ICT investment trends in Ireland Enterprise ICT spending patterns through to the end of 2016 August 2015 KG0176CI Single User Price: US$2995
Introduction Summary The Irish economy s return to growth, driven by positive contributions from exports and domestic activities, is motivating Irish enterprises to invest aggressively in ICT infrastructure Inclination towards various cloud computing models is prominent among Irish enterprises, stemming from the increasing number of enterprises either investing or planning to invest in different cloud computing solutions in the coming two years Price and an ICT vendor s financial stability are the main considerations for Irish enterprises before selecting an ICT vendor Scope This report presents the findings from a survey of 31 Irish enterprises regarding their Information & Communications Technology (ICT) investment trends. The survey investigates how Irish 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 that enterprises are investing in, including enterprise applications, business intelligence, security products, mobility technologies, communications & collaboration technologies, and network services. The survey also highlights the approach to purchasing technology adopted by enterprises in Ireland. Through Kable s survey, the report aims to provide a better insight to ICT vendors and service providers when pitching their solutions to enterprises in Ireland. The survey was conducted in Q1 2015 via an online methodology, with respondents all having ICT decision maker responsibility (typically CIOs and IT Managers). Kable plans to repeat the survey in Q1 2016, in order to monitor ICT budget changes on an ongoing basis. Appendix 2
Reason to buy Understand how Irish enterprise ICT landscape is set to change in 2015 to prioritize your target market Comprehend how ICT Euros are being allocated by Irish enterprises in specific verticals and size bands to improve your market penetration Make effective business decisions by recognizing the opportunities within each of the core areas of ICT spend (hardware, software, IT services, telecommunications, and consulting) Realign your sales initiatives by understanding the current strategic objectives of Irish enterprises Enhance your market segmentation with the included, detailed breakdown of opportunities within selected technology categories (enterprise applications, business intelligence, security products, mobility technologies, communications & collaboration technologies, and network services) Prioritize your focus areas by understanding which factors are influencing Irish enterprises decisions when selecting an ICT provider Understand the changes in customers priorities and identify the business and IT objectives that Irish enterprises are looking to achieve through their ICT investment strategies Appendix 3
Survey demographics Irish enterprise ICT survey industry breakdown Irish enterprise ICT survey breakdown by size band (number of employees) Financial markets Utilities Education Retail Manufacturing Insurance Government Healthcare Energy Media Retail banking Pharmaceuticals respondents Over 10000 5000-9999 2000-4999 1000-1999 500-999 100-499 50-99 respondents Survey demographics 4
% of respondents Irish enterprises are earnestly investing in various ICT domains in 2015 How did your ICT budget grow or shrink from 2013-14, and has it changed from 2014-15? 2013-14 (%) 2014-15 (%) 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.) Decrease 6% or more Decrease slightly (1%- 5%) Flat (0%) Increase slightly (1%- 5%) Increase significantly (6%+) respondents ICT budgets changes 5
Investment in hardware remains a key area of focus among Irish enterprises How did you spend your (external) ICT budget in 2014? How will this change in 2015? x% Kable s survey suggests that Irish enterprises are allocating a major portion of their IT budgets on......... (A brief description of the way in which enterprises are allocating their IT budgets.) 2014 2015 Hardware Software Services Communications Consulting Other respondents ICT budget allocation by core technology area 6
Expenditure on clients constitute the major chunk of hardware expenditure What proportion of your hardware budget was spent in the following areas in 2014? 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.) Infrastructure as a service Processors Clients High end servers Storage Network and communications equipment Peripherals Servers Security respondents Hardware budget breakdown 7
% of respondents HR management and CLM solutions are expected to gain traction among Irish enterprises Which enterprise applications do you currently have or use, and which are you prioritising for investment in the next 2 years? Have now (%) Considering investment in next 2 years (%) The demand for HR management is growing in Ireland; such solutions enable enterprises to streamline the administration of employee management effectively by providing... (Briefly describe in which sub categories enterprises are planning on making investments). respondents ICT investment priorities Enterprise applications 8
