitysoftware• Proprietaryapplicationtrainingfore-

bankingplatform• Renwebadmin• Sequel• Googledocs• CCNA• Serverhardware• Windowsserver• Checkpoint

CorporateTechnologyDevelopmentandInnovation

82%ofbusinessesuseregularproductsthatcanbepurchasedforthemassmarket.

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While15%ofrespondingemployershavedevelopedproprietaryoradaptedsoftwareorhardware,similarlytoprioryears,only1%ofbusinessesholdpatentsrelatedtotechnology.SaidpatentsareregisteredintheUnitedStates.

Also,ofrespondingemployers,23%haveanIntellectualProperty(IP)policyforthemanagementandprotectionofintellectualcapital.

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CompanyWishlist

Respondentswereasked:WhatITskillsareyoulookingfororthatyouforeseeaneedforinthefutureinyourcompany?Tothat,thetopanswerswere“Cybersecurity/Securityexperts”(10%ofrespondents)and“Datamanagement/Administration”(7%).

• Cybersecurity/Securityexpert(10%)• Datamanagement/Data

administration(7%)• MoreITcapability/Formaltraining

(5%)• Dataintegrationanalyst/Database

analyst(5%)• Architects(5%)• Socialmediadevelopment(5%)• Webdevelopment(5%)• Networkadministrator/Networking

(5%)• Software/Systemsengineers(3%)• Network/Infrastructuremanagement

(3%)• Softwaredevelopment(3%)• Virtualplatformdevelopment/

Management(3%)• Cloudservices(3%)

• Applicationsystemsanalyst(2%)• DBA(2%)• Businessanalyst(2%)• BA(2%)• Infrastructureengineers(2%)• Datamodelling(2%)• SharePointdeveloper(2%)• Helpdesk(2%)• MicrosoftSuite(2%)• Officeskills/Basiccomputing(2%)• Programming(2%)• RetailIT(2%)• Seniorexecutivestrategists(2%)• Compliance(2%)• Servicemechanics(2%)• ITtrainer(2%)• SQLserver(2%)• Multi-threadeddevelopment(2%)• TDDmethodology/BDDtraining(2%)

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• Feedmanagement(2%)• Websales(2%)

• Excelandaccountingservices(2%)

When asked “What technology products or applications that are not available in Bermuda todaywouldyouliketoseeofferedinthefuture?”themostcommonly-mentionedanswersconcernedtheInternet.18%ofrespondentswouldliketoseemoreaffordableInternetand18%wouldliketoseefasterInternet.

Thetablebelowdetailscircumstancesthatwouldencouragemoreinvestmentintechnologybytherespondents.Toppingthelistare:thattherewouldbecost-benefits(21%)andthatanincreasedinvestmentintechnologywouldbeclient-driven(16%).

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19%ofrespondentsfeelthatthereisatechnology-relatednichethatBermudacoulddevelopfurther;saidnichesarelistedinthetablebelowthechart.

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ThemostpopularreasonforbelievingthatatechnologynichecannotbedevelopedontheIslandwasbecausethecostofdoingsoinBermudawastoohigh(60%).

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BusinessUseofGovernmentServices

WhenaskedwhatGovernmentservices–otherthanwhatispresentlyavailable,respondentswouldliketoseeonline,thelistwasprolific,asshownbelow.

• Onlinepaymentoptions(parking,creditcards,Govt.fees,Corporate&servicetax,TCD)(27%)

• Allofthem(17%)• Immigration/Workpermits(ability

toseethestatus)(7%)• SocialInsurance(7%)• Pre-clearanceforcustoms/Custom

forms(4%)• Companyregistrations(3%)• Doglicensing/renewal(3%)• LandValuation(bettermappingand

information)(3%)• ParliamentaryRegistry(searchby

streettofindconstituency)(3%)

• RegistryGeneral(electronicfilingandsearches)(3%)

• SupremeCourtRegistry(electronicfilingandsearches)(3%)

• Passports(3%)• Statistics(3%)• Downloadableforms(1%)• Visualclassroomsonline(1%)• Govt.trafficticketsystem(1%)• Onlinetutoring/homeworkhelpline

(1%)• Marine&Ports(1%)• LandTax(1%)• PersonnelDirectory(1%)• Listoffeesandscheduling(1%)

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• Planningsubmissions(1%)• Postoffice(1%)• Livechat(1%)

• Telecomfailurenotices(1%)• Transport(bustimes)(1%)

94%ofbusinessesuseGovernmentwebsitesorlocalpublicservicewebsites,suchastheBermudaWeatherServicesortheLFWadeInternationalAirport.

