Your SlideShare is downloading. ×
It business climate v3
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

It business climate v3

511
views

Published on

A Presentation on the needs of British ITC companies to widen there territory to include Scandinavian markets.

A Presentation on the needs of British ITC companies to widen there territory to include Scandinavian markets.


0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
511
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
4
Comments
0
Likes
1
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. ITC Market Research ITCandor 2010 IT Business Climate – Comparing the UK and Scandinavian Markets Martin Hingley 5th October 2010
  • 2. ITC Market Research ITCandor 2010 • 03:30 Registration • 04:00 Welcome - Espen Gregersen, Copenhagen Capacity • 04:15 IT Business Climate – Comparing the UK and Scandinavian Markets – Martin Hingley, ITCandor • 04:55 UK Business Experience in Scandinavia - Ray Power, CEO, Active Reception • 05:15 Break • 05:30 Perceptions and Prejudices - Mike Simons, Chief Editor, Computerworld UK • 05:40 Panel -What does it take to make it in Scandinavia? • 05:55 Access Scandinavia, Espen Gregersen • 06:25 Networking
  • 3. ITC Market Research ITCandor 2010 IT Business Climate - Agenda • IT Climate, Themes and Challenges in 2010 • Comparative Demographics • IT Purchasing Profile – Countries by Category – Average Spending per Head • Historical growth rates by Offering • Hardware market shares • IT Forecasts Sources used in this presentation include: • IT Market data and business demographics – ITCandor Ltd • GDP, population and national debt - IMF
  • 4. ITC Market Research ITCandor 2010 IT Climate, Themes And Challenges 2010 • The World ITC market will grow 5% - but the UK market only 2% • The IT market has recovered well, but is threatened by uncertainty • The Icelandic volcano slowed Europe, BP’s spills left the US unaffected • Smart Phones – and especially iPhones and apps – are growing rapidly • Cloud Computing promises cheaper corporate apps – threatens managed services suppliers • Fat and thin clients drive Corporate Client Refresh • The UK government has implemented CRC demanding reduction in energy usage • Business and Industry expertise drives IT supplier success • UK companies typically expand into the USA, Germany and France
  • 5. ITC Market Research ITCandor 2010 Some Scandinavian Demographics Norway Population – 4.9m Businesses – 169k GDP - $433b ITC Spending - $44b Denmark Population – 5.5m Businesses – 147k GDP - $314b ITC Spending - $40b Finland Population – 5.4m Businesses – 145k GDP - $240b ITC Spending - $27b Sweden Population – 9.3m Businesses – 133k GDP – $444b ITC Spending - $62b
  • 6. ITC Market Research ITCandor 2010 UK and Scandinavia – Business Numbers by Size (Employees) 2,459,381 83,046 10,650 6,474 1,110 1,792 557,627 30,438 3,338 1,823 404 637 1 10 100 1,000 10,000 100,000 1,000,000 10,000,000 0-19 20-99 100-199 200-499 500-1000 >1000 UK Scandinavia •The UK is four times the size of Scandinavia •The UK has proportionately more large companies •Both regions have many self-employed businesses Notes: A logarithmic scale is used in this chart
  • 7. ITC Market Research ITCandor 2010 UK and Scandinavia – Businesses by Vertical Market (>20 Employees) 0% 5% 10% 15% 20% 25% 30% 35% Agriculture/… Manufacturing Transport/… Retail/… Finance Business Services Central Government Local Government Health Education Other UK Scandinavia •Retail is particularly strong in the UK •Manufacturing is stronger in Scandinavia •Finance are similar in ratio, but generate more of GDP in the UK •Government accounts are stronger in the UK Notes: Companies with less than 20 employees have been excluded from this chart
  • 8. ITC Market Research ITCandor 2010 ITC Spending By Category Q2 2010 – Higher Telecoms, Lower IT Services In Scandinavia Hardware IT Service Software Telecom Service 45% 47% 41% 11% 12% 16% 29% 25% 27% 15% 16% 16% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% UK Scand- inavia USA •Spending on Telecoms Services strongest in Scandinavia •IT Services strongest in the UK •Software biggest in the USA •Total Spending USA - $418b UK – $104b Scand - $38.1b
