ICT investment trends in the Netherlands. Enterprise ICT spending patterns through to the end of 2015 June 2014

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1 ICT investment trends in the Netherlands Enterprise ICT spending patterns through to the end of 2015 June 2014

2 1 Trends in ICT budgets 1.1 Summary This report presents the findings from a survey of Dutch enterprises regarding their Information & Communications Technology (ICT) investment trends. The survey investigates how Dutch enterprises currently allocate their ICT budgets across the core areas of enterprise ICT expenditure: hardware, software, IT services, communications, and consulting. The report illustrates the core technologies enterprises are investing in, including enterprise applications, security, content management, and mobility. The survey also highlights the approach adopted by enterprises in the Netherlands when purchasing technology. Through Kable s survey, the report aims to provide better insight to ICT vendors and services providers when pitching their solutions to enterprises in the Netherlands. The survey was conducted in Q 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 2014, in order to monitor ICT budget changes on an ongoing basis. 1.2 Reason to buy This report will help readers to understand how Dutch enterprise ICT landscape is set to change in Gain a view as to how ICT Euros are being allocated in your target audience. The report covers a detailed breakdown of the opportunities within each of the core areas of ICT spend (hardware, software, IT services, telecommunications & consulting.) The report will help users to gain a view of the current strategic objectives of Dutch enterprises. The report will provide a detailed breakdown of the opportunities within selected technology categories (enterprise applications, content management, security, and IT systems management). Understand the factors that are influencing Dutch enterprises decision to select an ICT provider. Gain a view as to the business and IT objectives Dutch enterprises are looking to achieve through their ICT investment strategies. ICT investment trends in the Netherlands P a g e 2 / Kable Business Intelligence Limited / + 44 (0)

3 1.3 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 Table 1: Dutch enterprise ICT survey industry breakdown Industry Count Percentage of respondents Financial markets Utilities Education Retail Manufacturing Insurance Government Healthcare Energy Media Retail banking Pharmaceuticals Total ICT investment trends in the Netherlands P a g e 3 / Kable Business Intelligence Limited / + 44 (0)

4 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 Table 2: Dutch enterprise ICT survey breakdown by size band (number of employees) Employee size band Count Percentage of respondents Over 10,000 5,000-9,999 2,000-4,999 1,000-1, Total ICT investment trends in the Netherlands P a g e 4 / Kable Business Intelligence Limited / + 44 (0)

5 1.4 ICT budget changes Figure 3: Recent and expected ICT budget changes among Dutch enterprises Table 3: Recent and expected ICT budget changes among Dutch enterprises Trend (Count) (%) expectation (Count) expectation (%) Decrease more than 6% Decrease slightly (1%- 5%) Flat (0%) Increase slightly (1-5%) Increase significantly (6%+) Total Despite the uncertain economic conditions... (Summary of the situation in the enterprise ICT market and discussion around the degree to which IT budgets are decreasing/increasing/staying flat.) ICT investment trends in the Netherlands P a g e 5 / Kable Business Intelligence Limited / + 44 (0)

6 1.5 ICT budget allocation by core technology area Figure 4: Dutch enterprises (external) ICT budget allocation, 2013 and 2014 Table 4: Dutch enterprises (external) ICT budget allocation, 2013 and 2014 Category Average budget in 2013 (%) Average budget in 2014 (%) Hardware Software Services Communications Consulting Other Total Kable s survey suggests that Dutch enterprises are allocating a major portion of their ICT budgets on (A brief description of the way in which enterprises are allocating their IT budgets.). on how this breaks down by provider type). ICT investment trends in the Netherlands P a g e 6 / Kable Business Intelligence Limited / + 44 (0)

7 1.5.1 Hardware budget breakdown Figure 5: Dutch enterprises average hardware budget allocation Table 5: Dutch enterprises average hardware budget allocation IT function Average budget (%) Clients Network and communications equipment Mainframes Security Servers Processors Storage Peripherals Total Kable s recent survey finds that almost one third of the hardware spend is on... (A brief description on where the investments are being made and what the implications are for hardware vendors.) ICT investment trends in the Netherlands P a g e 7 / Kable Business Intelligence Limited / + 44 (0)

