European-based IT suppliers have confirmed their full exit from recession.
According to the Infoconomy Index for October, Europe’s indigenous vendors showed an aggregate growth rate of 2.3%, up from 0.8% in the previous month. The pace represents the region’s best performance since it entered its sustained downturn in May 2002.
That performance was boosted by strong results at both product and services companies. Notably, enterprise applications vendor SAP reported revenues in its latest quarter up 8%; and one of its rivals in the mid-market applications segment, Unit 4 Agresso, boasted an 11% jump in revenues.
However, there is no hint that Europe’s growth rate is about to gain parity with that of the wider Global Index. That measure, based on the growth of the combined latest-period revenue of the world’s 200 largest IT companies, dropped slightly in October from 12.9% to 12.6%. But it has been unfalteringly consistent over the past six months, staying at between 12% and 13%.
Again, the positive influences were across the industry. Revenue growth in the most recent quarter was high at document software company Adobe (27%), chip maker AMD (30%), storage systems giant EMC (34%), security product and service vendors Verisign (21%) and Symantec (44%), and at computer services company Sungard (21%).
As those numbers suggest, there is no suggestion of a reversal. And as European IT companies bounce back further, the Index as a whole should start to climb towards the all-important 20% ‘boom time’ threshold.
The Infoconomy 200 Index measures the overall growth rate of the IT industry by tracking the financial results of the world’s most important publicly listed IT companies.