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85%ofbusinessesuseon-lineGovernmentservicesthetopthreeofwhicharePayrollTax(46%),SocialInsurance(21%),andImmigration(10%).

Themajorityofbusinessesusesaidgovernmentonlineservicesquarterly(34%)ormonthly(21%).

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ForthosewhodonotuseGovernmentservicesonline,themostcommonly-mentionedreasonwasthattheGovernmentportalwasperceivedasnotbeinguser-friendlyandasbeingpoorlydesigned.

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8AREASOFNOTEContinuingObsessionwithMobileMobiledevicesareamajorpartofoureverydaylives.Thisstudyhasshownthattheownershipoflaptops,tabletsandsmartphonescontinuestorise.Thepervasivenessandvarietyofmobiledevicesgiveaccessnotjusttoinformation,buttoanentirelynewwaytoliveandcommunicate:evenusingthecalculator,checkingtheweather,andsettinganalarmclockisdonequickly,withoneswipeofthescreen,onsmartphonesandothermobiledevices.

Whilewemay not intend to do so,we also use ourmobile deviceswhile doing other things, forexample while watching TV, walking and having a meal. Some believe that this is changing ourhomelifeandworklifeinsuchawaythatitwillultimatelyimpacthowsocietyasawholeevolvesinthecomingyears.On-the-goInternetuseisbecomingmorewidespread,andthedividebetweenonlineandofflinefunctionsisbecomingblurred.

Our attachment to mobile devices also encourages us to demand additional services in ourjurisdiction. For instance, more people are shopping using mobile devices. There is also anincreased expectationofmobile paymentpossibilities because they arewidely available in otherjurisdictions

InternetofThings,DataAnalyticsandCybersecurityThe Internet of Things describes themultitude of devices that are connected via the Internet tocloud servers and each other, and that can control our fridges, heating controls, wearables, andmuchofourmodernlives.AsmoreofthesedevicesareconnectedtotheInternetinordertoserveusbetter,theygenerateincreasingvolumesofdataaboutus,whatwedoandhowwelivegrows.Organisationsseethisoftenrawandunindexeddataasopportunitiesfornewproductandservicedevelopment. In turn, toolsarebeingdeveloped toaccessandprocess thisdata thatwillprovidethedesiredinsights.Theoretically,withenoughdatapoints,anorganisationmightgettoknowusaswellasweknowourselves,evenbetter.

This,of course, createsa cause for concern in theareasofprivacyandsecurity: as smarthomes,smartcars,smartTVsandsmartwearablesenterourlives,securityandprivacyhavebecomemajorconcernsforusers.WhiletheInternetofThingscanenhanceourlives,itcouldalsocauseharm.

Forexample,theInternetofThings-baseddistributeddenial-of-serviceattackinOctober2016cutinternetaccess tomillionsofpeople,manyofwhomdidnoteven realise that theirdeviceswerecompromised by the Mirai malware. As a result of that attack, many websites that seemedimperviouswentdown,includingTwitter,Airbnb,andSpotify.

Themassivedistributeddenial-of-serviceattack(DDoS),manybelieve,wasonlypossiblethanksto(or because of) the IoT (ISACA):Miraiwas designed to “run scans across IoT-connected deviceslooking for known security vulnerabilities.” Using said vulnerabilities, themalware gains access,andtheinfectionbegins.

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Communicationand information-sharing is critical tohelporganisationsand residents to combatcyberthreatsandprotecttheirorganisationsandhomes.

CybersecurityAccording to www.paloaltonetworks.com, “Cybersecurity involves protecting information andsystemsfrommajorcyberthreats,suchascyberterrorism,cyberwarfare,andcyberespionage.”

In Bermuda and globally, Cybersecurity is undergoing dynamic and turbulent formative years.Regular news headlines indicate that cyberattacks, far from being a seasonal threat or fromdependingonspecific industriesorenvironments,areaconstantthreatandshouldremainattheforefrontofeveryenterpriseexecutive’sthoughtprocess(ISACA).

Itwidelyacceptedthatanorganisation’smainassetisthedatathatitowns.Twothreatgroupsmayputthatdataatrisk,whichwouldcausetheorganisation’scybersecuritytoshift:insiderthreatandoutsider threat (ISACA). As enterprises become more dependent on technology and data, itbecomes increasingly important to protect the information that they hold and to ensure thesecurityofthesystemsthattheyoperate.

Whilecloud-basedoperationsarewidelyacknowledgedtooffersignificantbenefitsincludinglowercosts and easy deployment, the increasingly popular cloud computing is emerging as an area ofconcernlocallyandoverseas.

Toenhancecybersecurity,theworldistakingaction.Mostrecently,theUNSecurityCouncilcalledon member states to address threats against critical infrastructure, unanimously adoptingresolution2341(2017)(CybercrimeDigest).

