Home »
Germany Information Technology Report Q2 2011

Germany Information Technology Report Q2 2011

Double click on above image to view full picture

Email to a Colleague - Print - Fax Order

Additional Information

Price	$530.00
Publisher	Business Monitor International
Date of Report	Apr 8, 2011

Add to Wishlist | Add to Compare

Qty:

-OR-

Quick Overview

Market Overview The German IT market, despite the continued economic headwinds buffeting the eurozone, is forecast to grow at a compound annual growth rate (CAGR) of 4% over 2011-2015. The addressable domestic market for IT products and services is projected by BMI to reach US$72.5bn by 2015.
In 2010, IT vendors reported a pick-up in demand and healthier sales pipelines as German organisations were more willing to consider spending on IT products and services. PC sales also rebounded strongly in H110, although although the recovery lost momentum in the final quarter, thanks to softer than expected consumer sales.
There is now increasing interest from government organisations as well as the private sector in cloud computing models such as SaaS and Infrastructure-as-a-Service (IaaS.) Demand from the public sector should be steady, despite fiscal tightening, as government organisations look to control costs, while healthier bank profits in 2010 should support a revival in financial sector IT spending.
Industry Developments Government funding for technology policy measures in the 2010 budget of the Federal Ministry of Economics and Technology amounted to EUR2.3bn, or EUR2.8bn including stimulus measures. The funding is intended to support continued implementation of the High-Tech Strategy for Germany initiative, which was set up in 2006.
Meanwhile, the German government (elected in September 2009) has announced it will provide an additional EUR12bn for education as well as research and development (R&D). Among other priorities, the government is determined to encourage German companies to innovate, to cope in the economic upturn.
Competitive Landscape
In December 2010, French IT giant Atos Origin sealed an agreement to acquire Siemens IT Services and the new company is expected to be ranked number one in the European IT Services sector. To launch the partnership, what the partners described as 'the biggest long-term IT contract ever concluded worldwide' will be signed between the new entity on managed services and SI. The contract value is estimated to be in the region of at least EUR5.5bn.
In 2011, software vendors in the German market will focus increasingly on cloud computing. In October 2010, Microsoft launched a cloud computing alliance with German-based Datapoint, a provider of ICT services to the public sector. Meanwhile, SAP launched a new version of its hosted CRM software product SalesOnDemand, after the first version, released five years before, had failed to really take off. The German software market is competitive, with smaller companies having a niche alongside major players such as German software giant SAP, Oracle and Microsoft. Around 300 software providers compete in the enterprise resource planning (ERP) market for the small and medium-sized enterprise (SME) segment alone. Other major players across all segments include Sage, SoftM and Infor Global Solutions.
Computer Sales
BMI forecasts Germany's addressable computer hardware market will be worth around US$17.2bn in 2011, up by an estimated 7% from US$16.2bn in 2010. Total PC revenues including notebooks and desktops are expected to rise to US$17.1bn by 2015 at a CAGR of 5%. In H110, the German PC market rebounded strongly, with double-digit shipments growth driven by the consumer notebook segment. In 2011, PC sales are forecast to record modest growth, consolidating the solid recovery in 2010 However, government sector demand was sluggish, and will likely remain subject to fiscal austerity constraints.
Software
In 2011, German market software sales are projected by BMI at US$19.2bn and, despite the continued economic headwinds, revenues are expected to rise to US$21.7bn in 2015.
Despite a relatively mature market, there is plenty of potential for ERP implementations in industries such as consumer products, telecommunications, energy, engineering transport and retail. ERP demand drivers include boosting the efficiency of global supply chains and logistics processes.
Services
German IT services spending is forecast to reach US$25.1bn in 2011 and rise to US$30.2bn in 2015. Demand drivers will include emerging technologies, such as projects to enable SaaS use, and reducing costs through data centre infrastructure outsourcing.
Outsourcing is one of the main drivers of the IT services segment and the German market is a key target for Indian as well as US and European IT services firms. Demand for outsourcing has reached beyond traditional major IT spending verticals like financial services to sectors such as auto and chemical.
E-Readiness Germany announced plans to auction off additional frequencies for delivering mobile broadband services in 2010, which is expected to be a high-growth area over the next few years. In the wireline sector, although the fixed-line market is forecast to decline, we expect the rate of decline to slow as better-value tariffs are offered and fixed lines are bundled with higher growth services such as broadband and pay-TV.

Table of Contents

Executive Summary ........................................................................................................................................ 5
SWOT Analysis ................................................................................................................................................ 8
Germany IT Sector SWOT .................................................................................................................................................................................... 8
Germany Political SWOT ..................................................................................................................................................................................... 9
Germany Economic SWOT ................................................................................................................................................................................... 9
Germany Business Environment SWOT .............................................................................................................................................................. 10
IT Business Environment Ratings ................................................................................................................ 11
Europe ................................................................................................................................................................................................................ 11
Table: Regional IT Business Environment Ratings ............................................................................................................................................. 14
Europe IT Markets Overview ......................................................................................................................... 15
Germany Market Overview ............................................................................................................................ 21
Government Authority ......................................................................................................................................................................................... 21
Background ......................................................................................................................................................................................................... 21
Hardware ............................................................................................................................................................................................................ 23
Software .............................................................................................................................................................................................................. 25
Services ............................................................................................................................................................................................................... 28
Industry Developments ....................................................................................................................................................................................... 30
Industry Forecast Scenario ........................................................................................................................... 32
Table: Germany IT Sector (US$mn Unless Otherwise Stated) ............................................................................................................................. 35
Internet ............................................................................................................................................................................................................... 36
Table: Telecoms Sector -- Internet -- Historical Data & Forecasts ..................................................................................................................... 36
Macroeconomic Forecast ................................................................................................................................................................................... 38
Table: Germany - Economic Activity, 2008-2015 ............................................................................................................................................... 40
Competitive Landscape ................................................................................................................................ 41
Hardware ............................................................................................................................................................................................................ 41
Software .............................................................................................................................................................................................................. 42
IT Services .......................................................................................................................................................................................................... 45
Company Profiles .......................................................................................................................................... 47
SAP ..................................................................................................................................................................................................................... 47
BMI Methodology .......................................................................................................................................... 49
How We Generate Our Industry Forecasts ......................................................................................................................................................... 49
IT Industry .......................................................................................................................................................................................................... 49
IT Ratings – Methodology ................................................................................................................................................................................... 50
Table: IT Business Environment Indicators ........................................................................................................................................................ 51
Weighting ............................................................................................................................................................................................................ 52
Table: Weighting Of Components ....................................................................................................................................................................... 52
Sources ............................................................................................................................................................................................................... 52