Against a background of a stagnant IT market and declining hardware sales, software and solution sales remain buoyant and are currently keeping the European IT industry afloat.
New research by IT Europa reveals that in the last year, Europe's top 500 Solution VARs have increased revenues by 7%.
The results support recent findings from Gartner which forecast that worldwide spending on software will increase 6.0% in 2016 against a backdrop of an overall decline in global IT spending of -0.3% and with spending on devices declining -7.5%.
IT Europa's latest database report, Solutions VARs in Europe - the Top 500, provides detailed profiles of Europe's top 500 Solution VARs which last year racked up combined revenues of €34.11 billion ($38.15 billion).
In terms of revenue increases across geographic markets, the best performers include: Lithuania (47.8%), Slovakia (37.6%), Slovenia (23.9%), Belarus (23.1%), Turkey (17.6%), Russia (14.8%), Serbia (13.5%) and Croatia (12.6%). Amongst the largest markets, Germany and France performed strongest with 11.3% and 8.0% growth respectively. The UK showed more modest growth at 1.2%, while Spain showed another slight fall of -1.8%.
The report shows strong demand for software and solutions across all major verticals with the greatest focus amongst major VARs on the Public Sector (62.8%), Banking/Finance (55.6%), Retail (55.6%) and Healthcare (41.4%). In terms of types of software the hottest sectors were networking/security software (79.2%), followed by CRM software (45.8%), ERP software (45%) and internet software (45%). Another notable development is the surge in the proportion of Solution VARs which offer managed service-based solutions which has now reached 77%, an increase of more than 40% over the last two years.
"With continued downward pressures on hardware sales and even infrastructure technologies becoming commoditised, software and solutions sales represent a ray of hope for the European IT sector," said Alan Norman, Managing Director, IT Europa.
"The demand for software and solutions is continuing to rise and Solution VARs, ISVs and increasingly Managed Service Providers will all play a major role in how these are developed and delivered in the face of fast evolving customer demands."
www.iteuropa.com