Growing the

North East
IT economy
Headline sponsors:

#dynamo15
@DynamoNorthEast
AN EIGHT-PAGE COMMERCIAL SUPPLEMENT

Thursday, June 18, 2015

North East IT sector makes

its mark on global scale
I

ts been a whirlwind year since

Dynamo North East was put on
the map in 2014 with a keynote
conference: Defining the North East
IT Economy.
In repeating the event in 2015,
Dynamo has always been conscious,
in pop music parlance, of producing
a difficult second album.
However, todays conference shows
the strength and depth of the sector
because Dynamo has again managed to involve more than 40
speakers from different niches within
the software and tech sector and it
still keeps finding more global
industry leaders with North East links
to bring into the network for future
years.
The Dynamo15 theme is how
North East IT Impacts the World
this is because of Dynamos pride in
spotlighting international export and
research excellence, whether thats
Durham University modelling the
Big Bang or Sage Group holding its
position as the worlds third largest
business software firm.
Information Technology has risen
up the regions agenda to become a
smart specialisation - even before
Dynamo co-founder Bob Paton took
up a role as Interim Chief Executive
of the Governments business
delivery organisation, the North East
Local Enterprise Partnership
Dynamo mission is to harness
momentum in the regions software
and IT industry.
It is widely recognised that this
sector is driving a digital revolution,
which contributes massively to the
broader economy and has helped fire
the UK economy out of recession.
This is nowhere more true than in
the North East, because Dynamos
research has proved that IT, with

32,000 employees, has more workers

in the region than the highly
influential Nissan supply chain, and
that the IT sector is growing at a
much faster rate.
Dynamo is addressing issues that
are a challenge for individual firms,
such as the skills gap, regional
broadband infrastructure, and
intellectual property innovation.
It has been able to influence
Government policy and is setting an
agenda to make the region the hub
for digital and IT in the Northern
Powerhouse.
Dynamo also has helped connect a
significant number of regional firms
to business or research opportunities, helping drive growth and
revenues locally.
Todays Dynamo 15 conference, at
the University of Sunderlands St
Peters Campus, embraces five key
strands innovation, collaboration,
policy, growth and skills.
It will celebrate the North Easts IT
success stories, examine future
opportunities and challenges,
showcase engaging case studies to
inspire others to follow their lead and
highlight the latest technical
developments being spearheaded in
the region.
Featuring 40-plus national and
regional speakers including:
Steph McGovern, one of the BBCs
leading economic commentators,
who gave her take on the North Easts
commercial outlook and its place in
the world of business as well as
hosting a panel discussion on Our
Region Our Future
Stephen Kelly, Chief Executive
Officer of The Sage Group, plc.
Bob Paton, Managing Director of
Accentures Newcastle Delivery
Centre

>>Steph McGovern will be speaking at the Dynamo conference

Stephen Guss, General Manager at

Nissan, on IT and the Automotive
supply chain
Ian Walshaw, Head of IT at
gaming giant tombola
Neil Crockett, Chief Executive

Officer of Digital Catapult

Markus Milsted, Chief Executive
Officer of Omlis
Dean Benson, Chief Executive
Officer of Visualsoft
Paul Fellows, Chief Operating

Officer at Performance Horizon

Group
Jess Tyrrell, Director of Connecting Tech City Centre for London on
the future of the North East Digital
Economy
Claire Braithwaite, Head of Tech
North
Barry Hodgson, of the Digital
Institute at Newcastle University
Shirley Atkinson, Vice Chancellor
of the University of Sunderland
Workshops on the five themes
Innovate, Collaborate, Growth, Skills,
and Policy
Charlie Hoult, Chair of Dynamo,
said: These are exciting times for the
IT sector in the North East and
todays conference will reflect its
vibrancy and economic impact on
the UK and beyond.
We want to relay what has been
learnt during the last year since the
inaugural Dynamo conference,
highlight the amazing and innovative
work that is being undertaken by
organisations large and small, and
bring national and regional players
together so they can network and
collaborate on what needs to happen
next to grow this influential sector.
The conferences headline
supporters are Accenture and Sage
with backing also obtained from HP,
Make It Sunderland, University of
Sunderland, Baltic Training Services,
Quantum Law, Orchard Information
Systems and Opencast Software.
Dynamo, which is the North East
IT Network, works to grow the North
East IT economy through promoting
the region as a hub for the enterprise
IT sector.
It is made up of IT organisations
and employers, technology hubs,
education, local government and
employer support initiatives.

