Thursday 30 June 2016

*NEW RESEARCH*: UK SITS Market Trends & Forecasts 2016

logoJust days before we were due to publish our keynote annual UK SITS Market Trends & Forecast Report for 2016, the UK voted to leave the EU. We have included our ‘first response’ views about the potential impact of BREXIT on the key market segments (Software, IT Services; Business Process Services) and key vertical sectors (Financial Services; Public Sector) in this report. We are in the process of investigating the possible scenarios, and will be publishing additional sector- and segment-specific research shortly.

So in hindsight, it seems even more apropos – perhaps even ironic – that back in January we chose ‘Surfing the waves of disruption’ to be our theme for 2016.

Tsunami, more like!

When we launched the theme, we foresaw that the move to ‘digital’ would increasingly disrupt UK SITS (software, IT & business process services) market growth and profoundly re-map the supplier landscape.

We predicted:

  • More consolidation—not all of it rational
  • More partnerships—not all of them successful
  • More crazy valuations—not all of them sustainable

Not only has this come to pass – there’s clearly much more to come.

In particular, the shift to digital has accelerated acceptance of public cloud infrastructure provisioning as a viable alternative to on-premise – and even ‘private cloud’ – enterprise computing environments. Indeed. Amazon Web Services grew by 45% in the UK last year (see our accompanying UK SITS Rankings 2016 report) and is now among the Top 20 suppliers of infrastructure services to the UK market.

As we project forwards, we believe that the shift to digital will set the legacy SITS market into decline by 2018, at which point growth will be entirely driven by cloud computing. Perhaps BREXIT will give legacy suppliers a little more breathing space – but surely it’s just delaying the inevitable.

UK SITS Market Trends & Forecasts 2016 is available for download now to subscription clients of the TechMarketView Foundation Service.

For further information, please contact our Client Services team.

Posted by HotViews Editor at '10:00'