20061017 enabling opportunities for software and services in europe

European Commission European Commission •• DG Information Society and MediaDG Information Society and Media

SAP Enterprise Services Partner Summit SAP Enterprise Services Partner Summit 17 October 2006, Amsterdam 17 October 2006, Amsterdam -- NetherlandsNetherlands

Enabling opportunities for software and Enabling opportunities for software and services in Europeservices in Europe

Arian Zwegers

DG Information Society and Media Software Technologies


Overview Overview • ICT in EU

• Trends in business and ICT• ICT market in EU• Software and services market in EU

• EC response• i2010 policy• Examples of policies

• Opportunities for software companies• Framework Programmes• NESSI Technology Platform• Other


Business and ICT transformationsBusiness and ICT transformations

1960 1970 1980 1990 2000 2010Mainframes mini-computers PC client-sever Internet Convergence

Company levelinformation& automation

Automated Support; Costs

DepartmentalEmpowerment

Speed; Logistics

PersonalFreedom

BusinessProcessRe-engineering

Pervasive global& integrated groups

Supplychains

Anytime, anywhere; Platforms and ecosystems

Globalisation, customisation, outsourcing


Trends in BusinessTrends in Business

• Changing “cooperations / partnerships”• Do it all yourself• Outsourcing• Open Innovation

• Open Innovation by Henry Chesbrough• Ecosystems• Connect and Develop

• Computerworld, Sept 12, 2004• HBR, March 2006

• Crowdsourcing• Wired, June 2006


Trends in ICTTrends in ICTSome examples:

• Convergence

• Broadband adoption

• Consumerisation of technology

• RFID – Radio Frequency Identification

• Open Source Software

• SOA – Service Oriented Architecture

• SaaS – Software as a Service


ICT Market, 2005ICT Market, 2005 By region and by productBy region and by product

Europe, 33.8%

US, 28.0%

Japan, 14.7%

Rest of World, 23.5%

Office equipment, 1.3%

Computer hardware, 12.7%

End-user communications equipment, 4.5%

Carrier services, 44.2%

Datacom and network equipment,

6.5%

Software, 10.7%

IT services, 20.0%

Total value =€ 1,949 billion

Total value =€ 659 billion

Europe 33.8%

Source: EITO, 2006


Increasing awareness of ICT contributionIncreasing awareness of ICT contribution

• Significant contribution ICT to productivity and growth

• Direct contribution ICT sector to GDP, indirectly by take up and exploitation in other sectors

• ICT improves quality of life of citizens

• ICT is one of the key ingredients of sustainable development

• ICT contributes to Lisbon agenda


Software and services market in EU15Software and services market in EU15

Data missing – only EU15 available

46,9(28,4%)

118,1(71,6%)

0,60,91,01,32,42,64,44,57,88,8

12,6

Germa-ny

UK France Nordic2 Italy Spain Nether-lands

Austria Bel-gium

Other3 Por-tugal

1,01,82,02,75,67,28,6

11,5

18,824,1

35,1

UK Germa-ny

France Nordic2 Italy Nether-lands

Spain Bel-gium

Others3 Aus-tria

Por-tugal

1 Includes Norway2 Includes Norway,

Sweden, Finland and Denmark

3 Includes Greece, Ireland, Luxem-burg

Source: PAC

Software (Market volume 2005e)

IT services (Market volume 2005e)

EU151 SITS 2005e in bn EURMarket volume: 165.0 bn EUR

IT services

Software

1.2 Market vol-ume in bn EUR1.2 Market vol-ume in bn EUR

http://www.softwareleadership.info/Source: PAC


Top100 suppliers serving the Western European Top100 suppliers serving the Western European Software & IT Services marketSoftware & IT Services market

By number of companies (in %, 2004)1 By revenue (in % of Top 100 revenue, 2004)

4

36

63 4 5

10

13

20

FR

IT

US/Canada

DE

SE

AsiaUK

NLRoE

61% of companies come from

Europe

These Euro-pean compa-nies account for only 43% of the overall

Top 100 companies’

revenues

3

54

33

11

13

10

1 1

UK

FR

DE

NLITSE RoE

US/Canada

Asia

Source: PAC http://www.softwareleadership.info/


Software and ServicesSoftware and Services

• A key industrial sector• 1 Mio specialists in EU• 200 B€ market (70 B€ Software)• EU ICT market growth mainly driven by software

and IT services (EITO ’06): 5.8% for 2006-07

• The engine room of the Information Society• Important EU industry sectors depend on S&S


