|By Business Wire||
|November 26, 2012 06:00 PM EST||
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
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.
"delaPlex is a software development company. We do team-based outsourcing development," explained Mark Rivers, COO and Co-founder of delaPlex Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jun. 30, 2016 11:45 AM EDT Reads: 537
IoT is rapidly changing the way enterprises are using data to improve business decision-making. In order to derive business value, organizations must unlock insights from the data gathered and then act on these. In their session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, and Peter Shashkin, Head of Development Department at EastBanc Technologies, discussed how one organization leveraged IoT, cloud technology and data analysis to improve customer experiences and effi...
Jun. 30, 2016 11:30 AM EDT Reads: 596
Basho Technologies has announced the latest release of Basho Riak TS, version 1.3. Riak TS is an enterprise-grade NoSQL database optimized for Internet of Things (IoT). The open source version enables developers to download the software for free and use it in production as well as make contributions to the code and develop applications around Riak TS. Enhancements to Riak TS make it quick, easy and cost-effective to spin up an instance to test new ideas and build IoT applications. In addition to...
Jun. 30, 2016 11:15 AM EDT Reads: 699
The idea of comparing data in motion (at the sensor level) to data at rest (in a Big Data server warehouse) with predictive analytics in the cloud is very appealing to the industrial IoT sector. The problem Big Data vendors have, however, is access to that data in motion at the sensor location. In his session at @ThingsExpo, Scott Allen, CMO of FreeWave, discussed how as IoT is increasingly adopted by industrial markets, there is going to be an increased demand for sensor data from the outermos...
Jun. 30, 2016 11:00 AM EDT Reads: 430
CenturyLink has announced that application server solutions from GENBAND are now available as part of CenturyLink’s Networx contracts. The General Services Administration (GSA)’s Networx program includes the largest telecommunications contract vehicles ever awarded by the federal government. CenturyLink recently secured an extension through spring 2020 of its offerings available to federal government agencies via GSA’s Networx Universal and Enterprise contracts. GENBAND’s EXPERiUS™ Application...
Jun. 30, 2016 11:00 AM EDT Reads: 457
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, explored the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences between wh...
Jun. 30, 2016 11:00 AM EDT Reads: 1,070
Presidio has received the 2015 EMC Partner Services Quality Award from EMC Corporation for achieving outstanding service excellence and customer satisfaction as measured by the EMC Partner Services Quality (PSQ) program. Presidio was also honored as the 2015 EMC Americas Marketing Excellence Partner of the Year and 2015 Mid-Market East Partner of the Year. The EMC PSQ program is a project-specific survey program designed for partners with Service Partner designations to solicit customer feedbac...
Jun. 30, 2016 10:45 AM EDT Reads: 645
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discussed how businesses can gain an edge over competitors by empowering consumers to take control through IoT. He cited examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He also highlighted how IoT can revitalize and restore outdated business models, making them profitable ...
Jun. 30, 2016 10:30 AM EDT Reads: 551
There are several IoTs: the Industrial Internet, Consumer Wearables, Wearables and Healthcare, Supply Chains, and the movement toward Smart Grids, Cities, Regions, and Nations. There are competing communications standards every step of the way, a bewildering array of sensors and devices, and an entire world of competing data analytics platforms. To some this appears to be chaos. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, Bradley Holt, Developer Advocate a...
Jun. 30, 2016 10:15 AM EDT Reads: 971
SYS-CON Events has announced today that Roger Strukhoff has been named conference chair of Cloud Expo and @ThingsExpo 2016 Silicon Valley. The 19th Cloud Expo and 6th @ThingsExpo will take place on November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. "The Internet of Things brings trillions of dollars of opportunity to developers and enterprise IT, no matter how you measure it," stated Roger Strukhoff. "More importantly, it leverages the power of devices and the Interne...
Jun. 30, 2016 10:00 AM EDT Reads: 526
The cloud promises new levels of agility and cost-savings for Big Data, data warehousing and analytics. But it’s challenging to understand all the options – from IaaS and PaaS to newer services like HaaS (Hadoop as a Service) and BDaaS (Big Data as a Service). In her session at @BigDataExpo at @ThingsExpo, Hannah Smalltree, a director at Cazena, provided an educational overview of emerging “as-a-service” options for Big Data in the cloud. This is critical background for IT and data profession...
Jun. 30, 2016 09:33 AM EDT Reads: 187
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
Jun. 30, 2016 09:02 AM EDT Reads: 198
Cloud Expo, Inc. has announced today that Andi Mann returns to 'DevOps at Cloud Expo 2016' as Conference Chair The @DevOpsSummit at Cloud Expo will take place on November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. "DevOps is set to be one of the most profound disruptions to hit IT in decades," said Andi Mann. "It is a natural extension of cloud computing, and I have seen both firsthand and in independent research the fantastic results DevOps delivers. So I am excited t...
Jun. 30, 2016 09:00 AM EDT Reads: 365
In addition to all the benefits, IoT is also bringing new kind of customer experience challenges - cars that unlock themselves, thermostats turning houses into saunas and baby video monitors broadcasting over the internet. This list can only increase because while IoT services should be intuitive and simple to use, the delivery ecosystem is a myriad of potential problems as IoT explodes complexity. So finding a performance issue is like finding the proverbial needle in the haystack.
Jun. 30, 2016 09:00 AM EDT Reads: 425
Apixio Inc. has raised $19.3 million in Series D venture capital funding led by SSM Partners with participation from First Analysis, Bain Capital Ventures and Apixio’s largest angel investor. Apixio will dedicate the proceeds toward advancing and scaling products powered by its cognitive computing platform, further enabling insights for optimal patient care. The Series D funding comes as Apixio experiences strong momentum and increasing demand for its HCC Profiler solution, which mines unstruc...
Jun. 30, 2016 08:45 AM EDT Reads: 577
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform and how we integrate our thinking to solve complicated problems. In his session at 19th Cloud Expo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm ...
Jun. 30, 2016 08:00 AM EDT Reads: 552
Internet of @ThingsExpo has announced today that Chris Matthieu has been named tech chair of Internet of @ThingsExpo 2016 Silicon Valley. The 6thInternet of @ThingsExpo will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Jun. 30, 2016 07:00 AM EDT Reads: 439
"We work in the area of Big Data analytics and Big Data analytics is a very crowded space - you have Hadoop, ETL, warehousing, visualization and there's a lot of effort trying to get these tools to talk to each other," explained Mukund Deshpande, head of the Analytics practice at Accelerite, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jun. 29, 2016 04:15 PM EDT Reads: 483
UAS, drones or unmanned aircraft, no matter what you call them — this was their week. Our news stream was flooded with updates on the newly announced rules and regulations for commercial UAS from the FAA. So, naturally we have dedicated this week’s top news round up to highlight some of our favorite UAS stories.
Jun. 29, 2016 03:02 PM EDT Reads: 336
When people aren’t talking about VMs and containers, they’re talking about serverless architecture. Serverless is about no maintenance. It means you are not worried about low-level infrastructural and operational details. An event-driven serverless platform is a great use case for IoT. In his session at @ThingsExpo, Animesh Singh, an STSM and Lead for IBM Cloud Platform and Infrastructure, will detail how to build a distributed serverless, polyglot, microservices framework using open source tec...
Jun. 29, 2016 12:30 PM EDT Reads: 590