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THE JOURNAL THURSDAY, JUNE 18, 2015

DYNAMO CONFERENCE

Dynamos plan for

tomorrows world
D

ynamo has hit the ground running

and has achieved a great deal in the
last 18 months. But, as the saying
goes you aint seen nothin yet.
Lets take a look at what else Dynamo
wants to achieve.
A Northern Massachusetts Institute of
Technology we are working on a bid for a
National Institute for Digital Innovation. We
want to champion a major international
university department that can build a
rolling programme of research, partnership
and enterprise.
Partnerships could be on hot industry
topics such as the Internet of Things or Big
Data, Building Information Management or
Healthcare diagnostics, with incubation,
collaboration and international knowledge
transfer. Were hoping to create a model that
can involve all the local education providers,
but also international institutions.
Business Exchange - Wed like to see
industry corporations contribute to
Northern MIT, as well as international
universities. Wed also like to operate a team
to help establish the partnerships, engage
local firms and foster spin-outs.

IT is a fast-moving world and

Dynamo has to reflect that,
always looking to the future.
Chair CHARLIE HOULT looks at
tomorrows agenda
Theres a boiling hot economy in the
South East, not least with Google building
its 1.6bn European headquarters at Kings
Cross. But we also host some of the UK
Governments most useful data sets in this
region, with HMRC and the Prescription
Pricing Authority based here.
The North East has a good programme for
start-ups, but we believe there is opportunity for cross-fertilisation between our
regions specialist clusters (science, automotive, satellite, health) as well as major
growth potential in helping our scale-up
firms to grow.
Leadership in Smart City Tech The
North East has already made major

investment in pilot projects for Smart Cities,

such as BTs Ultrafast broadband test
scheme and Newcastle Universitys 58m
Centre for Urban Sciences, being built to
house the Computer Science department on
Science Central site.
We need to press ahead with our advances so that we can draw together a globally
significant case study.
We can use our natural advantage as a
Goldilocks region not too big, not too
small to develop projects that are in
demand across Europe and will lead on
global roll-outs. Driverless cars? Self-help
technology for an ageing population? Smart
tech for kids learning? Intelligent electricity
generation?
The North East has a well-known heritage
in engineering and innovation. Dynamo has
proved that, despite years of bad press about
decline, the region is still a world beater.
A key factor has been to collect the leaders
into a cluster and to shout about success
and growth and breakthroughs and todays
Dynamo 15 conference will help us do just
that and we hope that all those involved will
spread the message even further.

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GET INTO IT
EVENT INSPIRES
YOUNG PEOPLE
TO MAKE A
CAREER OF IT
NEARLY 100 young
people from across the
North East have been
given an indepth insight
into the career opportunities available in the
regions growing IT
sector.
A Get Into IT afternoon,
aimed at young people
aged 13-plus, parents,
teachers, and career
advisers, was held
yesterday at Sunderland
Universitys St Peters
Campus as a prelude to
todays Dynamo 15
conference.
The careers event
featured a wide range of
activities, demonstrations
and the opportunity to
chat to those working in
the IT industry. The
programme included:
Tell us about IT
interactive panel sessions
with representatives from
local IT businesses,
universities and
apprentice providers.
A Lets Play with IT
interactive playroom full
of the latest technology
that visitors were able to
try.
The big screen
programme A Day in the
Life of an IT, which
showcased stories from
those working in IT,
students and graduates.
Charlie Hoult, Dynamo

THE JOURNAL THURSDAY, JUNE 18, 2015

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chairman, said: There is a

buzz about tech careers
and this event was a
chance to set foundations
for joined-up action.
Dynamo wants computer
programming in the
North East to run from
playground to PHD
because we are going to
need skills at every level
in the future.
We hope that the Get
Into IT afternoon will
have acted as a catalyst
and will have inspired
young people to seriously
consider pursuing a
career in IT.
It is imperative to the
future growth and
success of the sector that
we have a steady stream
of talented, motivated
young people with the
ambition to make their
mark in the many tech
companies that are
helping drive the North
East economy.
Mr Hoult said it was
important that young
people, parents, careers
advisers and teachers
were given key messages
about the sector in the
North East including:
There are more than
2,000 IT vacancies.
The availability of IT
apprenticeships for 16
to19-year-olds.
The variety of jobs
available that encompass
disciplines including
gaming, coding,
designing company and
Government IT systems
and much more.

