Compaq increased its total share of the IT market in Europe, Middle East, and Africa (EMEA) in 1999 as a direct result of its ambitious acquisition of Digital, according to IDC. Despite the much-publicized problems that Compaq has encountered during the past 12 months, the company is now firmly established in Europe as a serious long-term rival to market leader IBM.
IDC`s latest report on IT suppliers` market share shows Compaq`s share of the EMEA IT market in 1999 was 7.2%, up from 6.3% prior to the acquisition. This places Compaq ahead of Hewlett-Packard as the second-largest IT provider in the region. In the total market of solutions covering hardware, software, and services, IBM increased its market share in 1999 from 9.5% to 9.8%.
During the year, the gap between the "executive club" of leading vendors in Europe and the "middle tier" of companies struggling to maintain market presence was intensified. This has lead to a major trend of consolidation in the region, with the market controlled by a shrinking number of suppliers.
A big winner during 1999 was Cisco, which leapt ahead of EDS and Dell in terms of total IT market share. Cisco appears set for strong long-term growth in the region and appears ready to emerge as a leading player beyond its traditional market of data communications hardware.
"More and more, the market is dominated by vendors that are able to adapt to the new market demand for solutions," said Stephen Minton, IDC EMEA IT Markets Center research manager. "Software and services have rapidly displaced hardware as the key market drivers in Europe, and this is reflected in the changing business strategies of many domestic European suppliers."
"ICL in the UK has already refocused entirely from systems hardware to services, and a similar process of re-orientation is happening in France at Groupe Bull," Minton said. "Siemens, meanwhile, has completely divested its hardware business into a new venture with Fujitsu, leaving it free to focus on services as a key growth market." Other companies that are increasing their services presence across Europe include debis Systemhaus, Cap Gemini, Andersen Consulting, and CSC.
IDC`s new report Competitive Analysis of Major IT Providers in EMEA 2000 provides a detailed competitive analysis of the IT market in Europe, the Middle East, and Africa. Regional revenue and market share for the leading vendors are provided along with detailed strategic analysis. Forecasts from the IDC Black Book, covering the complete IT market of servers, workstations, personal computers, storage, printers, LAN hardware, WAN equipment, packaged software, and IT services, are included to provide further quantitative analysis of market conditions. The scope of the report covers detailed, in-depth strategic profiles of 30 leading IT vendors in EMEA across all market segments. This report is available to purchase from your local IDC office contact details below.
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