Click here to close now.




















Welcome!

Microsoft Cloud Authors: Eric Aarrestad, Greg O'Connor, Liz McMillan, Aleksei Gavrilenko, Elizabeth White

News Feed Item

Euro Debt Crisis Drives Search for Eurozone Acquisitions and Accelerates Investments in Emerging Markets, Accenture Survey Finds

Half of eurozone-based companies are actively seeking acquisitions within the eurozone in response to the currency and debt crisis, according to new research by Accenture (NYSE: ACN). The survey of 450 business leaders in countries in and outside the eurozone also reveals that although 44 percent have accelerated their investments in emerging markets as a result of the uncertainty, companies in the currency area continue to invest in their eurozone operations.

The research, published in a report: Exploring the Eurozone: take cover or take advantage, covered France, Germany and Spain, as well as China, the UK and the United States. Ninety-six percent of responding companies have revenues of at least $1bn and more than half report revenues of at least $5bn.

A majority (55 percent) of worldwide respondents say they are delaying investment in the eurozone and exactly half say their long term investment plans are now more focused on emerging markets due to the debt crisis. Nevertheless, confidence in the currency area remains as a quarter of French and Spanish respondents (25 percent and 27 percent respectively) and 64 percent of German companies say that the crisis has made them accelerate their investment at home or elsewhere in the eurozone.

Fifty percent of surveyed eurozone companies say they will begin to seek acquisitions in the currency area immediately or have already started doing so (58 percent of German, 57 percent of Spanish and 36 percent of French respondents). This compares to 38 percent of companies outside the Eurozone.

Likewise, eurozone companies are more likely to seek joint ventures (JVs) in the currency area in response to the crisis. Forty-five percent are actively seeking JVs compared to 34 percent of companies outside the eurozone. German companies are most eager (56 percent) followed by Spanish companies (48 percent).

“It is inevitable that slow growth and uncertainty in Europe will make investment to emerging markets look attractive,” said Mark Spelman, managing director, Strategy, Accenture. “But the eurozone remains a good long term bet and a significant number of high performing companies see opportunities for organic and inorganic growth. This is less a case of outside investors snapping up distressed assets, and more about companies sharpening their competitive edge and gaining market share on the back of their confidence in the European economy.”

Outside the eurozone, Chinese companies appear keener than those in the US or the United Kingdom to take advantage of the crisis and increase their investments in the currency area, according to the survey. 25 percent of Chinese respondents say they plan to accelerate their investments in the eurozone due to the crisis, compared to three percent of US and 11 percent of UK companies. Seventy-one percent of Chinese respondents are seeking acquisitions in the eurozone or will shortly begin to do so, compared to 20 percent of US and 30 percent of UK companies.

Cutting back while investing in operational excellence

Although companies are making aggressive cut backs, there is also evidence that some are using the situation to improve their operational efficiency.

  • 72 percent of executives in the global sample intend to implement discretionary cost cuts in the eurozone immediately, or have already started doing so. This rises to 83 percent of Spanish companies and 90 percent of Chinese companies.
  • 48 percent of the global sample plan to implement staff cuts in the eurozone immediately or have already started doing so, rising to 53 percent of companies based in the currency area. Forty-three percent of executives are considering relocating some operations as a result of the crisis. This includes ten percent who may move some operations out of the eurozone all together. German and Chinese companies are most likely to relocate some operations.

Only a third (32 percent) of respondents believe the eurozone crisis presents no opportunities to gain competitive advantage. When asked which areas of their business the currency crisis is encouraging them to improve, 33 percent of the surveyed executives said they would to invest more in outsourcing, 30 percent in flexible supply chains, 28 percent in risk management capabilities and 25 percent in shared services.

“Our analysis of previous downturns is also relevant today: high performers in the upturns are those who have invested in the downturns,” said Spelman. “The eurozone crisis has resulted in a severe response from companies and our data suggests that they will continue to reduce costs over the longer term. But companies must balance measures to minimize costs today with efforts to improve their longer term operational excellence and competitive advantage.”

Confidence in the financial partners

The study suggests that some companies may have some challenges in financing intended operational investments or their more ambitious plans for growth and acquisitions. Fifty-nine percent of companies think that the capital position of Europe’s banks is exposed or dangerously exposed to the crisis. And even though 63 percent of eurozone respondents are confident that their primary bank is sufficiently or well capitalized, 45 percent say their primary bank’s ability to lend has been ‘hampered,’ or ‘hampered significantly.’

These figures may explain why almost half (48 percent) of eurozone respondents say they plan to establish new banking relationships in the eurozone. That average figure coincides with the proportion in Spain, and while only 31 percent of French companies participating share this view, the figure rises to 58 percent of German companies.

“Given the desire of many companies to seek growth and acquisition opportunities within the eurozone, banks will need to demonstrate their stability and capital strength in order to maintain client confidence,” Spelman continued. “High performing companies will intensify their demands from the banking sector as they look to take advantage of opportunities created by uncertainty in the eurozone.”

View the full report at www.accenture.com/eurozone

View the infographic at www.accenture.com/eurozoneinfographic

About Accenture

Accenture is a global management consulting, technology services and outsourcing company, with 257,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$27.9 billion for the fiscal year ended Aug. 31, 2012. Its home page is www.accenture.com.

