UK Education Sector Faces Significant Challenges for ICT Delivery in 2010, Says Report by Technology Solutions Provider Stone Group

More Than 80% of Schools are Facing Real ICT Budget Cuts in 2010, According to New ICT Solutions and Services Research Undertaken by Education Sector IT Specialist the Stone Group, With a Distinct Lack of External Expertise Being Utilised to Overcome This Challenge

STONE, England, January 25 - ICT solutions and services
(www.stonegroup.co.uk/stone-white-paper-download.aspx) research by the
Stone Group www.stonegroup.co.uk highlights:

    - 82% of schools are facing 'real term' ICT budget cuts in
      2010. And budgetary constraint is the number one concern (84%)
      regarding the delivery of ICT in 2010 according to research by
      technology solutions provider
      (www.stonegroup.co.uk/about-us.aspx) Stone Group.

    - Despite the growing reliance on online teaching resources, and
      growing government expectation that pupils have reliable access to
      school networks whilst working at home in the evenings, the research by
      the education sector IT specialist (
      www.stonegroup.co.uk/about-us/why-stone.aspx) shows that only
      14% of schools offer out of hours technical support to schools and
      staff.

    - Security is the number two concern for delivering ICT in 2010
      (40%) as schools struggle to comply with complex Government guidelines
      for both secure online access and strong physical network security to
      protect pupil data and work.

    - Whilst the rest of the public sector has followed government
      guidance to embrace third party service provision, the vast majority of
      ICT services to schools and colleges are delivered using internal
      Skills

    - with 51% using no external services at all.

The Stone Group - the technology solutions provider to the education and
public sector - today announces the results of the Stone Group ICT solutions
and services Report, a survey conducted in December 2009 across ICT
decision-makers in the UK education sector by the education sector IT
specialist.

The study, undertaken by independent market research organisation,
Redshift Research, on behalf of technology solutions provider the Stone
Group, has shown that budgetary restraint is the number one concern for IT
decision-makers in 2010 (84%). Placed in today's context of increasing
reliance on robust and reliable ICT solutions to deliver the curriculum, this
becomes all the more pertinent. These services must also be delivered
securely, and security is the number two concern for delivering ICT in 2010 -
yet only 6% have a dedicated security budget and only 3% rely on external
advice in this area.

Commenting on these findings, James Bird, Chief Executive of education
sector IT specialist the Stone Group says: "Students and teachers are now
completely reliant upon the availability of robust, reliable and secure ICT
solutions to undertake their daily activities. Failure to take any steps to
change the way ICT is delivered in 2010 will undoubtedly result in cost
cutting that will affect both the quality of current ICT service delivery and
any chance of undertaking continual improvement."

The ICT solutions and services research findings highlight that a key
problem facing schools in meeting these budgetary constraints is a lack of a
flexible ICT delivery model. Today, the vast majority of schools and colleges
deliver ICT services internally: 93% provide their own network management;
91% desktop management; application support is provided internally by 90%;
whilst server management is also handled by 87% of schools.

This reliance on internal skills is reinforced by widespread avoidance of
any external providers. Over half (51%) do not use external providers for any
services. Only 15% are outsourcing to a third party provider; 22% use
externally managed services; 19% are leasing rather than purchasing outright;
18% are acquiring via consortium and 27% open sourcing.

Bird continues, "Budget cuts are an inevitability in 2010, but it's clear
from this research that schools and colleges are not currently following what
is occurring elsewhere in the Public Sector by considering the use of
external resources to maximise the quality of service delivery on the
available budget."

Bird concludes, "Schools and colleges need access to tailored services
that can supplement the existing skills and expertise in-house. Skills that
can ensure new services are delivered rapidly, systems are acquired in a
financially expedient manner - such as via residual leasing - and innovation
is enabled rather than constrained. It is time to consider all the options
available."

The research results are available to download free of charge from
www.stonegroup.co.uk/stone-white-paper-download.aspx .

About The Stone Group

The Stone Group is the UK's largest privately owned hardware manufacturer
and technology solutions provider, specialising in the supply and support of
ICT and audio-visual solutions to schools, colleges, universities, local
government, the emergency services, the NHS and MoD.

As a long-established UK hardware manufacturer, Stone Computers and
Compusys have built up enviable reputations for their superior after-sales
service as well as the stability and reliability of their desktops, laptops
and servers, earning the confidence of their customers.

Having acquired Rock in May 2008, the Stone Group now sells
direct to consumers and offers high-end business and gaming notebooks to all
sectors.

The Stone Group has also significantly extended its services
portfolio to include fully managed outsourced solutions, IT security,
software applications and recycling.

As well as being awarded all major educational and public sector
frameworks, the Stone Group has well-established relationships with leading
manufacturers. Strong partnerships with Intel, Microsoft, LG, Seagate and
Samsung ensure that all of its customers can be confident in the quality of
the technology and receive the most competitive pricing structure.

Stone was recently ranked 21st in The Sunday Times Buyout Track 100
league table 2009 of Britain's top 100 private equity-backed companies with
the fastest growing profits.

    For more information please contact:

    Dionne Barlow
    The Stone Group
    Tel: +44-(0)1785-812-100
    Fax: +44-(0)1785-817-225

    Tegan Boaler / Will Gardiner
    The itpr Group
    Tel: +44-(0)1932-578-800
    Fax: +44-(0)1932-578-801

For more information please contact: Dionne Barlow, The Stone Group, Tel: +44-(0)1785-812-100, Fax: +44-(0)1785-817-225. Tegan Boaler / Will Gardiner, The itpr Group, Tel: +44-(0)1932-578-800, Fax: +44-(0)1932-578-801