Business Review Issue 13/2013 April 22 - May 5

FOCUS: Dermot Glynn, president of Europe Economics, tells BR that Romania should push for an EC ban on parallel exports, at least until the average income in the country catches up with the European figure »page 6

ROMANIA’S PREMIER BUSINESS WEEKLY

Cloud adoption is taking off at higher speed, fueled by cost cutting and the widespread use of mobile data and apps »page 12

APRIL 22 - May 5, 2013 / VOLUME 17, NUMBER 13

PLUGGING INTO THE CLOUD

NEWS 3

www.business-review.ro Business Review | April 22 - May 5, 2013

NEWS in brief

April 23 ∫EVENT

BANKING

09:00 Business Review organizes the fourth edition of Focus on Employment &HR, an event that covers various aspects of the labor market, ranging from legislative challenges to the use of innovative recruitment tools, at Ramada Plaza Bucharest. Registration is open.

BRD grants over EUR 900 mln under Prima Casa loan scheme The mortgage loan book of BRD – Groupe Societe Generale exceeded EUR 900 million in April, under the governmentbacked Prima Casa program, with the bulk of demand coming from Bucharest.

Timisoara, Iasi and Cluj-Napoca were among the ten Romanian cities where BRD has granted most of the loans, along with Constanta, Brasov and Braila.

BRD said the average mortgage taken out amounted to EUR 39,000 and borrowers were drawn disproportionately from the 25-30 age group. The youngest borrower is 19 and the oldest 65 years old. Adrian Jantea, commercial director of the retail division at BRD – Groupe Societe Generale, said the bank has signed almost 25,000 mortgage deals through Prima Casa.

The scheme aims to help Romanian first-time buyers buy or build a house through a state-guaranteed loan.

ENERGY Oltenia Energy Holding IPO attracts one underwriter A consortium comprising BRD – Groupe Societe Generale and SSIF Swiss Capital is the only bidder in a tender organized by the Romanian government to select the underwriter for the initial public offering (IPO) of state-owned Oltenia Energy Holding.

Representatives from the energy department within the Ministry of Economy and the Oltenia Energy Holding will evaluate the offer.

The listing of the Oltenia Energy Holding will be carried out on the Bucharest Stock Exchange through an issuance of fresh stock representing 15 percent of the firm’s share capital. Romania has pledged to sell minority stakes in several state-owned enterprises, active mainly in the energy sector, as part of a EUR 5 billion agreement with the IMF, World Bank and European Commission.

The Ministry of Economy holds 77 percent of the shares and the Property Fund 21.5 percent.

INFRASTRUCTURE EC approves EUR 54 mln of funding for local flood prevention The European Commission has approved a EUR 54 million investment from the Cohesion Fund that aims to strengthen flood prevention measures across Ro-

BUSINESS AGENDA

April 23

10:00 XTB Romania organizes a press breakfast to mark the launch of a new component of its trading platform at its HQ in Bucharest. Tadeusz Kuropatwinski, general manager of XTB Romania, will attend. By invitation only.

April 25

IMAGE of the week Chocking out Bucharest’s first Belgian week The Belgian Embassy in Bucharest, the Belgian Romanian Association (BEROBA), Flanders Investment and Trade and Agence a l’Exportation organize between April 22 and 28 Belgian Week at the Novotel, featuring seminars with companies and gastronomic goodies from the kingdom. Above, H.E. Mr. Philippe Beke, the Ambassador of Belgium, presents a new type of hot chocolate. mania, increasing the protection of around 1.5 million inhabitants of risk zones.

The project will improve the existing water management infrastructure, while enhancing flood and pollution monitoring. “This is a good example of our regional investments contributing to a better quality of life for Romania’s citizens. This increased safety will bring clear economic benefits as business and potential investors will know they are better protected against flood damage,” said the commissioner for Regional Policy, Johannes Hahn.

The project has a total cost of EUR 63 million and will create 50 jobs.

LEGAL Romania has 23,000 practicing lawyers Some 23,000 lawyers, out of whom 8,500 are working in Bucharest, are practicing, out of a total of 29,000 lawyers registered in Romania said Calin-Andrei Zamfirescu, honorary president of the UNBR (the Romanian Bar Union).

Zamfirescu said that foreign law firms active locally have brought management standards and shaped the careers of capable Romanian lawyers who later decided to open their own practices.

Law firms active locally have split their litigation and consulting departments in recent years and there are specialized lawyers in consulting who have never been to court, said Cornel Popa, partner at Tuca Zbarcea & Asociatii.

He added that law firms are dependent on the general economic context and that international M&A activity has decreased, but “not tragically”. The partner added that the Romanian M&A market has increased in recent years, contrary to the regional and international trends, boosted by deals signed in ecommerce, agriculture and renewable energy.

UNPIR launches sales portal for insolvent firms’ goods The National Union of Insolvency Practitioners in Romania (UNPIR) has launched the online platform www.licitatii-insolventa.ro, which allows any UNPIR member to sell the goods of insolvent firms.

The B2B platform addresses businesspeople and local investors as well as individuals looking to purchase cars, flats or other goods belonging to companies in the portfolio of insolvent firms.

An English version of the portal is available at www.goodsforsale.eu.

The website is split into six main categories and hosts over 900 active sales announcements for assets totaling RON 800 million (EUR 183 million).

14:30 The Property Fund (FP) organizes a press conference to present the decisions of its General Shareholders Meeting at JW Marriott Bucharest Grand Hotel.

Mark Mobius, executive chairman of Templeton Emerging Markets Group, and Greg Konieczny, FP fund manager, will attend. By invitation only.

May 13 ∫EVENT

09:00 Business Review organizes Focus on Energy, an event that gauges trends in the domestic energy market, at Howard Johnson Grand Plaza Hotel. Registration is open.

May 14

19:00 The Meet the Woman conference series hosts an event on the topic Strategy: Tool or Weapon, at the Capital Plaza Hotel. Aliz Kosza, business strategist & mentor, will be guest speaker. The event is fee-based.

For registration, e-mail inscrieri@femei-in-afaceri.ro

May 22

09:00 HART Consulting organizes the sixth edition of the HART HR Strategic Conference, entitled CEOs and Organizational Culture: What Makes it or breaks it? Participation is fee based. For registration, e-mail consulting@hart.ro

May 24

09:00 ICAP Romania and CYCLE European organizes the fourth edition of its Credit Risk Conference at Radisson Blu Hotel. Prof. Edward Altman of Stern Business School within the New York University, who is a renowned specialist in credit risk, will attend. By invitation only.

4 NEWS TRADING

SSIF Broker launches international trading platform

www.business-review.ro Business Review | April 22 - May 5, 2013

BANKING

Local businessman buys ATE Bank Romania

C

luj-based brokerage SSIF Broker has recently launched the sole multi-market and multi-asset platform in Romania, making financial products from the main international stock exchanges available to local investors.

Grigore Chis, general director of SSIF Broker, said the platform allows Romanians to invest in over 2.5 million financial instruments listed in over 100 capital markets over more than 90 countries.“Romanian retail investors prefer margin investments in different financial products they can’t access locally: structural products, corporate and sovereign bonds, as well as futures contracts, with stocks as a supporting asset, stock exchange indexes or commodities. The possibility to trade into margin attracts them,” Chis told BR. “On international markets, there is the possibility of leveraged trading, where you can buy shares or any products with more money than you have, the difference being covered by your own brokerage,” added Chis. He said that trading on international capital markets can be made on leverage up to 100, with the gains or losses being multiplied.

This year the brokerage, which is listed on the Bucharest Stock Exchange (BSE), plans to complete an investment in its Tradis software, which is intended to provide financial investment services from developed markets on the domestic market, at the same quality/price ratio and complexity level. It will also invest in the professional training of its employees, at all levels.

In the first half of the second semester, SSIF Broker plans to introduce for the first time in Romania market margin trading for shares listed on the Bucharest Stock Exchange, with leverage of up to four. For sophisticated products, such as futures contracts, CFDs and options, the leverage may go up to 20, further increasing in the future.

Chis says the company aims to increase its market share from 3.5 percent in 2012 to over 9 percent this year. It has set up a special financial investment division for institutional clients.

SSIF Broker registered a profit after provisioning of RON 500,000 (EUR 110,000) last year, sustained by shortterm stock speculation, as well as market-making and the issuance of structural products. ∫ Ovidiu Posirca

Piraeus Bank has sold its stake in ATE Bank Romania for EUR 10.3 million

R

omanian millionaire Dorinel Umbrarescu last week acquired a 93.27 percent stake in ATE Bank Romania from Greek lender Piraeus Bank, in a deal worth EUR 10.3 million.

Umbrarescu has a strong presence in the construction sector, mainly road infrastructure. He ranks ninth in the Forbes list with an estimated fortune of EUR 360 to 380 million.

His companies, Tehnostrade and UMB Spedition, had a combined profit

of around EUR 70 million in 2011. Critics say Umbrarescu has been able to secure major road infrastructure projects with state-owned companies for more than a decade because of his close ties with high-ranking government officials.

He is one of three “asphalt kings” in Romania, whose companies have secured lucrative contracts for building roads and highways. Critics complain that these businessmen were paid hefty sums from the public coffers but deliv-

ered poor results.

Marinel Burduja, who led the negotiation process, is tipped to become head of the new lender, according to Mediafax newswire. Last week Burduja was named board member of Leumi bank, the local subsidiary of Israeli Leumi Group. He was also the lead vice-president of Raiffeisen Bank Romania.

In the middle of last year, Piraeus Bank Greece acquired ATE Bank Greece, including all its subsidiaries in the region.

Deal making in the banking sector kicked off in March with Raiffeisen Bank Romania’s acquisition of the retail arm of Citibank. Raiffeisen took over a portfolio of 100,000 customers with assets of over EUR 90 million and deposits exceeding EUR 175 million.

