INDUSTRY NEWS
European SIs tough out slow economy
EUROPEAN Systems Integrat- ors have had a tough time weathering the recession with the total revenue of the top 500 up last year by just 0.68% to €144.43bn ($202.65bn), accord- ing to the latest database report from IT Europa.
This modest rate of growth, slightly below the market’s forecast average growth rate of 1.2% (EITO), represents a strong recovery from the previ- ous two years that were marked by a sharp fall in revenues with- in the sector. The IT Europa Systems Integrators in Europe – The Top 500 report also discovered that overall employment within the sector covered by the research was down 20% on 2008 levels.
The countries that have seen rising revenues in sys- tems integration have all been on Europe’s periphery.
The
Swiss market was the best per- former, followed by Ireland, the Netherlands and Turkey. IT
Alan Norman
The database report, which provides detailed business pro- files of each of the top 500 European Systems Integrators, provides further evidence that the current recovery being wit- nessed in the European IT sec- tor is both fragile and patchy.
Europa’s MD, Alan Norman, commented: “With cut-backs now biting in the public sector and a leaner pri- vate sector becoming much tougher in demanding a real return on new IT investment, we expect recovery to continue to be slow.
“There are also some signs that increasing adoption of cloud computing models for the implementation of new appli- cations is beginning to impact short-term revenues.”
Adept opens VoIP demo centre
ADEPT Telecom’s new Natio- nal VoIP Demonstration Centre attracted representatives from 65 businesses who descended on the centre to witness its offi- cial opening. Terry Hayden, the firm’s
Chief Technologist, stated: “We were overwhelmed with the response from local busi- nesses. There is a clear desire
to understand next generation technologies. We built the VoIP Demonstration Centre with the help of BT Wholesale. You can see the seven different ways of deploying VoIP in a fully work- ing environment.
“People always find new technology easier to understand if they can touch it, feel it and play with it.”
Joe Murphy, Sales Director, commented: “We are now put- ting the finishing touches to an exciting new commission plan for VoIP resellers. “We need to be able to show the traditional PBX reseller channel that they can now make more money selling a hosted PBX than a conventional physi- cal box.”
Cloud set for lifting off
OVER 80% of organisations already using cloud services are set to increase their commit- ment to this new supply model over the next year, according to the latest figures from the Cloud Industry Forum.
Its forecast is based on a market research programme that showed almost a third of organi- sations not currently employing cloud services anticipate adopt- ing them during the next year. Closer analysis of the figures indicates that the drive to the cloud among those not currently
using it is highest among the larger organisations with 42% stating they planned to migrate over the next year. This is in sharp contrast to organisations employing under 20, where the figure dropped to 20%.
Andy Burton, Chair of the Cloud Industry Forum, stated: “The migration to the cloud has been rapid and its adoption is already widespread within all manner of organisations, from large enterprises to small busi- nesses, and in both the public and private sectors.”
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The research, conducted in January-February 2011, polled 450 senior IT and business decision makers in enterprises, SMBs and public sector organi- sations, as well as 200 respon- dents from the channel. The research highlighted that there are still several areas of concern that are limiting the rate of growth of cloud computing. End user organisations con- tinue to express anxieties about data security, privacy and sov- ereignty, all of which were cited by a majority of respondents.
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