8 2 ICT investment priorities and vendor mindshare 2.1 Core technology investment priorities Figure 6: Current and future investment priorities of Dutch enterprises across core technologies Table 6: Current and future investment priorities of Dutch enterprises across core technologies Technology category Have now (Count) Have now (%) Considering investment in next 2 years (count) Considering investment in next 2 years (%) Enterprise applications Content management Security IT systems management According to the survey, enterprise applications has the highest penetration rate,... (Brief description of which technologies enterprises are currently investing in, as well as those that they are set to make the greatest investments in, in the next couple of years) ICT investment trends in the Netherlands P a g e 8 / Kable Business Intelligence Limited / + 44 (0)

9 2.1.1 Content management Figure 7: Content management Dutch enterprises current and future investment priorities Table 7: Content management Dutch enterprises current and future investment priorities Content management Have now (count) Have now (%) Considering investment in next 2 years (count) Considering investment in next 2 years (%) Document management Records management Web content management archiving Digital asset management Enterprise search The demand for content management is growing in the Netherlands; such solutions enable enterprises to manage their operations more effectively by providing... (Briefly describe in which sub categories enterprises are planning on making investments). ICT investment trends in the Netherlands P a g e 9 / Kable Business Intelligence Limited / + 44 (0)

10 3 ICT procurement trends 3.1 Purchasing channels Figure 8: Dutch enterprises' preferred approach to buying technologies Table 8: 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% Total ICT investment trends in the Netherlands P a g e 10 / Kable Business Intelligence Limited / + 44 (0)

11 IT systems management 100% Security 100% Communications & collaboration 100% Mobility 100% Content management 100% Green IT & virtualization 100% 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) 3.2 Business objectives influencing IT investment strategy Figure 9: Business objectives which influence Dutch enterprises' IT investment strategy ICT investment trends in the Netherlands P a g e 11 / Kable Business Intelligence Limited / + 44 (0)

12 Table 9: 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. 3.3 IT objectives influencing IT investment strategy Dutch enterprises make IT investments to better demonstrate the value of IT to the business Figure 10: IT objectives which influence Dutch enterprises' IT investment strategy ICT investment trends in the Netherlands P a g e 12 / Kable Business Intelligence Limited / + 44 (0)

13 Table 10: 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 investment trends in the Netherlands P a g e 13 / Kable Business Intelligence Limited / + 44 (0)

14 4 Report Methodology Kable s Customer Insight Survey reports are primarily based on the information (related to ICT budgets, priorities and procurement plans) collected through an annual survey performed in the fourth quarter of every year. The primary research involves a major program of interviewing CIOs and IT executives regarding their IT investment and priorities. The secondary research process involves covering publicly available sources, company annual reports, and press releases. The content in the report is written by analyzing the survey findings and substantiating those findings through secondary research. ICT investment trends in the Netherlands P a g e 14 / Kable Business Intelligence Limited / + 44 (0)

15 5 Further reading ICT investment trends in the UK, March 2014 ICT investment trends in Italy, April 2014 ICT investment trends in Germany, May 2014 ICT investment trends in France, May 2014 ICT investment trends in the Netherlands P a g e 15 / Kable Business Intelligence Limited / + 44 (0)

16 TABLE OF CONTENTS 1 Trends in ICT budgets Introduction Survey demographics ICT budget changes ICT budget allocation by core technology area Hardware budget breakdown Software budget breakdowns Third party IT services expenditure Telecommunications budget ICT budget allocation by function Outsourced IT functions ICT investment priorities and vendor mindshare Introduction Core technology investment priorities Enterprise applications Security Content management IT systems management ICT procurement trends Introduction Purchasing channels Business objectives influencing IT investment strategy IT objectives influencing IT investment strategy ICT provider selection Summary Dutch enterprises are making increased ICT investments to enhance their operating efficiency and achieve differentiation Appendix Definitions Further reading Contact the authors ICT investment trends in the Netherlands P a g e 16 / Kable Business Intelligence Limited / + 44 (0)