According to media reports, Raiffeisen Banks is also interested in taking over the local subsidiary of Bank of Cyprus, with assets worth EUR 450 million. Romanian lender Banca Transilvania is another bidder for the beleaguered institution, which ceased its local operations on April 1. The two bidders were unsuccessful in their attempt to buy or partially take over the Cyprus-based bank, as they submitted offers below the consultants’ asking price, according to Mediafax newswire. ∫ Ovidiu Posirca

STOCK EXCHANGE

Romania raises EUR 72 mln from Transgaz SPO T

he secondary public offering (SPO) of a 15 percent stake in gas transport company Transgaz was successfully closed last week, raising EUR 72 million for the state coffers, with analysts predicting this could reignite investors’ interest in the domestic capital market.

The offer price per share stood at RON 179 for the tranche of institutional investors, which was 16 percent below the share price recorded on the day prior to the SPO launch. The intermediary syndicate, comprising Raiffeisen Capital & Investment as lead manager and joint book runner, Wood & Company Financial Services and BT Securities, said the offer was oversubscribed in all three investor tranches.

The offer granted retail investors a discount of three to five percent from the price paid by large investors, depending on the moment of subscription, which saw this tranche oversubscribed more than three fold. The institutional

investors’ tranche, which was 85 percent of the offer, was oversubscribed more than two fold. Close to 70 percent of the offer subscription came from foreign investors with the rest covered domestically. Investors in the Czech Republic, Sweden and Austria were the most prominent buyers.

James Stewart, vice-president of treasury and capital markets at Raiffeisen Bank Romania, said, “Now that Poland has completed the privatization of its assets, Romania has the prerequisites to become the next success story in the development of the capital markets. The success of this offer is an important step in this direction.” The Transgaz SPO followed international standards, which included the price discovery mechanism and structure of the tranches, according to Narcisa Oprea, partner at law firm Schoenherr Romania.

Constantin Nita, delegate-minister for energy, commented that the offer was a good start for the capital market

and for the privatization program. The government has pledged to sell minority stakes in four energy firms by year end as part of a EUR 5 billion stand-by agreement with the IMF, EC and World Bank.

Officials said the listings of large energy firms, such as the hydro-electricity producer Hidroelectrica and gas producer Romgaz, would increase the profile of the Bucharest Stock Exchange (BSE) and attract foreign investors.

Lucian Anghel, president of the BSE, described the Transgaz offer as “an encouraging start”, which served as a success story for the capital market.

This SPO came more than one year after the SPO in grid operator Transelectrica, which was also considered a road opener for bigger listings. At the end of 2012, the biggest shareholder in Transelectrica was the Ministry of Economy with a 73.5 percent stake, while the Property Fund held 15 percent of the shares. ∫ Ovidiu Posirca

NEWS 5

www.business-review.ro Business Review | April 22 - May 5, 2013

RETAIL

PARTNER CONTENT

UK’s Kingfisher swoops into local market after Bricostore takeover

Pharmaceutical corporations and the clawback tax in Romania

by Bogdan Costea, Tax Partner at Viboal FindEx; Delia Catarama, Tax Partner at Viboal FindEx

Big catch: UK retailer Kingfisher has purchased 15 Bricostore outlets

B

ritish home improvement retailer Kingfisher has taken over the 15 Bricostore outlets operated by French company Group Bresson locally and announced plans to further grow the business to around 50 stores in the longer term. The value of the transaction has not been made public, but according to local media reports it reached an estimated EUR 75 million.

Kingfisher will convert the 15 stores into its Brico Depot low-price format.

The British retailer attributed its decision to expand to Romania to the fact that the local Bricostore network “is one of the largest home improvement retailers in Romania, with well-located stores,” according to Kingfisher officials.

Four of the outlets are in Bucharest, mostly close to other major international retailers. Some 60 percent of the branches are owned on a freehold basis and the rest are leasehold. “Romania is an attractive, growing market for home improvement, with the organized part of the DIY market having trebled in size since 2005 to around EUR 1 billion in 2011. There is a strong DIY culture among homeowners,” said company officials.

Kingfisher’s optimistic analysis of the Romanian DIY market is at odds, however, with the reality of recent years.

With the sole exception of local player Dedeman, existing retailers have slowed down expansion plans over the past few years or even put them on hold altogether after reporting declining sales.

For example, German firm Praktiker, the second largest player after Dedeman in

2011, has been reporting shrinking sales for several years now and in early 2012 there were rumors that the company wanted to sell its stores in Eastern Europe due to poor results.

Bricostore Romania posted sales of EUR 131 million last year and an EBITDA of EUR 5 million. At the end of 2012 the retailer had the third largest DIY network of outlets in the country after Dedeman and Praktiker. Its owner, Philippe Bresson, said the company was the second biggest player on the local DIY market and that in 2012 it had managed to grow its turnover by 4 percent while most competitors saw their business go down.

Kingfisher plc is Europe’s leading home improvement retail group and the third largest in the world, according to the company. It has a network of around 1,050 stores in nine countries in Europe and Asia. Its main retail brands are B&Q, Castorama, Brico Depot and Screwfix. Kingfisher also operates the Koctas brand, a 50 percent joint venture in Turkey with the Koc Group, and has a 21 percent interest in German company Hornbach. Hornbach operates five stores in Romania. Kingfisher’s relationship with Hornbach will not change as a result of the Bricostore Romania deal.

Brico Depot, which currently has 105 branches in France and 21 in Spain, is primarily aimed at DIY-ers and professional builders.The takeover is planned to be completed over the next two months and is expected to be earningsneutral in the first year. ∫ Simona Bazavan

The list of CSR Projects in 2012 published in BR issue 12 mistakenly included Holcim’s 2007-2008 projects Let’s keep the waters clean, Household waste management in the Apuseni Natural Park and Build your future. The company’s CSR projects last year include Impreuna pentru comunitate (Together for the community), Scoala Zidarilor (The builders’ school), Lectia Verde (The Green Lesson).

Holders of authorizations to market medicinal products in Romania which are included in the national healthcare programs or that are used during outpatient or hospital treatments have the obligation to pay the so-called clawback tax.

In this respect, foreign pharmaceutical corporations that market their products in Romania have several tax reporting and payment obligations. Compliance can only be carried out via a Romanian legal entity, thus any foreign corporation subject to the clawback tax has to appoint a legal representative in Romania.

The main issue concerning the clawback tax is that in case of nonregistration foreign pharmaceutical corporations are subject to removal of their products from the lists of drugs used in the healthcare programs or outpatient or hospital treatments that are covered by the National Fund for Health Insurance.

In order to avoid removal, foreign corporations have to comply with the clawback tax obligations in Romania.

The clawback tax was first introduced on October 1st 2009 in the Romanian Healthcare Act. The initial version of the clawback tax legislation was applicable during 01 October 2009 – 30 September 2011 and all compliance during this period had to be carried out in respect to the National House of Health Insurance.

Starting with October 1st 2011 the clawback tax received a separate legal framework (Government Emergency Ordinance No. 77/2011) which abolished the previous legislation and shifted the administration of this tax to the Romanian tax authority. Currently, clawback tax compliance must be carried out both in respect to the Romanian tax authority as well as in respect to the National House of Health Insurance.

Currently the clawback tax is calculated as a percentage (13%) of the sales of drugs that are included in the healthcare programs or outpatient or hospital treatments. Some of the previous calculation methods required for VAT to be included in the value of sales, however, the inclusion of VAT in taxable base of the clawback tax was deemed as nonconstitutional by the Constitutional Court of Romania on February 20th 2013.

Viboal FindEx is currently assisting foreign corporations with clawback tax compliance services and advisory. Viboal FindEx is a team of people specialized in delivering solutions and results in tax matters. Viboal FindEx was nominated by International Tax Review for “Best Newcomer” and “Central Europe Transfer Pricing Firm of the Year” and was listed among the most prestigious tax companies in the World Tax Directory. ∫

6 FOCUS

www.business-review.ro Business Review | April 22 - May 5, 2013

Romania starts cracking down on parallel exports

A shortage in oncology medicines in January forced the government to allocate EUR 800,000 in emergency funds to critical drugs, as a temporary stopgap. The crisis was later blamed on parallel exports, which exceeded half a billion euros in 2012. However, attempting to block this activity may have far-reaching consequences at the European level, warn experts.

Courtesy of Company

Courtesy of McCann PR

Courtesy of McCann PR

Courtesy of ARPIM

Dan Zaharescu, executive director of ARPIM

Almin Adzovic, president of LAWG and managing director MSD Romania

Dermot Glynn, president of Europe Economics

Livia Constantinescu, partner, head of the Life Sciences practice at DLA Piper

∫ OVIDIU POSIRCA

pened to have the same name, calling it a “confusing situation”.

“If the parallel export hadn’t been made, we would have had stocks of these three products up to August 2013.

One of the purposes of the exports was to create a shortage of this medicine in the market, creating room for maneuver for those seeking an increase in prices,” said Nicolaescu.

Unifarm is the company that acquires medicines and sells them to hospitals and pharmacies, making a slim profit in the process. The government allotted close to EUR 1 million in January to increasing the share capital of the state-owned company.

PM Victor Ponta took responsibility for the crisis, but said that red tape had prevented a swift decision regarding the additional funding for Unifarm.

“I am at fault because after we talked about it in November, we didn’t pay enough attention and let bureaucratic circuits block these decisions,” Ponta told hotnews.ro, a news portal. He added that funneling cash to Unifarm required the changing of two laws and the Competition Council to declare that the money did not constitute state aid.

The authorities seem to consider parallel exports the main culprit for the shortage in critical medicines, but the particularities of the Romanian healthcare system are also a factor.

