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IT Maturity Increasing Among MEA Manufacturers as They Embrace Technology in Bid to Drive Productivity and Competitiveness

IDC PMS4colorversion  IT Maturity Increasing Among MEA Manufacturers as They Embrace Technology in Bid to Drive Productivity and Competitiveness

16 Mar 2014

With Middle East and Africa (MEA) manufacturers showing considerable enthusiasm for IT and comfortably outspending their counterparts in Central and Eastern Europe, the sector is well set for a significant boost in productivity and increase in competitiveness, according to the latest findings released today by IDC Manufacturing Insights.

A recent end-user survey conducted across MEA by IDC Manufacturing Insights shows that manufacturers in the Middle East, in particular, now view IT as an area that can help accelerate their manufacturing maturity. To this end, more comprehensive and competitive IT strategies are being put in place in core MEA countries, and more mature decisions regarding IT environments are being made, with customer-oriented initiatives and integration across the enterprise resonating particularly strongly. IT solutions that can be developed around the core enterprise resource planning (ERP) suite are also being viewed as powerful tools for fulfilling key strategic objectives.

“MEA manufacturers are becoming more mature in their use of IT,” says Martin Kuban, IDC Manufacturing Insights’ lead research analyst for Central and Eastern Europe, the Middle East, and Africa (CEMA) “Ongoing industrialization and market optimism have translated into increased IT spending, which has helped to accelerate this process. IDC forecasts that 2014 will be a very dynamic year in terms of IT deployments in the MEA manufacturing vertical.”

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Strong Growth in Energy Demand Set to Spur $1 Billion IT Investment by Major MEA Utilities

IDC PMS4colorversion 1 Strong Growth in Energy Demand Set to Spur $1 Billion IT Investment by Major MEA Utilities

IT spending by utilities in the four major Middle East and African countries (Turkey, South Africa, Saudi Arabia, and the UAE) increased 9.2% year on year in 2013 to total just under $1 billion, according to the latest round of data released by IDC Energy Insights. The figure is set to reach $1.05 billion in 2014.

The Middle East’s young and continuously growing population, along with a strong increase in national income, is driving rapid growth in demand for electricity across the region. In Africa, meanwhile, investments in restructuring the power sector, building essential infrastructure, deploying renewable energy (mainly solar), and making clean water accessible to all dominate the agenda and are combining to ratchet up the demand for energy across the region.

Currently accounting for around 45% of external IT spending in the utilities sector, IT services will be in particularly high demand over the coming years, with investments soaring by an annual average rate of more than 14% between 2012 and 2017. The need for more efficient operational modules (e.g., enterprise asset management, billing, data analytics) and heightened security will also propel software spending, with investment in this area set to grow at an average of 9.6% over the same period.

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EMEA Server Market Grows by 0.6% in 3Q11 to $3.2 Billion as Server Revenues Topple in Western Europe and in Middle East and Africa

IDC2 e1322687983514 EMEA Server Market Grows by 0.6% in 3Q11 to $3.2 Billion as Server Revenues Topple in Western Europe and in Middle East and Africa

 

 

 

IDC Press Release 

London and Prague  - The EMEA server market displayed flat growth in 3Q11, with revenue of $3.2 billion, up 0.6% annually and 546,883 units shipped, 1.0% less than in the same quarter last year. Revenue performance in the Western European subregion was below the EMEA average, with server sales down 1.4% annually. This was reflected in a shrinking Western European revenue share of the overall EMEA server market, which generated 74.8% of total sales, the smallest percentage since IDC records began. IDC believes that the current fluctuations of the exchange rate as the euro devaluates in the currency markets and more specifically against the dollar had a significant effect on server system revenue in Western Europe.

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Adspend Updated Forecast

MediaPost, 4/20/11

As a follow on after yesterday’s Research Brief of where we’ve been, here’s a look at where we might be we’re going.

According to an adjusted ZenithOptimedia forecast for global ad expenditure, it is now forecast to grow by 4.2% in 2011, down from the 4.6% forecast in December as a result of the political turmoil in the Middle East and the devastating earthquake in Japan. In Egypt there was almost no advertising on television during the revolution, notes the report, and Japan broadcasters replaced almost all commercial ad slots with public-service announcements for weeks after the earthquake.

The report says that some of the missing advertising is expected to reappear later in the year, followed by strong growth in these markets in 2012. Japan is forecast to shrink 4.1% this year then grow 4.6% next year, while Egypt follows this year’s 20.0% drop with 12.1% recovery in 2012.

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