"preliminary findings from the ict developers survey" by david card, vice president,...
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Preliminary findings: ICT Developers SurveyDavid Card, VP Gigaom Research
13 November 2013
• What we’re trying to accomplish– Modeling the Eurapp economy aftermarket– Understanding successes and challenges– Two surveys as inputs
• Preliminary findings from ICT developers survey• Rebooting the EU economy with apps?• App development challenges• Next steps
Agenda
European app ecosystem
OS suppliersAPI
suppliersDevices
Social
Mobile
Smart TV
ISVs
New PlatformsEnvironment
App Developer TypesOriginator
IT Developers
Cottage Industry, Hobbyists
Aftermarket
App Stores, 3rd party app-discovery
Revenue/Monetization• Consumer spending• Business spending• Advertising• In-app spending (virtual
goods)
Jobs created
New Platforms
Source: Smith's Point Analytics/Gigaom Research, 2013
Smartphone crossover coming fast
2012 2013 2014 2015 2016 20170
50
100
150
200
250
Smartphone Shipments, 2012-2017
North America Western Europe Japan
(million
s)
Source: Internet World Stats, 2012
Facebook adoption passing 50% in Europe
Mar-11 Jun-11 Seo 2011 Dec-11 Mar-120
50
100
150
200
250
Facebook Subscriber Growth
Europe Asia North America
(million
s)
• Over 500 responses• Mix across home countries: UK, Germany, France, Italy,
Spain• Mix of company sizes: 31% > 500 employees, 20% > 1,000• Mix of industries, though approximately 20% in technology;
13-14% of biggest companies in financial services
ICT developer survey background
Main business is commercial apps
For partners, distributors
For own employees
For customers
0% 20% 40% 60% 80% 100%
18%
38%
56%
67%
We develop or support custom mobile and social apps…
Apps for customers more than employees, supply chain
Source: preliminary Gigaom Research EU ICT developers survey, 3Q 2013 N= 525
Integrate with commercial apps from business apps stores
Integrate with commercial apps from consumer apps stores
Outsource to third parties
Develop in-house
0% 20%
40%
60%
80%
100%
19%
39%
53%
63%
Mobile and social apps approach
Half of in-house developers also outsource
Source: preliminary Gigaom Research EU ICT developers survey, 3Q 2013 N= 525
None of above, just internal use
Charge for apps
Reduce customer service costs
To sell products, services
Marketing for products, services
To improve customer experience of our products, services
0% 20% 40% 60% 80% 100%
2%
24%
43%
46%
50%
58%
Commercial objectives for mobile and social apps
Apps to complement products, aid marketing/sales
Source: preliminary Gigaom Research EU ICT developers survey, 3Q 2013 N= 524
Internal use by employees
Charge for apps
Reduce customer service costs
To sell products, services
Marketing for products, services
To improve customer experience of our products, services
0% 20% 40% 60% 80% 100%
38%
28%
38%
37%
39%
40%
34%
32%
29%
35%
38%
38%
Satisfaction with apps’ commercial ob-jectives
Very satisfied Somewhat satisfied
High satisfaction rates for key app objectives
Source: preliminary Gigaom Research EU ICT developers survey, 3Q 2013 N= 517
Africa
Asia-Pacific
Japan
Nordic
USA, N. America
Spain
France
0% 10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
9%9%
12%12%13%
17%22%
25%26%
35%36%
40%41%41%
Other target markets
Seeking EU first; US, E. Europe, Nordic regions on radar
Source: preliminary Gigaom Research EU ICT developers survey, 3Q 2013 N= 524
Smart TV
Social network
Other tablet
Other phone
iPad
iPhone
Android tablet
Android phone
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%100%
14%
35%
26%
35%
61%
71%
63%
72%
Supported apps environments
One third target alternative phones, social nets
Source: preliminary Gigaom Research EU ICT developers survey, 3Q 2013 N= 522
None
More than 30
16-30
7-15
4-6
2-3
One
0% 20% 40% 60% 80% 100%
2%
12%
12%
24%
21%
24%
5%
Number of apps developed, planned
Next yearLast year
