H:\beverley boyce\PR\Press releases\2011\Whats on the horizon – Channel PRO 110104

1. 2010 saw the coalition Government reforming public sector plans including changes to funding within the education arena. This left many schools and companies working within the public sector uncertain of what the future holds. Published on Jan 4, 2011 Plans to reduce public sector spending by billions of pounds, the axing of all Building Schools for the Future (BSF) projects, that had not reached fruition, and the introduction of the Academy Bill are just some of the changes sparking reforms across the education sector. While these changes have caused, understandably, much concern the coalition Government has also announced plans to expand the Academy Programme, one of its flagship programmes.  For technology companies operating in the SME market the move has been welcomed.The Building Schools for the Future (BSF) project had many disadvantages for both schools and suppliers. It was a ‘One Size Fits All ‘scheme, limiting the ambitions of many schools. Money previously wasted on the costly BSF bidding process can now be spent on refurbishing schools, providing ICT services and supporting education. This also re-opens doors to smaller, suppliers, giving the school leadership team greater flexibility over their ICT supply and encouraging greater innovation. New Bill With the new Academies Bill many schools now have the potential to free themselves from Local Authority control and services, recovering on average 10 percent of their top sliced budget. These funds can be used to procure services in accordance with schools individual desires and plans and from organisations with which they choose to work. This in turn, we hope, will result in better, more tailored provision of ICT solutions and services as well as improve relationships between schools and their suppliers.We remain optimistic that 2011 will enable us to embrace the changes; however it will be a year that once again presents challenges as the economic climate impacts on budgets in every business, industry and sector, including the public sector and education will not be exempt. Maximising IT The year ahead will require intense management in order to overcome some of the current difficulties. ICT resellers will be reviewing the ways in which they work to ensure they are as resourceful as possible. All our employees recognise that we are operating in difficult times and therefore work at maximum efficiency to help combat against issues during these difficult economic times. Schools need to be smarter with their budgets and be more creative to maximise IT assets.It is also about knowing your marketplace, understanding your client’s needs and adapting to changing market demands. With tight budgets and the threat of further cuts being imposed on the public sector, delivering excellent products at a reasonable price plays a major part. As well as delivering ICT solutions, the education sector turns to us for our managed services and consultancy as a means of saving money and streamlining their organisation. By working in close partnership with our clients we aim to capitalise on long standing relationships by continuing to provide best value for money to our customers. H:\beverley boyce\PR\Press releases\2011\Whats on the horizon – Channel PRO 110104

2. The reduction in ICT spending directly impacts on schools ability to deliver their vision. Therefore it has never been more important to choose the right path and there is no doubt that many will have to make difficult choices. This will include a decision whether to rebuild or refurbish; a consideration of how some services and new equipment can be secured through the right balance of capital and revenue funding; an introduction of efficiency savings through appropriate use of ICT and a consideration to invest in new technologies such as Thin Client, VDI, Cloud Computing in order to save costs. Leadership We are eager to rise to the challenges, and acknowledge that the real key to success is visionary leadership and not so much new buildings and ICT kit. Strong leadership is essential along with a clear strategy and an educational vision to deliver a successful 21st century learning environment. We remain positive that despite the challenges, 2011 holds a bright future for European Electronique and opens doors for us to play to our strengths within the market. We are heading for our busiest year ever with a significant amount of large ICT projects to be delivered to academies and look forward to delivering real changes in the 21st Century classroom through technology H:\beverley boyce\PR\Press releases\2011\Whats on the horizon – Channel PRO 110104