1. 1 ICT industry development in Latvia Janis Bergs, CEO, MicroLink Latvia Chairmen of Board of IS Cluster

2. 2 Content -Main players of Latvian ICT industry, recent developments -Trends -Latvian IS Cluster

3. 3 Latvian ICT industry -Telcos -Software project companies -Product companies -Hardware resellers / integrators & service companies, distributors, resellers

4. 4 Latvian ICT industry - players and trends -Telcos -Lattelekom -“New” datacom operators -Latvenergo -VITA -Cable TV operators -GSM operators -Main trends: -Tripple play, convergence -Diversification: IT, outsourcing, retail

5. 5 Latvian ICT industry - players and trends -IT Software companies -IT Alise -TietoEnator Financials -MicroLink -Dati, Exigen, Data Pro -Main trends: -Consolidation, local owners sell their shares to foreign players -Specialization

6. 6 Latvian ICT industry - players and trends -Product companies and specialized companies -SAF Tehnika -Lursoft -Tilde -Lots of new start ups -Main trends: -The number of such companies is growing

7. 7 Current Industry trends -Nearshore outsourcing -Grow of local market: -EU money and Public Sector -GDP growth near 9% -Increasing deficit of human resources -Growing competition in Telco markets, entrance of new players

8. 8 Latvian IS Cluster We want to develop in Latvia a lot of companies like Skype, Nokia, SAF Tehnika: - products or scalable services oriented to global markets; - costs ofraw materials for such products are very small compared to selling prices

9. 9 Latvian IS Cluster - activities -Lobbying -EU funds, legislation, foreign economic policy, education -Consulting Cluster members -Platform for exchange of innovation ideas, cooperation and specialization -Representation of ICT industry to “world outside”

10. 10 Innovation can not be implemented by decree What government can do: -Speak with the industry, listen our advise -Invest available funds wisely -Invest in education (both long academic and professional) -Boost internal IT consumption and positively lobby companies residing locally -Support availability of capital to finance innovation The rest is in God’s and our own hands!

11. 11 Thank you for the attention! janis.bergs@microlink.lv www.is.lv