The PM quoted the case of a young patient who needed cancer drugs at a hospital. A doctor at the Fundeni hospi-

tal, in Bucharest, said that the institution did not have that particular drug, and advised the patient to buy it from elsewhere, although it was actually in stock.

The hospital manager also plays an important role in making sure that patients get their medicines, by ensuring orders are placed. In one case, a doctor at the Marie Curie Children’s Hospital in Bucharest told reporters it did not have a particular oncology medicine, although Healthcare Ministry representatives said that distributors had it in stock. This was in fact the reason why Melissa Farm was able to purchase the three medicines. Unifarm delivered the oncology medicines to open circuit pharmacies to prevent their expiry, because hospitals didn’t order them, said the healthcare minister.

Tracking prescription medicines has been suggested by Nicolaescu as a solution to secure the supply for Romanian patients.

“We are working on legal changes through which all medicines that are reimbursed and monitored by the state will be monitored in a different manner so as first to meet the internal demand and then give producers a free hand to do what they want with their medicines,” said Nicolaescu.

With precious funding falling through the cracks of a healthcare system that has suffered shortages of oncology medicines in the past two years, cancer rates are increasing. Around

78,760 new cases were diagnosed in 2012 alone, joining 27,000 cases from 2011, according to the World Health Organization (WHO). More than half a million people are suffering from cancer locally, according to the Romanian Association of Chronic Patients.

Eugen Nicolaescu, the healthcare minister, decided on April 1 to block the parallel export of oncology medicines monitored by authorities until the end of the year, in a move to keep the medicines for Romanian patients. This decision came shortly after the authorities revealed that a pharmacy in the city of Ploiesti, an hour’s drive from Bucharest, had exported oncology medicines to Western countries through its warehouse, depriving local cancer patients of drugs.

Flawed ordering chain for medicines According to the National Agency of Medicines and Medical Devices (ANMDM), Melisa Farm SRL pharmacy ordered oncology products from the state-owned Unifarm and later delivered them to its storage facility, Pharmaceutical Warehouse SRL. The pharmacy was accused of ordering the biggest share of three oncology medicines from Unifarm and exporting them to distributors in the UK, Denmark, Poland and Latvia. The company was subsequently stripped of its wholesale distribution license and fined EUR 4,500.

The warehouse administrator said Unifarm did not deliver the medicines to the pharmacy, but to a wholesale warehouse it administered that hap-

Parallel exports are not illegal Although Nicolaescu blamed the recent crisis on parallel exports, the activity is not illegal and is difficult to prevent.

“Parallel exports are in fact the intracommunitary (EU) trade of pharmaceuticals, which is a legal activity that can be carried out by any Romanian or foreign distributor that is authorized by the National Medicine Agency (ANM),” Dan Zaharescu, executive director of the Romanian Association of International Pharmaceuticals’ Producers (ARPIM), told BR. He says the practice cannot be prevented on legal grounds, because it would infringe the right to free movement of goods within the EU. The law allows some limited restrictions to be enforced, if access to certain medicines is severely affected.

“This would be only a temporary solution that doesn’t solve the underlying problem, which is that Romanian patients still have difficulty in finding vital medicines in pharmacies,” stated Zaharescu.

Aside from distributors, there are cases when pharmacies also hold

FOCUS 7

www.business-review.ro Business Review | April 22 - May 5, 2013 wholesale distribution authorizations.

This means that pharmacies can be involved in parallel exports as well, according to Livia Constantinescu, partner and head of the Life Sciences practice at DLA Piper Dinu SCA, the law firm.

“From our point of view, a solution to ensure compliance with legislation would be a clearer separation between the two activities, the release of medicinal products to patients and the wholesale distribution, so they cannot be carried out by the same company,” Constantinescu told BR Parallel trade is big business for distributors that buy medicines from Romania, at the lowest prices in the EU, and sell them in Western countries with a mark-up.

Cegedim, a data provider for the pharmaceutical industry, says parallel exports reached 22 to 24 percent of the overall EUR 2.6 billion pharma market in 2012, up from 20 percent in the previous year.

The value of parallel trade across Europe has hit EUR 5 billion, said Cristian Busoi, a Romanian MEP, during a recent event on healthcare organized by AmCham Romania.

Lower regulated prices favor exports Almin Adzovic, president of the Local American Working Group and general director of MSD Romania, a producer of innovative medicines, says Romania

has the lowest medicine prices because it is among the poorest nations in the EU. “However, the question is how much it really helps the Ministry of Health and the patients because we see that there is a lot of re-exporting from Romania to countries with higher prices. A large chunk of all these (patented) drugs that we deliver to Romania are ending up somewhere else,” Adzovic told BR. He added that for certain drugs, his company delivers around 30 percent above the domestic demand reported by the healthcare insurance body, the CNAS, because of parallel exports. Adzovic says this activity doesn’t impact local operations but may influence the performance of the group.

Dermot Glynn, president of Europe Economics, a London-based economics consultancy, believes Romania should change the external reference pricing system, in order to increase shelf prices and make the market attractive to producers.

“Change that so the published prices are the highest and then have confidential discounts, contingent on the medicines staying in Romanian hospitals and being made available to Romanian patients. The European Commission would probably object to confidential discounts, but you would probably be able to prevail,” Glynn told BR. Zaharescu of ARPIM says a political ruling is required to bring Romanian prices in line with those in other EU

member states, which would also secure Romanian patients’ access to pharmaceuticals.

He added that parallel exports increased after 2009, when Romania adopted a policy of having the cheapest medicines in the EU. Under this regulation, Romania ranks top out of 12 countries that have the lowest prices in the bloc. Glynn added that Romania has not managed to update the list of subsidized medicines in the last five years, allowing new medicines on the market, because of the pricing issue. The authorities have pledged to update the list this summer.

Daring to block parallel exports The law on healthcare reform (no.

95/2006) allows the government, at the proposal of the Ministry of Health, to limit or ban for a period of time the export of certain medicinal products for human use, on grounds related to public health interest, explains Constantinescu of DLA Piper Dinu.

France enacted in September 2012 a decree on the management of the deficit in supply of medicines, with the French Competition Authority sustaining that such a measure is possible since it could secure the supply for domestic patients.

“Among others, the French Competition Authority’s recommendation was for the restrictions on parallel exports to be limited to medicines of

major therapeutic interest,” said Constantinescu.

Greece enforced a three-month ban on parallel exports for 34 innovative medicines, which expired in March.

The government has also cut the price of generics (medicines with expired patents) as it tries to further reduce the reimbursement costs for medicines.

Glynn of Europe Economics commented that Romania should petition the European Commission (EC), the executive arm of the EU, to block parallel exports.

“I think your government should go to the EC and say we want a ban on parallel exports for a longer period until our average income is as high as the EU average or some long-term goal like that,” said Glynn.

He commented that it is in Romania’s interest to block these exports, as medicines would stay in the country and be available at a lower price to local patients.

“The European Commission makes it difficult to do that, because they say parallel exports are a good thing. That’s because the EC doesn’t understand the issue and isn’t giving proper priority to the interests of patients in countries such as Romania and throughout the EU,” said Glynn. “The EC has simply got it wrong and stopping parallel exports would be an excellent step for Romania, a really important step.” ovidiu.posirca@business-review.ro

8 FOCUS

www.business-review.ro Business Review | April 22 - May 5, 2013

Brewers cautious despite growth in 2012

Good summer weather and sports events were the main factors which pushed up the beer market by 7 percent in 2012 compared to the previous year, while purchasing power showed and continues to show no sign of improvement. Brewers are not optimistic about 2013 given that a recent 10 percent excise tax hike could bring not only a market drop but also losses in other areas of the Romanian economy, they warn. prospects in 2013 given that purchasing power shows no sign of improving. And while Romanians like the amber nectar Romanians drank 18.2 million hecto- – they drank 90 liters per capita last year, liters of beer in 2012, up 7 percent y-o-y putting the country in sixth position in but still below the record level of 20.2 Europe behind the Czech Republic, million hectoliters in 2008, according to Austria, Germany, Lithuania and Poland data released last week by the Brewers – they have to work on average 24 minof Romania Association whose five utes to be able to afford a liter of beer, main members – Bergenbier, Heineken whereas the European average is only Romania, Romaqua Group, United Ro- five minutes.

“If we have the same favorable factors manian Breweries and Ursus Breweries – account for over 90 percent of the beer boosting beer consumption – hot sold in the country. The companies re- weather during the summer months ported a 6.5 percent increase in sold vol- and cultural and sports events – there is umes last year (16.6 million hectoliters). a chance that the local beer market will In value, the market reached some EUR report a similar volume to last year,” Constantin Bratu, general director of 1.7-1.8 billion in 2012.

However, despite this growth, brew- the Brewers of Romania Association, ers are not confident the momentum told BR. In other words, if these two facwill be maintained this year. “Although tors compensate for the excise tax inwe saw an upward trend in beer con- crease, the market will stagnate, this sumption last year, we are cautious re- being the best case scenario advanced garding this year’s evolution. The so far. However, anything can happen, factors which have influenced the 2012 and a market contraction is not out of growth were contextual and this is why the question.

With 98 percent of the beer drunk in we consider it premature to speak about a positive trend on the long run. Roma- Romania being produced locally, should nians did not have more money to consumption go down following the spend in 2012 compared to the previous price increases generated by a higher years in order to boost consumption,” excise tax, it is not only the brewers said Andrew Highcock, the associa- who will be affected but the entire tion’s president and also president of economy, the industry warns.

“We hope this change will not have an Ursus Breweries. Last year’s hike was mainly generated by sports events such overall negative impact on the market as the Olympics and the Europa League and producers won’t be forced to find final as well as warm weather during the other means besides price increases (e.n. summer months when brewers sell the such as layoffs) to survive,” added Bratu.

