Dave Gorshkov CEng, FIET ICT Sector Champion August 2010 UK ICT Strengths & Opportunities

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Who are UKTI?

Government organisation managed jointly by Foreign & Commonwealth Office (FCO) & DBIS

Close partnership with the MoD through the DSO.

Comprises the UK government’s trade and inward investment promotion activity

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(9 RDA’s and 3 DDA’s)

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UK areas of opportunity

Central and regional government support

Design Centres

Financial Services: London’s financial edge

Government: Major transformational agenda ‘G-Cloud’

Digital Britain and 21 Century Network (21CN)

Green data centre and Smart Grids initiatives

Intelligent Transport (ITS); Congestion charging, CCTV etc

2012 Olympic opportunities, 2014 Commonwealth Games, 2015 Rugby World Cup, 2018 Football World Cup (TBC)

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Technology Convergence Design – Form & Function

Achieving fully integrated digital home entertainment requires PVR Set Top Boxes and handsets to have more memory, use better compression, and to connect seamlessly and wirelessly to whichever device is most convenient as we move around.

Displays, especially flat panel displays which have been taken up most rapidly in UK following the successful rollout of digital TV; screens are increasingly HD-ready encouraging migration to HD services as more become available; UK technologists, such as CDT and MED, have key expertise in next generation low power display technologies.

Digital TV has been taken up most rapidly in UK with over 80% penetration with many consumers already adopting HDTV and/or using PVR Set Top Boxes from Amstrad and Pace; analogue TV switch-off will release substantial radio spectrum in the sought after 700-800MHz range.

Mobile broadband, with over 23.3%* 3G penetration, is taking off and allowing us to stay connected with our favourite entertainment whether directly off-air as in mobile TV or indirectly through our home entertainment systems. Wireless technology, especially for portable, battery-powered, devices is a UK speciality

* Ofcom 2009

Design,The UK’s designers play a key role in helping the world’s consumer electronics players create world-class products –

– from CCL, PA, Tangerine, or TTP creating original designs under contract;

– ARM, CSR, MIRICS, Wolfson and others creating silicon for portable devices;

– Amstrad, Ericsson, Motorola, Nokia, O2, Pace, Philips, Toshiba, and Vodafone designing products and systems;

– to Jonathan Ive, Head of Design at Apple.

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UK is the proving ground for Consumer Electronics

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Collaboration Strengthening through partnership

Scope for Further Collaborations

Around the world, there are firms manufacturing consumer electronics products with a range of sophistication that could benefit from greater cooperation with UK. Many of their products already incorporate processor cores from ARM and/or Bluetooth devices from CSR.

– ARM have licensed over 10 billion processors

– CSR manufacture over 1 million Buetooth chips a day

Other technology partnering possibilities include the UK’s many contract product and technology consultancies

Content partnering is likely to become increasingly important as successful consumer electronics devices increasingly need a ready supply of content available at launch.

In Asia, high end firm such as Amoi, Ben-Q, D-Link, Hitachi, HTC, Jow Tong, Lenovo, Samsung, Sony, and Toshiba etc might be persuaded to collaborate (further in some cases) with UK designers to produce higher value, more integrated products; smaller firms with less access to technology might be persuaded to move up the value chain with help from UK.

In America and Europe, similar issues face larger firms such as Ericsson, Motorola, Nokia, Philips, Siemens, and Thomson but smaller firms such as i-Mate, Jabra, or SouthWing etc may benefit most by cooperating to develop more complex products.

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UK is a business and consumer electronics hot spot

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Technology for Government Services

Investing around £17 billions pa in technology, especially to make government services more accessible, responsive and more efficient.

G Cloud data centre initiative worth £3.2Bn over next 5 years

Five key growth areas

– Shared services to simplify supply chains

– Outsourcing and off-shoring

– Mobile and flexible working

– Government ‘Apps store’

– The green agenda

Major departments effectively outsource much of their ICT spend.

– Pressure to reduce number of suppliers

Top 20 suppliers account for around £12 billion (70%);

long tail of over 1000 suppliers for remaining 30%

.GOV

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G-Cloud

UK G-Cloud- 12 data centres constructed in 5 yrs

–Central

–Regional

–Local

–Criminal Justice

–Health

–Education

–Defence

–Transport

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Digital Britain, what is it?

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Green Data Centres infrastructure

Data Centres are Significant users of Energy

• What is a Green Data Center?

* Four Metrics to Determine Data Center Greenness:

o IT systems design and architecture

o IT hardware asset utilization

o IT hardware efficiency

o Site physical infrastructure overhead

* Data Center and Power Efficiency

• UK regions now deploying Green Data centres

• Google data centre in Scotland using wave power

• IBW supporting new Data centre in Wales

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Visibility of the power network

HAN

NAN

FAN

Substation LAN

Control

Centre

WAN

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Enable connectivity to consumers

HAN

Smart meter

“Smart metering” tends to mean

different thing to different people.

Essentially it is a meter that has

the capability to store and process

large quantities of data locally,

and communicate with other

devices including remote servers

Acts as the

gateway

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Current Research at Cardiff University

• Control and communication requirements of the ‘Smart’ Distribution Network

• Role of smart meters and how they can facilitate demand-side response

• Control of a large number of geographically disparate loads and electric vehicles

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Access to ITS projects

Largest CCTV and Video analytics market in the world!

– 4.3Million cameras and growing to 9M in the next 5-10yrs

– £4BN pa spent on CCTV and surveillance systems and services

The Highways Agency, Transport Wales and Transport Scotland all have

active projects highlighted for the major events coming to the UK,

2012 Olympics

2014 games Commonwealth games.

Congestion charging and road tolling projects.

Rugby World Cup

London’s recently announced Cross-Rail projects has major ICT opportunities for advanced SW and IT systems, both in safety and back office systems.

The UK has almost 1000 PFI and PPP projects across all aspects of local and national infrastructure upgrades. (Lighting, IT, ITS, ICT etc)

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Investable Opportunity Areas

Eight market opportunity areas for ICT players:

– Crowd Protection

UK has largest concentrations of people, generally and at major events

– Digital Signage Digital Signage has greater convertibility than TV; UK leading take-up; WiMax?

– Integrated Home Entertainment UK take-up of digital entertainment fastest in EU; time for IPTV?

– Technology for Financial Business London still the world-leading financial centre; technology is key

– Technology for Health Business UK is most concentrated healthcare market in EU and open to value propositions

– Information Security UK has largest EU concentration of international business HQs

– Next Generation Broadband Access BT, Virgin beginning to slake city thirst for ultra-fast broadband; but rural is key

– Next Generation IT platforms and services Cloud, green, open source, virtualisation in EU’s largest IT services market

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Summary

The UK is a truly open market with no restrictions on ownership

The UK welcomes foreign investors both large and small

Recent exchange rate changes have made the UK more cost effective as an FDI location and bridge to Europe and other export markets

UK Companies and Universities are willing and able to partner with International companies to develop trade and investment opportunities

Various R&D and Touchdown programmes to help NEWCO’s.

UKTI are here to assist you in establishing an operation in the UK to benefit in these various areas of opportunity!

Thank You & Questions?

dave.gorshkov@tswg.org