CeBIT exhibits cautious optimism

Giant trade show reveals new focus on SMEs and resellers.

In contrast to the misery of last year's CeBIT, when organisers would not have been blamed if they had considered confiscating sharp implements from depressed stall holders, the mood at this year's show has been one of restrained optimism.

For those unfamiliar with the gigantic scale of the annual Hanover event, the CeBIT exhibition area is made up of 27 themed halls spread out over three square miles.

About 750,000 people filter through the show to check out new technology and gadgets, sell their ideas or get funding for new ones.

One new feature at this year's event was its focus on SMEs and resellers, recognising the importance of the channel to the well-being of the industry.

Throughout the week a series of activities deemed 'of interest' to SMEs and resellers took place.

The show was launched by the joint efforts of German Chancellor Gerhard Schroeder and Nokia's chief executive, Jorma Ollila.

Both pointed towards exploding bandwidth and mobile telephony, data and internet technologies as key areas of growth in 2004, but predicted that the remainder of this year would be difficult and uncertain.

"The situation with respect to Iraq has already had an adverse impact on macroeconomics around the world in global industries including IT," Schroeder said.

The Chancellor urged business leaders, executives and government officials to partner together to restore Europe's communications industry and the leading IT trade show to health.

"CeBIT shows the IT industry has gone through a difficult adjustment process, but it will be back on the road to recovery," he said.

Although Ollila refrained from mentioning the Iraq crisis, he acknowledged that CeBIT was taking place at a time when the United Nations "is facing its most difficult time, in one of the most critical times in its 57-year history".

However, he remained optimistic about the industry as a whole, and especially about the mobile communications sector.

"The mobile market is already expanding into new areas of games, entertainment, media and the enterprise market, with compelling new mobile services laying the groundwork for the buildout of wireless multimedia networks," he said.

As if to back Ollila's confidence, the main mobile hall was awash with pumping dance music and some of the biggest and most complex stands ever seen.

The Future Park section was buzzing with new research ideas and a host of new products all aiming to feature more prominently in the next few years.

The security hall, on the other hand, was surprisingly quiet, with only a few companies, such as RSA Security, generating much interest.

Even more deserted was the PC box shifters' section. The beige box, once so essential to businesses, is becoming visibly less popular as the market shifts towards the laptop and the PDA.

Every evening after the show closed there were parties for the footsore executives before they returned to their hotels or perhaps a rented room in a Hannover family home.

The showground also featured, boasting its own beer hall where, to the strains of the Benny Hill theme tune played by oompah bands, executives and guests guzzled huge steins of lager.

Despite a lower turnout than some had hoped, many of the industry's main vendors used the event to showcase their latest offerings.

Software vendor Novell unveiled its GroupWise 6.5 upgrade, SuSE Linux launched its global channel programme, Intel launched its Centrino wireless technology, and Oracle announced that it has extended its Unbreakable Linux Platform certification to UnitedLinux.

Nokia unveiled its latest mobile phones aimed at both consumer and business users, including the Nokia 6220. The phone, due to ship in the third quarter of the year, includes an integrated digital camera and support for Wap 2.0.

Not to be outdone by its European counterparts, the UK government financed a stand for British Trade International, a government agency set up to foster trade.

The stand covered 12 areas of research, including optical technology, wireless communications, data storage and compression, and biometrics.

Scott McLean, a representative for British Trade International, said: "Usually there are a number of organisations which come away with either a business partnership or a sale.

"We wanted to fly the flag and show that we have some of the best research and development in the world."

James Hall, a managing partner at the London office of IT consultancy Accenture, summed up the industry's mood.

"When we look back on this period, we'll find that in 2003 we were only scratching the surface of the application of technology.

"The extent of technology to business over the next five years will overwhelm everything that's happened before," he said.