Computer Global Market
Insights and Opportunities
Overview: The Austrian computer hardware market in 2008 totaled EUR 2.0 billion (USD 2.8 billion), a decline of 7.5% vis-a-vis 2007. Hardware accounted for 29.5% of total IT spending in 2008.
While statistics are not yet available, industry experts project that the IT market declined 0.2% to reach $9.5 billion in 2009. Over the five-year forecast period, the Austrian IT market should expand at a compound annual growth rate (CAGR) of 3.3% with the strongest growth to be seen in the IT services segment.
Sales for the entire computer hardware sector are expected to show an 8.4% decrease in 2009; however for 2010 industry experts have already forecasted an increase of 3.3%.
Server sales reached $280.8 million in 2008, PC desktops sales reached $1.1million, and PC notebooks sales amounted to $278.8 million and storage system sales were $180.3 million. Peripheral sales totaled $399.8 million and networking equipment sales reached $610.1 million. Hardware accounted for 29.5% of the total IT market in 2008. For 2009, we believe statistics will show a decline for all hardware segments. Peripheral sales will also decline in 2009.
The current credit crunch is having an impact on Austria’s IT market starting with a drop in hardware sales and leading to a related negative trend to almost all areas, including services. Austria’s economy contracted through most of 2009, although forecasts are more optimistic for 2010. The more severe cuts in IT budgets will be aimed at hardware or software projects, but many companies will also look for ways to reduce spending on IT services.
On the consumer side, the focus clearly shifted to notebooks, as lower prices continue to attract more and more individual users. Consumer notebook sales in 2008 recorded a growth of 11.6%.
The Austrian disk systems market is highly competitive with a relatively low volume of annual array sales. The $171.5 million in disk systems revenue represented 8.9% decline over the previous year.
New shipments of disk storage systems declined 8.7% in 2008. Storage spending was also driven by projects intended to increase data resiliency and to reduce data recovery and restore times. Such trends would certainly support the shift towards networked storage, which when appropriately designed and implemented, provides end-users with a much more resilient and efficient storage ecosystem.
A large portion of recent storage spending was in the financial services, telecom services, government, and healthcare industries.
A weakened economy will delay some IT projects and other investments. While companies realize the need to support their ongoing IT operations, additional technology investments will be postponed at least until there is better understanding of magnitude and possible duration of the current economic crisis. Investment delays are predicted to especially impact the IT implementation of IT projects.
Blades will remain the engine of growth for x86 servers, primarily for the datacenters. Cloud computing will become an important IT technique to reduce capex while containing opex associated with IT staff costs. Datacenters where hosting is occurring will gain much of the new-generation infrastructure. Other challenges will be around power cooling, which will be a top priority for many customers in 2010. Virtualization and multicore technologies will increasingly be combined as x86 server platforms take on increasingly heavy enterprise workloads.
The level of participants involved in IT decisions in Austrian companies has increased as a result of the alignment of IT with business. Corporate management teams have growing influence in the final IT investment decision, and the decision-making process is becoming slower and more complex. In general, enterprises have more of this inter-relation and need more time to make their choices.
The good news for this industry is that nearly 40% of Austrian end users are absolutely positive that IT can help them to deal with the effects of the financial crisis. An additional 32% believe IT can help them weather the financial crisis.
The United States is the main source of imports, followed by Germany. Overall, sales for the entire computer hardware sector are expected to increase by 3.3% in 2010.
Opportunities: The best opportunities of sales for U.S. manufactured IT hardware products are disk storage systems, servers (x86), peripherals, networking equipment, smart handheld devices and notebooks with special features.