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THE JOURNAL THURSDAY, JUNE 18, 2015

DYNAMO CONFERENCE

Collaboration is key
to IT sectors success
BOB PATON, the North East LEPs new interim chief executive, explains
what motivated him to cofound Dynamo and how it is fulfilling its aims

ob Patons new LEP

responsibility, as well as
his role as managing
director of Accentures
Newcastle Delivery Centre,
means he has had to step down
as vice chairman of Dynamo.
But, he says, he is still
massively involved and still
attends board meetings of the
organisation he co-founded.
He explains how Dynamo
was born out of Accentures
success in the North East after
it set up its delivery centre in
2010, building staff numbers
from 210 people to its current
470.
When you are successful
you end up talking to people
such as the CBI, Chamber of
Commerce, MPs and council
leaders because people like to
hear about success, he says.
In the course of those
conversations, he realised that

there was no cluster that

covered the whole region and
which included big companies
as well as SMEs, even though
some 35,000 people work in the
IT sector in the region
Every bit of research tells
you that if a sector works well
together its more likely to be
successful and thats true of any
sector, whether its process and
chemicals with the North East
Process Industry Cluster
(NEPIC), or offshore energy
with NOF Energy. This is true of
the North East and throughout
Europe and the rest of the
world.
So he started to contact
businesses which could form
such a cluster and discovered
that Charlie Hoult, the current
Dynamo chairman, had had
the same idea and was engaged
in the same exercise. They met,
got on well and between them

they cofounded Dynamo two

years ago. The organisation has
three main aims:
To promote and grow the
North East IT economy.
To support R&D in technology in the region.
To support education and
skills and increase the numbers
of young people ready to join
the industry.
Dynamos philosophy is that
collaboration will help the
sector in the North East win
work and grow. With R&D it
hopes to build on the regions
already strong record.
Paton says: The person who
designed the iPad, Sir Jonathan
Ive, went to Northumbria
University, the person who
invented Hawk-Eye went to
Durham University and the
very first online shopping
transaction in the world took
place in Gateshead. So the

region has some good history

in technology development.
On skills, Dynamo aims to
encourage more girls to go into
IT. It has created the first IT
sector-led apprentice hubs with
one in Newcastle, another in
Sunderland and a third
planned; and it is partnering
with Sunderland University to
set up the University Technology College North East Futures
in Newcastle, focused on IT
and health care sciences.
It is also working to increase
the numbers of code clubs in
schools
In Estonia, they have a code
club in every primary school something that the North East
of England should also aspire
to, says Paton.
He looks back with satisfaction over Dynamos progress in
meeting those objectives.
He says: Weve shown that,
because weve got everybody
together at various events,
people get to know people. As a
result of that, collaboration has
really started to work.

>> Bob Paton

THE JOURNAL THURSDAY, JUNE 18, 2015

DYNAMO CONFERENCE

Focus on
technology
is vital
for growth

>>Stephen Kelly, Sage

STEPHEN KELLY, chief executive of Sage Group plc,

on the North East and Dynamo 15

he North East has a strong

heritage of technological
innovation.
The inventive, hard-working spirit
that sits at the heart of this community remains as strong today as it
ever has been. At Sage, were
immensely proud to have our roots
in the North East.
I dont doubt that the North East
has been a key factor in Sages
success over the last 30 years. The
North East breeds a resilience that

cannot be replicated elsewhere and

when you combine that with the
regions famed imagination and
creativity, you have a powerful mix
for business success.
But what does the future hold for
the region? Personally I was greatly
encouraged to hear George
Osbourne outline his intention to
create a Northern Powerhouse by
connecting communities in the
North of England. For the North East
there is an opportunity to play a

significant part in shaping that

vision and also become the engineroom of the proposed powerhouse.
Technology, of course, has a huge
role to play.
The digital age has placed technology at the heart of business and if
the North East is to grow in signifi-

cance on the national and international stage, then a focus on

technology is vital.
The areas already thriving
technology community shows that a
lot of the right ingredients are
already there.
Dynamo 15 brings businesses

together, giving them a collective

voice.
While the region boasts some of
the UKs largest companies, we are
undoubtedly stronger together and
can pack a punch when it comes to
fighting for the North East to gain
the recognition it deserves.

