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Best Connected Software from Ireland Enterprise Ireland’s strategy for the development of the indigenous software industry 2009 -2013. Jim Cuddy Software and Public Procurement division. Opportunities - Worldwide IT Market 2008 - $1.44Trillion. Average Annual Growth 2001-08 5-7%
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Best Connected Software from IrelandEnterprise Ireland’s strategy for the development of the indigenous software industry 2009 -2013 Jim Cuddy Software and Public Procurement division
Opportunities - Worldwide IT Market 2008 - $1.44Trillion Average Annual Growth 2001-08 5-7% February 2009 0.5% Forecast slow recovery to 2012 6.0% Source: IDC February 2009 SaaS growth 2009 (enterprise application mkts) 21% Forecast CAGR 2008-2013 20% Source: Gartner May 2009
The New Software Economy Software Industry – Global Market Drivers • New Market Driven Business Models • Changes to the Software Value Chain • Driven by new emerging technologies • Highly challenging economic environment Global Market Drivers => New Software Economy
NSE - New Market Driven Business Models • Pay Per Use • Software moving from Capital to Current spend– pay per use! • Software as a Service - Flexibility & supplier choice • Strong focus on ROI • Vendors to become service providers • or partner with hosted service providers • Charge by some measure of "consumption” • Changed model for product development, release, support • Implications for funding, valuations etc • Established vendors changing the way they do business • New market entrants with innovative business models 7
NSE - Networked Value Chain Other SWvendor Applications SW vendor Infrastructure SW vendor Systems integrator Product devlt. partner Customer Researchpartner Sales/ VAR From a conventional ‘Porter’ schema - to a linked model with components supplied from a variety of sources 8
NSE - Changes to the software value chain • Response to the challenge of Globalisation • Independence of location provided by the Internet, • 24/7 operation irrespective of time zone • Increased focus on emerging markets • Importance of Partnership • Electronic Delivery
NSE - Driven by new emerging technologies • Cloud Computing • Transfer Traditional IT Services to the Cloud • Scope for the creation of substantial new businesses • Software as a Service (SaaS) • Existing Companies developing complementary business • New innovative entrants • Web 2.0 • Internet Applications • Blogs, Wikis, Social Networks, Mashups, Podcasting, • Widgets, RSS • Service Oriented Architecture
Enterprise Ireland’s Strategy for the development of the indigenous software industry 2009 – 2013 Vision Statement By 2013, Ireland will be internationally recognised as having a "best connected" New Software Economy successfully delivering innovative solutions on a global scale
Growing an Industry of Scale in Ireland - Three Pillars The New Software Economy - Utilise market trend toward New Business Models and the adoption of emerging technologies Focus on Clusters - Build on existing cluster, identify and develop new areas of opportunity ’ “Best Connected” Networks Capitalise on the Networked value chain to leverage assets in MNC’s, Diaspora, Academia, Industry Bodies etc to create virtual scale and address global markets
Pillar 1 - New Software Economy New Business Models Skills Route to Market Funding Emerging Technology
Pillar 1 – New Software Economy • SaaS Transition Programme • Internet Acceleration Programme with IIA • Specific Management Development Initiatives • Product Management –Pilot” Master class” - May 2009 • Routes to Markets • Partnerships programme • Funding • London international VC forum • Technology Awareness Events • Cloud Computing, Technology Roadmaps
Pillar 2 – Focus on Clusters Key Established Clusters operating in significant established markets Finance (€237M) eLearning (€218M) Telecom (€210M) Growing clusters operate in attractive market sectors Public sector (€117 M) Travel and Aviation (€30M) Security (€14 M) Potential emerging and new opportunity areas at an earlier stage of cluster development. Web 2.0 Healthcare Mobility Customer-centric Stimulate and support cluster activity among companies within sectors 15
Pillar 2 – Focus on Clusters • Market based activities • Missions, Events, Trade Fairs • Collaborative marketing • Branding • Networking • CEO Forums • Technology focussed • Industry Led R&D agendas • Telecommunications Standards Initiative
Pillar 3 Best Connected - Leveraging Connections • Technologies – Global IP & Academia • Skills – Academia & MNC’s • Market Access – Diaspora & MNC’s • Funding – VC, MNC’s, Private Investor Networks & Diaspora • Best Practice – MNC’s & Global Academia
The Scale of the Opportunity • The potential to double the size of the SW sector- to over €2.5bn by 2013 • Developing an increased cohort of companies of scale • Ensuring a strong flow of innovative start up companies • Position Ireland as a key player in this New Software Economy globally