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Overview Thailand Software Market
APJ TSG MI Team Nov 2008
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Content

• Thailand Snap shot
• Thailand IT Market Overview
• Thailand IT Market Verticals Landscape
• Thailand IT Market Technological Landscape

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Thailand Snapshot
(Based on 2008 reports)

• Thailand's software industry is relatively small.
  According to a government agency, the Software
  Industry Promotion Association (SIPA), local
  software firms account for only around 5 of
  market sales.
• The Association of Thai Software Industry and
  Software Industry Promotion Association (SIPA)
  initiated a "Buy Thai First" campaign in
  mid-2008, and the two associations are aiming to
  boost local firms' share of the market to 50
  within three years.
• Owing to the deterioration in business and
  consumer confidence given the current political
  turmoil, real GDP growth will remain weak.
• Thai exporters will also suffer a downturn owing
  to the global economic slowdown.

Sources Sources Economist Intelligence Unit
HP Internal use only
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Thailand IT Market Overview
IT Spending 2007 (USM)
Software Spending Forecast (USM)
IT Spending Forecast(USM)
US5.4B

• Software formed 7.7 of the total IT spending of
  Thailand in 2007.
• The total IT spending in Thailand is forecasted
  to increase at a CAGR 10.8 for 2008-12.
• The total software spending in Thailand is
  forecasted to increase at CAGR of 10.8 for
  2008-12 and reach a value of US 721.4M by 2012.
• Application Development and Deploy, Applications
  and System Architecture occupied 21.7 , 37 and
  41.4 of the Packaged Software market in 2008
  and are slated to occupy 21.8, 35.3 and 42.9
  respectively by 2012 in Thailand.
• In 2007 System and Network management software
  contributed US29.4M and Storage software 19.9M
  to the Thai software market.
• The System and Network management software and
  Storage software are forecasted to reach value of
  US 39.3M and US34.7M respectively by 2012.

Forecasted values are in USM At Constant 2007
exchange rate
HP Internal use only
Source IDC Asia/Pacific IT Spending 2008.2012
Forecast The Asia /Pacific Black Book, July
2008, IDC Asia Pacific Semi Annual Tracker
for HP 21Nov 2008
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Thailand IT Market Verticals Landscape

• Banking
• Thailand banks project high IT spending growth
  in the next 6 months with high spending
  anticipated for customer relationship management
  (CRM), channels and core banking.
• The current and forthcoming MA activities
  between foreign and local commercial banks will
  positively impact the overall System and Network
  management software and Storage software
  spending.
• Software spending, esp. for data storage will
  also get a boost by the new Computer Criminal Act
  (CCA).

• Public Sector
• Limited spending was witnessed during the
  1H07-1H08.
• By early 2009, delayed projects are expected to
  enroll as government stabilizes, thereby
  enhancing spend on IT and software.

• Telecommunications
• Telco is and will spend significantly on storage
  software to manage large transactions in line
  with data protection policies by government (CCA
  law).

Manufacturing Large manufacturing industries are
major spender due to ongoing investments for
infrastructure facilities and in order to support
next generation technologies. The need to support
complex business processes and affordability of
the expensive/latest technologies will continue
to drive System and System management spending in
this sector.
Source see notes
HP Internal use only
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Thailand IT Market Technological Landscape

• Open Source ERM and CRM Software
• Thailand along with Australia and Singapore has
  taken the lead in the adoption of Open Source ERM
  and CRM as compared to the rest of Asia Pacific.

• ITIL/ITSM
• Software vendors in Thailand have made great
  efforts on awareness programs to educate market
  and train partners to absorb the strategies and
  benefits of ITIL/ITSM in Thailand. The adoption
  rate is mostly driven by larger enterprises in
  Thailand.

• Storage and Server Consolidation
• Likely to pick up in Thailad.IDC predicts this
  market will attract both enterprise and mid
  market segment. Also, Computer Criminal Act will
  boost management spending for data management,
  including storage and security.

Bundled /Converged technologies Converged and
bundling of solutions form a attractive offer to
the Thai business culture, especially the SMB,
due to visibility of gaining more solutions in a
given price. However, the SMB market overall has
been reluctant towards spending due to political
uncertainty

• Web services
• Web-based application is gaining traction as
  market is aware and spending on security
  solutions. According to IDC more adoption to be
  seen in larger enterprises, including the
  government from early 2009.

Managed services Managed services concept has
create buzz in the market in areas of SNMS as
well as Security space. The adoption is positive
with gradual adoption over 2009-2012.
HP Internal use only
Source http//www.idc.com/AP/pressrelease.jsp?con
tainerIdprSG21514308 , IDC Asia Pacific Semi
Annual Software Tracker for HP , Nov 18 2008
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