For the first time the Czech IT market passed $3 billion in 2006 - growth slowed to 8.6% in 2005, down from an impressive 14.7% in 2004

- the market will pick up this year, reaching 10.5% growth by the end of December
- the combined hardware market is still growing- nevertheless it dropped from more than 47% of spending in 2001 to just under 43% in 2005
- PCs continued to dominate the segment - notebooks are expected to drive revenue for the next few years
- disk storage was and will be the fastest growing sub-segment
- IT services has gone from 34.5% of spending in 2001 to 40% in 2005
- all sub-segments are exhibiting healthy growth- implementation services is the largest category- operations management is the fastest growing
- packaged software is the smallest but fastest growing segment of the Czech IT market
- its share rose from 18.3% of spending in 2001 to 20.5% in 2005- most new business for packaged software is coming from small and medium-sized organizations
- large and very large organizations are at saturation

More Information: Jaromir ValentaAccount Manager
IDC CEMA
Male namesti 13, 110 00 Prague 1, Czech Republic
Phone: +420 221 423 220
Fax.: +420 221 423 150mob.:+420 731 503 236
jvalenta@idc.com
www.idc-cema.com

EITO 2003 market overview

In 2004 EITO experts forecast a market volume of 6,819 million Euro for the Czech ICT market. Growth rates of 4.4 percent in 2003 and 4.1 percent in 2004 (the lowest in Central and Eastern Europe) indicate the maturity of the Czech ICT market.

Just having joined the EU, the Czech Republic already overtakes Ireland (ICT market value: 6,247 million Euro) this year and breathes down Greece’s neck (ICT market volume: 7,844 million Euro). In regard to the absolute gain of market volume, the Czech Republic also matches up with Ireland: With a plus of 270 million Euro in 2004 the increase of the Czech ICT market volume corresponds approximately with the one in Ireland (266 million Euro).

Moreover, indicators like IT spending as a share of GDP and mobile subscriptions as a share of population are also comparable to those of many Western European countries. The Czech ICT market, therefore, is the one most similar to EU-15 countries.

Source: EITO