Digital Economy
Transcription
Digital Economy
Sector Profiles: Digital and IT Review of key sectors in the London Stansted Cambridge Corridor March 2014 www.lscc.co 1 Contents PAGE Foreword........................................................................................3 Summary..................................................................................................4 Profile of Digital and IT in the Corridor.....................................................5 Opportunities for the Corridor.................................................................12 Global Trends.........................................................................................14 Appendix: Digital and IT – major firms, centres of excellence and assets.....................................................................................................18 IT and Digital Sector Map.......................................................................24 LSCC Members, Partners & Supporters........................................25 to 27 2 Foreword This report sets out the key features of the digital and IT sector in the London-Stansted-Cambridge corridor. We realise that it is impossible to ever fully map an industry as dynamic and mobile as this, but what we can do is highlight the key features in our area. The corridor is a growing cluster to major global brands, from Microsoft’s research HQ next to Cambridge station, to Google’s plans for 5,000 staff at their Kings Cross HQ, linked by a 45 minute train journey. As this report shows there is a huge “ecosystem” of small, but hugely important firms, global leaders in innovation. Digital technology has a long history in the corridor, with highlights including the first television broadcasts from Alexandra Palace, the invention of fibre optics in Harlow by Sir Charles Kao, to ARM set up in 1990 in Cambridge and now responsible for designing the chip architecture on 95% of the world’s smartphones. From “Silicon Fen” to Tech-City this corridor has a huge potential to grow, but it also faces intense global competition. How do we better link the huge intellectual capital of Cambridge, with the marketing and commercialisation skills of London? How do we best unlock the opportunity from combining IT & digital capability and expertise with other markets, perhaps most notably the corridor’s huge life science cluster, highlighted in our first report. We need to promote our international links, supporting flights from Stansted Airport to destinations like NYC, Silicon Valley, and Bangalore. Also other destinations such as Massachusetts and Texas, significant for microprocessors and telecoms, need to be considered. There is great brand awareness to be made from championing this sector globally. As a corridor it is of the scale to rival NYC and Silicon Valley something that on their own Cambridge and Tech City cannot do. The LSCC is pleased to be working closely with four Local Enterprise Panels in the corridor, supporting their emerging Growth Strategies. We hope that these reports are helpful to them and others, putting their important work in a wider context. Greg Clark Chair London-Stansted-Cambridge Consortium www.lscc.co 3 Summary This review of ITC and digital industries was undertaken for the London Stansted Cambridge Consortium by Athey Consulting Limited. The paper provides an overview of the sector in the London Stansted Cambridge Corridor and its importance in a global context. London-Stansted-Cambridge Corridor The LSCC area has a significant presence in the ICT and Digital sector – comprising the most well established centre of the UK IT and Digital industry in Cambridge, with the fastest growing ICT and Digital Hub in London. There are 91,000 IT and telecommunications professionals and technicians in the LSCC area (12.8 per cent of the total for England); 24,800 businesses in the ICT and digital sector (20.0 per cent of the England total); the ICT and digital sector as a whole supports 213,100 jobs in the LSCC area (24.2 per cent of all England’s jobs in this sector). Key locations The corridor is host to a series of key locations. Techcity: Tech City is home to one of the largest concentrations of small, fast- growing digital technology companies in Europe. Cambridge Cluster: 3,000 firms involved in ICT and Digital in the Cambridge Cluster. Early successful businesses include ARM. I-City: The legacy of the Olympic Media Centre, this will provide 7,500 new high-tech jobs. Kings Cross: A growing digital cluster, cemented by Google’s multi-million pound investment. Harlow Enterprise Zone: The site has the potential to take major growth with a focus on hightech economies. Harder to define are the numerous small, but global players, that often locate in more suburban locations in the corridor, drawn by the ready access to talent and market. 4 Profile of Digital and IT in the corridor The UK is Europe’s leading market for software and IT services with a market value of £58 billion per annum. The UK’s success is built on several key strengths - software development (attracting £930 million in R&D investment annually), and a critical mass of over 100,000 specialist software companies and all the major global software companies such as Microsoft, IBM and HP. The UK also has the strongest ICT skills in Europe and the highest number of ICT graduates in the whole of Western Europe. Surrounding this is a network of legal, intellectual property, financial and other business support bespoke to the digital economy. Enabling the Next Generation of Innovation in the Market Source of innovative start-up companies: Virata, ANT, nCipher, Zeus, Amino, Bango, Cambridge Broadband, Datanomic, Jagex, Linguamatics, CacheLogic, DisplayLink, blinkx, Camrivox, XenSource, RealVNC, Ubisense, Dopplr, Last.fm, Consolidated Independent, Tinker.it, TweetDeck, Berg, Trampoline Systems, AMEE, Skimbit, Fotango, weartical.com, Songkick, Techlightenment, Poke London, Kizoom, BrightLemon, Redmonk, MOO, Believe.in, LShift, Livemusic. Tailored support for ICT/Digital start-ups: FinTech Innovation Lab, Accelerator (London), London City Incubator, Microsoft Ventures Accelerator, Google’s Campus London, and the St. John’s Innovation Centre. Within the digital media sub-sector, the UK has the highest number of game development companies and publishers in Europe employing 28,000 people. A high rate of earlyadopters, a deep talent pool, the world’s fourth largest domestic games market and a sophisticated distribution network make the UK an effective place to bring new games to market. The London-Stansted-Cambridge corridor is where the global IT cluster of Cambridge meets Europe’s fastest growing IT hub in Tech City in London. World Class research and Corporate R&D Home of leading corporate R&D centres: Microsoft’s European Research Lab, Cambridge Display Technologies, Google, Citrix, Xaar, Red Gate, Aveva, ARM, Imagination Technologies, and ACI Global. Globally leading academic research and spin out companies: 188 firms founded by staff, students and alumni of The University of Cambridge’s Computer Laboratory. Within the corridor there are: 91,000 IT and telecommunications professionals and technicians (12.8 per cent of the total for England); 24,800 businesses in the ICT and digital sector (20.0 per cent of the England total); The tech start-up capital of Europe: 3,000 technology businesses have started up or are located in Tech City in London; the Cambridge Cluster has 3,000 firms in ICT and Digital. Centres of excellence and dedicated industry organisations: including The Cambridge Network; Tech City Investment Organisation; the Open Data Institute; Cambridge Wireless Network; Dell/Cambridge/Imperial High Performance Computing Solution Centre and High Performance Computing Cloud; and the Inkjet Research Centre. 