Market and Media Overview Germany

IT Markets and Media in Germany

Munich, September 2011

Agenda

The German Economy – Trends and Facts

The German IT Market

The IT Media Landscape in Germany

The German Economy – The Headlines in 2010

2011 – Is the Sun Setting over the German Economy?

The Risks – Reasons for Angst ?

Greece and the other PIGS –

Is the Debt Crisis the end of

the €€€ zone?

Germany the Paymaster of

Europe?

New Vocabulary: The „Energiewende“

Germany becoming an „Organic Republic“?

Siemens says good-bye to nuclear power plant business

Will we be able to afford sustainable energy?

*

*Source: Spiegel Online, September 2011

Stuttgart 21 – How a Train Station Project is changing the German Southwest

Wave of Protests and

Demonstrations

Conservative Party loses

State Election

First Green Party State Prime

Minister in German History

The Real World – Germany Looking Comparatively Strong

Population of ~ 82 million

The largest economic power in Europe

with a GDP of € 2.5 billion ($ 3.3 billion)

Largest metropolitan areas:- The Ruhrgebiet, 5.2 mill. Population

- Frankfurt / Rhein-Main, 4.9 mill. Population

- Berlin/Brandenburg 4.3 mill. Population

- Hamburg 2.6 mill. Population

- Munich 2.0 mill. Population

Economic Disparities between East and West

67% of population live in small cities

The German Economy – Key Characteristics and Figures

Source: Federal Statistical Office (Destatis), MB-Research, Nuremburg

Purchasing Power per residentRange: € 15,000 (light) to € 25,500 (dark)

The German – Key Facts

Sources: EU Commission, Eurostat, OECD, GDP: preliminary values, tradingeconomics.com, September 2011

Key figures in comparison (GER vs. FRA, UK, Euro Area, JP, USA)

Growth of Gross Domestic Products in comparison (percent change compared to previous year; GDP adjusted for price)

The German Economy – Key Facts

* Preliminary data** ProjectionsSources: German Federal Statistical Office, Eurostat, OECD, International Monetary Fund (IMF), tradingeconomics.com, June - September 2011

Business Confidence (percent change compared to previous year)

The German Economy – Key Characteristics and Figures

Source: ifo-Institut Munich, tradingeconomics.com, September 2011

Exports (Exports by month (Billion Euro))

The German Economy – Key Characteristics and Figures

Sources: German Federal Statistical Office, tradingeconmics.com, September 2011

How is the German Economy Different from the US

• SME Market is the

Backbone of the Economy

• Exports play a key role

• Consumer Spending usually

slower than overall

Economy

• Large Corporations, Global Brands

• Large Domestic Market

• Domestic Markets more important

than Exports

Germany

United States

Germany and the UK – Key Economic Differences

• Decentralized Structures,

Economic Power Centers

• Several Economic Power Centers

• Large Manufacturing Base (Automobiles,

Machinery)

• Export-oriented Economy

• Centralized Structures

• London Metropolitan Area the dominating

economic powerhouse and leading financial

center, accounting for 20 percent of the UK’s GDP

• Services Sector accounts for 73% of GDP,

Germany

UK

Germany and France – Key Economic Differences

• Decentralized Structure

• Several Economic Power Centers

• Large Manufacturing Base

• Export-oriented Economy

• Europe’s 2nd largest Economy

• Centralization, Paris being the economic

power center

• Mixed economy*; Public Sector highest

among G7 countries (53% of French GDP)

Germany

France

* which combines extensive private enterprise with substantial state enterprise and government intervention

Agenda

The German Economy – Key Characteristics and Figures

The IT Market

IT Media - looking back and ahead

The IT Media Landscape in Germany

Whitepaper Research

How is the German IT Market Different from the US

• Home of Information

Technology

• Global Players: IBM, HP,

Microsoft, Oracle, Cisco

• Biggest IT Market

• Large Corporations - large IT

infrastructures

• Readiness to Adopt New

Technologies

How is the German IT Market Different from the US

• We invented the Computer

• One Global Player: SAP

• Tier 1 market in EMEA

• Mid-Sized Companies

• Slow in Adopting New

Technologies

Konrad Zuse built the Z3 machine in 1941

ICT worldwide 2010 (2,500 bn €, +5%)market shares

The German IT Market

Japan9.3%

Others28.7%

USA28.7%

Germany5.1%

China8.1%

EU 25 (without Germany)