17 List of Figures Figure 1: Dutch enterprise ICT survey industry breakdown... 5 Figure 2: Dutch enterprise ICT survey breakdown by size band (number of employees)... 6 Figure 3: Recent and expected ICT budget changes among Dutch enterprises... 8 Figure 4: Dutch enterprises (external) ICT budget allocation, 2013 and Figure 5: Dutch enterprises average hardware budget allocation Figure 6: Dutch enterprises average software budget allocation by technology Figure 7: Dutch enterprises average IT services budget allocation Figure 8: Dutch enterprises average IT consulting services budget allocation Figure 9: Dutch enterprises average telecommunications budget allocation Figure 10: Dutch enterprises ICT budget allocation by function, 2013 and Figure 11: Outsourced IT functions - Dutch enterprises current and future outsourcing priorities Figure 12: Current and future investment priorities of Dutch enterprises across core technologies Figure 13: Enterprise applications Dutch enterprises current and future investment priorities Figure 14: Enterprise applications vendor mindshare amongst Dutch enterprises Figure 15: Security Dutch enterprises current and future investment priorities Figure 16: Security vendor mindshare amongst Dutch enterprises Figure 17: Content management Dutch enterprises current and future investment priorities Figure 18: Content management vendor mindshare amongst Dutch enterprises Figure 19: IT systems management Dutch enterprises current and future investment priorities Figure 20: IT systems management vendor mindshare amongst Dutch enterprises Figure 21: Dutch enterprises preferred approach to buying technologies Figure 22: Business objectives which influence Dutch enterprises IT investment strategy Figure 23: IT objectives which influence Dutch enterprises' IT investment strategy Figure 24: Factors influencing Dutch enterprises decision to choose an ICT provider ICT investment trends in the Netherlands P a g e 17 / Kable Business Intelligence Limited / + 44 (0)

18 List of Tables Table 1: Dutch enterprise ICT survey industry breakdown... 6 Table 2: Dutch enterprise ICT survey breakdown by size band (number of employees)... 7 Table 3: Recent and expected ICT budget changes among Dutch enterprises... 8 Table 4: Dutch enterprises (external) ICT budget allocation, 2013 and Table 5: Dutch enterprises average hardware budget allocation Table 6: Dutch enterprises average software budget allocation by technology Table 7: Dutch enterprises average IT services budget allocation Table 8: Dutch enterprises average IT consulting services budget allocation Table 9: Dutch enterprises average telecommunications budget allocation Table 10: Dutch enterprises ICT budget allocation by function, 2013 and Table 11: Outsourced IT functions Dutch enterprises current and future outsourcing priorities Table 12: Current and future investment priorities of Dutch enterprises across core technologies Table 13: Enterprise applications current and future investment priorities Table 14: Enterprise applications vendor mindshare amongst Dutch enterprises Table 15: Security Dutch enterprises current and future investment priorities Table 16: Security vendor mindshare amongst Dutch enterprises Table 17: Content management Dutch enterprises current and future investment priorities Table 18: Content management vendor mindshare amongst Dutch enterprises Table 19: IT systems management Dutch enterprises current and future investment priorities Table 20: IT systems management vendor mindshare amongst Dutch enterprises Table 21: Dutch enterprises' preferred approach to buying technologies Table 22: Business objectives which influence Dutch enterprises IT investment strategy Table 23: IT objectives which influence Dutch enterprises IT investment strategy Table 24: Factors influencing Dutch enterprises' decision to choose an ICT provider ICT investment trends in the Netherlands P a g e 18 / Kable Business Intelligence Limited / + 44 (0)