THE JOURNAL THURSDAY, JUNE 18, 2015

DYNAMO CONFERENCE

Dynamo vice chairs speak out

GISELLE
STEWART, NEIL
HEMMING and
STUART LYNN,
the new vice
chairs of
Dynamo,
explain why
they took up
the roles and
what they
hope to bring

>>Dynamo North East

chair Charlie Hoult,
second from left, with
new vice chairs Neil
Hemming, Giselle
Stewart and Stuart
Lynn

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eil Hemming is North East

born and bred, but has had to
spend most of his working life in
exile a major reason for joining
Dynamo.
He explains: Im a North East lad
but I have, however, spent most of my
career in IT and communications
having to work in London and other
places, so my big passion is to try to
build a bigger digital economy in the
North East so that future generations of
people like me dont have to go to
London to have a job.
After graduating from Newcastle
with a degree in computing science, he
worked for IBM and other global ITC
giants and is now managing partner of
German multinational software group
SAP.
He also sits on the North East LEP
Innovation Board, which has given him
an insight into the regions digital
sector.
Theres actually a thriving IT sector
in the North East, he says. There are
jobs going in the North East in
high-tech industries and we cant
actually fill them. At Dynamo, we want
to make something of the IT opportunity that we have to create more jobs in
the region and sustainable businesses,
to create an even more diverse and
vibrant IT economy.
Giselle Stewart, director of corporate
affairs in the UK for Ubisoft, has been
in computer games for 20 years.
Recently she has become involved in
the national skills agenda as director of
trade body TIGA, as chair of the
Creative Skillset Council for Video
Games and as an advisory board
member for Next Gen Skills Academy.
She says: People imagine computer
games to be developed in a creative
and visual environment, but its also
extremely maths and physics-based
and we are always interested in
attracting people with these talents.
How do we ensure theres a strong
and robust talent pipeline in the North

East for the future? Its a subject that I

am passionate about; Ubisoft is
rigorous in selecting talented people
and then considers how it can help
people to evolve in their career within
the company.
She adds: Our five universities feed
us very well with a pool of talented
people. The tech sector is really strong
in the North East and its a tale that isnt
told loudly enough and widely enough.
I think Dynamo is going to do a super
job of communicating this. Im
impressed with its philosophy that its
not about moaning to Westminster
about how tough it is here but instead,
its about saying what great things we
are achieving, with potential for more.
Stuart Lynns career epitomises the
economic journey that the North East
has taken he started his working life in
coal mining and is now chief technical
officer and chief information officer for
software giant Sage. As one of the
founder members of Dynamo he is a
keen champion of the North Easts IT
sector.
Sage is an internationally known
brand but Stuart emphasises Dynamos
role in helping smaller businesses.
He says: Im proud of the region and
I particularly love working with the
SMEs that are part of the Dynamo
group. How can we help them to be
successful, build on some of the
recognition that the larger companies
such as Sage has achieved, and bring
economic growth and jobs to the North
East?
He wants Dynamo 15 to put the
North East firmly on the map as a
centre of excellence for Information
Technology. He says: As a region, we
are home to a wide array of successful
technology companies and yet we are
one of the best-kept secrets. We are
already on route to becoming the
Northern Powerhouse and its time to
share with the world what excellent
opportunities the North East has to
offer.

THE JOURNAL THURSDAY, JUNE 18, 2015

DYNAMO CONFERENCE

Expanding Visualsoft aims to double workforce

D

ynamo member Visualsoft

has become a major force in
IT and has big plans for the

future.
Tees Valley eCommerce company
Visualsoft, which is already
expanding into new premises, aims
to double the size of its workforce to
nearly 400 in the next few years.
The business, which is moving
into a 30,000 sq ft building on
Teesdale Business Park, Stockton,
following a surge in growth, aims to
make acquisitions that complement its core products and services.
It offers a full service eCommerce
solution to more than 1,000 online
retailers including website design,
development and a range of online
marketing services, including
pay-per-click, SEO, affiliate
marketing, and email and social
media marketing.
One of the areas we specialise in
is multichannel marketing where
you look at one conduit and one
outlet we work closely with eBay
and Amazon to make sure your
product is put in front of as many
people as possible, says chief
executive Dean Benson.
With offices in Stockton, Newcastle and London, Visualsoft has
1,200 live websites, more than 300
online marketing clients, and
another 200 websites currently in
development. In the past 12 months

>>Northern Powerhouse minister James Wharton MP, right, at the new Visualsoft premises at Teesdale Business
Park, Stockton, with Sandy Anderson of TVU, left, and Dean Benson of Visualsoft

alone, the company has processed

5.3 million transactions through its
online platform, collectively worth
300m.
The Teesside-based business was
set up 16 years ago by Dean Benson
and two others. Our background
was as a technology company
very analytical and statistical,
explains Dean. In the past six years

alone weve grown the company

significantly in that time from a
team of 20 to a team of 200.
How important has collaboration
and working with organisations
such as Dynamo or Tees Valley
Unlimited, the Local Enterprise
Partnership for Tees Valley, been to
the business?
Its been phenomenally

