Banks spending big on information systems

Spending on IT storage services in Poland will reach $63 million by 2005, making it the biggest beneficiary of overall spending of $170 million in Central and Eastern Europe, according to a preliminary forecast by the international tech data research firm IDC. In Poland, regional spending on IT storage services, such as consulting, integration and systems management, was $32 million in 2001 and is expected to reach more than $40 million this year. Of the regional total of $74.18 million spent on storage services in 2001, Poland had a 45% market share, the largest of all the countries. "In many industries data is the core asset," especially those in which "access to data 24 hours a day, 365 days a year is critical for success," said Steven Frantzen, the managing director and group vice president of IDC's operations in Central and Eastern Europe, the Middle East and Africa, at a conference last week. Large banks, insurance companies, telecoms, utilities, manufacturers and government agencies - some of which must keep their IT systems functioning around the clock - are continuing to invest heavily in storage network technologies. Despite the economic downturn, companies cannot afford to skimp on IT solutions, especially as growing firms worldwide look to handle larger network capacity.

"If the IT system in a manufacturing company doesn't work, it's bad, but it really doesn't kill the manufacturing business; in banks it's slightly different because without good and available systems, the banking business doesn't exist," said Dariusz Śliwowski, vice president and general director of the banking and finance sector at Polish systems integrator ComputerLand. The banking sector is one of the most competitive sectors for IT spending in Central and Eastern Europe due to its sheer size as well as banks' abilities to spend loads of money on high tech. Śliwowski predicts that ComputerLand's sales of banking IT systems and services, including storage systems, will grow 10-20% this year since financial services companies must continue to upgrade their existing technology and storage capabilities to handle increased functions. "Although most banks are already equipped with the core systems, in the years to come they will be building more advanced platforms ... as well as investing a lot in security of infrastructure and transactions," said Łukasz Grochowski, the investor relations director at Polish IT firm Softbank. Both large global and local IT players supply storage solutions in the region, although the market is highly fragmented due to a host of companies, including some smaller systems integrators, that offer services, according to IDC. Poland, along with Hungary, the Czech Republic and Croatia, are the fastest-growing markets for storage software, according to IDC. The research firm also predicts that small- and medium-sized enterprises will begin investing in storage area networks in the region's more mature IT markets, including Poland.