213,100 ICT and digital sector jobs as a whole (24.2 per cent of all England’s jobs in this sector). 5 The ICT and Digital sector in the LSCC area comprises of a wide range of activities including communications, electronics, hardware, software, computer services, digital media and computer games. The types of activities or sub-sectors which the Corridor has a significant presence is illustrated in the table below: Subsectors in ICT and Digital Media Examples of major firms in each sub-sector that are in or adjacent to the LSCC area Communications: refers to all technological advances that support communications and includes a wide range of disciplines in wire-line and wireless operations; Nokia Research, Qualcomm, CSR, Connectix Ltd, Global Marine Systems, Alcatel Lucent, Reliance Global Com, Paradigm Services Ltd, Facebook, Everything Everywhere, Orange Corporate Services, T-Mobile UK, Metaswitch. Electronics and IT Hardware: refers to the design Cambridge Display Technologies, Cambridge and manufacturing of the electronic devices used Wireless, Plastic Logic, Xaar, Ubisense, in numerous applications; Microsoft, Toshiba, ARM, Plextek, Tyco, Kodak, Paypoint, EPSON, Imagination Technologies. Software & Computer Services: includes all the software and related computer services, necessary for the function of the hardware. UKTI includes Business to Business (B2B) services but does not include Business to Consumers (B2C) services Citrix, Red Gate, Autonomy, Computerlinks, Aveva, Accelrys, Intamac, Broadcom, Access UK Ltd, Amazon Development Centre, Steria, Northgate, Bull Information Systems, Computacenter, Storm Technologies Ltd, Viglen, Serverchoice. Digital Media: combining different digital technologies to create final goods and services that together have transformed a plethora of economic and social activities – including computer games, mobile applications and bioinformatics. Blitz Communications, Jagex, Frontier, Sony, Ninja Theory, Geomerics, Rising Star Games, Acclaim, Airplay, EA, Eidos, Konami, Kuju, Playfish, Gorilla Nation, LinkedIn, Microsoft, Reality Digital, Rockstar, Sega, Square Enix, Ubisoft, Vivendi Universal Games, Ask.com, Glam Media, Linkedin, Google. 6 Key features of the corridor Tech City’s dynamism and rapid growth have been recognised by existing global corporations – with both Microsoft and Google establishing incubator space and services for small business and start-ups in the area. Amazon have established a Digital Media Development Centre in Tech City. Tech City Spanning an area in East London from Shoreditch to Old Street to the Olympic Park, Tech City is home to one of the largest concentrations of small, fast- growing digital technology companies in Europe including: Last.fm (sold to CBS in 2007 for $280 million); Tweetdeck (sold to Twitter in 2011 for $40 million); Songkick (the largest global database of concerts in the world); Dopplr (sold to Nokia for $22million); and Yammer (the leading enterprise social network made Tech City its European headquarters in 2011). The UK Government has also made a number of notable investment commitments and support for initiatives in the area. Tech City Investment Organisation (TCIO) is an agency which was founded by UK Trade & Investment to encourage the growth and development of the Tech City cluster. The Open Data Institute (ODI) is a not-for-profit company limited by guarantee, which will be based in Tech City. The ODI will be directed by Sir Tim BernersLee and Prof Nigel Shadbolt from the University of Southampton. A total of £10m of public funds have been pledged by the UK Technology Strategy Board to the ODI over the next five years. Tech City is also home to a number of innovative social enterprises. In 2013 the Nominet Trust selected "5 startups making positive social change" which included Streetbank, Give What You’re Good At, Videre Est Credere, Buddy App, and PaveGen. EUROPE’S FASTESTGROWING TECH CLUSTER > TECH CITY, LONDON Accelerating and supporting start ups. Tech City is also significant for its start up social media and IT firms, including Dopplr, Last.fm, Consolidated Independent, Tinker.it, TweetDeck, Berg, Trampoline Systems, AMEE, Skimbit, Fotango, weartical.com, Songkick, Techlightenment, Poke London, Kizoom, BrightLemon, Redmonk, MOO, Believe.in, LShift and Livemusic. In September 2013, Microsoft opened a new accelerator in the heart of Tech City to identify some of London’s most promising early stage technology companies, with Google following with its London Campus for start-ups in 2013. THE WORLD’S LEADING SEMICONDUCTOR INTELLECTUAL PROPERTY SUPPLIER > ARM, CAMBRIDGE ARM Holdings is the world's leading semiconductor intellectual property (IP) supplier and as such is at the heart of the development of digital electronic products. Headquartered in Cambridge, UK, and employing over 2,000 people, ARM has offices around the world, including design centers in Taiwan, France, India, Sweden, and the US. Founded in 1990, ARM is the world’s leading semiconductor IP company, with over 20 billion ARM based chips shipped to date, and 800 processor licenses sold to more than 250 companies. With royalties received on all ARM-based chips, and the gaining of market share in long-term secular growth markets - ARM revenues typically grow faster than overall semiconductor industry revenues. The ARM partnership spans a wide and diverse set of applications and markets. ARM has dedicated vertical marketing teams driving strategies into four broad categories. This focus enables ARM to fully understand the challenges faced by their customers who design and deliver products into the Mobile, Home, Embedded and Enterprise Segments. With ARM's extensive experience and adoption in the mobile space brings together the key technologies needed for application processor, modem solutions and graphics processors. ARM based IP is enabling the continued development of smartphones whilst bring the smartphone experience to a wider mobile audience with market leading energy efficiency. Drawing upon its legacy and expertise in low power processor design, ARM can provide an optimum solution for embedded computing applications including automotive, digital signage, industrial automation, mass storage networks, and mobile baseband. A number of not-for-profit