Vendor snapshot - Microsoft Dynamics
Ireland: IT Services & Software Market
2006-2008 in Euros (m). Source: EITO
W
e asked Conor Wickham (below), from Microsoft Dynamics
Sector 2006 2007 2008
Ireland, to give us a breakdown of what he is currently seeing in
System Software 284 299 318
the Irish IT market and Microsoft’s channels...
Application Software 265 286 308
Software Products 549 586 627
“We’re seeing strong growth in Ireland – the business applications market
IT Services 854 914 972
is growing at around 8%, but Microsoft Dynamics business is growing at
Software & Services 1,403 1,500 1,599
several multiples of that. What we are seeing is a wave of consolidating
Total IT 2,648 2,767 2,903
among customers, particularly food manufacture and distribution – which
many merged businesses will use as a reason to boost their supply chain application software in client/server environments, plus shifting to a global
management systems.” delivery service model for IT projects.”
“Across the partner base the pipeline is strong – and we have a good She referred to growing confidence in outsourcing of IT systems,
number of partners, close to optimum I would say. And with customers increasingly sophisticated integration projects and globalisation as the most
looking for productivity solutions in 2008, this outlook is positive. It looks like significant developments in the Irish systems integration space.
new markets in the public sector are beginning to open up, particularly to the “We are seeing an increasing trend to business transformation outsourcing
CRM potential.” services that goes beyond the limited role of trimming costs, where
“Particularly as across Europe there is a shortage of people with ERP skills. companies are now making outsourcing a strategic element in their business
Even in Ireland, the partners are having to look globally for assets to deliver transformation.”
ERP and CRM systems.” Ireland’s position as a high cost environment does not do anyone in
“2007 was certainly better than 2006 – the last quarter of 2007 was the IT industry any favours and makes it harder for indigenous systems
particularly strong – we’re optimistic but aware of the challenges and the
effects on the market of the economic conditions. Because of the Euro, Irish “Out-tasking of specific, non-core IT areas is
exports have become expensive.” becoming much more prevalent.”

Paschal Naylor, A&O Systems & Services
integrators without an offshore component to maintain margins in the face
of competition from low cost providers, reckons System Dynamics managing
director, Tony McGuire. Despite this, his company managed to record
impressive growth in 2007, increasing revenue from €15.6m in 2006 to €21m.
Some firms have responded to the challenging market by diversifying.
Last November 3PlayPlus Group, which is funded by systems integration firm
PlanNet21 Communications, launched HomeVision, a triple-play provider of
digital TV with broadband and home phone services.
Belfast-based Asidua has targeted the Republic of Ireland market, explains
sales and marketing director Bob McClean. “We have learned that in order
to grow our business in Dublin, we need a presence there. In addition, there
are similar deals coming up to some of the recent business we have won in
20 29 FEB 2008
It0804 - 18-21_ent_ireland.indd 20 27/02/2008 10:26:26
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