SAO

1. José Luis Domínguez
Marketing Director. SATEC
How is business in Europe affected by the economical
situation and what is the forecast from a commercial point
of view
ServiceOne Alliance Conference
Madrid. 17th September 2009
BORRADOR

2. 2ServiceOne Alliance Conference
José Luis Domínguez. Marketing Manager
17th September 2009
Agenda
 Introduction: the present economic
downturn.
 Main challenges for the ICT
Industry.
 Why this is not our crisis: hopes.
 How do we face the economic
downturn.
 Conclusions and actions

3. 1. Introduction: the present economic
downturn.
2. Main Challenges for the ICT industry.
3. Why this is not our crisis: hopes.
4. How do we face the economic downturn.
5. Conclusions and actions.

4. 4ServiceOne Alliance Conference
José Luis Domínguez. Marketing Manager
17th September 2009
Introduction: 2009 leaves us a complicated
environment…
 We live in turbulent times. Leading economists
acknowledge that the global economy is facing
the worst crisis in sixty years.
 The credit market difficulties that had simmered
throughout 2007 erupted into a full-blown
financial crisis in mid-September 2008, which
broke out during an otherwise promising year for
the ICT industry.
 The global economy is now navigating uncharted
waters. Unprecedented events have taken
place in the banking sector, finance and credit
markets, including the disappearance of several
global financial icons, and the consequences are
far from clear.
We are not before an
epoch of changes, we
are before a change
of epoch.
Leonardo Da Vicni

5. 5ServiceOne Alliance Conference
José Luis Domínguez. Marketing Manager
17th September 2009
Introduction: 2009 leaves us a complicated
environment…
 The world’s largest economic zones are
officially in recession, including the United
States, and the European Union.
 In many ways, the ICT industry is in better
shape today than after the dot.com crisis of
2001/2002.
 The crisis may challenge many firms, but it will
also revitalize the industry and enable new
entrants with new technologies to thrive.
Technological transformation is at the very
heart of our industry.
 Our industry can only emerge stronger and
more resilient from these challenging times.

6. 1. Introduction: the present economic
downturn.
2. Main Challenges for the ICT industry.
3. Why this is not our crisis: hopes.
4. How do we face the economic downturn.
5. Conclusions and actions.

7. 7ServiceOne Alliance Conference
José Luis Domínguez. Marketing Manager
17th September 2009
Main challenges for the ICT Industry
 Fall of IT budgets.
 Real impact of the lower
demand.
 Increase competition, with more
players fighting for less business
with a consequence of erosion
of margins
 Reduction in the coverage of the
credit
 paralysis of fear.
ICT Budgets (2009 vs 2008). Source: IDC 2009.
 Consequences:
o Fall in the income
o Difficulties in obtaining
liquidity
o Losses

8. 1. Introduction: the present economic
downturn.
2. Main Challenges for the ICT industry.
3. Why this is not our crisis: hopes.
4. How do we face the economic downturn.
5. Conclusions and actions.
- Growth of the IT market (2007 –
2010)
- Some key Data on ICT in Europe
- Recovery Plan in Europe

9. 9ServiceOne Alliance Conference
José Luis Domínguez. Marketing Manager
17th September 2009
Why this is not our crisis?: Hopes.
 ICTs are pervasive general purpose technologies:
o Telecommunications and the Internet are now vital service platforms, underpinning
much of international trade, global financial system, and personal communications.
o The ICT industry is a major driver of economic growth and vital industry in its own
right, underpinning many other critical sectors.
 Many technologies still offer huge growth potential, with or without a recession. Certain
new computing products, software categories (Software as a Service or SaaS..) and
media niches (WiFi radio..) show positive revenue momentum, even while the broader
industry is contracting.
 There will be new opportunities for firms with a disruptive solutions and services
portfolio, to prosper, especially where prices are falling and where technology is changing.
 Investing in innovation and knowledge is even more vital in times of crisis, and could
enable the global economy to navigate its way out of this crisis.
 Ultimately, for an industry founded on innovation and technological change, the financial
crisis may challenge some firms, but it will also revitalize the industry and enable new
entrants with new technologies to thrive.

10. 10ServiceOne Alliance Conference
José Luis Domínguez. Marketing Manager
17th September 2009
Growth of the IT market (2007 – 2010)
Source: EITO (European Information Technology Observatory) , PAC

11. 11ServiceOne Alliance Conference
José Luis Domínguez. Marketing Manager
17th September 2009
Software and IT Services in Europe
Thousands of millions
Source: EITO (European Information Technology Observatory) , PAC