The association’s members say they most beer.

Moreover, after the excise tax for have invested EUR 1.2 billion locally beer went up by about 10 percent this since the Brewers of Romania was set February on top of another 5 percent in- up in 2004. Each year the industry purcrease, beer industry representatives chases goods and services worth EUR are even more cautious about their 500 million and employs over 4,250

∫ SIMONA BAZAVAN

A 10 percent tax hike taxes means the beer market is not likely to grow in 2013

Constantin Bratu, general director of the Brewers of Romania Association

Andrew Highcock, president of the Brewers of Romania Association

Development of Romanian beer market (mln hl) 2005 15.2

2006 17.7

2007 19.4

2008 20.2

people in the 12 beer factories operated by the companies’ part of the association. Overall, however, the sector has created a total of 76,000 jobs locally, as for every employee working directly in the beer industry, another 13 jobs are generated elsewhere, in agriculture, distribution, transport, retail and sales.

Additionally, taxes already represent a large percentage of the price of a beer, brewers complain. About half of the sum a drinker pays for a bottle of beer is accounted for by taxes, the industry having generated some EUR 2 billion for the state budget since 2004 and about EUR 283 million last year alone. Overall, the beer sector contributed 60 percent of all the excise tax revenues collected by the state for alcohol products, twice the European average. These data show that the beer industry makes a significant contribution to the Romanian economy but the added value created in the economy and the tax revenues generated to the state budget are directly linked to the market’s size and thereby the final consumption, said Highcock.

Instead of putting more pressure on good taxpayers – the industry claims to report zero tax evasion – the government should instead increase tax collection by effectively fighting tax evasion in the spirit sector, he recommended.

Stimulating the beer market with an adequate fiscal policy instead of simply hiking the excise tax would definitely

2009 17.6

2010 17

2011 17

2012 18.2

bring better results for the industry, the economy and the state budget, stressed Bratu. He added that after the recent 10 percent hike, the excise tax reaches EUR 0.822 per hectoliter multiplied by the Plato factor, up from EUR 0.748 per hectoliter. By comparison, in Germany, the country where the average consumer has to work only 3.7 minutes in order to purchase a liter of beer, compared to 24 minutes in Romania, the excise has remained unchanged for the past 15 years at EUR 0.787 per hectoliter.

PET preference In terms of the packaging preferred by Romanian consumers, 2013 has not brought considerable changes. Because of its good volume/price ratio, PET continues to account for the majority of the volumes sold locally and went up by 1.2 percent last year to a total of 52.5 percent of the market. Ever since this packaging type was introduced in 1998, the market has grown considerably, rising from about 7.7 million hl that year to the record 20.2 million hl reported in 2008, said Bratu. PET is followed by the bottle with 28.2 percent (down 2 percent y-o-y), can with 15.8 percent (up 1 percent y-o-y) and draft, which accounts for 3.5 percent of the market (down 0.2 percent y-o-y). simona.bazavan@business-review.ro

10 FOCUS

www.business-review.ro Business Review | April 22 - May 5, 2013

Romanian shoppers retreat back to basics Close to two thirds of local shoppers bought strictly staple foods in 2012 while 86 percent believed food prices had gone up, reveals the Shopper Trends 2012/2013 Romania report, put together by Nielsen and released last week. Despite this, modern retail continued to develop and large retailers further invested in expansion, opening more stores in 2012 than the previous year. seem to be no longer enough when shoppers choose between retailers.

The Kaufland network of hypermarkets was perceived as having the lowest prices, according to 29 percent of respondents, followed by Carrefour and Auchan, each with 13 percent.

Other shoppers, 17 percent in 2012 compared to 10 percent in 2011, chose to cope with price inflation by switching to more affordable brands. Overall, only 8 percent of Romanians said they weren’t affected by price increases, up one percentage point against the previous year.

The price increase perception was even more pronounced in medium-sized towns and cities (90 percent) compared to the capital Bucharest (84 percent).

Despite the evolution of consumption, retailers did not halt expansion plans. The report shows that 2012 saw a

On average, Romanians go to 2.6 stores each month but the share of those visiting four or five shops went up last year. By comparison, the average number of stores visited each month is 3.5 in Bulgaria, 3.4 in Hungary and 3.3 in Poland.

Local shoppers continue to spend the largest share of their grocery budgets in hypermarkets, while the share of discounters has decreased considerably over the past two years (see table). All in all, 95 percent of Romanians’ grocery budgets are spent in modern retail stores. Traditional trade remains the crisis’s greatest victim, with its share continuing to slump, managing to attract only 3 percent of Romanians’ cash in 2012, down from 6 percent in 2010.

As the years go by, local consumers are showing more interest in visiting re-

Retailers’ overall networks

Trolley dash: retailers’ fast expansion pace has defied falling purchasing power

∫ SIMONA BAZAVAN Food products were on average 6.2 percent dearer in December 2012 y-o-y, but overall, Romanians felt the hikes more than official statistics show. Their perception of price increases for food remained similar in 2012 to 2011 but was considerably above the 2010 level, reveals the Nielsen report. Some 86 percent of Romanians said prices had risen, compared to 85 percent in 2011 and 82 percent in 2010. Only 13 percent thought prices had remained constant, down from 14 percent in 2011 and 18

percent the previous year. By comparison, 81 percent of Bulgarians felt prices had gone up as did 96 percent of Poles.

As a result of the price hikes, almost two thirds of Romanians – 62 percent in 2012 compared to 60 percent in 2011 – said they had resumed buying strictly the basics for their household. About 31 percent of respondents chose to buy smaller quantities (up from 26 percent the previous year). However, the number of those looking specifically for discounts when shopping decreased in 2012 to 26 percent from 30 percent the previous year. All in all, despite the lingering price sensitivity, discounts alone

2012

35 27 27 6 4

55 20 19 3 2

62 20 11 3 2

Source: Nielsen

Hypermarkets Supermarkets Discounters Traditional trade Cash & Carry

2011

2012

7 23 5 58 25 26 18 55 32 72 82 6 110 105

9 25 8 70 25 32 19 61 45 105 108 6 122 129

11 24 10 81 24 32 19 71 68 193 149 6 136 155

*Hypermarkets; **Includes Express stores; ***Includes Shop&Go stores

Where do Romanians spend most of their shopping budget? (percentages) 2010

2011

more dynamic expansion of modern retail than the previous year.

Local consumers remained thrifty in 2012, but they also chose to go shopping more often and to more stores than before. More than a third of Romanians buy basic items such as food, groceries and personal care products on a weekly basis. The share went up in 2012 from 32 percent the year before and 19 percent in 2010. The share of those who go shopping once every two weeks was 38 percent in 2012, down from 40 percent in 2011 and 47 percent in 2010, while those who do so only once a month represent only 22 percent of the survey’s respondents, down from 28 percent the year before and 33 percent in 2010.

Source: Nielsen

Auchan Carrefour* Cora Kaufland Real Metro Selgros Billa Carrefour Market** Mega Image*** Profi Penny market XXL Penny Market Lidl

2010

tailers’ online pages; however, this is directly linked to household revenue.

Compared to their neighbors from the region, Romanians seem to be more open to new products, with 26 percent of respondents saying they were very willing to try new items (against 19 percent in Bulgaria and 13 percent in Hungary). Some 55 percent claim they have an average willingness to do so while 20 percent say they are more reluctant.

The Shopper Trends 2012/2013 Romania survey was carried out between October 10 and November 7, 2012 and the conclusions are based on the information provided by 1,200 respondents. simona.bazavan@business-review.ro

12 CLOUD COMPUTING

www.business-review.ro Business Review | April 22 - May 5, 2013

Cloud cover increasing The cloud is “the talk of the town” across Romanian organizations, which are still in the stage of setting out the business case for this technology, while to 70 percent of SMEs the concept is still virtually unknown. But drives towards cost cutting and transformational benefits, coupled with the widespread use of mobile data and applications, are pushing the cloud at higher speed.

Ahead in the clouds: local companies are waking up to the benefits of this technology, say IT industry pundits

∫ OTILIA HARAGA Silver lining for mobile cloud The option for individual clients to store their information in the cloud has existed for some time, but recently, the hike in the use of mobile data and mobile applications, accompanied by the fact that telecom operators are releasing

data offers which include cloud storage space, is pushing forward the development of the mobile cloud.

“Talking about the final user, many of us will probably keep our data both in the cloud and in a local device. This is also a matter of ensuring the safety of the data: if I lose my phone, I would like my data to be safe, so a cloud solution may prove to be more reliable than

keeping my information on the phone's memory card,” Dan Bogdan, enterprise business manager Romania at Dell EMEA, tells BR. Mobile operators need a computing component and a storage component, points out Serban Zirnovan, solutions manager at Dell Eastern Europe & CIS EM-EMEA. “This need appears naturally for various reasons: it is easier to

manage the information not just from one device but from various devices, because mobility is encouraged. Romania enjoys very good broadband access – the penetration rate is among the highest in Europe at the moment – so the opportunity for this service appears,” he tells BR. The market of smartphones and mobile gadgets is projected to register a

www.business-review.ro Business Review | April 22 - May 5, 2013

spectacular global evolution, and Ro- which are paid regularly to the provider; mania is no exception. Currently, 2.2 bil- and thirdly, support services, Ion lion people worldwide go online from Gogoneata, chief technology officer at their mobile phone, according to Breeze Pras Consulting, tells BR. Costs of the equipment, software liMobile statistics. In Romania, 7 million unique users access the internet from censes, electricity, space for setting up their smartphone, up 60 percent over the equipment and air conditioning the past year. The average monthly traf- shrink or are cut to zero, he explains.

