SAP Enterprise Services Partner Summit
17 October 2006, Amsterdam - Netherlands
Enabling opportunities for software and
services in Europe
Arian Zwegers
DG Information Society and Media
Software Technologies
European Commission • DG Information Society and Media

Overview
• ICT in EU
• Trends in business and ICT
• ICT market in EU
• Software and services market in EU
• EC response
• i2010 policy
• Examples of policies
• Opportunities for software companies
• Framework Programmes
• NESSI Technology Platform
• Other
European Commission • DG Information Society and Media

Business and ICT transformations
1960 1970 1980 1990 2000 2010
Mainframes mini-computers PC client-sever Internet Convergence
Company level Departmental Personal Pervasive global Anytime, anywhere;
information Empowerment Freedom & integrated groups Platforms and
& automation ecosystems
Automated Speed; Business Supply Globalisation, customisation,
Support; Costs Logistics Process chains outsourcing
Re-engineering
European Commission • DG Information Society and Media

Trends in Business
• Changing “cooperations / partnerships”
• Do it all yourself
• Outsourcing
• Open Innovation
• Open Innovation by Henry Chesbrough
• Ecosystems
• Connect and Develop
• Computerworld, Sept 12, 2004
• HBR, March 2006
• Crowdsourcing
• Wired, June 2006
European Commission • DG Information Society and Media

Trends in ICT
Some examples:
• Convergence
• Broadband adoption
• Consumerisation of technology
• RFID – Radio Frequency Identification
• Open Source Software
• SOA – Service Oriented Architecture
• SaaS – Software as a Service
European Commission • DG Information Society and Media

ICT Market, 2005
By region and by product
Total value = Total value =
€ 1,949 billion € 659 billion
Office equipment,
1.3%
Rest of World, Computer hardware,
23.5% 12.7%
IT services, 20.0%
End-user
Europe, 33.8%
communications
Europe equipment, 4.5%
33.8%
Software, 10.7%
Japan, 14.7%
Datacom and
network equipment,
6.5% Carrier services,
44.2%
US, 28.0%
Source: EITO, 2006
European Commission • DG Information Society and Media

Increasing awareness of ICT contribution
• Significant contribution ICT to productivity
and growth
• Direct contribution ICT sector to GDP,
indirectly by take up and exploitation in other
sectors
• ICT improves quality of life of citizens
• ICT is one of the key ingredients of
sustainable development
• ICT contributes to Lisbon agenda
European Commission • DG Information Society and Media

Software and services market in EU15
Software (Market volume 2005e)
EU151 SITS 2005e in bn EUR
Market volume: 165.0 bn EUR
Software
12,6
8,8 7,8
46,9 4,5 4,4
(28,4%) 2,6 2,4 1,3 1,0 0,9 0,6
Germa- UK France Nordic2 Italy Spain Nether- Austria Bel- Other3 Por-
ny lands gium tugal
118,1 IT services (Market volume 2005e)
(71,6%)
IT services 35,1
24,1
Data missing – only EU15
18,8 available
11,5
8,6 7,2
1 Includes Norway 5,6
2 Includes Norway, 2,7 2,0 1,8
Sweden, Finland 1,0
and Denmark
3 Includes Greece, UK Germa- France Nordic2 Italy Nether- Spain Bel- Others3 Aus- Por-
Ireland, Luxem- Market vol-
burg 1.2 ume in bn EUR ny lands gium tria tugal
Source: PAC
Source: PAC http://www.softwareleadership.info/
European Commission • DG Information Society and Media

Top100 suppliers serving the Western European
Software & IT Services market
By number of companies (in %, 2004)1 By revenue (in % of Top 100 revenue, 2004)
SE RoE
Asia IT
UK
4 NL 1 3
20 3 1
US/
DE
Canada
These Euro- 11
pean compa-
36 nies account
61% of for only 43% US/
companies 54
13 FR of the overall Canada
come from Top 100 FR 13
Europe companies’
revenues
10
10
6 DE 3
3 4 5 UK
RoE NL Asia
SE IT
Source: PAC http://www.softwareleadership.info/
European Commission • DG Information Society and Media

Software and Services
• A key industrial sector
• 1 Mio specialists in EU
• 200 B€ market (70 B€ Software)
• EU ICT market growth mainly driven by software
and IT services (EITO ’06): 5.8% for 2006-07
• The engine room of the Information Society
• Important EU industry sectors depend on S&S
European Commission • DG Information Society and Media

