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In H110 there were grounds for optimism in the Venezuelan IT market with continued investment by small and medium-sized enterprises (SMEs) and spending by sectors like retail and financial services. Venezuela’s IT market still offers areas of opportunity for IT vendors despite a challenging economic and political environment. BMI projects that IT spending will grow from US$1.7bn in 2010 to around US$2.2bn by 2014. However, the steep devaluation of the bolívar for non-essential imports such as computers will depress spending, while the anti-private business policies of the Chávez government will inhibit some business investment.
Venezuela is one of the smaller markets in its region, but a rather low PC penetration rate of less than 12% indicates the underlying potential for growth. Government policies such as the promotion of open source software will continue to shape the market. The private business sector will offer opportunities, as companies invest in service platforms and continued deployment of fixed and mobile broadband will helpto drive spending across several market segments.
Industry Developments
In 2010, the Venezuelan government aims to supply schools with 350,000 low-cost netbooks. The computers are being delivered from Portugal as part of a technology knowledge transference agreement signed in late 2008. As of Q309 around 50,000 laptops imported from Portugal had already been distributed under the plan.
The government is also assembling its own laptops as part of its educational programme, Canaima Educativo. The laptops will be manufactured at two plants in the Paraguaná Peninsula, Falcon state, with production scheduled to start within eight months. The goal is to distributed 300,000 PCs manufactured under the programme, starting in September 2010.
The government-manufactured laptops will come with 100% open source software. In August 2008 the IT agency CNTI said that nearly 60% of Venezuela’s government offices had switched from proprietary software to open source, compared with its target of 100% migration by year-end 2008.
Competitive Landscape
In August 2009, Venezuelan mobile operator Digitel announced a partnership with Chinese PC vendor Lenovo in the launch of a new mobile broadband offering. Digitel’s broadband package will come bundled with a Lenovo netbook inclusive of a modem for 3G service, with the packages available at a cost of VEB3,249 (about US$1,500). Digitel launched 3G services this year and has targeted 7.5mn subscribers for its service by the end of 2009.
In 2009, local PC vendor Siragon was the first company to launch netbooks in Venezuela, and the company estimated that sales of around 15,000 units in 2008 gave it about 50% of that segment. The company is targeting netbooks as a priority for 2009, as part of its plan to achieve revenue growth of 30% this year. The company estimated that it was on course to sell 80,000 desktops and 50,000 laptops in the Venezuelan market last year.
In September 2009, Microsoft Venezuela created a new unit to focus specifically on public sector accounts. The company aimed to increase the amount of business generated from government during its fiscal year 2010, which began in July 2009. Microsoft claimed to have achieved double-digit growth in Venezuela in fiscal 2009 and hoped to replicate this achievement in fiscal 2010.
Computer Sales
BMI projects that Venezuela’s PC market growth will continue to offer some growth opportunities, despite a difficult trading context of sharp deterioration in consumer and business confidence. The market is now expected to be worth US$935mn in 2010, with sales expected to approach the US$1.2bn mark by 2014. Computer hardware sales in H110 were also surprisingly strong in some parts of the private sector, supported by a tax subsidy for SME technology investments.
The Venezuelan computer hardware market should have a positive growth trajectory over the five-year forecast period, with a projected compound annual growth rate (CAGR) of 6%. The current level of computer penetration is estimated at around 6% and is expected to reach close to 18% by 2013. The main long-term driver is greater affordability, partly as a result of cheap computer programmes and the government’s initiative to manufacture low-cost ‘Bolivarian’ computers.
Software
Venezuela’s software market is projected at US$297mn in 2010. Software revenues are expected to dip into negative growth territory in 2010 due to rapidly declining business confidence in the private sector, and a relatively high and apparently increasing software piracy rate. However, BMI forecasts that the addressable market will grow at a CAGR of 9% to around US$414mn by 2014.
The market landscape is likely to remain shaped by the government’s drive to promote open source software. However, enterprises in sectors such as retail, distribution, telecoms, financial services and export companies should provide potential opportunities for proprietary software vendors. Meanwhile, the economic crisis has encouraged smaller Venezuelan companies to look closer at cloud computing models such as software-as-a-service (SaaS.)
