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New entrants drive Solution VAR growth

AND FINALLY...

EUROPE

NOW a $38bn (€29bn) market with 146,650 employees, the total revenue of the Solutions VARs in the latest IT Europa study rose by 7% last year. And of the 500 European companies in the list, around half are new names since the first report in 2006, showing a high rate of consolidation, failure and change, including moves into other sectors. The core nature and structure of the industry

has changed, with many fewer subsidiaries, but more large parent companies and more independents. The largest geographic markets in terms of revenue are Germany, the UK, Spain, France, Norway, the Netherlands and Italy. Germany, UK and Spain saw increasing revenue just under the average 7%, but France fell away, down 8%. Germany is the biggest market at $9.5bn (€7.2bn). Some country variations are apparent, with

Norway and Denmark both in the top ten, but with just six companies each in the listing, against the UK’s 92, and even Italy with 52 companies. Portugal saw Solution VAR revenues up 30%. Other rising stars are Romania, Bulgaria and

Serbia with growth of around 18% in revenues in the year. Losers were Ireland (-20%) and, unusually Sweden (-15%) and the more perhaps expected Greek market (-1%). Spain in particular is more represented; with 43

in the new report compared to the 2006 edition, in which there were only 20 Spanish companies. The number of Polish companies has also more than doubled from 11 to 26. Looking at the big names, rising star Spanish

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Indra has overtaken Germany’s Bechtel, which had been the top

company in 2006, but which has now slipped to fourth place. Indra is second behind c.a.r.u.s. Information Technology AG, a holding compa- ny which is top solution VAR with $3.8bn (€2.9bn) turnover. Highest new entrant in the list is Atea ASA

Formerly known as Ementor ASA, which has

come in at number three position, but this is hardly surprising given that it made nine acquisitions in 2008 alone and is located in the expanding Nordic region. IT Europa research manager Auri Aittokallio says

that generally, the European solution provider and value-added reseller market seems to be growing in the number of companies there are; particularly in national markets such as Poland, Spain and Italy. With regard to their place within the European

IT channel, Solution VARS see their biggest strength in being able to act as a one stop IT provider for customers who are battling ever-increasing con- straints in terms of time and resource. But hosted services may not be a direction

they choose to run alongside their VAR business: In total, 72 companies in the new report have pro- vided a percentage figure of revenue derived from hosted services. Hosted service revenue from all 72 companies amounts to $364.27m (€276.56m), com- pared to 82 companies offering hosted services in the 2006 report, with total revenue from this activ- ity amounting to $392.46m (€298.03m).

The new report, Solution VARs in Europe is available now from IT Europa, priced for single user and multi-user versions. Contact sales on +44 (0) 1895 454536 www.iteuropa.com

John Garratt (john.garratt@iteuropa.com) Alex Pullin (alex.pullin@iteuropa.com)

Colombe Vergès (colombe.verges@iteuropa.com) Alan Norman (alan.norman@iteuropa.com)

John Chapman (john.chapman@iteuropa.com) David Burns (david.burns@iteuropa.com) Chris Boeree (chris.boeree@iteuropa.com)

3rd Floor, Armstrong House, 38 Market Square Uxbridge, Middlesex, UB8 1LH +44 (0) 1895 454 595 www.iteuropa.com

Copying any part of this newsletter is prohibited. Multiple subscriptions are available at special low rates. Subscriptions: Stephen Osborne (sosborne@iteuropa.com) +44 (0)1895 454536

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