Another substantial cost reduction is fic per user in mobile networks is 40MB. Last year, 3 million mobile the decrease in personnel expenses. phones were sold in Romania, 1 million “Here there are two viable options: either being smartphones. There are currently costs are reduced by cutting personnel 5 million smartphones on the market in or the existing staff moves to a more total, which takes smartphone penetra- productive part of the IT provision, such tion to 25 percent. “Smartphones ab- as the business application part,” stract the idea of cloud very well: the Gogoneata points out.

In adopting a cloud solution, a comclient uses cloud services without realizing that the data is not local. The in- pany can cut its IT costs by around 50 creasing rate of smartphone adoption percent, Cosmin Ficleanu, software dewill also generate a growth in cloud velopment manager at Infotrend, tells usage, especially induced by the BYOD BR. Small companies with up to 25 em(bring-your-own-device) trend, which ployees pay monthly fees that start translates into using a personal device from EUR 5.25 while medium and large at work and having access to the com- companies can acquire more complex pany's information and applications solutions for between EUR 9 and EUR from this device,” Valentina Crisan, 25.50 per user per month. An assessvice-president, EuroCloud Romania, ment carried out by Infotrend for a client who now uses Office 365 found tells BR. Mobile applications have also seen that for a solution that offers email, proexplosive growth. While the cumulated ductivity tools and a high security level, downloads of mobile apps by December the client would have invested more 2012 amounted to 75 billion, in 2013 than EUR 100,000 in hardware, licenses alone about 80 billion applications have and services, Ficleanu adds. been downloaded so far worldwide.

“Clients seek to have fast access to as …but dark clouds are many data as possible and applications gathered that can provide this must rapidly be But not everything is pink on cloud adjusted to fit their needs. Cloud has number nine. Executives around the many advantages in this respect and globe are waking up to the challenges. very soon, in order to access applicaThe Cloud Takes Shape survey by tions directly from the cloud, it will not KPMG International revealed that busimatter what OS or device is used, or ness and IT leaders across the globe are what memory the device has. Tech- finding cloud adoption to be more comnologies such as HTML5 and CSS3 will plicated than many had originally anticallow the display of any type of content ipated. in a web browser. The appearance of Nearly 33 percent of surveyed execLTE-compatible devices, recently im- utives say cloud implementation costs plemented in Romania as well, will have been higher than expected. Furallow exponential growth in the num- thermore, integrating cloud services ber of applications that use large band- with their existing IT infrastructure has width but run in the cloud. If we also been particularly difficult. factor in BYOD (Bring Your Own Device) More than half of respondent organstrategies, we can expect an extremely izations are already using cloud, and interesting landscape in the area of mo- 70 percent of these state that cloud bile applications developed to run in the technologies have already offered sigcloud in the near future,” Catalin nificant optimization and cost improvePaunescu, managing director at Star ments. “The results of our survey are Storage, tells BR. very important for Romanian organizations that are still in the analysis and business case development phase, as The sky ahead is blue….

Meanwhile, when companies take up they are able to learn from the implecloud services, they must pay for three mentation experience of organizations things: firstly, the implementation of from different countries,” says Aurelia the solution, paid upfront and at con- Costache, management consulting siderably lower prices than implement- partner, KPMG Romania.

Business process redesign needs to ing a similar solution installed locally; secondly, the services, the fees for be done in tandem with cloud adoption

CLOUD COMPUTING 13

if organizations hope to achieve the full curity, 26 percent still see this area as a key challenge. Still, many businesses potential of their cloud investments.

But despite these emerging com- are showing growing confidence in the plexities, executives still believe that security of cloud, with more than a third the benefits of cloud adoption far out- of respondents considering migrating weigh any growing pains of implemen- the core operations of sourcing and protation. In part, this is because curement, supply chain and logistics to organizations are shifting the focus cloud within the next 18 months. Only from pure cost reduction to achieving 18 percent of respondents see regulathe transformational benefits of cloud, tion as a challenge. However, the report suggests this may be due to complasays the KPMG report.

While cost reduction is still the pri- cency, as organizations may just be bemary reason for cloud adoption in ginning to prepare for the complexities nearly 50 percent of cases, for 28 per- that will arise with increased regulatory cent of interviewees the speed of migra- compliance. Nearly 24 percent of retion to cloud is important, as, for 27 spondents say they are looking at “pripercent of them, is the cloud’s ability to vate” cloud environments as a way to enable faster entry into new markets address regulatory challenges. and for 22 percent business process transformation.

Striving for critical mass As cloud is evolving into a strategic “While there is much talk about the business tool, the CIO’s role, as the busi- cloud, the number of actual implemenness integration broker on commercial, tations of cloud-based services conprocess and technical levels, is becom- firms the fact that Romania is just at the ing even more critical, finds the report. beginning of the road,” says Paunescu.

While business executives recognize He adds that IT departments often prethat cloud adoption should improve se- fer to make investments in infrastruc-

14 CLOUD COMPUTING

ture and applications without analyzing closely enough the option of outsourcing, in spite of the obvious advantages that it brings.

Estimations from Pierre Audoin Consultants (PAC) are that by 2016, cloud services will have spiked by more than 40 percent, compared to the level of 2012. “As with any new technology, there are early adopters – tech companies for example – but at this point, for Romania the adoption has been equally spread among a variety of verticals, like financial services, professional services, manufacturing and utilities,” Gabriela Matei, cloud director, Microsoft Romania, tells BR. “I think there is little awareness of what resources businesses allocate to maintain the current IT infrastructure.

Gartner estimates this at an average of 70 percent of the total IT budget,” says Matei. “Another way to motivate businesses to transfer to cloud is to make them aware of the fact that there is an optimum scenario which combines the

public and the private cloud, migrating to a hybrid solution.”

Cloud providers are still faced with the challenge of convincing market actors that cloud is a viable option for their business. “In our experience, companies with foreign management have no problem in taking the leap. As for Romanian companies, this very much depends on the management's technical understanding and desire to benefit from the latest technologies at fair prices,” says Gogoneata. He adds that when first confronted with the option of transferring their data to the cloud, decision-makers at a company have one of two types of reaction.

One is the question: “Why should I put my data on Microsoft servers? Why should they have access to them? What if Microsoft goes bankrupt and I lose my data? What if their servers break down and I am left without the information?”

The second is: “What an interesting service. Why didn't I know until now that such services exist?”

www.business-review.ro Business Review | April 22 - May 5, 2013

In 2010, Romanian SMEs repre- such as email, storing files, collaborasented approximately 99.7 percent of tion and communication, most of the total number of active firms, accord- which are free of charge, then the usage ing to the survey, the Current Situation percentage is probably high, around 20of Small and Medium Enterprises in Ro- 30 percent. When we are talking about mania carried out by the Post-Privatiza- paid cloud services, than the usage rate tion Foundation. There were 468,552 is extremely low, somewhere below 5 SMEs in the country, the overwhelming percent,” says Crisan.

In corporations, migration is “very majority being specialized in services (39.5 percent) and commerce (38.8 per- slow, almost nonexistent” because they cent), followed by those active in indus- still need to get used to the idea of outtry (11.2 percent) and construction (10.5 sourcing some internal services – which percent). “In Romania, 70 percent of most are considering right now – but it managers of SMEs do not have knowl- will take at least one year before it beedge of the cloud concept,” says Fi- comes reality,” she forecasts.

Other experts paint a rosier picture. cleanu. Approximately one third of the more than 400,000 SMEs have imple- “Our estimations show that approximented cloud computing solutions, he mately 25 percent of SMEs have implemented solutions on public cloud and notes.

Pundits seem to agree that the cloud this percentage is growing. For corporations, all those we have information concept is nothing new.

“A recent survey of TechSoup shows about have adopted the private cloud,” that NGOs in Romania use at least one- says Alexandru Molodoi, chief technoltwo cloud services without being aware ogy officer at Gecad Net. IDC estimates cloud investments in that these services are in the cloud. This is why if we are talking about services Romania will have a growth rate five

CLOUD COMPUTING 15

www.business-review.ro Business Review | April 22 - May 5, 2013

times higher than the growth of IT in- much simpler IT infrastructure. They vestments more widely, notes Ficleanu. also completely lack or have only a Over 37 percent of SMEs in Europe small IT department, says Gogoneata. believe cloud computing solutions will In an SME, the decision chain is much become normality over the next 12 to 18 simpler since they can benefit from premonths, according to a Vanson Bourne mium IT services at costs that are othsurvey carried out for Microsoft, which erwise prohibitive. Lastly, the services interviewed 2,100 owners of SMEs in 21 offered by local SaaS providers are European countries, including Romania. lower quality, he explains.

“This indicates that for 70 percent of the Romanian companies represented in Cloud floats up the chain of the survey, IT plays an important part in command developing their business,” comments At the level of decision makers, the fiFicleanu. nancial department sees cloud as a very While the public cloud is used interesting alternative, Gogoneata notes. mainly in the services sector – consul- “Generally, they are not keen to pay the tancy, advertising, legal and logistics – large sums of money needed for an IT the private cloud is in play mainly in the investment. For this reason, any means fields where there are still regulations to cut costs and make gradual payments that do not allow the storage of data for a service is much more advantaoutside the company network, such as geous. What they do not always agree financial institutions, says Molodoi. with is that payments must generally be An SME will approach the issue of made with a company card registered taking up cloud computing differently on the Microsoft website,” he says. from a corporation. SMEs have a faster However, things are a bit more comcloud adoption rate since they have a plicated for CIOs, because “while they

may be glad to be rid of part of the responsibility of managing IT and cost reduction solutions, there are IT employees who need to focus on other things or change their job after the company transfers to cloud,” he says. “To be honest, cloud technology claims to make IT change its focus to business processes but not any IT person and not any company can do this. For instance, not every network administrator can change profile into business analyst,” Gogoneata points out. A wider implementation of cloud services in Romania can be encouraged with the adoption of a coherent set of favorable public policies.

