Download - "Preliminary Findings from the ICT Developers Survey" by David Card, Vice President, Gigaom Research
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Preliminary findings: ICT Developers SurveyDavid Card, VP Gigaom Research
13 November 2013
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• 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
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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
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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)
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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)
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• 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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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• 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
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• 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