IT Services
Venezuela’s IT services market is projected at US$256mn in 2010. By regional standards, the percentage accounted for by services in Venezuela’s hardware-dominated IT market is much lower than average, at around 16%. In many countries, such as Brazil, services account for more than 30% of spending The most demand, around 75%, will come from the large company sector, with the oil sector itself still significant, despite the fall in oil prices. Venezuela’s banks and telecoms operators also continued to spend in 2009 as they rolled out new platforms and services.
E-Readiness
With the number of telecentres continuing to increase and the availability of internet services expanding, it is projected that internet usage will continue to rise at a strong pace in Venezuela. Wireline services seem to dominate, but there is potential for wireless broadband to become a significant driver of broadband growth.
Because of the low levels of internet access in the country, the Venezuelan government has generally been slow to roll out e-services. The recent decision by the government to launch in 2008 a consultation on a new telecoms law to promote competition may be a hopeful augur of progress. The country has fastgrowing mobile penetration and has also been rolling out fixed-wireless services such as Wi-Fi and the Korean technology WiBro.
In 2008, Venezuela’s government conducted technical tests on different digital TV standards to decide which ones to adopt. The government expects to implement digital TV by 2012, with both digital and analogue technologies coexisting for a five-year period. The tests involved a number of different standards, including integrated services digital broadcasting (ISDB) from Japan, digital video broadcasting (DVB) from Europe and a Chinese standard.
E-Government
The government is committed to improving e-use in the public sector and reducing the digital divide. The development of e-infrastructure is also seen as one method to fight corruption in the public sector. Telecom Venezuela is working with the government on a project called Telepolítica, which involves using information and communication technology (ICT) for local development projects. In 2008, stateowned telecoms company Telecom Venezuela signed a co-operation agreement with the Comptroller General’s Office (CGR) and the National IT Institute (CNTI) to help build ICT infrastructure for the CGR and other public bodies.
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Original Source : – Information Technology Market
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Browse All Business Monitor International Market Research Reports
In H110 there were grounds for optimism in the Venezuelan IT market with continued investment by small and medium-sized enterprises (SMEs) and spending by sectors like retail and financial services. Venezuela’s IT market still offers areas of opportunity for IT vendors despite a challenging economic and political environment. BMI projects that IT spending will grow from US$1.7bn in 2010 to around US$2.2bn by 2014. However, the steep devaluation of the bolívar for non-essential imports such as computers will depress spending, while the anti-private business policies of the Chávez government will inhibit some business investment.
Venezuela is one of the smaller markets in its region, but a rather low PC penetration rate of less than 12% indicates the underlying potential for growth. Government policies such as the promotion of open source software will continue to shape the market. The private business sector will offer opportunities, as companies invest in service platforms and continued deployment of fixed and mobile broadband will helpto drive spending across several market segments.
Industry Developments
In 2010, the Venezuelan government aims to supply schools with 350,000 low-cost netbooks. The computers are being delivered from Portugal as part of a technology knowledge transference agreement signed in late 2008. As of Q309 around 50,000 laptops imported from Portugal had already been distributed under the plan.
The government is also assembling its own laptops as part of its educational programme, Canaima Educativo. The laptops will be manufactured at two plants in the Paraguaná Peninsula, Falcon state, with production scheduled to start within eight months. The goal is to distributed 300,000 PCs manufactured under the programme, starting in September 2010.
The government-manufactured laptops will come with 100% open source software. In August 2008 the IT agency CNTI said that nearly 60% of Venezuela’s government offices had switched from proprietary software to open source, compared with its target of 100% migration by year-end 2008.
Competitive Landscape
In August 2009, Venezuelan mobile operator Digitel announced a partnership with Chinese PC vendor Lenovo in the launch of a new mobile broadband offering. Digitel’s broadband package will come bundled with a Lenovo netbook inclusive of a modem for 3G service, with the packages available at a cost of VEB3,249 (about US$1,500). Digitel launched 3G services this year and has targeted 7.5mn subscribers for its service by the end of 2009.
In 2009, local PC vendor Siragon was the first company to launch netbooks in Venezuela, and the company estimated that sales of around 15,000 units in 2008 gave it about 50% of that segment. The company is targeting netbooks as a priority for 2009, as part of its plan to achieve revenue growth of 30% this year. The company estimated that it was on course to sell 80,000 desktops and 50,000 laptops in the Venezuelan market last year.