Regulatory FrameworkRegulatory Framework Policy StrategyPolicy Strategy

• The Lisbon Strategy• eEurope 2002

- SMEs to ‘Go Digital’• eEurope 2005

- Legislation (to identify & remove barriers)- SMEs- e-skills- Interoperability- Trust and confidence

• i2010R&D Activities

R&D Activities

•• Framework Framework ProgrammeProgramme 66 - 3.6 B€ to ICT priority (2003-2006)

•• Framework Framework ProgrammeProgramme 77- 9.0 B€ to ICT priority (2007-2013)

• New regulatory framework for electronic communications

• Directive on electronic commerce (2000/31/EC)

• Directive on electronic signatures (1999/93/EC)

• Directive on copyright and related rights (2001/29/EC)

• Directive on privacy and electronic communications (2002/58/EC)

• …

Activities by DG Information Society and MediaActivities by DG Information Society and Media


i2010 Strategic Frameworki2010 Strategic Framework

• A comprehensive strategy for ICT and media sectors• Single European Information Space• Innovation and Investment in ICT research• Inclusion, better public services and quality of life

http://europa.eu.int/i2010


December 2006: Communication from the European Commission

December 2006

March 2006September 2006

June 2006

3 July – 17 Sept. 2006: Public online consultation

6-7 March: Internet of ThingsSept. – Oct. 2006: Analysis

of input received

Oct. – Nov. 2006: Drafting of the

Communication March 9, 2006 at CeBIT: Commissioner Viviane Reding announces the

launch of a Europe-wide public consultation

Ongoing research

and co-operation

15-16 May: Applications

16-17 May: Security & Privacy

1 June: Interop./ Governance

2 June: Frequency spectrum

RFID policyRFID policy Towards a CommunicationTowards a Communication

16 Oct. 2006: Final conference

www.rfidconsultation.eu


Other examples of policiesOther examples of policies• Open Source Software

• “Economic impact of OSS on innovation and competitiveness of EU ICT sector” study

• “The Effect of Public Administrations Publishing Open Source Software” study

• Open Source Observatory (OSO): dissemination of good practice

• Open Source Observatory and Repository (OSOR)

• ICT Standardisation• Open consensus building process • Priority for ensuring interoperability, facilitating ICT uptake,

and ensuring accessibility

http://cordis.europa.eu/ist/st/studies.htmhttp://ec.europa.eu/idabc/servlets/Doc?id=24853

http://ec.europa.eu/enterprise/ict/policy/standards/ict_index_en.htm


R&D ExpenditureR&D Expenditure as % of GDPas % of GDP

4.27

3.51

3.15

2.76

2.50

2.19

1.99

1.93

1.87

1.35

1.31

1.11

0.97

0.33

0 0.5 1 1.5 2 2.5 3 3.5 4 4.5

Sweden

Finland

Japan

US

Germany

France

EU15

EU25

UK

Czech Republic

China

Spain

Hungary

Cyprus

Source: Eurostathttp://epp.eurostat.ec.europa.eu/cache/ITY_OFFPUB/KS-NS-05-002/EN/KS-NS-05-002-EN.PDF


R&D expenditure by industryR&D expenditure by industry

Source: Financial Times, 21 March 2005


ICT R&D expenditureICT R&D expenditure

• Europe is spending less than other regions in ICT R&D

• Public ICT Spending is Fragmented across Europe

Framework Programmes

29.2

93.3

48.8

European Union USA Japan

0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 1.2%

France

Germany

United Kingdom

Spain

The Netherlands

Sweden

Finland

European Union

United States

Japan

Annual ICT R&D Expenditure (% GDP)Comparative spending on ICT R&D in 2000

(Billion Euro)


International Co-operation

Science in Society

Research Potential

Regions of Know-ledge

Research for the benefit of SMEs

Research Infrastru- ctures

CAPACITIES

Marie Curie ActionsPEOPLE

European Research CouncilIDEAS

9. Security & Space

8. Socio-economic

Research

7. Transport

6. Environment

5. Energy

4. Nano, M

aterials, Production Techn.

