European IT Executive Market Watch, 2Q06

This IDC study presents analysis of major market segments in Western Europe alongside five-year forecasts for all market sectors and countries. Since 1990, IDC's Worldwide Black Book has represented the definitive, annual overview of IT industry trends and market opportunities. The document includes complete spending forecasts for more than 30 primary market segments in 16 country markets, drawn from IDC's comprehensive local research presence in Western Europe. Now updated quarterly, the Western European Black Book presents forecasts according to current assumptions relating to economic trends, end-user surveys, and supply-side data.

"The European IT Market continues to show strong performance in 2006. With booming business confidence in most of the European countries, IT investment levels are high and aimed at increasing companies' abilities to face competition and succeed in winning" says Marcel Warmerdam, research director, EMEA IT Markets. Although GDP growth may level off slightly in 2007 IDC remains confident about a strong 2007 IT market performance. Warmerdam also adds: "It will be very interesting to watch how the convergence of IT, communications and media will ignite the consumer market making it one of the most strategically and rapidly growing ICT market segments in 2007".

"The European IT market is estimated to reach roughly ?300 billion in value and grow by 6% in 2006, thanks to renewed European economic activity. While most of software and services growth will be concentrated in Northern European regions, hardware's biggest growth opportunities will lie in lower penetrated markets such as Southern Europe. Economic fundamentals remain strong despite wildcards, with expected 2.6% GDP growth fueled mainly by soaring business confidence and increased business investment," said Zishan Mohammad, research analyst at IDC's European IT Market expertise center. He added, "More than ever, information will be the differentiation key to creating value for European firms as the world flattens. As such, IT vendors have to formulate solutions that balance standardization and customization as businesses want to make information support, run, and deliver in a more efficient, versatile, easy, and dynamic way."