“As long as there are no public programs or legislation to support the use of the cloud model, to help startups pick solutions, as long as there is no public administration cloud, wide adoption will not happen. This will probably take another two-three years as the government should do a study on the benefits of using services in the cloud, and adopt

measures that act as incentives for cloud innovation,” says Crisan. They give the example of France, where the OSEO program finances innovative companies and startups, and is widely used by companies in the field of technical innovation.

All in all, cloud adoption does not walk an untrodden path. “The banking system keeps our financial resources safe and confidential and offers services.

Even though we were cautious at first with respect to the safety of our money, we saw that it worked. The cloud works by the same principle – it keeps our IT infrastructure and provides services in technology. Moreover, concerns regarding the security and confidentiality of the data can be solved through contractual stipulations,” explains Ficleanu.

Public sector not so comfortable on the cloud Quoting a global KPMG survey, Ficleanu says that 29 percent of public sector representatives have developed a strategy

INTERVIEW

Cloud computing solutions for all technology problems productivity of their staff. Other successful projects with Microsoft Office 365 were for Axxess Capital, AmCham, Siel Invest, Best Business Travel and many others. For the time being we work together with several customers to implement our new private cloud solution, SystemV.

Alexandru Molodoi, chief technology officer GECAD NET

What are the most important cloud projects implemented so far?

GECAD NET is a company focused on efficient technologies and intelligent adoption. As a Microsoft Gold Partner we have had cloud projects short after Microsoft has launched its first cloud solution, two years ago and we kept on deploying such projects ever since. One of the projects which comes in mind is an Office 365 migration and installation at Mercury 360, one of the most wellknown advertising agencies in Romania which had adopted all Office 365 suite in order to increase communication and

Are your target clients mainly SMEs or corporations?

All technology problems have cloud computing related solutions that is why our customers are both from SMB and from corporations. They all have specific needs. We had hybrid cloud implementations at corporate clients and public cloud implementations in SMBs. As well for private cloud: we have launched SystemV for SMBs but we had interest also from corporations due to the solid ground the platform is build: Microsoft virtualization and management, turnkey but with a high customization level and a very good hardware quality.

Do you also offer cloud services to the public sector?

We offer cloud services to any type of sector, but so far we had private companies as customers. The public sector is more reluctant to public cloud due to

the fact that they can store information to other data centers then their own only in very strict conditions.

How can clients make sure they get the cloud solutions which best fit their needs?

First of all, the clients have to recognize their investment reasons. In most times, they need to upgrade their applications and/or infrastructure in order to keep up with the work level and market requirements in their business.

Then, they have to get in touch with a recognized, serious company which has experience in both cloud and on premises technologies. If that company is a Microsoft partner as GECAD NET is, this is a proof of the seriousness, professionalism and technology know how of that company. Then, the clients are offered a range of technology solutions which solves their problems. These solutions come in a subscription model within a contract so the client is legally safe and uses licensed software.

ADVERTORIAL

What type of cloud services does Gecad offer in Romania?

We are proud to say that now GECAD NET is one of the very few companies which offers a complete range of cloud computing solutions: public cloud, private cloud and hybrid cloud.

Depending on the needs and requirements of our clients, we can offer them business and productivity solutions in public cloud as Microsoft Office 365 with SharePoint Online, Exchange Online, Office WebApps, Office Professional Plus, Lync Online and CRM Online. When data cannot get beyond corporate firewalls we offer to the clients on premises solutions with the main advantages of the public cloud. when the clients require applications which are not available in cloud, we can offer them a complete turnkey virtualization and management platform named SystemV, which we have created based on Microsoft technology: a Hi Tech server, Microsoft Windows Server 2012 with HyperV virtualization and System Center 2012 management system preinstalled. Of course, we can conceive a set of public and private cloud solutions for clients which are willing to adopt a hybrid cloud model.

16 CLOUD COMPUTING

www.business-review.ro Business Review | April 22 - May 5, 2013

Ion Gogoneata, chief technology officer, PRAS Consulting

Aurelia Costache,management consulting partner, KPMG Romania

Catalin Paunescu, managing director, Star Storage

Valentina Crisan,vice-president EuroCloud Romania

“Implementing cloud solutions in the public sector in Romania is not feasible, due to acquisition procedures that do not directly allow such implementations”

“Romanian organizations are still in the analysis and business case development phase”

“The number of actual implementations of cloud-based services confirms the fact that Romania is just at the beginning of the road”

“Smartphones abstract the idea of cloud very well: the client uses cloud services without realizing that the data is not local”

Ion Gogoneata, PRAS

Aurelia Costache, KPMG

Catalin Paunescu, Star Storage

Valentina Crisan, EuroCloud Romania

concerning the cloud, 24 percent have already tested cloud services while 19 percent have implemented one or more services.

But while the private sector spearheads cloud adoption, the public sector approach is cautious in Romania, to say the least. “Unfortunately, implementing cloud solutions in the public sector in Romania is not feasible, due to acquisition procedures that do not directly allow such implementations. Various artifices could be made but they would not be fair in respect to the acquisition and real competition among providers,” says Gogoneata.

About two or three years are necessary for a more widespread implementation of cloud services in the Romanian public sector, forecasts Crisan. “A few strong Romanian cloud companies that support such projects are needed. Setting up a public cloud for administrative services based on the example of G-

Cloud in the UK or the Andromede in France can be done,” she says.

Cloud computing is stipulated as an objective in the Digital Agenda strategy currently being drawn up at the Ministry of Communications, which could be completed in 2013. “Since the new cabinet took over, the ministry has restarted several inter-operability projects, which is paramount for the development of cloud services (the inter-operability portal for SMEs) but the stipulations of these projects are not outlined enough publicly, says Crisan.

Romania should follow other European countries that have implemented cloud in the public administration. “Romania abides by the same rules as other European states and if Germany, France, UK etc. do it, it means we have to provide the functional framework, the necessary policies, certify the suppliers of services accordingly and make sure that the entire channel from the entrypoints

or endpoints to the cloud is secure as and reliability of services are major topics in our discussions with clients. well,” says Zirnovan.

The EU is currently working on a This is good because it is important. framework to standardize public cloud After all, the moment a client suggests solutions, Molodoi notes. “After this using business solutions in the cloud, framework of standards is adopted and this requires a new approach in their implemented, we will probably witness company’s IT strategy. They need no the emergence of public cloud solutions longer think of back-up, contingency in the government sector. Public com- and storage, but it is right to ask quespanies need a lot of persuading to store tions about security, reliability and coninformation in other data centers than fidentiality when they select their their own, and when they do, these data provider, but also to choose to re-size centers must meet a series of very strict the internet bandwidth, for instance,” criteria,” he says. But for now, things are says Matei.

The threats they are exposed to demoving rather slowly in the public sector. “From our experience, the adoption pend on the type of cloud they choose. of cloud services in the public sector “While in the private cloud, the threats lags behind the rate of adoption in the can come from inside, depending on the user and on the use of the infraprivate sector,” says Matei. structure, in the public cloud threats are Security, the crux of the a bit more complex – data may get corrupted or lost if the cloud service matter Safety is a top concern among compa- crashes, service availability and renies. “Security, confidentiality of data silience are issues, there is unclear lia-

CLOUD COMPUTING 17

www.business-review.ro Business Review | April 22 - May 5, 2013

“Our estimations indicate that approximately 25 percent of SMEs have implemented solutions on public cloud and this percentage is growing ” Alexandru Molodoi, chief technology officer, Gecad Net

Alexandru Molodoi, Gecad Net

IMPLEMENTATION AND INTEGRATION CHALLENGES l cost reduction is still the primary reason for cloud adoption for 48 per-

cent of respondents l the speed of migration to cloud is important for 28 percent of respon-

dents l the

cloud’s ability to enable faster entry into new markets is important for 27 percent of respondents l the cloud’s ability to enable business process transformation is important for 22 percent of interviewees l more than 50 percent of respondent organizations are already using cloud l 70 percent of cloud users state that cloud technologies have already brought cost optimization and improvements l 33 percent of respondents say cloud implementation costs were higher than expected l 31 percent of executives say integrating cloud services with their existing IT infrastructure has been difficult l 30 percent of respondents say data loss, privacy risks and loss of control are key challenges to cloud adoption l 26 percent of respondents see as challenges lack of visibility of future demand, associated costs and lack of standards between cloud providers l 26 percent of executives still see security risks as a key challenge l 21 percent fear the risk of intellectual property theft l only 18 percent of executives see legal and regulatory compliance as a challenge

Source: The Cloud Takes Shape survey by KPMG International

bility if something goes wrong, and a lack of visibility or confidence in the capabilities of cloud providers,” says Zirnovan.

As far as security in the public cloud is concerned, Zirnovan explains that it depends on what one keeps in the cloud and how one manages the information.

“We are talking about data protection (in-

cluding access and encryption), identity and access management, network protection, endpoint protection and the area of security services,” he says.