organisations have created a sense of community in the area including Independent Shoreditch, a business alliance, and Digital Shoreditch, which organises monthly meet-ups plus an annual festival of the same name, as well as for-profit organisations like Silicon Roundabout which is a conduit for office space in the area. 7 The Cambridge Cluster The Cambridge Cluster (sometimes known as Silicon Fen) is the name given to the region around Cambridge, which is home to a large cluster of high-tech businesses focusing on software, electronics and biotechnology. Many of these businesses have connections with Cambridge University, and the area is now one of the most important technology centres in Europe. There are now 3,000 firms involved in ICT and Digital in the Cambridge Cluster. Early successful businesses include ARM (semiconductor design and global leader in low energy semiconductors for mobile devices) and Cambridge Display Technologies (OLED displays). Other notable successes include AVEVA, Autonomy Corporation (subsequently acquired by Hewlett Packard) and Cambridge Silicon Radio (semiconductors, particularly for Bluetooth devices). The Cambridge Cluster is also home to a significant digital media and computer gaming sector, with notable global firms such as Frontier Developments (the Elite series of games) and Jagex Games Studio (responsible for the Runescape – the most popular free to play multiplayer online game in the world). Cambridge also has a number of subsector specialisms such as inkjet printing. Established in 1978, Domino sits at the head of the subsector linked to inkjet printing, today employing over 2,000 people worldwide. Other firms in the inkjet printing subsector include Xaar (global leaders in the industrial printhead market), Inca Digital Printers (pioneers of digital flatbed printing), and Tonejet Ltd. As well as large ICT firms and established technologies, the Cambridge Cluster is a constant source of innovative new start-ups such as Owlstone (gas sensors on microchips), and RealVNC, (allowing computers and smartphones to remotely take control of another device anywhere in the world, and now enabling car dashboard access to apps on devices). COMPANIES FOUNDED BY STAFF AND STUDENTS FROM THE UNIVERSITY OF CAMBRIDGE’S COMPUTER LABORATORY 1968 – Media Dynamics Ltd 1974 – Shape Data Ltd 1976 – Micro Focus 1978 – Orbis Ltd 1979 – Acorn Computer Ltd; GST Technologies Ltd 1984 – Camdata 1985 – APM Ltd; First DBS Ltd; Global Software Publishing; PC Communications Ltd; Qudos Technology Ltd; SRI Cambridge 1986 – Olivetti Research Ltd; Perihelion Software; Three-Space Ltd; Xi Software Ltd 1987 – Equisys; Sophos Plc 1988 – Cunning Running Software Ltd; NextBase Ltd; Questionmark; Software Integrators 1989 – JMEC Ltd; Leading Technology Inc; Rubicon Software Group plc; Software Solutions; Yudkin Consulting AG 1990 – FORE; Iridian Technologies 1991 – Digital Mail; Perfect Image 1992 – ANT Ltd; KBW Consulting 1993 – Electronic Share Information Ltd; Jobstream Group plc; Metrica Systems Ltd; OptionExist; Virata Ltd 1994 – Creature House; Evertrack Ltd; Nemesys; Patientline Plc; UK Online 1995 – Active Media Solutions Ltd; ART; Cedalion Ltd; Muscat Ltd; NetChannel Ltd; SoftForum; Zeus 1996 – Digitivity (APM spin-out; Ionysys Technology Corporation; IPV Ltd; Kavanagh; Mitcham Technologies; nCipher; Skygate; Spark! Data Systems; Tarragon Embedded Technology 1997 – nGame; Nine Tiles Ltd; Objectronix; Operis Group plc; Simulacra; Sintefex Audio 1998 – Adaptive Broadband Ltd; Amino Communications; Basis Communications; Elixir Studios; Genius 2000; Midsummer House Ltd 1999 – Anondesign; Apama; Applied Generics; Bango.net; Center for Internet Studies, University of Washington; CPLANE; Curious Software Company Ltd; Envisional; Fecilite.com; Invention Marketing; MessageLabs; MobIsle Communications Ltd; ObjectSecurity Ltd; PSDT; Shopfitter; Sociality; Survey Online 2000 – Cambridge Broadband Ltd; Filonet Korea Incorporated; FiloSafe Corporation - formerly Filonet Corporation; Metanate Ltd; Tenison Technology EDA Ltd; Xandera; Zoonami 2001 – Blue technologies; break-step productions; Business Web Software; Datanomic Ltd; Governor Technology Limited; Grex Games Ltd; Interactive Digital Television Ltd; Ionsquare ; Jagex Ltd; Jawasoft; Lemur Consulting; Linguamatics; Linguit GmbH; Micropraxis Ltd; Paradigm Design Systems Limited 2002 – Ubisense; Azuro; Bid Management Limited; CacheLogic Ltd; Cambridge Internetworking Ltd (Level 5 Networks); Cotares Ltd; eCosCentric Ltd; Fraser Research Inc; Great East London Software; Invest Solutions Limited; Masabi; Ndiyo; RealVNC Ltd; Saviso Group; Tideway; UK Broadband Ltd; Xynchron 2003 – Artimi; blinkx; Blue Compass; Censeo Systems Ltd; Codian; DisplayLink; ELECtric SOFTware; Encoded Media; Netronome; Seventh String; SmartInfoSearch; Trampoline Systems; VeriQual 2004 – Exbiblio; Innonation Productions; Insight Studios; Omnipotent Software; StegoStik Ltd; Sygneca 2005 – Adventiq; Camrivox; Cronto; Packet Ship; PCF Ltd; Projected Games; STARFISH; Trinamo Ltd; True Knowledge; Vipadia Limited; XenSource; High Energy Magic 2006 – Global Inkjet Systems; Innovation Framework Technologies; LogicIQ; Powerset 2007 – AQrex; Cambridge Visual Networks; Cantab Wireless; Ept Computing; GradFutures Ltd; Hubdub; In-Silica 2008 – Embecosm; Red Beacon; Spektrix Ltd; ThatsMyFace.com; TouchType; Transentia Ltd; Transport Telematics; Xsilon 2009 – Ashima Arts; Acunu; FusePump; Green Custard 8 2010 – Eluceda; Rapportive; ePlantData Inc; Eshinui Inc 2011 – Bromium A number of world-renowned games development companies (Jagex, Frontier, Sony, Ninja Theory) and over a thousand games industry professionals are employed in Cambridge – representing 10 per cent of all UK games employees. iCITY iCity is an £350m initiative to convert the former Olympic media centres in Queen Elizabeth Olympic Park into a creative and digital business hub with the capability to generate 7,500 jobs. The project will feature three main buildings: a 300,000 sq ft innovation centre; a 1,000 seat auditorium; and a 850,000 sq ft building housing educational space, broadcast studios, office space, and a state-ofthe-art data centre. iCITY builds on the success to date in attracting and retaining a number of digital and media-related activities, including BT Sport, Infinity SDC, Loughborough University, and Hackney Community College. The University of Cambridge’s Computer Laboratory is the premier research department in the UK for computing, and the source of ideas, inspiration and entrepreneurs that have led to the founding of 188 companies. The University of Cambridge’s Computer Laboratory has over 200 researchers, with world leading research in artificial intelligence, computer architecture, digital technology, graphics and interaction, natural language and information processing, programming, logic, security and systems. The wider corridor 188 companies have been founded by Cambridge University Computer Laboratory staff and graduates to date. Globally renowned firms include