Recent research conducted by Siemens Financial Services on ICT replacement cycles found that these are shortest in the UK and Germany, and are predicted to shorten even further through to 2007. Not only is this technology turnover a problem for investors in ICT, but other research has also shown that financial pressure on medium-sized companies (50-250 employees) is increasing.
Siemens say this creates a problem for the comms reseller who needs to encourage clients to invest in upgrades, but is fighting the customer’s genuine difficulty in responsibly raising the capital to make such investments.
How long are current technology replacement cycles? (Years)
• US 3.7
• France 3.7
• UK 3.4
• Germany 3.5
Will IT replacement cycles shorten still further over the next five years?
• US 38% Yes 62% No
• France 25% Yes 75% No
• UK 50% Yes 50% No
• Germany 52% Yes 48% No