Molodoi explains that in the public cloud, applications are accessed and run directly on the servers of the producers. “We usually explain to clients that their data is much safer in the data

“At this point, for Romania the adoption has been equally spread among a variety of verticals, like financial services, professional services, manufacturing and utilities” Gabriela Matei, cloud director, Microsoft Romania

center than if they are kept on a company server in inappropriate conditions due to lack of budget. In the private cloud, they set their own security policies and we advise them on choosing

Gabriela Matei, Microsoft Romania the best ways to protect their investment and the company information,” he says. otilia.haraga @business-review.ro

18 CLOUD COMPUTING

www.business-review.ro Business Review | April 22 - May 5, 2013

RANK

Cloud services providers 1

COMPANY Appnor MSP

Bit Software 2

Gecadnet 3

CONTACT DETAILS

CLOUD SERVICES

CLIENT LIST

www.appnor.com/contact contact@appnor.com, Tel: (+4) 021 569 46 50, (+1) 650 318 18 11

Cloud Servers, Private Cloud, VoiP&Hosted PBX, Implementation of Google Apps for Business (Google Docs, Gmail, Calendar), Postini Mail Services, Chromebooks, Geo and GSA

www.appnor.com

www.bitsoftware.eu office@bitsoftware.ro, Tel: (+4) 0268 314446 fax (+4) 0268 314447

SocrateOpen ERP&CRM, SocrateBI, GoogleApps

www.bitsoftware.eu

www.gecadnet.ro Tel: (+4) 021 303 2070

Microsoft public cloud solutions: business and productivity solutions, Office, email, unified communication, CRM solutions. Public cloud related services: consultancy in choosing the suitable solutions, migration and implementation assistance. Private cloud solutions: SystemV, turn-key virtualization and management platform which includes virtualization solution, infrastructure management, physical server, storage. Private cloud related services: Consultancy, configuration, deployment, support

Mercury 360, AmCham, Axxess Capital Partners, Romanian-American Foundation, SIEL INVEST, SERVICE AUTO SERUS, Best Business Travel and many more

4

Genesys Systems

www.genesys4s.ro, solutions@genesys4s.ro, Tel: (+4) 021 242 0542

Microsoft CRM Online

Call centers, art galleries, distribution and trading companies

5

Infotrend Data SRL

www.infotrend.ro, contact@infotrend.ro, Tel: (+4) 031 4326 425/426/427

Microsoft Exchange Server, Microsoft SQL Server, Active Directory, Microsoft Office 365 (Microsoft Exchange Online, Microsoft Lync, SharePoint, Office Web Apps), Exchange Hosted Services, Cloud advisory services

Anchor Group

Maguay

www.maguay.ro office@maguay.ro, Tel: (+4) 021 210 38 33

Development of Private Cloud Projects, Solutions for consolidating and developing IT infrastructure, Server-optimized equipment for Public Cloud Services

Microsoft Romania

www.microsoft.ro, info@microsoft.com, Tel.: (+4) 021 204 70 40

Accessible enterprise solutions for SMEs: Office 365, Windows Intune, Windows Azure and Microsoft Dynamics CRM Online

AFAN, Softelligence, Provident, Relians, GSbet, Zitec, EBS Romania, Electrica Serv, University of Bucharest, Electra Instal, ITChannel, MedCenter, Senior Software, Muzeul Satului Dimitrie Gusti

www.pras.ro, info@pras.ro, Tel.: (+4) 0372 705 618

Microsoft Office 365, Microsoft Windows Intune, http://www.udocx.com/

Provident, Macromex, Sustainalytics, Educativa, Technosec, Global Remote Services, Zebra Pay

www.star-storage.ro, office@star-storage.ro, Tel: (+4) 021 242 13 95

StarVault: Connectivity, Collocation, Managed Collocation, Managed Hosting, Dedicated Server, Dedicated Storage, Cloud Server, Cloud Files, Remote Back-up, Remote Replication, Virtual Tape Vaulting, Managed Security Monitoring, Hosted Corporate Website, Hosted eCommerce Website, Hosted CRM, eArchive

Top companies from retail and banking, the public sector, national and international companies

6

7

8

Pras Consulting SRL

9

Star Storage

10

Softline Romania

11

Teamnet International

12

TotalSoft

13

Verasys International

14

Zitec Com

www.softline.com.ro, www.softline-group.com, info@softlinegroup.com, Tel: (+4) 021 387 34 40 www.bringmore.ro, marketing@teamnet.ro, Tel: (+4) 021 311 66 31 www.totalsoft.ro, marketing@totalsoft.ro, Tel: (+4) 021 335 17 09 www.verasys.com, info@verasys.com, Tel: (+4) 021 301 04 60 www.zitec.com, contact@zitec.ro Tel: (+4) 031 710 01 14

Cloud services providers are listed alphabetically.

Softline Cloud Solutions, Microsoft Office 365, Google Apps, Panda Security, Zscaler

M.O.RE Platform available for SMEs (11 applications)

Electrica Serv. More on www.maguay.ro

Wide range of clients from domains such as: transport, services, construction, architecture, media, education, consultancy Over 100 clients, mainly SMEs Ellas Division, Webplay, Mediascope, Teo Consult(TEO Drivers School), Caralux, Austrian Vil- lage, Prisum, Valmed Freemex

Charisma Business Solutions - Charisma eProcurement, Charisma Cost Control, Charisma HR Document Management, Charisma Workflow, Charisma Office Automation

www.totalsoft.ro

Public Cloud Services provided by Microsoft

www.verasys.ro

Development of personalized software solutions on cloud computing infrastructure (Amazon AWS, Microsoft Azure), technical consultancy for cloud computing services

Zipongo.com, VideoPublishing.com, NY.tv, Wadja.com, HotelPeeps.com

CITY 19

www.business-review.ro Business Review | April 22 - May 5, 2013

Mircea Cantor launches first Romanian exhibition More than 1,200 people have attended the opening of the first local solo exhibition of one of the most important young artists to emerge on the international scene over the last decade: Mircea Cantor, winner of the Prix Marcel Duchamp Award 2011.

The QED exhibition, the largest survey of the artist’s works to date, comprises 30 pieces.

View of the QED (Quod Erat Demonstrandum) exhibition running at MNAC until April 2014

Courtesy Mircea Cantor, Magazzino, Rome

Courtesy of Mircea Cantor / MNAC

Working with symbols in a landmark building is the challenge at the heart of this exhibition. “The People’s Palace/National Museum of Contemporary Art has a very powerful, symbolic meaning and I needed to bring the most famous works of art from my career here, as well as vigorous, solid pieces to reflect the imposing building,” Cantor told BR. Exhibition areas that retain elements of the original decoration, and testify to the traumatic past of the building where the museum is located, host large-scale, catalytic works by Cantor: a gigantic wall drawing in dynamite wire, ignited at the grand opening, and a life-size wooden sculpture representing a traditional house with a scaffolding roof from Maramures county in northern Romania.

The exhibition consists of photographs, videos, drawings and sculptures, from the artist’s 1999 The Origin of the World (After Courbet), a work that prompted Cantor’s relocation to France, to the recent Sic Transit Gloria Mundi (2012), and Business Class Worried (2013), especially created for the Romanian event.

Asked about the scale of the MNAC grand opening, Cantor said that the Romanian public is fantastic, very openminded, and wants quality cultural events. “As an artist, it is very important for me to be careful what works I put up for contemplation. I find this an enormous responsibility, as John Cage presented the term – response and ability, meaning the capacity to give answers,” added the artist.

QED will run for a year. Special

Courtesy of Mircea Cantor / MNAC

∫ OANA VASILIU

Sic Transit Gloria Mundi, 2013

events and a rotating program of video works are scheduled for early September. The Guest Room, a space integrated in the exhibition, will each month host a work by an artist or an acquaintance.

Works in the exhibition (April-September 2013) include: Unpredictable Future, 2004; Deeparture, 2005; Ciel

Europe supported by Africa and Asia, 2009

Variable, 2007-2013; Threshold Resigned, 2012; DNA Kiss, 2008; Diamond Corn, 2005, All the Directions, 2000; Wind Orchestra, 2012; Vertical Attempt, 2009; Double Heads Matches, 20022003; The Origin of The World (After Courbet), 1999; I Sell My Spare Time, 2009; Europe Supported by Africa and Asia, 2009; More Cheeks Than Slaps,

2011; Holy Flowers, 2010; Fishing Fly, 2011; Eyes Staring to My Absence, 2008; Sic Transit Gloria Mundi, 2012-2013; Business Class Worried, 2013; I decided not to save the world, 2011; Rainbow, 2010; With a Free Smile, 2007; Hymn For a Big Day, 2012. oana.vasiliu@business-review.ro

20 CITY

www.business-review.ro Business Review | April 22 - May 5, 2013

Bebop with T MUSIC REVIEW

Jazzman Avishai Cohen, 43, has garnered many accolades including “one of the 100 most influential bass players of the 20th century” (Bass Player magazine); “a jazz visionary of global proportions” (DownBeat magazine); “a genius musician” and “a great composer” as described by his mentor, pianist Chick Corea.

Photo: Gauthier Vandermoortele/ commons.wikimedia.org

Bass-ic instinct: Cohen at Brosella Folk and Jazz Festival 2010

∫ ANDREEA OVANEZIAN My first chance to witness this versatile musician perform live will be in Bucharest, where Cohen will be playing at Sala Radio on April 25, along with two younger Israeli jazz talents – pianist Nitai Hershkovits, 24, and drummer Ofri Nehemya, 18. If you’re lucky, tickets may still be available from Eventim.ro and its retail network.

In my estimation, Cohen is foremost a brilliant and intelligent composer, particularly at a time when contemporary composers of this caliber are rarely acknowledged. He has developed a genuine sound while in-

corporating a vast range of world music genres such as bebop and contemporary jazz, Middle Eastern, Ladino, Latino and classical music. In addition to performing with headline artists from the bebop/post-bop/neobop jazz scenes, Cohen has played with the Israel and London philharmonic orchestras and the Boston Pops Symphony, while also pursuing his own orchestral projects.

As diverse as his musical styles, Cohen’s many talents encompass sideman, band leader, artistic director of the Red Sea Jazz Festival (20092011), mentor and entrepreneur.

Demonstrating that both David and Goliath can co-exist in the fiercely competitive music industry, Cohen

CITY 21

www.business-review.ro Business Review | April 22 - May 5, 2013

h Theophilus has released 13 proprietary albums via indie and major labels (four on Chick Corea’s label Stretch Records, six on Cohen’s Razdaz Recordz and three on EMI’s Blue Note label).