Media Dynamics, Acorn Computer Ltd, Bromium, Virata, ANT, nCipher, Zeus, Amino, Bango, Cambridge Broadband, Datanomic, Jagex, Linguamatics, CacheLogic, DisplayLink, blinkx, Camrivox, XenSource, RealVNC and Ubisense are all in the Computer Lab’s hall of fame (see opposite for the full list). The corridor is offers a wide variety of business locations. Metaswitch Ltd supplying global IT markets with cloud and other solutions is based in Enfield town. Kelvin Hughes Ltd, located by the M25’s junction 25, supplies a range of cutting edge digital marine navigation tools globally. There are key firms within the corridor from sales and distribution, to design and manufacturing. Kings Cross / Euston Road Harlow Enterprise Zone is offering simplified planning conditions and reduced Business Rates of up to 5 years to businesses within the target sectors of ICT ( along with Advanced Manufacturing and Life Science sectots). The Harlow Enterprise Zone could create up to 5,000 jobs across the three target sectors. Google’s new £650m headquarters in King’s Cross is a proposal for the 950,000 square feet development, which will house Google’s 5,000 staff. This will join a major creative hub, including the restored granary building at the heart of King's Cross, the brand new home of the world famous University of the Arts London. Further along the Euston Road is a rapidly emerging digital cluster, with Facebook and Tweeter both reaching agreements to locate in Regent’s Place, a 13 acre, and fully managed campus on the Euston Road. 9 Park Plaza West (Broxbourne) is a proposed high quality business park to be situated on the 40-hectare Park Plaza site in Broxbourne. The development could lead to the creation of up to 4,000 high-value jobs. A recent study on employment development on the site suggests that it might accommodate a mix of corporate headquarters and financial/business services firms but also science & technology, research & development, higher value environmental industries and high-technology manufacturing companies. research and business opportunities. In addition there is potential of Data Centres being located in the corridor as these form part of the infrastructure to support the sector. Incubators and Innovation Space Innovation Warehouse, assisted by the City of London, brings together entrepreneurs, investors and innovators. The Innovation Warehouse provides co-working, shared office space and access to start-up growth accelerator programmes such as seed funding, angel investing, mentoring and events. The North London- Hertfordshire boarder is home to some of Europe’s major film production facilities with Warner Bros. Studios, Elstree Studios, and BBC Elstree Studios. The University of Hertfordshire also runs one of the country’s leading animation courses. London’s FinTech Innovation Lab annual mentoring programme was launched by Accenture in 2012, after being extended from its foundation in New York in 2011. The Lab is open to all types of financial technologies inlcuding: big-data analytics and predictive modelling; mobility; payments; risk management; security; social media and collaboration; and infrastructure and operational technologies (hosting, data bases, storage, networking, IT management). Every year six selected finalists are given support and introductions and access to senior finance executives, advice, workspace, mentoring, proposition development and leadership coaching. MAJOR INVESTMENTS IN COLLABORATIVE ICT INFRASTRUCTURE > THE UNIVERSITY OF CAMBRIDGE/IMPERIAL HIGH PERFORMANCE COMPUTING (HPC) CLOUD As part of its work to help drive economic development, UoC has partnered with Imperial College London to create a joint HPC cloud for use by industry. Called CORE, this is an initiative to make large-scale HPC resources available to all UK businesses, helping organisations gain competitive advantage through access to powerful data analytics. It has already aided companies such as Caterham F1 in designing racing cars and Atomic Arts in producing visual effects. The Microsoft Ventures Accelerator offers technology founders and entrepreneurs the opportunity to grow their businesses through access to investors and mentors within the tech community along with the company’s network of contacts in the sector. The offer to businesses consists of a 12 week programme supported by a range of established businesses and organisations. This includes London Business School and experts from financial institutions, professional services firms and established technology companies. Providing the environment for new research and commercialisation From business incubators, to specialist venture capital and crowdsourcing funds, as well as world leading academic research, the LSCC area has an excellent environment for new 10 Google’s Campus in London. Campus, powered by Google, is a unique seven-floor co-working and event space for the startup community in East London. Seedcamp, TechHub, Central Working, and Springboard run their programs from the space, alongside mentoring sessions and networking events led by Google. Opportunities for the corridor International connectivity Supporting London Stansted Airport to grow has been cited by business as a key opportunity for the area. This growth should be focused on delivering new long-haul routes, destinations like NYC, Silicon Valley, and Bangalore. Also other destinations such as Massachusetts and Texas (significant for microprocessors and telecoms) might be important and their commercial viability needs to be tested. The St. John’s Innovation Centre in Cambridge provides early stage knowledgebased companies with tailored business services and flexible accommodation. It was the first innovation centre of its kind in Europe and has become widely known for its success as a business incubator offering experience, contacts, resources and a presence in the community. It is located at the heart of the Greater Cambridge technology cluster, in which it plays a pivotal role. This improved transatlantic and far-east connectivity, on the door-step of Cambridge, Essex and East Hertfordshire, would be a major competitive asset for the area. Greater international connectivity will enable servicebased companies to grow their export market and support institutes and business to attract new investment. The consortium has set out to the Airports Commission the actions needed to support this growth. As a regional centre of excellence, St John’s Innovation Centre supports high growth businesses across the region and aims to provide the best strategic business advice, training and introductions for start-ups, micros and SMEs, particularly through the present GrowthAccelerator programme and the recent Understanding Finance for Business programme. St John’s provides a supportive environment for its clients, with access to shared facilities and services that they could not afford individually, enabling tenants to concentrate on business development. Internal connectivity Internal connectivity within the corridor needs investment. The West Anglia