Activities by DG Information Society and Media
Regulatory Framework
Regulatory Framework Policy Strategy
Policy Strategy
• New regulatory framework • The Lisbon Strategy
for electronic • eEurope 2002
communications - SMEs to ‘Go Digital’
• Directive on electronic • eEurope 2005
commerce (2000/31/EC) - Legislation (to identify
• Directive on electronic & remove barriers)
signatures (1999/93/EC) - SMEs
• Directive on copyright and - e-skills
related rights - Interoperability
(2001/29/EC)
• Directive on privacy and
R&D
R&D - Trust and confidence
• i2010
electronic communications Activities
Activities
(2002/58/EC)
• … • Framework Programme 6
- 3.6 B€ to ICT priority (2003-2006)
• Framework Programme 7
- 9.0 B€ to ICT priority (2007-2013)
European Commission • DG Information Society and Media

i2010 Strategic Framework
• A comprehensive strategy for ICT and media
sectors
• Single European Information Space
• Innovation and Investment in ICT research
• Inclusion, better public services and quality of life
http://europa.eu.int/i2010
European Commission • DG Information Society and Media

RFID policy
Towards a Communication
December 2006:
Communication from the
European Commission
December 2006 www.rfidconsultation.eu
Oct. – Nov. 2006:
Drafting of the
Communication March 9, 2006 at CeBIT:
Commissioner Viviane
Reding announces the
16 Oct. 2006: Final launch of a Europe-wide
conference public consultation
Ongoing
September 2006 research March 2006
and co-operation
6-7 March: Internet of Things
Sept. – Oct. 2006: Analysis
of input received 15-16 May: Applications
16-17 May: Security & Privacy
3 July – 17 Sept. 2006:
Public online consultation 1 June: Interop./ Governance
June 2006 2 June: Frequency spectrum
European Commission • DG Information Society and Media

Other examples of policies
• Open Source Software
• “Economic impact of OSS on innovation and competitiveness
of EU ICT sector” study
• “The Effect of Public Administrations Publishing Open
Source Software” study
• Open Source Observatory (OSO): dissemination of good
practice
• Open Source Observatory and Repository (OSOR)
• ICT Standardisation
• Open consensus building process
• Priority for ensuring interoperability, facilitating ICT uptake,
and ensuring accessibility
http://cordis.europa.eu/ist/st/studies.htm
http://ec.europa.eu/idabc/servlets/Doc?id=24853
http://ec.europa.eu/enterprise/ict/policy/standards/ict_index_en.htm
European Commission • DG Information Society and Media

R&D Expenditure
as % of GDP
Cyprus 0.33
Hungary 0.97
Spain 1.11
China 1.31
Czech Republic 1.35
UK 1.87
EU25 1.93
EU15 1.99
France 2.19
Germany 2.50
US 2.76
Japan 3.15
Finland 3.51
Sweden 4.27
0 0.5 1 1.5 2 2.5 3 3.5 4 4.5
Source: Eurostat
http://epp.eurostat.ec.europa.eu/cache/ITY_OFFPUB/KS-NS-05-002/EN/KS-NS-05-002-EN.PDF
European Commission • DG Information Society and Media

R&D expenditure by industry
Source: Financial Times, 21 March 2005
European Commission • DG Information Society and Media

ICT R&D expenditure
Comparative spending on ICT R&D in 2000
(Billion Euro) Annual ICT R&D Expenditure (% GDP)
29.2
48.8 Japan
United States
European Union
Finland
93.3 Sweden
European Union USA Japan
The Netherlands
Spain
• Europe is spending less than United Kingdom
other regions in ICT R&D
Germany
• Public ICT Spending is France
Fragmented across Europe
Framework Programmes 0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 1.2%
European Commission • DG Information Society and Media

7th Framework Programme (2007-2013)
Biotechnology
2. Food, Agriculture
9. Security & Space
Research
8. Socio-economic
Production Techn.
4. Nano, Materials,
COOPERATION
6. Environment
Specific Programmes
7. Transport
5. Energy
1. Health
3. ICT
IDEAS European Research Council
PEOPLE Marie Curie Actions
Research Research for
Regions of Research Science in International
CAPACITIES Infrastru- the benefit of
Know-ledge Potential Society Co-operation
ctures SMEs
http://cordis.europa.eu/fp7/
European Commission • DG Information Society and Media

Work Programme 2007-2008
End-to-end systems for Socio-economic goals
Flagships Digital
Intelligent
ICT for
content ICT for independent
car and
and health living and
sustainable
ETPs knowledge
growth
inclusion
Network and
Technology roadblocks
service
Future and Emerging
infrastructures
Technologies
Cognitive systems,
robotics and
interaction
Components,
subsystems and
embedded systems
European Commission • DG Information Society and Media