3. ICT

2. Food, Agriculture

Biotechnology

1. Health

CO

OPER

ATIO

N

Specific P

rogramm

es

7th Framework Programme (20077th Framework Programme (2007--2013)2013)

http://cordis.europa.eu/fp7/


Work Programme 2007Work Programme 2007--20082008

Futu

re a

nd E

mer

ging

Te

chno

logi

es

Cognitive systems, robotics andinteraction

Network and service infrastructures

Components, subsystems and embedded systems

Digital content and knowledge

ICT for health

Intelligent car and sustainable growth

ICT for independent living and inclusion

End-to-end systems for Socio-economic goals

Tech

nolo

gy ro

adbl

ocks

ETPs

Flagships


Challenge 1 Challenge 1 ‘‘Pervasive & Trusted Network Pervasive & Trusted Network & Service Infrastructures& Service Infrastructures’’

The network of the future • Ubiquitous network infrastructures and

architectures• Optimised control, management and

flexibility of the future network infrastructure

• Technologies and systems architectures for the Future Internet

Service & Software Architectures, Infrastructures and Engineering

• Service architectures• Service/SW engineering approaches• Strategies and technologies enabling

mastery of complexity, dependability and behavioural stability

• Virtualisation tools, system software and network-centric operating systems

• Integrated solutions supporting the networked enterprise

Secure, dependable and trusted infrastructures

• Security & resilience in network infrastructures

• Security & trust in dynamic and reconfigurable service architectures

• Trusted computing infrastructures• Identity management and privacy

enhancing tools

Networked Media • Interoperable multi-media network &

service infrastructure • End-to-end systems


What are they:What are they: Industry-led public-private partnerships that bring together industry, research community and public authorities in areas of strategic economic importance for Europe

Objective:Objective: World class performance in research and innovation in ICT by closing the gap with Europe’s leading competitors

Focus:Focus: on user value and end-to-end solutions, on convergence, innovation, standards, interoperability, spectrum, IPRs, international cooperation

European Technology PlatformsEuropean Technology Platforms

www.nem-initiative.org

www.emobility.eu.org

www.isi- initiative.eu.org/

www.nessi- europe.com

Large Scale EU Partnerships

joining the future

http://cordis.europa.eu/technology-platforms/home_en.html


Industrial Commitment Industrial Commitment

http://www.nessi-europe.com

Develop a visionary strategy for Software and Services driven by a common Strategic Research Agenda where innovation and business strengths are reinforced.

Expected impact:• standardisation, common service platform open standards• improve EU competitiveness in S&S• reduce sector fragmentation and align R&D efforts• openness: an open initiative mobilising SMEs, academia and industry• address key R&D and policy challenges in S&S


WhatWhat’’s in it for me?s in it for me?

• Gaining knowledge from other organisations• Leveraging other organisations’ knowledge

• Funding from EC• General rule (draft):

• 50% for research, technology development, and demonstration activities

• 100% for management and training• Same for SMEs (and non-profit orgs), but:

• 75% for research and technology development

http://cordis.europa.eu/fp7/participation.htm


Other Other ProgrammesProgrammes• Competitiveness and Innovation Framework Programme (CIP)

• Objectives:• to foster the competitiveness of enterprises • to promote innovation; • to accelerate the development of a competitive, innovative and inclusive Information

Society• Budget: roughly 0.5 billion Euro per year • Priorities ICT Policy Support Programme for 2007: eGov, eInclusion, eHealth

• Structural Funds and Cohesion Fund • Objectives:

• to reduce disparities in development and promote economic and social cohesion in the European Union

• to improve the effectiveness of the Community’s structural assistance by concentrating the assistance,

• to promote economic and social cohesion and solidarity between Member States• Budget: roughly 28 and 2.5 billion Euro per year

• Eureka

CIP: http://europa.eu.int/comm/enterprise/enterprise_policy/cip/index_en.htmStructural Funds: http://europa.eu/scadplus/leg/en/lvb/l60014.htmCohesion Fund: http://europa.eu/scadplus/leg/en/lvb/l60018.htmEureka: http://www.eureka.be


Call to actionCall to action• Have a look at FP7

• Have a look at NESSI (and other ETPs)• Influence future research agendas• Participate to upcoming Network Events

• 23-24 October: ETSI meeting on standards and interoperability aimed at the ETPs

• 21-23 November: IST Conference and exhibition in Helsinki, regular conference sessions and networking sessions

• 7-8 February 2007: FP7 multiplier event in Brussels (ETPs)• 7 March 2007: FP7 launch event in Brussels (conference and

exhibition)• 15-21 March 2007: Participation in CEBIT (in preparation)• Many, many events organised by ETPs check web sites


For More Information ...For More Information ...FP7:http://cordis.europa.eu/fp7/http://cordis.europa.eu/ist/

Software Technologies:http://cordis.europa.eu/ist/st/index.html

NESSI:http://www.nessi-europe.com

E-mail: <first name>.<last name>@ec.europa.eu

FP7:http://cordis.europa.eu/fp7/http://cordis.europa.eu/ist/

Software Technologies:http://cordis.europa.eu/ist/st/index.html

NESSI:http://www.nessi-europe.com

E-mail: <first name>.<last name>@ec.europa.eu

20061017 enabling opportunities for software and services in europe

Technology

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