% of respondents Adoption of customer facing mobile applications and tablet computing is set to grow among Irish enterprise Which mobility technologies do you currently have or use, and which are you prioritising for investment in the next 2 years? Have now (%) Considering investment in next 2 years (%) Customer facing mobile applications and tablet computing are set to witness the highest adoption rates among Irish enterprises, with and of enterprises, respectively, planning to invest in these areas respondents ICT vendor satisfaction IT systems management 9
Increasing revenues and using IT to support revenue growth are the most important business and IT objectives influencing IT investment strategy Please rate the importance of the following business objectives in influencing your IT investment strategy in 2014 A majority of Irish enterprises rate... as their most important business objective. Raise efficiency Cut costs Increase customer satisfaction Increase revenues Achieve or maintain Improve supplier relationships A majority of Irish enterprises rate... as their most important IT objective. Average rating (1 = not an objective, 4 = top priority) respondents Please rate the importance of the following IT objectives in influencing your IT investment strategy in 2014 Use IT to support revenue growth Align IT with overall business goals Deliver new functionality to business users Better demonstrate the value of IT to the business Meet internal service level agreements Average rating (1 = not an objective, 4 = top priority) respondents Business and IT objectives influencing IT investment strategy 10
Appendix 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. About Kable Kable delivers unparalleled customer and market insight into enterprise ICT investment trends. Covering 12 key sectors in 33 locations, we identify investment patterns and trends, monitor how ICT budgets are set to change, inform our clients about the top-spending organisations, and provide market opportunity forecasts. Disclaimer All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, Kable. The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings and conclusions that Kable delivers will be based on information gathered in good faith from secondary sources, whose accuracy we are not always in a position to guarantee. As such, Kable can accept no liability whatsoever for actions taken based on any information that may subsequently prove to be incorrect. Appendix 11
Appendix Further reading ICT investment trends in Belgium, June 2015 ICT investment trends in the UK, May 2015 ICT investment trends in Italy, June 2015 ICT investment trends in the US, June 2015 Appendix 12
Table of Contents 1 Trends in ICT budgets... 4 1.1 Introduction... 4 1.2 Survey demographics... 4 1.3 ICT budget changes... 6 1.4 ICT budget allocation by core technology area... 7 1.4.1 Hardware budget breakdown... 8 1.4.2 Software budget breakdowns... 10 1.4.3 Third party IT services expenditure... 11 1.4.4 Cloud computing budget... 12 1.5 ICT budget allocation by function... 15 1.6 Outsourced IT functions... 16 2 ICT investment priorities and vendor satisfaction... 18 2.1 Introduction... 18 2.1.1 Enterprise applications... 18 2.1.2 Cloud computing... 20 2.1.3 Network services... 21 2.1.4 Security products... 23 2.1.5 Mobility... 25 2.2 Vendor satisfaction... 26 3 ICT procurement trends... 28 3.1 Introduction... 28 3.2 Business objectives and IT objectives influencing IT investment strategy... 28 3.3 ICT provider selection... 30 4 Summary 32 4.1 Belgian enterprises are continuing to invest in ICT to improve their efficiency and productivity... 32 5 Appendix 33 5.1 Definitions... 33 5.2 Further reading... 37 5.3 Contact the authors...37 ICT investment trends in Belgium 13
Table of Contents List of Figures Figure 1: Belgian enterprise ICT survey industry breakdown... 4 Figure 2: Belgian enterprise ICT survey breakdown by size band (number of employees)... 5 Figure 3: Recent and expected ICT budget changes among Belgian enterprises... 6 Figure 4: Belgian enterprises (external) ICT budget allocation, 2014 and 2015... 7 Figure 5: Belgian enterprises average hardware budget allocation... 8 Figure 6: Average allocation of software budgets in Belgian enterprise market... 10 Figure 7: Belgian enterprises average IT services budget allocation... 11 Figure 8: Belgian enterprises average cloud computing budget allocation by technology... 12 Figure 9: Belgian enterprises average cloud computing budget allocation by implementation type... 13 Figure 10: Belgian enterprises ICT budget allocation by function, 2014 and 2015... 15 Figure 11: Outsourced IT functions Belgian enterprises current and future outsourcing priorities... 16 Figure 12: Enterprise applications Belgian enterprises current and future investment priorities... 18 Figure 13: Cloud computing Belgian enterprises current and future investment priorities... 20 Figure 14: Network services Belgian enterprises current and future investment priorities... 21 Figure 15: Security products Belgian enterprises current and future investment priorities... 23 Figure 16: Mobility Belgian enterprises current and future investment priorities... 25 Figure 17: Vendor satisfaction among Belgian enterprises... 26 Figure 18: Business objectives and IT objectives which influence Belgian enterprises' IT investment strategy... 28 Figure 19: Factors influencing Belgian enterprises' decision to choose an ICT provider... 30 ICT investment trends in Belgium 14