Challenge 1 ‘Pervasive & Trusted Network
& Service Infrastructures’
The network of the future Service & Software Architectures,
• Ubiquitous network infrastructures and Infrastructures and Engineering
architectures • Service architectures
• Optimised control, management and • Service/SW engineering approaches
flexibility of the future network • Strategies and technologies enabling
infrastructure mastery of complexity, dependability and
• Technologies and systems behavioural stability
architectures for the Future Internet • Virtualisation tools, system software and
network-centric operating systems
Secure, dependable and trusted • Integrated solutions supporting the
infrastructures networked enterprise
• Security & resilience in network
infrastructures
• Security & trust in dynamic and Networked Media
reconfigurable service architectures • Interoperable multi-media network &
• Trusted computing infrastructures service infrastructure
• Identity management and privacy • End-to-end systems
enhancing tools
European Commission • DG Information Society and Media

European Technology Platforms
www.nessi-
What are they:
www.emobility.eu.org Industry-led public-private partnerships
europe.com
that bring together industry, research
community and public authorities in
areas of strategic economic importance
for Europe
Large Scale EU
Partnerships Objective:
World class performance in research and
joining the future innovation in ICT by closing the gap with
Europe’s leading competitors
Focus:
on user value and end-to-end solutions,
on convergence, innovation, standards,
www.isi- interoperability, spectrum, IPRs,
www.nem-initiative.org
initiative.eu.org/
international cooperation
http://cordis.europa.eu/technology-platforms/home_en.html
European Commission • DG Information Society and Media

Industrial Commitment
Develop a visionary strategy for Software and
Services driven by a common Strategic Research
Agenda where innovation and business strengths
are reinforced.
Expected impact:
• standardisation, common service platform open
standards
• improve EU competitiveness in S&S
http://www.nessi-europe.com • reduce sector fragmentation and align R&D efforts
• openness: an open initiative mobilising SMEs,
academia and industry
• address key R&D and policy challenges in S&S
European Commission • DG Information Society and Media

What’s in it for me?
• Gaining knowledge from other organisations
• Leveraging other organisations’ knowledge
• Funding from EC
• General rule (draft):
• 50% for research, technology development, and
demonstration activities
• 100% for management and training
• Same for SMEs (and non-profit orgs), but:
• 75% for research and technology development
http://cordis.europa.eu/fp7/participation.htm
European Commission • DG Information Society and Media

Other Programmes
• Competitiveness and Innovation Framework Programme (CIP)
• Objectives:
• to foster the competitiveness of enterprises
• to promote innovation;
• to accelerate the development of a competitive, innovative and inclusive Information
Society
• Budget: roughly 0.5 billion Euro per year
• Priorities ICT Policy Support Programme for 2007: eGov, eInclusion, eHealth
• Structural Funds and Cohesion Fund
• Objectives:
• to reduce disparities in development and promote economic and social cohesion in the
European Union
• to improve the effectiveness of the Community’s structural assistance by concentrating the
assistance,
• to promote economic and social cohesion and solidarity between Member States
• Budget: roughly 28 and 2.5 billion Euro per year
• Eureka
CIP: http://europa.eu.int/comm/enterprise/enterprise_policy/cip/index_en.htm
Structural Funds: http://europa.eu/scadplus/leg/en/lvb/l60014.htm
Cohesion Fund: http://europa.eu/scadplus/leg/en/lvb/l60018.htm
Eureka: http://www.eureka.be
European Commission • DG Information Society and Media

Call to action
• Have a look at FP7
• Have a look at NESSI (and other ETPs)
• Influence future research agendas
• Participate to upcoming Network Events
• 23-24 October: ETSI meeting on standards and interoperability
aimed at the ETPs
• 21-23 November: IST Conference and exhibition in Helsinki,
regular conference sessions and networking sessions
• 7-8 February 2007: FP7 multiplier event in Brussels (ETPs)
• 7 March 2007: FP7 launch event in Brussels (conference and
exhibition)
• 15-21 March 2007: Participation in CEBIT (in preparation)
• Many, many events organised by ETPs check web sites
European Commission • DG Information Society and Media

For More Information ...
FP7:
FP7:
http://cordis.europa.eu/fp7/
http://cordis.europa.eu/fp7/
http://cordis.europa.eu/ist/
http://cordis.europa.eu/ist/
Software Technologies:
Software Technologies:
http://cordis.europa.eu/ist/st/index.html
http://cordis.europa.eu/ist/st/index.html
NESSI:
NESSI:
http://www.nessi-europe.com
http://www.nessi-europe.com
E-mail: <first name>.<last name>@ec.europa.eu
E-mail: <first name>.<last name>@ec.europa.eu
European Commission • DG Information Society and Media