Locally, the 2016 Speech from the Throne honed in on cybersecurity, noting that strengtheningcybersecurity and protecting Bermuda’s digital infrastructure against cyber-threats is vital toBermuda’s economic resilience. Referring to recent attacks overseas on the infrastructure of theInternet,andrecognisingthattheIsland’sinfrastructureandICTsectorcomplementeachotherinsupportingourjurisdiction,thedocumenthighlightedtheneedtoprotectGovernment,businesses,organizationsandthepeopletheyserve.

In the summer of 2016, the E-Commerce Advisory Board’s Cybersecurity Sub-Committee’sperformedathoroughsurveyofthecountry’sCriticalNationalInfrastructure(CNI).TheSurveyhasbeeninstrumentalinexaminingBermuda’scybersecuritylandscapeanditsmaturity.

PrivacyWhile the Internet of Things is bringing about issues of information security and privacy, theseissueshavebeenbroughttotheforeevenmorevisiblywithinBermudaitselfasajurisdiction,sincethepassingofthePersonalInformationProtectionActinthesummerof2016.

AswecountdowntothePIPAcomingfullyintoforce,anawarenessprogrammeandguidancewillbeissuedregardingtheprivacyofone’spersonalinformationandwhatorganisationsshoulddoto

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ensurethatanypersonalinformationthattheyholdisbothusefulfortheiroperationsandsecureforthepeaceofmindoftheircustomers.

This surveywill keep this inmind and benchmark residential and organisational awareness andsensitivitiesofprivacyasitpertainstoBermuda.

UniversalServiceObligationIn Part 6, the Electronic Communications Act 2011 (the ‘ECA’) provides for universal serviceprovision and funding. “Universal service obligation” refers to the minimum set of electroniccommunications services that designated communications providers must make available to allcitizensatanaffordablerate.Thisnotionhasmovedonfromitsinitialapplicationtoconventionalvoice telephony services and now encompasses broadband services in an effort to enable allcitizenstohaveaffordableaccesstoabasiclevelofInternetservice.

In February 2017, the Minister of Economic Development Dr. the Honorable Grant Gibbonsrequested that the Regulatory Authority perform a study thatwould assist him in formulating abroadbanduniversalservicepolicyandanynecessaryregulations,whichtheAuthority,inturn,willimplement. Said study will result from a public consultation exercise that is to include serviceproviders, commercial users and consumers and to answer thequestion: “Howwould thepublicbenefitfromauniversalbroadbandserviceprovision?”Itwillbeinterestingtoseewhatthemarketexpectationsshallbeinsuchatechnologysavvyjurisdiction.

Fibre-to-the-Office/Fibre-to-the-HomeThissurveyhasfoundthatthemostpopularInternetconnectionforhomesisthe8Mbbroadbandspeed, and10Mb for businesses. 78%of households and60%of companies confirmed that theywouldupgradetofibreifitwereavailable.

Amerethreemonthsafterthesurveyquestionswereasked,OneCommunicationsannouncedthatithadrolledoutalmostsixtymilesofsuper-fast fibreopticcablingreachingnearly1,400homes,withthecompanysayingthat”installingitsFibreWirenetworkispartofa$20minvestmentinitsinfrastructurethatwilldramaticallyimprovebothinternetspeedand4GLTEcoverage.”(Bernews8-feb)Asaresult,Internetspeedsofupto200MbpswillbeavailabletoBermudabytheendoftheyear2017(Bernews14-mar).Withtheprovisionoffasterspeeds,weshallseehowBermuda’sInternetActivitiesevolveinfuturesurveys.

FintechBlockchain is outgrowing its adolescent cryptocurrency identity, with distributed consensusledgers becoming smart contracts facilitators. Beyond creating efficiencies by removing the legaland financial intermediary inacontractualagreement,blockchain isassuming theroleof trustedgatekeeperandpurveyoroftransparency.Intheemerging“trusteconomy”inwhichacompany’sassets or an individual’s online identity and reputation are becoming both increasingly valuableand vulnerable, this latest use case may be blockchain’s most potentially valuable to date.

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(Deloitte’sTechTrends2017)Ontheotherhand,inanenvironmentwhere‘KnowYourCustomer’is critical, it will be interesting to see how blockchain will allay the concerns of regulators andauditors.

TechnologyEducationandComputerScienceAstechnologyissopervasiveinourjurisdiction,thereistheexpectationthatindividualsbeabletouse technology in their daily lives. Responses gathered through this survey indicate a strongexpectation that the education system would teach computer science as a matter of commonpractice.Also,andincreasingly,thereisevidencethateskillstrainingcurrentlytakesplaceatmanylevels-intheworkplaceandinschools,tonamebutafewsources.

