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This report presents the findings from a survey of 740 Western European enterprises regarding their Information and Communications Technology (ICT) budgets and staff allocation. The survey investigates how enterprises based in the five largest Western European markets currently allocate their ICT budgets across the core areas of enterprise ICT spend, namely hardware, software, IT services, communications and consulting. The report illustrates the core technologies enterprises are investing in, including the likes of enterprise applications, security, mobility, communications and collaboration, and cloud computing. The survey also highlights the approach adopted by enterprises in Western Europe to purchase technology, as well as the major IT and business objectives influencing their ICT investment strategies.
Introduction and Landscape
Why was the report written?
In order to provide better insight to ICT vendors and services providers when pitching their solutions to enterprises in Western Europe.
What is the current market landscape and what is changing?
Kable believes that the Western European enterprise ICT market is witnessing only a gradual adoption of cloud computing given that most enterprises are delaying technology investments and the fact that many have concerns about security.
What are the key drivers behind recent market changes?
The market for cloud computing is expected to witness an upward momentum, although at a relatively slow pace, owing to various government initiatives and efforts to minimise costs.
What makes this report unique and essential to read?
Kable Global ICT Intelligence has invested significant resources in order to interview CIOs and IT managers about their IT Budgets, IT investment priorities, and IT Procurement. Very few IT analyst houses will have interviewed 740+ ICT decision makers in the Western European market in H2 2012.
Key Features and Benefits
Understand how ICT budgets are set to change in 2013 in terms of their overall size.
Appreciate how budgets are allocated across the core elements of ICT spend, including hardware, software, services, communications and consulting.
Recognize Western European enterprises' strategic objectives with regards to their ICT investments.
Identify Western European enterprises' investment priorities based on their budget allocations across core technology categories such as enterprise applications, security, mobility, communications and collaboration, and cloud computing, etc.
Provides insights into Western European enterprises' preferred buying approaches.
Key Market Issues
Economic stagnation in the advanced economies of Western Europe (including the UK, France, Germany, Italy, and Spain) is inhibiting ICT spending in the region.
The survey shows that consulting is expected to receive a lower budget allocation from enterprises in Western Europe. Amidst the economic slowdown, most enterprises in the region are looking to develop their expertise in-house, which is impacting investments in consulting services.
Kable's survey of ICT decision makers finds that Western European enterprises are assigning highest priority to IT security and data privacy, with the highest average ratings of X on a scale of 1 to 4.
Western European enterprises' focus on creating a sustainable IT environment and reducing their carbon footprints is encouraging them to deploy green IT and virtualization solutions. Italian, Spanish, and French enterprises are placing greater emphasis on these solutions, with 84%, 83%, and 82% of respondents planning to invest in green IT and virtualization.
Western European enterprises are heavily focused on increasing their profitability given that the tough market conditions often make it hard to achieve revenue growth. Consequently, enterprises in the region place a high degree of importance on the business objectives of raising efficiency and cutting costs.
Kable's survey of 740 CIOs and ICT managers in the five Western European markets finds that enterprises are allocating a significant portion (X%) of their ICT budgets collectively on hardware, software, and IT services.
The survey finds that Western European enterprises are mostly interested in spending their ICT budgets with technology (product) vendors, thereby offering a plethora of opportunities for vendors who can offer technologically advanced products.
Enterprises' need to manage rapidly growing volumes of unstructured data is fuelling the demand for content management solutions in Western Europe. Kable's survey reveals that content management is another important area of spending for enterprises in Italy, Spain, and the UK, with 87%, 82%, and 82% of enterprises respectively planning investments in the next two years.
The survey highlights that enterprises, particularly in Germany, the UK, and France, prefer deploying technologies on-site with 73%, 71%, and 71% of respondents respectively adopting this model. However, enterprises in Italy and Spain are slowly shifting their focus from traditional on-premise deployments to hosted services.
Kable's survey shows that enterprises in Western Europe (with the exception of those in Germany) are particularly focused on price as a selection criterion, with the highest average rating of X on the scale of 1 to 4.