12. 12ServiceOne Alliance Conference
José Luis Domínguez. Marketing Manager
17th September 2009
Some key Data on ICT in Europe
 Digital technology (ICT and the consumer electronics sectors) plays a pivotal role for
most of the EU policies for knowledge and innovation, growth and jobs, and sustainable
development.
 Digital technology provides the necessary infrastructures underpinning economic growth,
which contribute to more than 40% of our overall productivity growth in Europe. The
digital technology world market has reached €2 000 billion, and is currently growing at
around 4% per year.
 Europe's Digital technology market represents 34% (1), and the size of the digital
technology sector in Europe represents 4.5% of EU aggregate GDP and even more if the
value added of digital in other sectors is also accounted for. (2)
 The importance of Digital technology to economic and social change is reflected in R&D
and innovation budgets worldwide, where Digital technology typically represents more
than 30% of the total research effort.
 Overall, real GDP in the EU is expected to fall sharply in 2009 (by about 2 percent),
before recovering by 2010 to some ½ percent of growth. All demand components, except
for government consumption and public investment, are being affected by the downturn
(3)
• (1) IDATE, 'DigiWorld Yearbook 2007'.
• (2) European Competitiveness Report 2006; European Information Technology Observatory 2006
• (3) http://ec.europa.eu/economy_finance/publications/publication12486_en.pdf

13. 13ServiceOne Alliance Conference
José Luis Domínguez. Marketing Manager
17th September 2009
Recovery Plan in Europe January 2009
 The European Commission has also tabled last January 09 a new set of proposals as part of the implementation
of the Recovery Plan. The actions presented aim to revitalise the EU economy through investments in selected
areas:
o Energy: A total of 3.5 million € for investment in carbon capture and storage, offshore wind projects and gas
and electricity interconnection projects.
o Broadband: 1 billion € to extend and upgrade high-speed internet in rural communities. According to a
recent study, broadband development could contribute to the creation of around 1 million jobs in Europe and
to a broadband-related growth of the economic activity of 850 billion € between 2006 and 2015 (1)
o Tackling new challenges identified in the "health check" of the Common Agricultural Policies: Climate
change, renewable energy, water management, biodiversity and dairy restructuring are the challenges and
around 500 million € would initially be used to tackle them.
 The Recovery Plan includes public-private partnerships for research and development in three areas:
o The 'Factories of the Future' initiative with a total budget for R&D of 1.2 B€ (public and private).
o The 'Energy-Efficient Buildings' initiative with a total budget for R&D of 1 B€ (public and private).
o The 'Green Cars' initiative with a total budget of 5 B€ (public and private) including in addition to R&D, other
expenditures such as procurement of innovations in this field.
• (1) 10Micus study, "The impact of broadband on growth and productivity", available at:
• http://ec.europa.eu/information_society/eeurope/i2010/docs/benchmarking/broadband_impact_2008.pdf

14. 1. Introduction: the present economic
downturn.
2. Main Challenges for the ICT industry.
3. Why this is not our crisis: hopes.
4. How do we face the economic downturn?
5. Conclusions and actions.

15. 15ServiceOne Alliance Conference
José Luis Domínguez. Marketing Manager
17th September 2009
How SATEC has faced the change
o Shareholders stability
o Changes about “Go to Markets”:
• Product  Services & Solutions
• Telco centric  New markets
• Cisco mainly  New vendors & Own products
• Centralized  Regional distributed
• National  International
• Networking  New technologies
• Horizotal  Vertical
o Changes about Information Technologies:
• Processes / Tools / Information Systems
• You Can't Manage What You Don't Measure
• Data / Information / Knowledge
o HHRR & Talent stability:
• Organization
• Capacitating / Training
• Motivation / Coaching
• Building Empathy
 Satec goals are to double company revenues and reach industry leading returns
during the period 2008-2012 by increasing our presence in customers…

16. 16ServiceOne Alliance Conference
José Luis Domínguez. Marketing Manager
17th September 2009
“Adaptive enterprise”: adapt to change, drivers of
change
 It is not the strongest of
the species that survives,
nor the most intelligent,
but rather the one most
adaptable to change.
Charles Darwin
 Changing for
innovation and
innovation for
competition
Need + Vision + Plan + Resources + Competencies = Change
Need + Vision + Plan + Resources + Competencies = Resistance
Need + Vision + Plan + Resources + Competencies = Confusion
Need + Vision + Plan + Resources + Competencies = Caos
Need + Vision + Plan + Resources + Competencies = Frustation
Need + Vision + Plan + Resources + Competencies = Fear

17. 1. Introduction: the present economic
downturn.
2. Main Challenges for the ICT industry.
3. Why this is not our crisis: hopes.
4. How do we face the economic downturn.
5. Conclusions and actions.

18. 18ServiceOne Alliance Conference
José Luis Domínguez. Marketing Manager
17th September 2009
Globalization
 European companies must
take advance of the global
market
 That means that we have to
look to LOCAL and
International markets
simultaneously as the way to
compete and enhance
resources.
 ServiceOne Alliance could
provide opportunities to share
solutiones, resources and
references to increase our
portfolio and market.

19. 19ServiceOne Alliance Conference
José Luis Domínguez. Marketing Manager
17th September 2009
Conclusions and actions
 Share information about opportunities / portfolio /
resources, between the S1A members.
 To offer differentiated services not only related to
infrastructure.
o The commoditation of the infraestructure and
the differentiation of the services.
 To propose value independently of the
manufacturers.
o As integrators, the members of the S1A, try to
prescribe, the solutions and services, that really
cover the needs and requirements of the
customer. In the different activities, of the S1A,
we have to fix this position without link it, to a
specific vendor.

20. www.satecgroup.com