ICT procurement trends in the Netherlands

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1 ICT procurement trends in the Netherlands Enterprise ICT investment plans to 2013 March 2013

2 TABLE OF CONTENTS 1 Enterprise ICT investment trends Introduction Survey demographics ICT budget changes ICT investment priorities ICT procurement trends Introduction Purchasing channels Business objectives influencing IT investment strategy IT objectives influencing IT investment strategy ICT provider selection Influencers Complexity of the ICT infrastructure environment Summary Dutch enterprises are choosing ICT providers based on their ability to provide specific functionality and industry expertise Appendix Definitions Further reading Contact the authors...25 ICT procurement trends in the Netherlands / The id Factor Ltd / + 44 (0)

3 List of Figures Figure 1: Dutch enterprise ICT survey industry breakdown... 4 Figure 2: Dutch enterprise ICT survey breakdown by size band (number of employees)... 5 Figure 3: Recent and expected ICT budget changes among Dutch enterprises... 7 Figure 4: Dutch enterprises current and future investment priorities across technology categories... 9 Figure 5: Dutch enterprises' preferred approach to buying technologies Figure 6: Business objectives which influence Dutch enterprises' IT investment strategy Figure 7: IT objectives which influence Dutch enterprises' IT investment strategy Figure 8: Factors influencing Dutch enterprises' decision to choose an ICT provider Figure 9: Influence of organizational roles in making ICT purchasing decisions and signing off budgets 19 Figure 10: Complexity of the ICT infrastructure in Dutch enterprises List of Tables Table 1: Dutch enterprise ICT survey industry breakdown... 5 Table 2: Dutch enterprise ICT survey breakdown by size band (number of employees)... 6 Table 3: Recent and expected ICT budget changes among Dutch enterprises... 7 Table 4: Dutch enterprises current and future investment priorities across technology categories Table 5: Dutch enterprises' preferred approach to buying technologies Table 6: Business objectives which influence Dutch enterprises' IT investment strategy Table 7: IT objectives which influence Dutch enterprises' IT investment strategy Table 8: Factors influencing Dutch enterprises' decision to choose an ICT provider Table 9: Influence of organizational roles in making ICT purchasing decisions and signing off budgets. 20 Table 10: Complexity of the ICT infrastructure in Dutch enterprises ICT procurement trends in the Netherlands / The id Factor Ltd / + 44 (0)

4 1 Enterprise ICT investment trends 1.1 Introduction This report presents the findings from a survey of Dutch enterprises regarding their approach to Information & Communication Technology (ICT) procurement. The survey investigates the way that Dutch enterprises like to purchase technology, as well as the major IT and business objectives influencing their ICT investment strategies. The report also highlights the criteria that are important for enterprises in selecting their ICT providers, as well as the roles that have influence when making ICT purchasing decisions. Through Kable s survey, the report aims to provide better insight to ICT vendors and service providers when pitching their solutions to Dutch enterprises. The survey was conducted in September 2012 via an online methodology, with respondents all having ICT decision maker responsibility (typically CIOs and IT Managers). Kable plans to repeat the survey in the second half of 2013, in order to monitor ICT procurement trends on an ongoing basis. 1.2 Survey demographics Figure 1: Dutch enterprise ICT survey industry breakdown Dutch enterprise ICT survey industry breakdown Financial markets Utilities Education Retail Manufacturing Insurance Government Healthcare Energy Media Retail banking Pharmaceuticals respondents ICT procurement trends in the Netherlands P a g e 1 / The id Factor Ltd / + 44 (0)

5 Table 1: Dutch enterprise ICT survey industry breakdown Industry Count Percentage of respondents Energy Financial markets Utilities Healthcare Manufacturing Education Insurance Retail banking Pharmaceuticals Government Media Retail Total Figure 2: Dutch enterprise ICT survey breakdown by size band (number of employees) Dutch enterprise ICT survey breakdown by size band (number of employees) Over respondents ICT procurement trends in the Netherlands P a g e 2 / The id Factor Ltd / + 44 (0)

6 Table 2: Dutch enterprise ICT survey breakdown by size band (number of employees) Employee size band Count Percentage of respondents Over Total ICT procurement trends in the Netherlands P a g e 3 / The id Factor Ltd / + 44 (0)

