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Almost half of French enterprises plan to increase their ICT budget this year

20th July 2015

A new survey from market researcher Kable shows that 46% of French enterprises are planning to increase their ICT budget this year, an increase of 18% from 2014.

With the economy in France gradually warming up, French enterprises are investing in newer ICT domains to reap the benefits of technology in a rapidly changing digital marketplace. Kable’s survey shows that almost half (46%) of French enterprises are planning to increase their overall ICT budgets in 2015 – an increase of 18% compared to 2014. The survey further highlights a major transition in expenditure of French enterprises, with only 20% of respondents planning to decrease their ICT budgets in 2015, compared to 30% in 2014.

Government regulations drive virtualization solutions

Growing competition is pushing French enterprises to optimise the management of their data center and network infrastructures with agile IT systems management solutions. Additionally, government regulations for green IT imperatives are driving French enterprises to opt for cost-effective virtualization solutions. Kable’s market forecasts for France estimates the virtualization technology market to reach US$1.4 billion in 2019; growing at a CAGR of 6.3% between 2015 to 2019.

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Table: Survey of 156 French enterprises.

The survey further finds that storage and server virtualization will gain traction among French enterprises, with 63% planning to invest in green IT & virtualization segments over the next two years. “French enterprises are looking at green IT & virtualization solutions as a smarter way to reduce capital expenditure on IT hardware, and its related operational costs for maintaining these systems," comments Renjitha Balkrishan, analyst at Kable. In addition to the obvious cost savings and social responsiveness achieved due to lowered carbon footprints, green IT & virtualization solutions enable enterprises to exploit the untapped processing potential of high performance servers and storage devices to deliver optimum performance.

IaaS cloud solution expected to gain traction in next two years

Furthermore, with cloud computing becoming a vital aspect for all ICT segments, the survey finds that various cloud computing segments of SaaS, PaaS, and IaaS are witnessing greater adoption rates among French enterprises. The highest proportion (60%) of respondents are currently using SaaS in their organisation. However, IaaS is expected to gain traction over the next two years, as six out of ten French enerprises are planning investments in IaaS. Kable’s market forecasts for the French cloud computing market estimate the market size of SaaS to be the largest cloud segment at US$2 billion in 2015. But, IaaS is expected to supersede SaaS as the most popular cloud segment by 2018, reaching US$5 billion by 2019.

Editor’s notes

All information used in this text is based on the Kable report 'Customer Insight Report – ICT investment trends in France' and 'Market Opportunity Forecasts to 2019: ICT in France,' available to subscribers of the Kable UK service. 

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