Rail line provides direct links between Cambridge, Stratford (for I-City) and Liverpool Street (for Tech-City), as well as Stansted, Harlow and Tottenham Hale. The line has suffered from decades of under investment and requires a major upgrade to improve the connectivity. Four tracking in the Upper Lee Valley would greatly reduce longdistance travel times, while unlock the potential for major growth in north London. Improvements are required to tackle the unreliability and low frequency of CambridgePeterborough-Stansted services. The great majority of tenants are involved in commercializing innovation, with major sectors in recent years including information technology, communications (including wireless), digital printing, cleantech, electronics and design. Over the years, numerous prominent start-ups associated with the Cambridge Phenomenon have started their careers at the St John’s Innovation Centre, including Autonomy Corporation plc, Jagex Ltd, Zeus Technology Ltd, Owlstone Ltd, Breathing Buildings Ltd, Scientia Ltd and Datanomic Ltd, among many others. Improving access from Harlow to the M11, via a new Junction 7a, would be of major benefit to Harlow’s growth, supporting the town’s Enterprise Zone which is targeting employment in the ICT sector. 12 Infrastructure for growth pathways offered to both young people and adults. For example Harlow College provides a range of BTEC programmes focused primarily on Software and Computer Services, as well as, Digital technologies and Creative media. The College also offers Media, Journalism and Graphic Design courses at degree level that specifically focus on developing new media and digital skills for our changing society. Sir Charles Kao UTC in Harlow will also have a strong Computing focus, offering Computer Science A level. The Cambridge sub-region is one of the fastest growing areas of the United Kingdom in terms of both population and economy. Between now and 2031, its population is expected to grow by 23 per cent, driving a 22 per cent increase in jobs. The area has a solid, costed understanding of the infrastructure required to support this growth. An innovative City Deal for Cambridge is being progressed with HM Treasury to support the delivery of the infrastructure required to unlock this potential. Access to finance Access to skills According to the British Venture Capital Association the amount of venture capital invested in London declined in 2012 to £126 million from £131 million a year earlier, while that in the region that includes Cambridge rose for the first time since at least 2009, to £23 million from £19 million pounds. Cambridge Innovation Capital, a fund affiliated with the university, has £50 million to spend in the next three years. Accounting firm KPMG is creating a $100 million fund for investments in data and analytics that will have Cambridge as one of its focus areas. Techcity UK was launched by the UK government in November 2010 to support this east London cluster and has been hugely successful in drawing in international capital. A central strength of the corridor is the concentration of high-end skills. This reflects international trends to centralise where there are already such skills, e.g. Boston / MIT. Overall 38% of the London-StanstedCambridge corridor population is educated to degree level or higher, rising to 46% of Cambridge residents, compared to 26% nationally. There is a long history of highskilled employment in the digital sector, building a huge reservoir of talent. A new Tech City Apprenticeship programme was launched in March 2013 by Hackney Community College. Tech City Apprenticeships have been developed to specifically meet the skills and employment needs of the growing technology cluster around the Shoreditch and Old Street area – on the college’s doorstep. It’s thought that up to 500 apprentice places could be created over the next three years. Hackney University Training College, providing education for 14 to 19 year olds has a digital focus, with lessons on computer science and creative digital media, including infrastructure design and support. Convergence One of the huge strengths of the corridor is the range and strength of other key sectors. The corridor has a huge dominance in life sciences, business support and finance. The overlap and convergence of interests in developing new products in accelerating, as for example digital technology is increasingly used in medical care, and the financial services reliance on cutting edge technical support . The corridor has an important role in stimulating these discussions and innovations across industries. A number of other colleges provide skills development in both the Digital and IT industries, primarily through vocational 13 The UK’s success is built on several key strengths - software development (attracting £930 million in R&D investment annually), and a critical mass of over 100,000 specialist software companies and all the major global software companies such as Microsoft, IBM and HP. The UK also has the strongest ICT skills in Europe and the highest number of ICT graduates in the whole of Western Europe. Global Trends The ICT and Digital Media sector comprises activities involved in the manipulation and communication of information including hardware and software development. It includes activities such as semiconductor design and manufacture, software and social media applications, computer games and digital film and sound production. The Global IT market is huge - and is currently worth £3.7 trillion 1 . This section looks at global trends which will be impacting on the businesses within the corridor. Within the digital media sub-sector, the UK has the highest number of game development companies and publishers in Europe employing 28,000 people. A high rate of earlyadopters, a deep talent pool, the fourth largest domestic games market is in the world and a sophisticated distribution network make the UK an effective place to bring new games to market. From Tomb Raider to Harry Potter to Grand Theft Auto, UK-made games are some of the biggest box office sensations in the world, accounting for £1.34 billion in sales. UK independents continue to attract international business and major companies such as Microsoft, Activision, Square Enix, Capcom, Sony, Electronic Arts and Disney, all have UKbased developers. The UK ICT and digital media sector: European leader The UK is Europe’s leading market for software and IT services with a market value of £58 billion per annum2. ICT and digital media: can be further broken down into four subsectors: Communications: refers to all technological advances that support communications and includes a wide range of disciplines in wire-line and wireless operations; Global trends in ICT and digital media3 Electronics and IT hardware: refers to the design and manufacturing of the electronic devices used in numerous applications; There are a number of significant trends in ICT and Digital Media which will affect the patterns of future growth and development in the Corridor. The