7 2 ICT procurement trends 2.1 Introduction This section of the report focuses on Dutch enterprises specific approach to purchasing ICT, identifying the factors impacting their investment strategies, and influences that occur in the decision-making process. 2.2 Purchasing channels Figure 3: Dutch enterprises' preferred approach to buying technologies ICT procurement trends in the Netherlands P a g e 4 / The id Factor Ltd / + 44 (0)

8 Table 3: Dutch enterprises' preferred approach to buying technologies Technology Direct from supplier deployed on-site Through a local reseller deployed on-site Through a national reseller deployed on-site Direct from supplier as a hosted service Through a local reseller as a hosted service Through a national reseller as a hosted service Enterprise applications 100% Business intelligence 100% IT systems management 100% Security 100% Communications & collaboration 100% Mobility 100% Content management 100% Green IT & virtualization 100% Total According to Kable s survey, it is evident that the majority of Dutch enterprises prefer buying technologies (Brief description of the enterprises approach to buying IT products and preferred deployment modes across various technology categories) ICT procurement trends in the Netherlands P a g e 5 / The id Factor Ltd / + 44 (0)

9 2.3 Business objectives influencing IT investment strategy Figure 4: Business objectives which influence Dutch enterprises' IT investment strategy Table 4: Business objectives which influence Dutch enterprises' IT investment strategy Business objectives Increase customer satisfaction Increase revenues Raise efficiency Achieve or maintain regulatory compliance Improve supplier relationships Cut costs Average rating A majority of Dutch enterprises rate... as their most important business objective. ICT procurement trends in the Netherlands P a g e 6 / The id Factor Ltd / + 44 (0)

10 2.4 IT objectives influencing IT investment strategy Dutch enterprises make IT investments to better demonstrate the value of IT to the business Figure 5: IT objectives which influence Dutch enterprises' IT investment strategy Table 5: IT objectives which influence Dutch enterprises' IT investment strategy IT objectives % of responses(1) % of responses(2) % of responses(3) % of responses(4) Average rating Better demonstrate the value of IT to the business Use IT to support revenue growth Deliver new functionality to business users Meet internal service level agreements Align IT with overall business goals A majority of Dutch enterprises rate... as their most important IT objective. ICT procurement trends in the Netherlands P a g e 7 / The id Factor Ltd / + 44 (0)

11 4 Appendix 4.1 Definitions Enterprise applications core enterprise applications include the likes of Customer Relationship Management (CRM), Enterprise Resource Planning (ERP), Financials, Supply Chain Management, HR Management, Product Lifecycle Management, Business Process Management (BPM), Interactive marketing automation systems & customer lifecycle management. Business intelligence covers Data warehousing/marts, Analytics, Real-time Business Intelligence, Social sentiment analysis. Security includes Identity & access management, Security & vulnerability management, End-point security & anti-virus, Network security, Content and web filtering (including firewalls), Application Security, Backup & archive, Database security, Data Loss Prevention (mobile security). Content management covers Document Management, Records Management, Web Content Management, Digital Asset Management, Archiving, and Enterprise Search. Mobility covers Mobile device management, Customer facing mobile applications/m-commerce, Employee / supplier facing mobile applications & development/integration, Tablet computing. IT systems management covers Systems & network management, Storage management, Service management, Database management, Transaction performance management, User experience management, Virtualization management, Patch management & configuration. Communications & collaboration includes Internet Protocol-Private Branch Exchange (IP-PB), IP-Contact Centre, Unified Communications: VoIP/Presence/Instant messaging, Web/video conferencing. Green IT & virtualization covers Server virtualization, Storage virtualization, Network virtualization, Datacentre power and cooling reduction technologies, Desktop virtualization, Power management tool for PCs and monitors, Printing and paper usage management. Cloud Computing covers Infrastructure as a Service (IaaS), Platform as a Service (PaaS), Software as a Service (SaaS), Private Cloud, and Hybrid cloud (mixed cloud & on-premise models). ICT procurement trends in the Netherlands P a g e 8 / The id Factor Ltd / + 44 (0)