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IDC's EMEA 2007 Market Predictions - Significant Churn for Just 4.8% ICT Growth

Total ICT spending in EMEA is expected to grow by 4.8% to reach ?733 billion in 2007, according to a new study by IDC. Growth in emerging markets is forecast to be significantly faster than in Western European countries, representing 17% of total ICT spending in 2007.

The study outlines IDC's main predictions for the coming year and forecasts single-digit growth in each of the major submarkets - software (7.3%), hhardware (6.8%), services (6.1%), and telecoms (3.0%).

There is expected to be considerable activity among suppliers as they strive to hold on to their business and compete in new areas. In particular:
Convergence and multiplay strategies will be the flavor of telecom developments as vendors seek to increase customer "stickiness."
Moore's Law will continue to push developments in the hardware area, with vendors increasingly successful in selling to small and medium businesses and consumers.
The services market will continue to drive towards managed services and stronger solutions selling.
Infrastructure investments will drive much of the software market, where we expect to see continued acquisition activities in the year.

From a customer perspective the main issues for 2007 are expected to be security, virtualization, regulatory compliance, and mobility, with each theme in turn creating shifts in market direction and growth.



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