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07/27/2006

Top 12 IT vendors dominate 30% of Western European retail and wholesale industry IT spending, says IDC

MILAN, ITALY – JULY 27, 2006 – In the Western European retail and wholesale sector competition is heating up, according to a new competitive analysis released by Manufacturing Insights, an IDC company. In this study, Manufacturing Insights estimates that the top 12 IT vendors accounted for approximately 30.2% of the total Western European retail and wholesale industry IT spending during 2005, while the market leader, IBM, achieved more than $2.9 billion in revenue in the sector.

"IBM stands out as the leading IT vendor in the sector during 2005, while 2006 will prove to be an interesting year to assess the outcome of IT vendors' strategies for the Western European retail and wholesale industry.

The common foundation in each IT product area is that the higher the retail vertical alignment the stronger the retail market success," said Ivano Ortis, program manager, Manufacturing Insights.

Wincor Nixdorf is at the top in terms of percentage of revenue achieved in the Western European retail and wholesale sector. SAP and Accenture stand out as the top software vendor and the top IT services vendor in the sector.

With an expected CAGR of 7.0% for software and 5.2% for IT services, for an overall IT spending CAGR of 4.8% from 2006 to 2010 for Western European retail/wholesale, competition is heating up as global IT vendors and best-of-breed retail solutions providers refine their vertical solution offerings, sales policies, marketing, and partnership strategies to capitalize on these opportunities. Growth opportunities for global and specialized hardware, software, and IT services vendors are increasing, and the overall market size is one of the most attractive from a vertical market perspective.

In this study, Manufacturing Insights profiles 12 top IT vendors and maps them on three variables:

— Total Western European retail and wholesale sector revenue.

— Percentage of Western European retail and wholesale sector revenue

over total Western European revenue of each vendor.

— Vertical alignment of go-to-market approach. Vertical alignment was

evaluated through the combined scoring of five elements of go-to-market strategy in the retail and wholesale sector: vertical solution offering, marketing message, partnerships, stronghold in Europe, and sales organization.

The study includes vendors that currently have hardware, software, and IT services offerings for the Western European retail and wholesale sector and derive a significant amount of revenue from the vertical, namely Accenture, Cisco, Dell, EDS, Fujitsu Siemens, HP, IBM, Microsoft, NCR, SAP, T-Systems, and Wincor Nixdorf.

For each vendor Manufacturing Insights provides an analysis of retail-specific IT solutions and services, recent customer wins, and go-to-market strategy. In addition this study provides a competitive positioning map highlighting the strategic and tactical approach of IT vendors targeting the European retail/wholesale industry, as well as Manufacturing Insights' estimates of short-term competitive dynamics, including prescriptions for improving competitive positioning in the Western European retail and wholesale industry.

Western Europe, Retail/Wholesale Sector, 2006, Top IT Vendors Competitive Assessment (Doc #MIPW03N, June 2006) provides a competitive analysis of Western European retail and wholesale IT providers. Revenue data for 2005 provides an overview of the retail/wholesale IT players and their influence in the market sector.

To purchase this document, contact your local office or visit www.manufacturing-insights.com .

About IDC

IDC is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. Over 850 IDC analysts in 50 countries provide global, regional, and local expertise on technology and industry opportunities and trends. For more than 42 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com .

All product and company names may be trademarks or registered trademarks of their respective holders.

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