main areas of change include the following: Software & computer services: includes all the software and related computer services, necessary for the function of the hardware. Mixed outlook for global ICT and digital market demand Digital media: combining different digital technologies to create final goods and services that together have transformed a plethora of economic and social activities – including computer games, mobile applications and bioinformatics. The global ICT market is forecast to continue to grow at 2.3 per cent in 2013 and 5.4 per cent in 2014 (Forrester Research 4 ) – with growth being sustained in US, Latin America, Eastern Europe, Middle East, Africa and parts of Asia-Pacific; and with market contraction in Western and Central Europe. Sourced from IBM Technology Outlook 2013 and World Economic Forum, The Global Information Technology Report 2013 4 http://www.forbes.com/sites/forrester/2013/07/15/mixed-is-the-word-for-theglobal-tech-market-in-mid-2013/ 3 Gartner, 2013 - http://www.gartner.com/newsroom/id/2292815 Source: UKTI UK ICT market overview 2www.ukti.gov.uk/investintheuk/sectoropportunities/ict.html Source: UKTI UK ICT market overview 1 2 www.ukti.gov.uk/investintheuk/sectoropportunities/ict.html 14 The dominant theme for ICT markets continues to be reduced business and government demand due to recessions or weak growth, and increasing demand from the attraction of new cloud, mobile, and smart computing technologies. Software is likely to be the strongest category of demand, followed by services. Hardware demand is projected to be weak. Growing scale / Lower barrier of entry The massive expansion in the numbers of smart devices, sensors, transactions and end users of digital technologies has created huge demand for data, whilst an increase in the availability and affordability of programming interfaces has simultaneously lowered the barrier of entry for companies seeking to create applications and services. This is an enormous stimulus to the market and allows the growth of a diverse range of small and medium size businesses. Over the next five years, video games sales are projected to grow at 6.5 per cent per annum to reach US$86.9bn in 2017, up from US$63.4bn in 2012 5 . Mobile is likely be the fastest-growing video games sector over the next five years, followed by consumer spend on console games. The games market, in particular for PCs, is increasingly shifting from pay to own models to pay to play. Online spending is forecast to increase by an average of 8 per cent per year over the next five years. Increasing complexity / Consumables The volume, variety, velocity, and veracity of data is contributing to the increasing complexity of data management and workloads — creating a greater need for advanced analytics to discover insights. Mobile devices have made technology more consumable, creating user demand for interactive tools for visual analytics. The importance of Big Data and data analytics and the role the corridor is supporting this is also important. Mobile First In the fourth quarter of 2010, global shipments of smart phones surpassed desktop computers and notebooks for the first time. In a significant turning point for the ICT industries, mobile devices have emerged as the new primary design point for end user access to IT. Mobile first is about considering business around constantly connected employees and customers and creating new ways to deliver value. These trends are being witnessed in the consumer market, with applications such as Instagram which radically simplify the process for processing and sharing pictures. Mobile first is also accelerating the integration of cloud, social and analytics. Fast pace of Change Change is coming faster than ever — disruptive models for the development and consumption of technology are emerging, resulting in rapid innovation and decreased time-to-market. Open online courses are experiencing exponential growth making education and training more accessible. Contextual overload The proliferation of sensors and devices and the explosive growth in structured and unstructured data are causing information and contextual overload. With the increasing affordability and sophistication of smart devices, new opportunities exist to provide contextually aware and personalized services based on user views, desires, preferences and location, delivered just-in-time. Success in the new era of mobile first will depend on the ability to differentiate in the marketplace and the blending of software, hardware and services in novel ways. Success will also require solutions that can handle large scale requirements in terms of security, development and transactions. http://www.forbes.com/sites/johngaudiosi/2012/07/18/new-reportsforecasts-global-video-game-industry-will-reach-82-billion-by-2017/ 5 Scalable Services Ecosystems (SSE) 15 This is characterized by a focus on DevOps, mobile and web-centric platforms, and as-aservice business models. Open standards are the path to achieving the benefits of these new environments. SSEs are open clusters of enterprises, including partners and value-added firms, where business functions are based on freely available application programming interfaces (APIs), openly available data, and willingness to experiment with non-traditional business models. They enable businesses to quickly cocreate customer value. Scalable Services Ecosystems will have profound effects on many industries including retail, travel and transportation, telecommunications and banking. Using location and context-enabled social media, organizations will be able to target specific individuals with custom-tailored offers, often involving partnerships with other firms in retail and consumer goods. Through open APIs available to affiliate networks and developers, firms will enable relationships to be forged through in-market experimentation. The popular APIs and capabilities will be hardened and have the potential to provide both increased revenue and transactions along with new innovative business models. They create a level playing field, prevent vendor lock-in, and lead to modular and flexible approaches to extending system capabilities and capacities Multimedia and visual analytics In recent years, there has been an explosion of multimedia data, accounting for 70 per cent of available unstructured data. This data comes from sources as varied as security cameras, medical image applications and individuals uploading media to social networks. In the past, computers weren’t able to make sense of this data, but now, using multimedia analytics, companies can make sense of this data in an automated way. Multimedia analytics and visual analytics address two emerging needs in analysing data. Multimedia analytics is about computers making sense of images and videos, and being able to extract information and insights from those sources, whereas visual analytics is about humans using visual interfaces to consume and make sense of complex data and analytics. Multimedia analytics has a wide range of potential in