Plenty of new apps, but growth rate flat
Source: preliminary Gigaom Research EU ICT developers survey, 3Q 2013 N= 522
None
More than 500
101-500
51-100
31-50
11-30
6-10
3-5
1-2
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%100%
19%
2%
2%
4%
8%
12%
15%
15%
23%
Number of app developers added last year
Nearly 30% of companies hired 10+ developers last year
Source: preliminary Gigaom Research EU ICT developers survey, 3Q 2013 N= 521
No growth
More than 15%
11-15%
8-10%
6-7%
3-5%
1-2%
0% 20% 40% 60% 80%100%
Expected growth in number of app developers next year
Testing, supportScripters, designersEngineers, coders
Good growth: one fourth expect to grow over 5%
Source: preliminary Gigaom Research EU ICT developers survey, 3Q 2013 N= 519
More than 500
101-500
51-100
31-50
11-30
6-10
3-5
1-2
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%100%
Number of app developers, support staff
App developers Support staff
Nearly half 1:1 ratio of support staff to developers
Source: preliminary Gigaom Research EU ICT developers survey, 3Q 2013 N= 522
No growth
More than 15%
11-15%
8-10%
6-7%
3-5%
1-2%
0% 10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
32%
4%
3%
7%
17%
22%
15%
Expected growth in number of app support personnel next year
Hiring growth even better than for developers
Source: preliminary Gigaom Research EU ICT developers survey, 3Q 2013 N= 517
Interviews: Challenges for the Eurapp economy
Environmental• Platform concentration: US
companies dominate• 3+ year lag in adoption• Fragmented markets• Conservative investors,
entrepreneurs
Technical• Cross-platform development• Dev tools, open source• Native language support tools• Lagging 4G• Data portability
Business and Financial
• Immature ad market• No standard ad measurement
“currency”• Unwillingness to pay for apps• Low-priced apps• Customer acquisition costs• Access to capital
Resources• Fewer developers• Lower salaries• Lack of business expertise at
tech startups
Multiple currencies
Small European country markets
Lagging European tech adoption
Restrictive regulation
Inconsistent regulation
Multiple languages
App platforms dominated by Apple, Google, Facebook, etc.
0% 20% 40% 60% 80% 100%
15%
19%
19%
24%
28%
30%
31%
Top 2 European market challenges for apps
Fragmented markets, regulation; but no dominant bottleneck
Source: preliminary Gigaom Research EU ICT developers survey, 3Q 2013 N= 517
Data available via API
Immaturity of open-source tech, community
Difficulty in delivering mobile experience
Dev tools
Adding social functionality
Breadth, depth of API services
Lagging European 4G adoption
Lack of cross-platform compatibility
0% 20% 40% 60% 80% 100%
14%
16%
18%
18%
18%
19%
28%
38%
Top 2 tech challenges for apps
In-house developers frustrated by platform divergence
Source: preliminary Gigaom Research EU ICT developers survey, 3Q 2013 N= 517
Fewer developers
Fewer SW companies to spin off developers
Lack of business expertise at startups
Relatively less app dev education
Harder to attract dev talent, low salaries
0% 20% 40% 60% 80% 100%
24%
28%
32%
33%
40%
Top 2 resource challenges for European apps
Talent bottlenecks: salaries, education, business skills
Source: preliminary Gigaom Research EU ICT developers survey, 3Q 2013 N= 517
• Platform proliferation will take care of itself• ICT developers highly satisfied with app commercial
effectiveness, investing more in staff• Half of in-house developers also outsource• Even more hiring growth in app support than development• Target markets mostly still in EU• Key challenges: talent competition, cross-platform
development
Key takeaways
• Mapping survey input to forecast model– Revenue– Jobs– New job creation
• Detailed job profiling• Comparisons with independent developers’ survey, cottage
industry• Take the survey http://eurapp.eu/independent-app-
developer-survey
Next steps
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