Business Monitor International


Venezuela Information Technology Report

Published 02 June 2014

  • 64 pages
 
$1,295.00
Venezuela Information Technology Report

BMI View: O ur outlook for the Venezuelan IT market is bearish, and we expect it to be a regional underperformer over the medium term. The short-term outlook is particularly poor, with economic instability including inflation of almost 50% and sharp depreciation of the bolivar exacerbating existing downside from the government's interventionist approach. There are however opportunities for vendors to tap over the medium - term, with low PC penetration and government programmes to boost sales. As the economic situation stabilises in the latter years of our forecast we believe local and regional vendors will be well positioned to capitalise on opportunities presented by government and enterprise modernisation.

Headline Expenditure Projections

Computer Hardware Sales: From VEB6.6bn in 2013 to VEB8.2bn in 2014. The ongoing depreciation of the bolivar has increased the price of imported hardware, including components required for local assembly, acting as a drag on demand.

Software Sales: From VEB1.8bn in 2013 to VEB2.4bn in 2014. High levels of software piracy and the government's commitment to open source software will limit opportunities for proprietary software vendors in both the retail and enterprise markets.

IT Services Sales: From VEB1.6bn in 2013 to VEB2.1bn in 2014. We expect around 75% of demand will come from large companies, with the oil sector still significant despite the fall in oil prices. However, there is medium-term potential for IT services sales to SMEs, particularly cost-saving cloud computing services.

Key Trends & Developments

Amidst a generally poor short-term outlook there is an opportunity for local IT service providers in the public sector where modernisation initiatives continue. For instance, in March 2014 the science, technology and innovation minister Manuel Fernández announced the government was planning to digitise all its services by 2016. He reported that of the 805 separate government services offered in March 2014, only...

Table of Contents

BMI Industry View
7
SWOT
9
Wireline SWOT
11
Political
13
Economic
14
Business Environment
15
Industry Forecast
16
Table: Venezuela IT Sector - Historical Data & Forecasts, 2010-2017 (VEBmn, unless otherwise stated)
19
Broadband
19
Table: Venezuela Telecoms Sector - Internet - Historical Data And Forecasts, 2010-2017
19
Macroeconomic Forecasts
21
Macroeconomic Forecast
21
Macro Strategy
21
Expenditure Breakdown
22
Risks To Outlook
24
Table: Venezuela - GDP By Expenditure, Real Growth %
27
Industry Risk Reward Ratings
28
Table: IT Risk/Reward Ratings, Q2 2013
29
Market Overview
31
Hardware
31
Software
33
IT Services
35
Industry Trends And Developments
37
Regulatory Development
41
Table: Regulatory Authority
42
Competitive Landscape
43
Hardware
43
Software And Services
44
Company Profile
46
Venezolana De Industria Technologica
46
Oracle Corp
48
Table: Oracle: Selected Acquisitions
49
Regional Overview
53
Latin America Regional Overview
53
IT Penetration
53
Market Growth And Drivers
55
Sectors And Verticals
58
Demographic Forecast
62
Table: Venezuela's Population By Age Group, 1990-2020 ('000)
63
Table: Venezuela's Population By Age Group, 1990-2020 (% of total)
64
Table: Venezuela's Key Population Ratios, 1990-2020
65
Table: Venezuela's Rural And Urban Population, 1990-2020
65
Methodology
66
Methodology
66
IT Industry
66
IT Ratings - Methodology
67
Table: IT Business Environment Indicators
68
Weighting
69
Table: Weighting Of Components
69
Sources
69

The Venezuela Information Technology Report features Business Monitor International (BMI)'s market assessment and independent forecasts covering personal computers and software; semi-conductors, memory chips, integrated circuits and general components; the internet and IT solutions. It analyses analyses regulatory changes (licensing, customs and intellectual property protection) and competitive landscapes comparing IT companies by products, sales, market share, investments, projects and expansion strategies.

BMI's Venezuela Information Technology Report provides industry professionals and strategists, corporate analysts, IT associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on the IT industry in Venezuela.

Key Benefits

  • Benchmark BMI's independent IT Industry forecasts for Venezuela to test other views - a key input for successful budgetary and strategic business planning in the Venezuelan IT market.
  • Target business opportunities and risks in Venezuela's IT sector through our reviews of latest industry trends, regulatory changes, and major deals, projects and investments in Venezuela.
  • Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. KPIs and latest activity).

Coverage

Executive Summary

Summary of BMI's key industry forecasts, views and trend analysis covering IT, regulatory changes, major investments and projects and significant national and multinational company developments.

Regional Overview

Cross-border analysis of regional markets, commenting on IT penetration (PC and internet) and market growth drivers (IT market size and IT market compound growth).

Country Market Overview

Structure, size and value of the industry sectors including hardware, software and services; overview of the industry landscape and key players; assessment of the business operating environment and the latest regulatory developments and government authority.

BMI Industry Forecasts

Historic data series and forecasts to end-2017 for all key industry indicators (see list below), supported by explicit assumptions, plus analysis of key downside risks to the main forecast, including:

IT Sector: IT industry value (US$bn); IT sector contribution to GDP (%); value of hardware, software and services industry (US$mn); PC, peripherals and software imports and exports (US$mn); PC, peripherals and software sales (US$mn); number of PCs (`000); PCs/100 inhabitants; internet users (`000); internet users per 100 inhabitants; broadband subscribers (`000); broadband subscribers per 100 inhabitants.

Economy: Economic growth (%); nominal GDP (US$bn); unemployment (%); interest rates (%); exchange rate (against US$).

BMI Macroeconomic Forecast

BMI forecasts for all headline macroeconomic indicators to end-2017 including real GDP growth, inflation, fiscal balance, trade balance, current account and external debt.

Competitive Landscape

Full analysis of the competitive landscape within the hardware, software and services sectors.

Company Profiles

Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI's industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

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