Cohen signed with EMI Music France in 2008 after returning to his native Israel, following a successful twodecade stretch in the jazz capital New York. Remarkably, Blue Note celebrates its 74th anniversary this year, even though its mother ship EMI has been sailing troubled seas since 2006. UMG (owned by Vivendi) acquired EMI in September 2012, and EMI has been significantly reorganized this year due to regulatory demands.

Cohen’s latest CD Duende (released in 2012 on EMI/Blue Note), which has its roots in jazz and classical music with subtle Middle Eastern tones, features the wonderfully strange rhythms and harmonies that are Cohen’s signature, and delivers a first-class duo performance by Cohen and Hershkovits. While some reviewers place Duende in the chamber jazz genre, I simply choose to call it “muzica faina”. Although unpretentious in its packaging and marketing, Duende is a rare jewel consisting of nine gems carefully selected and carved out by Cohen – three tracks are jazz standards (from Monk, Coltrane and Porter) beautifully arranged

by Cohen and Hershkovits, and six are Cohen’s own compositions.

The CD was produced by Cohen and recorded by Lars Nilsson at Nilento Studio in Sweden (an indie studio that Cohen has previously collaborated with, yielding impeccable results). Aspiring music composers, arrangers and producers can truly consider Duende as their master class in 31:59.

The CD’s first track (Signature) opens the door to what could be a living room jam session, invites us in, and introduces us to the summoned musicians (past and present). The three jazz standards inspire us to play (Criss Cross/Thelonius Monk), to celebrate (All of You/Cole Porter) and to travel (Central Park West/ John Coltrane). Cohen’s double bass and Hershovits’ piano playing tease the wonder out of these so-called standards. Moreover, their distinctive arrangements and improvisations render them genuine acoustic conversations with each other, with the bebop masters, and with the listener.

My favorite is the duo’s sublime interpretation of Central Park West, which magically transports me to another state of mind (as well as a familiar Manhattan location).

Cohen’s own compositions (three new plus three prior covers) are simply yet profoundly lyrical, evoking an array of emotions through musical storytelling without words. A story and its several versions unfold, as the piano and double bass trade melody and accompaniment, take turns to solo, or play together in the uncommon parallel rhythms and harmonies that are Cohen’s signature. Even if you are unfamiliar with the musical terminology of parallel meters and Mozart fifths, they are impossible to miss in Cohen’s compositions, which evoke the jazz idiom, the music of Mozart and the Pythagorean “music of the spheres”.

Soof (a new track named after Cohen’s bride) is my favorite album track since it represents the best of his compositional elements and musical styles. The Hebrew translation of soof is “reed”, and this track lyrically renders all of nature’s elements blowing through the sea reeds. Most notable among Cohen’s older compositions that receive a fresh interpretation are Ann’s Tune, which invokes an ever evolving etude, and Calm which appeals to structure in emotion.

The CD’s last track (Ballad for An Unborn) is a new composition which Cohen performs as a piano solo. With that he concludes the magical jam session, dims the house lights and places a candle in the window for those ever-present spirits.

Duende derives from a Spanish term with a rich history and extensive definition that several eloquent writers have engaged with, and which roughly translates as spirit, soul or mojo. Though contemporary rock musician Nick Cave once lamented that “duende is too fragile to survive the brutality of technology and the ever increasing acceleration of the music industry”, I seem to have found proof of the contrary. If you are interested in discovering the meaning of “duende”, consider Cohen’s CD and forthcoming concert as your open invitations. ∫

Theophilus refers to Mozart’s 5-string baptismal name, joannes Chrysostomus Wolfgangus Theophilus Mozart The Ever Evolving Etude is an original track from Cohen’s 2008 release Gently Disturbed Structure in Emotion is also an original track from Gently Disturbed

Cohen will perform in Bucharest on April 25 at Sala Radio.

22 CITY

www.business-review.ro Business Review | April 22 - May 5, 2013

FILM REVIEW

WHO’S NEWS

The Hunt

BR welcomes information for Who’s News. Submissions may be edited for length and clarity.

Get in touch at simona.bazavan@business-review.ro

DEBBIE STOWE

Marius Dragne

Director: Thomas Vinterberg Starring: Mads Mikkelsen, Thomas Bo Larsen, Lasse Fogelstrom, Annika Wedderkopp On at: Cinema City Cotroceni, Europa, Hollywood Multiplex, Movieplex, NCRR, Patria, Studio, Cinemateca Union The Crucible, Arthur Miller’s dramatization of the Salem witch trials, depicts how the taint of allegations can whip up a close-knit community into a frenzy of hatred and violence against entirely innocent people.

Thomas Vinterberg’s mesmerizing thriller The Hunt transports The Crucible to modern-day Denmark, replacing witchcraft with child abuse.

Lucas (Mads Mikkelsen) is a middle-aged divorcee working in a kindergarten since losing his teaching job when the school closed. Though somewhat reserved, he’s a decent man, and things are looking up for him after his recent troubles: his adolescent son (Lasse Fogelstrom) wants to move in with him and he’s shyly navigating the early stages of a romance with an Eastern European colleague (Alexandra Rapaport).

The children love the rough-andtumble play he engages in and he’s a good neighbor and friend, picking up the parental slack for best pal Theo (Thomas Bo Larsen), whose volatile relationship with his wife has left their kids somewhat neglected. In short, Lucas is snugly ensconced in the local community. All of which changes following a false allegation by a young child.

The journey from respected educator to social pariah is rapid and dreadful. The Hunt shows how easily friendships, relationships, careers and acceptance disintegrate once the stench of pedophilia attaches to someone, however unfairly. Lucas’s former friends first shun then persecute him, and the scandal spreads to engulf his loved ones. There are tense confrontations that are almost painful

is the new CEO of Xella Romania, the Romanian subsidiary of German building materials manufacturer Xella. He has previously worked as sales and marketing director. Dragne has over seven years of professional experience in the building materials industry. Aged 33, he has been working for the company for the past four years and was part of the team implementing Xella’s greenfield investment in Romania.

Mads as hell: Mikkelsen is superb as a man whose life is destroyed by rumor

to watch. The movie also brings home ous fact that young children somethe value of a true friend who stands times make things up.

Alongside Mikkelsen’s central perby you when the rest of the world formance are moving turns from the turns its back.

Mikkelsen is a powerhouse of supporting cast, including Fogelstrom pathos as haunted, hunted Lucas, his as Lucas’s bewildered son, caught in life destroyed by forces entirely out- the crossfire and vainly trying to proside his control, a cosmic game of Chi- tect his dad from the lynch mob with nese whispers in which the babblings a teen’s righteous fury and impotence.

Larsen’s Theo is suitably conof a confused child somehow crystallize into hard fact. The most shocking flicted over whether to believe his element is how he is punished despite daughter or his best friend, while Lars having done nothing wrong; Vinter- Ranthe’s Bruun sounds a rare note of berg makes the viewer confront un- sanity in the film as the type of steadcomfortable truths about society’s fast, sensible friend that anybody rush to condemn on the flimsiest of would be lucky to have. Susse Wold is also memorable as the sour kinderevidence.

In a culture where such paranoia garten supervisor who fans the surrounds child safety that an adult – flames of parental panic.

And the director has coaxed an ascertainly a man – would deliberately avoid a lone child crying in public for tonishingly nuanced performance fear of being branded a potential per- from Annika Wedderkopp as the vert, any one of us could end up in lonely and mixed-up four-year-old Lucas’s shoes. Sealing his fate is the “victim”, the unwitting catalyst for the fearful proceduralism that governs mayhem. It is one of the many rethe modern workplace: Lucas’s col- markable elements of this harrowing, leagues’ determination to cover their outstanding picture. backs in the face of possible “inappropriateness” blinds them to the obvi- debbie.stowe@business-review.ro

FOUNDING EDITOR Bill Avery PUBLISHER Anca Ionita EDITOR-IN-CHIEF Simona Fodor JOURNALISTS Otilia Haraga - senior journalist, Simona Bazavan, Ovidiu Posirca, Oana Vasiliu COPY EDITOR Debbie Stowe PHOTO EDITOR: Mihai Constantineanu

ISSN No. 1453 - 729X

LAYOUT Beatrice Gheorghiu ART DIRECTOR Alexandru Oriean

EXECUTIVE DIRECTOR George Moise SALES & EVENTS DIRECTOR Oana Molodoi SALES & EVENTS Sales managers: Ana-Maria Nedelcu, Oana Albu, Raluca Comanescu, Sales executives: Bogdan Spirea, MARKETING Ana-Maria Stanca, Catalina Costiuc, Andreea Rusu PRODUCTION Dan Mitroi DISTRIBUTION Eugen Musat

Anamaria Ionitoaei has been promoted to managing associate lawyer at SCA Duncea, Stefanescu & Associates / Mazars.

Her expertise is mainly in litigation in domains such as tax law, corporate law, labor law, litigation between legal entities, insolvency proceedings, FIDIC contracts and enforcement proceedings. She also has a background in offering assistance as regards the day-to-day business of a portfolio of legal entities, being engaged in due diligence assignments, preparation and negotiation of post-due diligence transactions, preparation and negotiation of contracts executed between legal entities, as well as assistance regarding public acquisition procedures. Ionitoaei joined the law firm in 2006. She is a graduate of the Law Faculty and has been a member of the Bucharest Bar Association since 2004.

PUBLISHER Bloc Notes Media ADDRESS No. 10 Italiana St., 2nd floor, ap. 3 Bucharest, Romania LANDLINE Editorial: 031.040.09.32 Office: 031.040.09.31 EMAILS editorial@business-review.ro sales@business-review.ro events@business-review.ro