In September 2009, Microsoft Venezuela created a new unit to focus specifically on public sector accounts. The company aimed to increase the amount of business generated from government during its fiscal year 2010, which began in July 2009. Microsoft claimed to have achieved double-digit growth in Venezuela in fiscal 2009 and hoped to replicate this achievement in fiscal 2010.
Computer Sales
BMI projects that Venezuela’s PC market growth will continue to offer some growth opportunities, despite a difficult trading context of sharp deterioration in consumer and business confidence. The market is now expected to be worth US$935mn in 2010, with sales expected to approach the US$1.2bn mark by 2014. Computer hardware sales in H110 were also surprisingly strong in some parts of the private sector, supported by a tax subsidy for SME technology investments.
The Venezuelan computer hardware market should have a positive growth trajectory over the five-year forecast period, with a projected compound annual growth rate (CAGR) of 6%. The current level of computer penetration is estimated at around 6% and is expected to reach close to 18% by 2013. The main long-term driver is greater affordability, partly as a result of cheap computer programmes and the government’s initiative to manufacture low-cost ‘Bolivarian’ computers.
Software
Venezuela’s software market is projected at US$297mn in 2010. Software revenues are expected to dip into negative growth territory in 2010 due to rapidly declining business confidence in the private sector, and a relatively high and apparently increasing software piracy rate. However, BMI forecasts that the addressable market will grow at a CAGR of 9% to around US$414mn by 2014.
The market landscape is likely to remain shaped by the government’s drive to promote open source software. However, enterprises in sectors such as retail, distribution, telecoms, financial services and export companies should provide potential opportunities for proprietary software vendors. Meanwhile, the economic crisis has encouraged smaller Venezuelan companies to look closer at cloud computing models such as software-as-a-service (SaaS.)
IT Services
Venezuela’s IT services market is projected at US$256mn in 2010. By regional standards, the percentage accounted for by services in Venezuela’s hardware-dominated IT market is much lower than average, at around 16%. In many countries, such as Brazil, services account for more than 30% of spending The most demand, around 75%, will come from the large company sector, with the oil sector itself still significant, despite the fall in oil prices. Venezuela’s banks and telecoms operators also continued to spend in 2009 as they rolled out new platforms and services.
E-Readiness
With the number of telecentres continuing to increase and the availability of internet services expanding, it is projected that internet usage will continue to rise at a strong pace in Venezuela. Wireline services seem to dominate, but there is potential for wireless broadband to become a significant driver of broadband growth.
Because of the low levels of internet access in the country, the Venezuelan government has generally been slow to roll out e-services. The recent decision by the government to launch in 2008 a consultation on a new telecoms law to promote competition may be a hopeful augur of progress. The country has fastgrowing mobile penetration and has also been rolling out fixed-wireless services such as Wi-Fi and the Korean technology WiBro.
In 2008, Venezuela’s government conducted technical tests on different digital TV standards to decide which ones to adopt. The government expects to implement digital TV by 2012, with both digital and analogue technologies coexisting for a five-year period. The tests involved a number of different standards, including integrated services digital broadcasting (ISDB) from Japan, digital video broadcasting (DVB) from Europe and a Chinese standard.
E-Government
The government is committed to improving e-use in the public sector and reducing the digital divide. The development of e-infrastructure is also seen as one method to fight corruption in the public sector. Telecom Venezuela is working with the government on a project called Telepolítica, which involves using information and communication technology (ICT) for local development projects. In 2008, stateowned telecoms company Telecom Venezuela signed a co-operation agreement with the Comptroller General’s Office (CGR) and the National IT Institute (CNTI) to help build ICT infrastructure for the CGR and other public bodies.
About Us
ReportsandReports comprises an online library of 10,000 reports, in-depth market research studies of over 5000 micro markets, and 25 industry specific websites. Our client list boasts almost all well-known publishers of such reports across the globe. We as a third-party reseller of market research reports employ a number of marketing tools, such as press releases, email-marketing and effective search-engine optimization techniques to drive revenues for our clients. We also provide 24/7 online and offline support service to our customers.
Contact:
Ms. Sunita
7557 Rambler road,
Suite 727, Dallas, TX 75231
Tel: +1-888-989-8004
http://reportsandreports.blogspot.com/
http://reportsandreports.proarticles.co.uk/
http://reportsnreports.wordpress.com/
Original Source : – Information Technology Market
Buy Now : Market Research Report