Locally, the adoption of global initiatives suchHour of Code is seen acrossBermuda’s schools. Itexposesprimaryandmiddleschoolstudentstocodingusingfunandengagingactivitieswhichareusedtoshowstudentsthatcomputersciencecanbeenjoyableandacareeroption(HourofCode).

While important, eskills training supports technology literacy in the community but it does notensure that we are developing the next generation of technology professionals to enter intoindustry.Thisgapindeedisanissueworldwide,andseveraljurisdictionsaretacklingitthroughanumber of initiatives that aim to encourage computer science and more technically-basedinformationtechnologyadoptionbystudentsatearlierphasesintheirschoolcareers,inthehopetoencouragethemtopursueComputerScienceattheuniversitylevelandtechnologycareersupongraduation.

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CONCLUSION/GENERALOUTLOOK

This Stateof ICT inBermuda2016describes the resultsof thebiennial survey conductedby theDepartmentof ICTPolicyandInnovationinDecember2016.Thesurveyresultsbolsterthebeliefthat the field of Information and Communication technologies continues to be significantlydynamic.

Technologycontinuestobeseenasanimportanttoolforindividualsandorganisationsalike.Lookingatthemostcommonusesoftechnology,whetherforworkorrecreation,onecanquicklynotethatitisasomnipresentasever,actingasameansofsimplifyinglife,work,andprovidingincreasingefficiencies.Bermudaisthereforenavigatingtheever-shiftingwatersofanever-increasinglyprevalentandcomplexpresenceofICTinallaspectsoflife.ThedemographicsandcompetenciesuncoveredinthissurveyshowthatBermuda-basedbusinessesandresidentscontinuetoembracetechnology,enteringmorefullyintotheeraoftheInternetofThings.

Bermuda residents areoften early adopters of new technologies.As the State of ICT inBermudasurveyisperformedinDecember,manyoftheanswersreceivedregardingplannedpurchasesaregivenwithHolidayshoppinginmind.Bermuda-basedpurchasessupportworldwidetrendsthattheInternet of Things is here to stay as households are increasingly comfortable with smart TVs,wearabletechnologies,andartificialintelligenceinsuchitemsasAmazon’sAlexaserviceandEchointelligentspeakers.

Companiesfindtechnologytobeessentialforcompetitivenessasitfacilitatescommunication,allowsforgreaterefficiency,andprovidestoolsforspecificorganizationalneeds.Technologypermeatestraining,educationandresearch,aswellascustomerservice,communication,andmarketing/advertising.TheBermudamarketandbusinessenvironmentsrequirethatmostindustrysectorsembracetechnologytoremaincompetitive.

Fiscalresponsibilityandstrategicplanninghaveindustryleaderscarefullyconsideringtechnologyoptions.WhilepriceshavedroppedinrecentyearsforequipmentandconnectivityasmarketforcesactupontheBermudalandscape,respondentsarestillclamoringforlowerrates,betterbroadbandspeeds,andbettercellularanddataserviceoverall.Technologyadoptionremainsbrisk;however,ashrinkingworkforce,companiesengagingincost-savingactivitiesandotherfactorsdohaveatangibleimpactontechnologyspending.

Cybersecurityisoftenattheforefrontoforganizationalconversations.Respondentsexpressedtheneedformoreinformationregardingsecurityalertsandprivacy.Atthesametime,mostbelievethattheirserversaresecureandtheyhaveadisasterrecoveryorbusinesscontinuityplaninplace.Securityandprivacyconsiderationsmaybeanareaforfuturefocus,particularlygiventheincreasinguseofcloudsolutions.

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Lookingintothefuture,employersseeanincreasedneedforITspecialistswithspecificskillsinBermuda.CertificationsinMicrosoftOffice,CCNA,andMCSE/MCSAarecurrentlyconsideredbeneficial,andstudentsshouldkeepaneyeonsuchfeedback.Wedonotethatcompaniesmayturntooutsourcing,astheymayfeelthatthesizeoftheirorganization,cost-effectiveness,andtheshortageofqualifiedBermudiansmaypushtheminsuchadirection.Whileoutsourcingtolocalserviceprovidersisindeedbeneficial,encouragingthehighly-skilledlabourforcetoremainontheIslandiscritical.

Thisyearhasseentheadditionof two issueswhichoftengotogether:privacyandcybersecurity.What’smore, therapidchanges in technologyworldwideare indicatingmovementsbeyondwhattheresultsofthissurveyindicate.

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GOVERNMENT OF BERMUDAMinis tr y of Economic Development

Department of ICT Policy and Innovation