industries ranging from insurance to transportation. Home, auto and marine insurance providers, for example, can improve their processes by using video from policy holders to document their insured items and then automatically turns those videos into the basis for appraisals and claims. In transportation and manufacturing, suspicious activity can be detected and safety concerns can be identified in real-time using security cameras. This allows companies to have an integrated view of their operations and perform complex behaviour analysis that has the ability better manage crowd conditions and potentially save lives. Software defined environments (SDE) When the entire infrastructure including computers, storage and network becomes software defined and programmable in the cloud, a new unified control plane emerges which is highly configurable and fully programmable with the workloads being compiled onto it. This is the foundation of Software Defined Environments (SDE). Two simultaneous activities are driving this new environment. First, enterprises are moving both their mission critical Systems of Record and performance sensitive applications to the cloud. This is creating the requirement that cloud infrastructures have the same robust system attributes traditionally associated with enterprise-grade IT: reliability, availability, scalability and so on. Second, many new mobile, social and analytics applications — referred to collectively as Systems of Engagement and driven by the trend toward digitization of the front office — are being directly developed on the cloud, leveraging the agility that has become the hallmark of cloudbased environments. The ability for business users to make sense of complex analytics through visual interfaces is revolutionizing how decisions are made in a variety of industries. 16 Oil and gas companies, for example, are using geographical visualizations to increase the success rate of their drilling and optimize their reservoir production. For example, the government of Brazil is already funding students to go abroad because of a shortage of education infrastructure and quality educators. Doctors are using visual analytics to analyze patient records to gain insight into treatments plans and understand the progress of a disease. Innovation in four key areas is needed to address visual analytics requirements: visual comprehension, visualizing aspects of time, visual analytics at scale, and visualizing uncertainty and predictions. If growth continues to follow the existing trajectory, India will need about 800 more traditional universities than current levels today of about 350 universities. The most talked about application of technology to address these gaps is the advent of Massive Open Online Courses, or MOOC, which are growing rapidly. Several startups have emerged including Udacity, Khan Academy and Coursera, with millions of students enrolled across hundreds of countries. Large amounts of new data are being created, which thus far is untapped for its potential. Contextual enterprise Contextual computing is about the relationships between the data, and how different processes operate on that data and with each other. The smart devices in use today are at the centre of the social, mobile and cloud confluence. They carry personal context in form of our interests, calendars, contacts, history, preferences and location. As natural aggregators of this data, such devices could well be used to deliver information to create context applied to broader applications. Education today is mainly delivered on a one size fits all basis. The technology exists extend the personalised services found in areas such as health, to education, with the formulation of digital student records helping to inform and provide personalized learning pathways based on the capabilities of the learner and the desired outcomes. The education industry is ripe for innovation, as new business models are developed using emerging new sources of data, in particular the longitudinal learning data (tracking student information over multiple years in multiple schools). Predictive and prescriptive analytics can be applied to improve outcomes and efficiency such as clustering learners into groups and identifying personalized learning pathways, tracking progress, and provide feedback to improve graduations and employability. Personalized education At the brink of an IT-enabled transformation, the education industry is about to undergo a transformation driven by a demand for quality education that outstrips supply especially in the growth markets, misalignment between education and employment needs, and impatience with inefficiencies of education systems. 17 Appendix: IT, Telecoms and Digital Media – major firms, institutions, and assets These tables detail most of the major firms, centres of excellence and assets which have been report to UKTI as part of the marketing collateral for international inward investment activities. FIRMS Firm Subsector Accelrys Software Number of employees at site only: 100 Main activity on site Postcode Area CB40WN GCGPEP 353 EHQ, R&D and Manufacturing EHQ & R&D Access UK Ltd IT Services CO7 6LZ SELEP/ Essex Acer Group Electronic products - - UB7 0DQ London ACI Global Limited Electronic products 309 EHQ & R&D WD17 1FQ Hertfordshire Alcatel Lucent UK Ltd Communications 160 - SE10 0AG London Amazon Development Centre London IT Services 200 - EC1A 4JU London Anglia Components Electronic products 125 Distribution PE132PS GCGPEP ANNODATA Limited Communications 212 HQs WD4 8SE Hertfordshire Apple Computers Electronic products 1000 - W1S 1YZ London ARM Electronic products 400 HQs CB19NJ GCGPEP Atos Origin UK Ltd IT Services 1000 - NW1 3HG London Autonomy Software 200 EHQ & R&D CB40WZ GCGPEP AVAYA ECS Limited Communications 106 HQs AL7 1LZ Hertfordshire AVC Wireless Networks Ltd IT Services 422 HQs SG1 2DT Hertfordshire Aveva Software 300 CB30HB GCGPEP AVNET EMG LTD Electronic products 150 EHQ, R&D and Manufacturing Sales SG1 2EF Hertfordshire Blitz Communications Screen (film, TV, radio, animation) 84 HQs WD6 3SA Hertfordshire Boston Limited Cloud computing 45 HQs AL2 2DD Hertfordshire Broadcom Electronic products 120 R&D CB40WW GCGPEP Broadcom IT Services 125 CB40WW GCGPEP Bull Information Systems Cloud computing 120 Manufacturing and R&D HQs HP2 7DZ Hertfordshire 18 CAE Technology Holdings IT Services 186 HQs WD24 4PT Hertfordshire Cambridge Display Technologies Electronic products 160 EHQ & R&D CB236DW GCGPEP Cambridge Wireless Electronic products CB40WS GCGPEP China Mobile Communications Corporation Citrix Communications 100 EHQ, R&D, Design - SE1 2RE London Software 160 R&D CB236DW GCGPEP Computacenter PLC Software 1130 HQs AL10 9TW Hertfordshire Computerlinks UK Ltd Software 200 EHQ & R&D CB87AA GCGPEP Connectix Ltd Communications 80 CM77 7AA CSR Communications 800 CB40WZ SELEP/ Essex GCGPEP Deutsche Telekom (UK) Ltd Communications 254 AL10 9BW Hertfordshire Domino Printing Electronic products 600 CB238TU GCGPEP ebay U K Ltd IT Services 350 Manufacturing