Tombola determined to
remain at cutting edge
Tombolas head of IT Ian Walshaw
will be speaking at Dynamo 15 to share
his companys growth story.
Tombola is a Sunderland-based
online bingo giant, which employs 350
people and operates in a number of
countries.
Last year the company was confirmed as the largest bingo operator in
Spain and Italy, only two years after
moving into the European market. It is
now looking at further expansion in
Europe.
In order to become and stay
successful it has had to develop
cutting-edge IT, evolving its software
and infrastructure over the past five
years. Head of IT Ian Walshaw
describes how the system tombola now
has evolved a great deal from the
original product platform.
He says: We effectively reinvented
the wheel on a number of occasions:
We had a legacy platform which was
not operating to a level which the
business needed for its ambitious
growth plans, for example there was
limited expansion capacity, not an
ideal disaster recovery provision and
also technical debt in the software. We
had to architecture our infrastructure
from the ground up and start forward
planning for a website software
re-architecture.
He adds: We went on a journey
which effectively saw us recreate our
product platform from a few standalone servers to a robust, resilient
virtualised environment, which we feel
stands up to scrutiny.
We then started on a journey of
effectively rewriting the website
platform so that it was capable of not

just running the UK website, but also

taking us into different countries,
making it as easy as possible to
replicate the environment. That has
seen us go into Italy where we are now
number one and into Spain where we
are also number one, so it has worked
very well.
But digital is a fast-moving environment and tombola is constantly
thinking about whats around the
corner, what will our landscape look
like in five years time? Were now
reviewing what the cloud can do for us.
Ian says: Where do we need to be
five years from now? Will our systems
still be fit for purpose?
Tombola is also acutely aware that it
will have to continue to recruit talented
and skilled people if it is to maintain
momentum. For that it recognises that
it must continue to build brand
recognition of itself as an exciting and
vibrant technology house.
Recruitment is a horrendously
difficult problem for us, says Ian.
Theres an enormous shortage of staff.
To help with this, we are trying to build
awareness of the kind of fun stuff we do
at tombola. In addition to this, the
technology which underpins the
business is extremely exciting and
working for tombola is working for a
market leader. Not many get the
chance to work at the cutting edge of
an industry.
Tombola is determined that it will
remain at the cutting edge and its latest
phase of innovation is already underway.
Ian says: As for the time scale for the
new development its on the horizon
now.

important in raising awareness of

what we do, he says. Were very
passionate about what we do and to
raise awareness of what we are
doing in a growing industry and to
make sure that we are recognised as
leaders in our field is very important to us.
It also works closely with the
regions colleges and with Teesside,

Durham and Newcastle universities. It is looking at doing on-campus and off-campus courses to offer
up-to-date instruction on the
industry.
Visualsoft places great emphasis
on staff retention. It has introduced
unlimited paid holidays; flexitime;
free breakfasts, protein shakes and
gym membership.
We find recruitment and
retention relatively easy because of
the way that we treat staff, says
Dean. Staff are our biggest asset in
the company and we treat them as
such, so we are becoming an
employer of choice.
Visualsoft was named Company
of the Year in the Teesside heat of
this years North East Business
Awards.
The business is becoming better
known but it still raises eyebrows in
the industry when people realise it
is North East-based.
I think we are a surprise for
them, says Dean. We are very akin
to the likes of Google in terms of
how we are as a company and how
we are perceived, our image and
our size. People didnt realise
Stockton-on-Tees has such a big
employer in the industry.
The futures very bright, we are
in a rapidly growing industry and
we are doing all the right things and
we have huge plans.

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As businesses around the North East discover,
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is matched only by our commitment to provide
unprecedented service everywhere.

Muckle LLP. We think youll like the difference.

@MuckleLLP

www.baltictraining.com
01325 731050

THE JOURNAL THURSDAY, JUNE 18, 2015

The North East has a booming IT industry with

over 32,000 people in firms servicing national
government, international business and local
champions. In 2014, we identified over 2,000
new jobs but growth continues in 2015.
Dynamos aim is for the North East to lead the
Northern Powerhouse agenda on IT and to build
the Northern Institute of Technology to connect
business, education and government to create
innovations that will deliver prosperity to the region
and beyond. Join as a member now.

@dynamonortheast

www.dynamonortheast.co.uk