Germany Information Technology Report Q4 2012

BMI View: The German IT market is forecast to increase to US$61.3bn in 2012, up by around 2%, with
positive growth despite the eurozone currency crisis. Consumers and businesses remain wary because of
the risk of a new recession in the eurozone, and in 2011 IT spending continued to trend negatively, with a
further decline in PC sales. However, the decline was at least relatively modest compared with that
reported in many other EU markets. Over the next five years, we forecast a more favourable outlook for
the German IT market, with areas of opportunity including cloud computing.
Headline Expenditure Projections
Computer hardware sales: US$16.1bn in 2011 to US$16.4bn in 2012, +2% in US dollar terms. Forecast
in US dollar terms upwardly revised due to analyst modification following modest growth in Q112.
Software sales: US$19.3bn in 2011 to US$19.7bn in 2012, +2% in US dollar terms. Forecast in US
dollar terms upwardly revised due to analyst modification, but political and economic uncertainty will
weigh on investments.
IT Services sales: US$24.8bn in 2011 to US$25.2bn in 2012, +2% in US dollar terms. Forecast in US
dollar terms upwardly revised due to analyst modification, and growing demand for cloud computing
services will provide a key opportunity.
Risk/Reward Rating: Germany’s score was 80.0 out of 100.0. Germany ranked second in the Europe
region in our latest business environment ratings table, behind only the UK, and ahead of France.
Key Trends & Developments
?? The market’s high level of exposure to the ongoing eurozone currency crisis suggests a more
challenging economic outlook for German IT spending in 2012. Businesses remain cautious, but
BMI expects IT spending to outperform GDP growth in 2012, and if business confidence
improves then there could be a boost from pent-up demand. Surveys from 2011 had suggested
that around 40% of German companies expected to increase spending on IT services, with
enterprise resource planning and customer relationship management systems among the main
spending areas.
?? Cloud services in Germany should receive a boost from a European Commission ruling in mid-
2012 that cloud services are compatible with the EU law on privacy. Concerns and legal
ambiguities regarding the security of data stored in the cloud has been seen as one factor
contributing to the relatively slower uptake of cloud services in Europe compared with the
Germany Information Technology Report Q4 2012
© Business Monitor International Ltd Page 6
United States. There is now increasing interest from government organisations as well as the
private sector in cloud computing services such as SaaS and Infrastructure-as-a-Service (IaaS).
Other key drivers of IT spending opportunity will include growing mobile and fixed broadband
penetration, the proliferation of mobile devices such as smartphones, tablets and e-readers, data centre
virtualisation, technology innovation such as GSP technology and services, and economic recovery.

Germany Information Technology Report Q4 2012

Executive Summary ........................................................................................................................................ 5
SWOT Analysis ................................................................................................................................................ 7
Germany IT Sector SWOT .................................................................................................................................................................................... 7
Germany Political SWOT ..................................................................................................................................................................................... 8
Germany Economic SWOT ................................................................................................................................................................................... 8
Germany Business Environment SWOT ................................................................................................................................................................ 9
Europe Risk/Reward Ratings ........................................................................................................................ 10
Table: Europe Risk/Reward Ratings, Q412 ........................................................................................................................................................ 12
IT Markets Overview ...................................................................................................................................... 13
IT Penetration ..................................................................................................................................................................................................... 13
Sectors And Verticals .......................................................................................................................................................................................... 17
Market Overview ............................................................................................................................................ 21
Government Authority ......................................................................................................................................................................................... 21
Background ......................................................................................................................................................................................................... 21
Hardware ............................................................................................................................................................................................................ 23
Segments ............................................................................................................................................................................................................. 25
E-Book Readers .................................................................................................................................................................................................. 26
Software ................................................................................................................................................................................................................... 27
Services ............................................................................................................................................................................................................... 30
Market Trends ..................................................................................................................................................................................................... 31
Industry Developments ....................................................................................................................................................................................... 32
Technology Budget ............................................................................................................................................................................................. 33
Industry Forecast .......................................................................................................................................... 35
Table: Germany IT Sector - Historical Data & Forecasts , 2009-2016 ............................................................................................................... 38
Industry Forecast Internet ............................................................................................................................. 39
Table: Telecoms Sector - Internet - Historical Data & Forecasts, 2009-2016 ..................................................................................................... 39
Competitive Landscape ................................................................................................................................ 41
Hardware ............................................................................................................................................................................................................ 41
Software .............................................................................................................................................................................................................. 42
IT Services .......................................................................................................................................................................................................... 46
Internet ............................................................................................................................................................................................................... 47
Macroeconomic Forecast .............................................................................................................................. 48
Table: Germany - Macroeconomic Forecasts, 2012-2016 .................................................................................................................................. 52
Company Profiles .......................................................................................................................................... 53
SAP ..................................................................................................................................................................................................................... 53
Country Snapshot ......................................................................................................................................... 56
Table: Germany's Population By Age Group, 1990-2020 ('000) ......................................................................................................................... 57
Table: Germany's Population By Age Group, 1990-2020 (% of total) ................................................................................................................. 58
Table: Germany's Key Population Ratios, 1990-2020 ........................................................................................................................................ 59
Germany Information Technology Report Q4 2012
© Business Monitor International Ltd Page 4
Table: Germany's Rural And Urban Population, 1990-2020 ............................................................................................................................... 59
BMI Methodology .......................................................................................................................................... 60
How We Generate Our Industry Forecasts ......................................................................................................................................................... 60
IT Industry .......................................................................................................................................................................................................... 60
IT Ratings - Methodology ................................................................................................................................................................................... 61
Table: IT Business Environment Indicators ........................................................................................................................................................ 62
Weighting ............................................................................................................................................................................................................ 63
Table: Weighting Of Components ....................................................................................................................................................................... 63
Sources ............................................................................................................................................................................................................... 63Table: Europe Risk/Reward Ratings, Q
Table: Germany IT Sector - Historical Data & Forecasts , -
Table: Telecoms Sector - Internet - Historical Data & Forecasts, -
Table: Germany - Macroeconomic Forecasts, -
Table: Germany's Population By Age Group, - (')
Table: Germany's Population By Age Group, - (% of total)
Table: Germany's Key Population Ratios, -
Table: Germany's Rural And Urban Population, -
Table: IT Business Environment Indicators
Table: Weighting Of Components

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