BT 2012 Annual Report Download - page 18

Business 15
services include email, hosted Microsoft collaboration services and
webhosting.
Connectivity services
We offer networking services to support customers’ voice and data
communications needs. This includes the design, installation and
management of leased lines, Ethernet services, IP virtual private
network (IPVPN) services, structured cabling, and local area
networkingsolutions.
IT services
We offer IT services through our three IT services businesses: BT Engage
IT; BT iNet, and BT Business Direct. Services include data centres,
unified communications and security solutions. We also provide
hardware, computing support services and consultancy. We work with
most leading vendors including Cisco, Microsoft, Citrix, HP, NetApps
andSymantec.
Large corporate and public sector customers
The large corporate and public sector customer segment is our largest
segment in terms of external revenue. It is served by BT Global Services.
Customers
We provide large corporate and public sector customers with a range of
network, IT and professional services. We provide services to some of
the largest companies in the world.
We serve:
 87% of the FTSE100 companies
 64% of the Fortune 500 companies
 90% of Interbrands’ annual ranking of the world’s most
valuablebrands
 the world’s top stock exchanges, leading broker-dealers and
biggestbanks.
We also supply services to national and local government organisations
and other public sector bodies in the UK and in 16 countries around
theworld.
In the UK we are one of the largest suppliers of networked IT services
for the UK government (Government). The Government, as a whole, is
our largest customer. Except as described on page 19, we have a normal
customer and supplier relationship with the Government.
Markets
The global information and communications technology (ICT) market
serving large corporate and public sector customers is very fragmented
in terms of products, suppliers, and standards.
Estimates of market size vary, but IDC value the total global ICT market
serving corporate and public sector customers at £1,327bn. Within the
total global ICT market our core products and services most closely align
to a segment defined as managed networked IT services. This market
has been impacted by economic conditions, as customers delay projects
or reduce ICT budgets. The global managed networked IT services
market is estimated to be worth £875bn and is predicted to grow over
the next four calendar years.
2011 201420132012 2015
0
400
600
800
200
1,000
1,200
£bn
Global managed networked IT services market
875
926
984
1,046
1,110
Source: IDC custom data. Based on calendar years
There are regional differences in market growth rates. The UK is a highly
competitive market and we continue to see pricing pressure as well as
declines in more traditional telecoms services as customers switch to
newer technologies. However, there is increasing potential in high-
growth economies as domestic companies expand globally, and global
companies enter new markets.
TOTAL
£875bn
WESTERN EUROPE
£198bn
UK
£56bn ASIA PACIFIC £161bn
US
£322bn
REST OF THE WORLD
£138bn
Managed networked IT services market size by geography
Source: IDC custom data
Customers, markets and products
Overview
BusinessStrategy
Performance
Governance
Financial statements
Additional information Overview
BusinessStrategy
Performance
Governance
Financial statements
Additional information