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducted a live demonstration of how quickly application development can happen when the need to comply wit...
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Architect for the Internet of Things and Intelligent Systems, described how to revolutionize your archit...
MuleSoft has announced the findings of its 2015 Connectivity Benchmark Report on the adoption and business impact of APIs. The findings suggest traditional businesses are quickly evolving into "composable enterprises" built out of hundreds of connected software services, applications and devices. Most are embracing the Internet of Things (IoT) and microservices technologies like Docker. A majority are integrating wearables, like smart watches, and more than half plan to generate revenue with APIs within the next year.
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Opening Keynote at 16th Cloud Expo, Sandy Carter, IBM General Manager Cloud Ecosystem and Developers, and a Social Business Evangelist, d...
In his keynote at 16th Cloud Expo, Rodney Rogers, CEO of Virtustream, discussed the evolution of the company from inception to its recent acquisition by EMC – including personal insights, lessons learned (and some WTF moments) along the way. Learn how Virtustream’s unique approach of combining the economics and elasticity of the consumer cloud model with proper performance, application automation and security into a platform became a breakout success with enterprise customers and a natural fit for the EMC Federation.
The Internet of Things is not only adding billions of sensors and billions of terabytes to the Internet. It is also forcing a fundamental change in the way we envision Information Technology. For the first time, more data is being created by devices at the edge of the Internet rather than from centralized systems. What does this mean for today's IT professional? In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists addressed this very serious issue of profound change in the industry.
Discussions about cloud computing are evolving into discussions about enterprise IT in general. As enterprises increasingly migrate toward their own unique clouds, new issues such as the use of containers and microservices emerge to keep things interesting. In this Power Panel at 16th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the state of cloud computing today, and what enterprise IT professionals need to know about how the latest topics and trends affect their organization.
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society-changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his session at @ThingsExpo, Jason Mondanaro, Director, Product Management at Metanga, discussed how you can plan to cooperate, partner, and form lasting all-star teams to change the world and it starts with business models and monetization strategies.
Converging digital disruptions is creating a major sea change - Cisco calls this the Internet of Everything (IoE). IoE is the network connection of People, Process, Data and Things, fueled by Cloud, Mobile, Social, Analytics and Security, and it represents a $19Trillion value-at-stake over the next 10 years. In her keynote at @ThingsExpo, Manjula Talreja, VP of Cisco Consulting Services, discussed IoE and the enormous opportunities it provides to public and private firms alike. She will share what businesses must do to thrive in the IoE economy, citing examples from several industry sectors.
There will be 150 billion connected devices by 2020. New digital businesses have already disrupted value chains across every industry. APIs are at the center of the digital business. You need to understand what assets you have that can be exposed digitally, what their digital value chain is, and how to create an effective business model around that value chain to compete in this economy. No enterprise can be complacent and not engage in the digital economy. Learn how to be the disruptor and not the disruptee.
Akana has released Envision, an enhanced API analytics platform that helps enterprises mine critical insights across their digital eco-systems, understand their customers and partners and offer value-added personalized services. “In today’s digital economy, data-driven insights are proving to be a key differentiator for businesses. Understanding the data that is being tunneled through their APIs and how it can be used to optimize their business and operations is of paramount importance,” said Alistair Farquharson, CTO of Akana.
Business as usual for IT is evolving into a "Make or Buy" decision on a service-by-service conversation with input from the LOBs. How does your organization move forward with cloud? In his general session at 16th Cloud Expo, Paul Maravei, Regional Sales Manager, Hybrid Cloud and Managed Services at Cisco, discusses how Cisco and its partners offer a market-leading portfolio and ecosystem of cloud infrastructure and application services that allow you to uniquely and securely combine cloud business applications and services across multiple cloud delivery models.
The enterprise market will drive IoT device adoption over the next five years. In his session at @ThingsExpo, John Greenough, an analyst at BI Intelligence, division of Business Insider, analyzed how companies will adopt IoT products and the associated cost of adopting those products. John Greenough is the lead analyst covering the Internet of Things for BI Intelligence- Business Insider’s paid research service. Numerous IoT companies have cited his analysis of the IoT. Prior to joining BI Intelligence, he worked analyzing bank technology for Corporate Insight and The Clearing House Payment...
"Optimal Design is a technology integration and product development firm that specializes in connecting devices to the cloud," stated Joe Wascow, Co-Founder & CMO of Optimal Design, in this SYS-CON.tv interview at @ThingsExpo, held June 9-11, 2015, at the Javits Center in New York City.
SYS-CON Events announced today that CommVault has been named “Bronze Sponsor” of SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. A singular vision – a belief in a better way to address current and future data management needs – guides CommVault in the development of Singular Information Management® solutions for high-performance data protection, universal availability and simplified management of data on complex storage networks. CommVault's exclusive single-platform architecture gives companies unp...
Electric Cloud and Arynga have announced a product integration partnership that will bring Continuous Delivery solutions to the automotive Internet-of-Things (IoT) market. The joint solution will help automotive manufacturers, OEMs and system integrators adopt DevOps automation and Continuous Delivery practices that reduce software build and release cycle times within the complex and specific parameters of embedded and IoT software systems.
"ciqada is a combined platform of hardware modules and server products that lets people take their existing devices or new devices and lets them be accessible over the Internet for their users," noted Geoff Engelstein of ciqada, a division of Mars International, in this SYS-CON.tv interview at @ThingsExpo, held June 9-11, 2015, at the Javits Center in New York City.
Internet of Things is moving from being a hype to a reality. Experts estimate that internet connected cars will grow to 152 million, while over 100 million internet connected wireless light bulbs and lamps will be operational by 2020. These and many other intriguing statistics highlight the importance of Internet powered devices and how market penetration is going to multiply many times over in the next few years.