and R&D EHQ, R&D and Manufacturing Shared Service Centre EHQ, R&D and Manufacturing - TW9 1EJ London EMC Computer Systems Cloud computing 600 - TW8 9AN London EPSON ElectronStic products 285 HQs HP2 7TJ Hertfordshire Everything Everywhere Electronic products 300 - W2 1AG London Everything Everywhere Communications 3000 HQs AL10 9BW Hertfordshire Facebook Communications 145 - WC2H 9LA London Freedom Communications Fujitsu Services Communications 88 HQs WD18 9RX Hertfordshire IT Services - - W1U 3BW London Global Marine Systems Communications 189 EHQ & R&D CM2 5PD SELEP/ Essex Google Software 2000 - SW1W 9TQ London Harvard International Ltd Electronic products 30 HQs WD6 3BS Hertfordshire Hitachi Europe IT Services - - EC1N 2PB London Huawei Technologies (UK) Co. Ltd. IT Services - - SW1H 9HP London Hutchison Whampoa (Europe) Ltd Communications - - SW11 4AN London IBM UK Ltd IT Services - - SE1 9JH London 19 Imagination Technologies Electronics and IT Hardware 500 WD4 8LZ Hertfordshire 600 EHQ, R&D and Manufacturing - Infosys Technologies Ltd Communications E14 5NP London Intamac Cloud computing 30 EHQ & R&D NN47YD GCGPEP Iron Mountain UK Ltd IT Services - - SE1 2TT London Kodak Limited Electronic products 250 HQs HP2 7YU Hertfordshire M K EleActric / Honeywell Electronic products 300 Manufacturing SS14 3EA SELEP/ Essex Metaswitch - EHQ EN2 6BQ London Microsoft Communications networks and cloud storage Electronic products 200 EHQ & R&D CB12FB GCGPEP Microsoft Ltd Software 800 - SW1E 5JL London Mitsubishi Corporation International (UK) IT Services 400 - WC1V 6BA London Mitsubishi Electric Europe BV UK Branch Electronic products - - E16 4ES London NCR Ltd Software - - NW1 6LY London NEC Europe Ltd IT Services 365 - W3 6BL London Nikon UK Ltd Electronic products 150 - KT2 5PR London Nokia Research Communications 17 R&D CB3OFA GCGPEP Northgate Information Solutions IT Services 300 HQs HP2 4NW Hertfordshire NTL Cablecomms Sussex IT Services 131 Services WD18 8UA Hertfordshire NTT Data Corporation IT Services - - EC3V 3DG London Optoma Uk Limited Electronic products 152 Services WD18 8QZ Hertfordshire Oracle Corporation UK Ltd Orange Corporate Services Ltd Software - - EC2M 2RB London Communications 230 SG13 7NN Hertfordshire Paradigm Communications 215 Shared Service Centre Manufacturing and R&D SG1 2AS Hertfordshire PayPoint Electronic products 330 HQs AL7 1EL Hertfordshire Pitney Bowes Communications 1000 Services CM19 5BD Plastic Logic Electronic products 250 EHQ & R&D CB4OFX SELEP/ Essex GCGPEP Plextek Electronic products 117 EHQ & R&D CB10 1NY SELEP/ Essex PX Cables Electronic products 60 Manufacturing and R&D PE150AZ GCGPEP 20 Qualcomm Communications 35 R&D CB40WN GCGPEP Qualcomm IT Services 85 - W4 5YE London Rackspace Managed Hosting Rapid Electronics Ltd IT Services 600 - UB11 1ET London Electronic products 142 EHQ & R&D CO4 5JS Raytheon Systems Ltd IT Services 200 - UB8 1QQ SELEP/ Essex London RDC Trading Electronic products 207 CM7 2YN SELEP/ Essex RealD Europe Limited Electronic products 20 EHQ, R&D and Manufacturing EHQ HP2 4TZ Hertfordshire Red Gate Software 200 EHQ & R&D CB40WZ GCGPEP Reliance Global Com Uk Ltd Communications 200 - UB7 0JE London Ricoh UK Ltd Electronic products 600 - W1U 4AG London Salesforce Software 100 - TW18 3AG London SAP UK Ltd Software 600 - TW14 8HD London Serverchoice Ltd Cloud computing 100 HQs SG1 2FP Hertfordshire Skype Communications 250 - W1T 1AN London SOPRA Group Software 490 HQs SG1 2EF Hertfordshire Steria UK IT Services 900 HQs HP2 7AH Hertfordshire Storm Technologies Limited IT Services 70 HQs WD18 8YD Hertfordshire Telefonica Digital Communications 400 - W1B 5AN London The UK Interactive Entertainment Association Ltd (UKIE) Thunderhead Limited Trade association - HQ WC1N 3BD London Cloud computing 188 Services and R&D WD6 3SY Hertfordshire T-MOBILE UK Communications 500 HQs AL10 9BW Hertfordshire Toshiba Electronic products 75 R&D CB40GZ GCGPEP Transaction Network Services Tyco Electronics Uk Ltd IT Services 50 AL7 1HH Hertfordshire Electronic products 250 Services and R&D Manufacturing CM8 3AH Ubisense Electronic products 29 Manufacturing and R&D CB41DL SELEP/ Essex GCGPEP Viglen IT Services 500 HQs AL2 2DQ Hertfordshire VOCALINK Electronic products 500 Services and R&D WD3 1FX Hertfordshire 21 VTESSE Networks Limited Cloud computing 42 HQs SG13 7DT Hertfordshire Xaar Electronic products 200 CB40XR GCGPEP Xennia Technology Ltd Electronic products 75 EHQ, R&D and Manufacturing HQs SG6 1LN Hertfordshire XEROX IT Services 500 AL7 1BU Hertfordshire Yelp Communications 145 Shared Service Centre - W1U 8AN London Zeus Technology IT Services 40 CB40WS GCGPEP ZTE Communications 85 Manufacturing and R&D - TW8 9ES London - Indicates that records were absent from UKTI Subnational Offer submissions CENTRES OF EXCELLENCE Centre of Excellence Subsector Main activity on site Postcode Area Computer Laboratory, University of Cambridge Research Research: wireless, security, search CB3 0FD Cambridge Network Business network Tech City Investment Organisation Finance Investment SW1H 0ET London FinTech Innovation Lab Finance, IT Mentoring programme E14 4QT London Open Data Institute Nonprofit research/industry association EC2A 4JE London Cambridge Wireless Network Wireless CB40WS GCGP Dell/Cambridge High Performance Computing Solution Centre High performance computing CB2 1RP GCGP University of Cambridge/Imperial/Dell High Performance Computing cloud (CORE) Inkjet Research Centre (University of Cambridge) High performance computing Trade association Supercomputer access (part owned by Dell) Cloud supercomputer CB2 1RP GCGP Research Research CB3 0FS GCGP Energy@Cambridge, University of Cambridge Research Research (low energy computing) CB2 1TN GCGP GCGPEP 22 ASSETS Asset Description Activities on/ near site Postcode Area Cambridge Science Park Business/science park with significant ICT/digital presence Development site Development land/ accommodation Development land/ accommodation Development land/ accommodation Incubator /workspace CB4 0FZ GCGP CM17 9NL Essex PE28 4WX GCGP CB4 0WS GCGP Part of London Metropolitan University Part of City University E2 8AA London EC1V 0HB London Harlow Enterprise Zone Alconbury Enterprise Campus (Enterprise Zone) Development site St Johns Innovation Centre Science and technology start-ups and SMEs Accelerator ICT and digital media incubator London City Incubator Digital media incubator Digital Enterprise Greenwich Managed workspace / office space Digital business SE10 0ER London Google Campus Co-working space, incubation, start-up support ICT/Digital EC2A 4BX London Microsoft Ventures Accelerator Co-working space, incubation, start-up support Co-working space, incubation, start-up support ICT/Digital EC2A 4BX London ICT/Digital EC1A 9PT London Innovation Warehouse Further Information IBM (2013) Global Technology Outlook World Economic Forum, The Global Information Technology Report 2013 23 IT and Digital Sector Map 24 LSCC Members 25 26 LSCC Partners LSCC Supporters 27 www.lscc.co info@lscc.co.uk 28