Software and Solutions coupled with increased demand for Managed Services sales helps European VARS outgrow the market


[London – 10 May 2017] Europe’s leading solution-based technology resellers (known as Value Added Resellers, or VARs) continue to defy gravity and drive the European market against a background of continued anaemic IT market growth. The overall EMEA market is forecast by Gartner to grow at just 1.9% this year, following growth of just 0.2% in 2016. New research by IT Europa in its report Solution VARs in Europe – The Top 1000, shows that Europe’s leading Solution VARs have achieved an average growth in sales of 9.44% over the last two years.

Their dramatic success underlines the increasing importance of software and solutions in driving IT sales. Solution VARs have also benefited considerably by riding the wave of surging end user demand in managed services, with more than 85% of them now offering some form of managed service solution (a big jump from the 77% figure just 6 months ago). Overall, 94% of the VARs supply software, some 44% of them working with their own packages, so claiming a role as software houses in their own right.

Looking at the vertical markets served by VARs, the public sector was top at 63% followed by financial services market, supplied by just over half (55%) of the top VARs. Manufacturing was also supplied by a majority at 52%, Education at 46% was also perhaps surprisingly strong, just slightly ahead of healthcare at 44%.

It was slightly better to be an independent than a publicly-listed VAR last year as the latest analysis of the European VAR markets reveals. The independents lifted their sales by 10.5%, the listed firms by 9.65%, according to the report. The publicly-listed firms, generally larger in size, had a higher overall sales result – the average sales figure for this group of 39 was $440m. The independents, though more numerous at nearly 800, had average sales of just over $30m. The figures also show that some 315,000 people work in these top 1000 VARs.

IT Europa’s latest database report, Solution VARs in Europe – the Top 1000, which is published today, provides detailed profiles of Europe’s top 1000 Solution VARs which last year racked up combined revenues of €73bn ($82bn).

“With continued downward pressures on hardware, software and solutions sales continue to drive the European IT market,” says Alan Norman, Managing Director, IT Europa. “Europe’s leading Corporate Resellers and Value Added Resellers are also benefiting from riding the wave of surging customer demand for Managed Services.”

The “Solution VARs in Europe – The Top 1000” database report spans 35 countries and represents the most detailed view available of this key market sector. It has been compiled from interviews by IT Europa’s own research team. The company profiles include sales breakdowns by company activity, details which markets a company operates in, and has detailed information on staff numbers and development plans, along with contact details for the top executives of each company. The report is available from IT Europa (www.iteuropa.com) costing from £4,350. Data can also be extracted and supplied by country, region or on a bespoke basis.

The surge in demand for Managed Services and its impact on the market will be examined further at the UK Managed Services & Hosting Summit 2017 which will be staged in London in September. Further details can be viewed at: www.mshsummit.com


About IT Europa
IT Europa is the leading provider of strategic business intelligence, news and analysis on the European IT marketplace and the primary channels that serve it. It publishes European channel publications, such as the IT Europa newsletter and special reports, markets a range of database reports and organises European conferences and events for the IT and Telecoms sectors. For further details visit: www.iteuropa.com

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