  • 9. ITC Market Research ITCandor 2010 ITC Spending/Total Population – the UK and Scandinavia Spend Most $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 2003 2004 2005 2006 2007 2008 2009 Germany France Italy Russia UK USA Scandinavia •The UK and Scandinavia lead the world in spending on ITC •USA has higher IT spending, but less on Telecoms •Southern lags Northern Europe •Russia and emerging countries are far behind
  • 10. ITC Market Research ITCandor 2010 Worldwide ITC Offerings – Revenue, Revenue Growth and Net Profit $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 -20% -10% 0% 10% 20% 30% 40% 50% 60% 70% Apps PC Broadband SaaS Internet -20% -10% 0% 10% 20% $50 $100 $150 $200 NetworkingCustom S/W H/W Maintenance Peripheral S/W Maintenance Storage Gaming Console Server Other IT Service Infrastructure S/W Fixed Line WirelessImplementation Outsourcing Other H/W OS Converged Device $1,800$0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 -20% -10% 0% 10% 20% 30% 40% 50% 60% 70% Apps PC Broadband SaaS Internet -20% -10% 0% 10% 20% $50 $100 $150 $200 NetworkingCustom S/W H/W Maintenance Peripheral S/W Maintenance Storage Gaming Console Server Other IT Service Infrastructure S/W Fixed Line WirelessImplementation Outsourcing Other H/W OS Converged Device $1,800$0 •Revenue ($b) for the year to June 2010 – y axis •Revenue Growth (annual this v last) x axis •Net Profit – size of bubble
  • 11. ITC Market Research ITCandor 2010 ITC Spending Growth – The USA Leads Recovery •All countries were badly affected by the recession and credit crunch •Sweden’s decline (and recovery) were delayed) •All countries recovering with the USA in the lead Notes: Spending growth is expressed in constant (local) currency -15% -10% -5% 0% 5% 10% 15% 20% 25% 30% 2007 2008 2009 2010 UK USA Scandinavia
  • 12. ITC Market Research ITCandor 2010 Some Examples of Comparative IT Spending Growth 2007 2008 2009 2010-15% -10% -5% 0% 5% 10% 15% 20% 25% UK USA Scandinavia •PC – UK had deeper decline •Converged Device – includes Smart Phones •SaaS – dramatic growth everywhere •Implemen- tation – USA leads, especially in building private Clouds 2007 2008 2009 2010-20% -10% 0% 10% 20% 30% 40% 50% 60% UK USA Scandinavia 2007 2008 2009 20100% 50% 100% 150% 200% 250% 300% 350% UK USA Scandinavia 2007 2008 2009 2010-15% -10% -5% 0% 5% 10% 15% UK USA Scandinavia PC Converged Device SaaS Implementation
  • 13. ITC Market Research ITCandor 2010 Hardware Market Shares H1 2010 – UK and Scandinavia Samsung 11.8% Nokia 9.1% Apple 8.6% HP 7.3% Dell 5.7% Cisco 3.4% Acer 2.7% Others 51.2% Samsung 12.3% HP 11.9% Nokia 6.1% Apple 4.9% Canon 4.2% Cisco 3.3%Dell 3.2% Others 53.9% UK Total: $33.9b Scandinavia Total: $13.2b •Handset suppliers hold strong positions •Nokia has a bigger share in the UK than in home territory •HP has a stronger position in Scandinavia •Top 7 suppliers have higher market share in the UK
  • 14. ITC Market Research ITCandor 2010 Sovereign Debt/GDP – Norway’s Oil Keeps it in Surplus -13% -4% -7% 12% -5% -18% 1% -20% -15% -10% -5% 0% 5% 10% 15% UK Sweden Denmark Norway Finland Iceland Scand- inavia •The credit crunch - harder consequences in the UK •Norway –oil tax adds surpluses •Iceland very small, but challenged •Scandinavia overall has a small surplus •Don’t expect to grow UK government business for now
  • 15. ITC Market Research ITCandor 2010 ITC Growth Forecasts – the UK will lag behind Scandinavia •ITC spending fell dramatically in all countries in 2009 •Both regions are recovering in 2010 •‘Austerity’ will be stronger in UK government accounts •Scandinavia offers stronger growth throughout the forecast period-15% -10% -5% 0% 5% 10% 15% 20% 25% 30% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 UK USA Scandinavia
  • 16. ITC Market Research ITCandor 2010 IT Business Climate Conclusions • The UK ITC market is crowded – especially in software and services areas • The credit crunch hit the UK harder than Scandinavia as will the governments austerity package • Scandinavia has no sovereign debt – largely due to the taxation of Norway’s oil • Average spending on ITC is almost as high in Scandinavia as in the UK • Good opportunities in PC, converged device, SaaS, broadband, Internet services - including downloads and apps - and implementation services - such as building private Clouds • The ITC forecast predicts stronger growth in Scandinavia for the foreseeable future • UK IT suppliers should consider expanding operations there

×