20.1%

Source: BITKOM, EITO, March 2011

ICT Market 2011 (133 bn €)market shares

The German IT Market

Source: BITKOM, EITO, March 2011

Software11,6%

TC services40,2%

IT hardware14,4%

IT services25,7%

TC devices3,8%

TC infrastructure4,3%

TC

48,3%

IT

51,7%

Annual Growth Rates

4,44,3

3,0

2010/09 2011/10 2012/11

IT

0,20,30,6

2010/09 2011/10 2012/11

TC

IT Decision-Maker Universe

Total universe of the IT Decision-Maker Survey

729,000

„senior level IT decision-makers"

in about

273,000 companies

Top-level decision makersCIO, CFO, CEO & managing directors

IT decision-makers as IT managers and division managers

IT managers and IT professionals

17

22

26

26

27

29

35

37

38

41

46

48

51

Government IT

Smart Home

Green IT

IT Systems in the Health Sector

Web-based Services and Trade

Softw are-based Products

Virtualization

Smart Grids

Location-based Services

Broadband Internet Access

Embedded Systems

IT Security

Cloud Computing

The most important IT trends and challenges 2011 ranking, percentage

The German IT Market

Source: VDI, March 2011

Security in the Cloud - A Favourite for German CIOsStatements from a recent CIO roundtable

„IT Project Budgets are easy to get approved

when they have a security tag attached“

Tetra

„Managing Data via Cloud Services can mean even better security, but

the CIO is still responsible if things go

wrong.“

„IT Security should be aligned with the overall corporate

security strategy“

Technology and IT Decision-Makers’ Media Habits

Change is Happening

1974 – IT enters the office desk…and what media looked like

Portable Computers…kind of (IBM 5100 at a weight of 24 kilograms)

IDG launches in Germany

COMPUTERWOCHE quickly gains market leadership against (one)

competitor

Sources: IBM 5100 from IBM Centennial Video on Youtube

Mid 1990’s – IT advertising and the Web ?

26 print magazines for the German IT audience in the leading

IT media survey*

COMPUTERWOCHE ONLINE** - Web Publishing and Advertising

in its early days

Sources: Dell Advertising in COMPUTERWOCHE 20th anniversary issue, 1994, *LAC 1999 survey, **Computerwoche.de in 1996

Mid 2000’s – A Paradigm Shift from Print to Online

The news migrate from weeklies / dailies to the web

Print Advertising down, fast growth in web advertising

Rich Media, Video and Webcasts

14

23

26

18

2011

2008

1999

1997

A Changing Media Landscape LAC Survey: Number of Participating Publications

Print Media – Simple to Measure in Ad Pages

Source: TopList, September 2011

67,91

63,2

251,3

69,3

74,8

44,1

65,9

124,8

46,0

58,6

40,41

211,2

52,24

103,9

49,33

42,8

CIO

COMPUTERWOCHE

IT-Administrator

IT-Director

IT-Management

IT-Mittelstand

LANline

manage IT2010 (Jan-Aug)

2011 (Jan-Aug)

Advertising Pages total

626

739

2010 2011

+18%

IT Media Competition Online – From Simple to Complex

Standard Media Products:

Audience Reach and Price

Integrated Media Solutions with

High Degree of Customization,

Execution, Service, RoI

2011 – Mobile Internet, Apps, and a Changing Role for Print Media

Tech Audiences are fast adopters of new media offerings

Media Need to Stay in tune with changing reader preferences

IDG helps advertisers with innovative services

Heads of IT

Non Heads of IT

Peers 75% 67%

Technology content sites 72% 69%

White papers 72% 73%

Technology publications 68% 65%

Business publications 60% 62%

Executive Conferences or events 59% 44%

Change in Ranking of Sources Used to Keep Up-to-Date with TechnologyWhich of the following information sources do you use to keep up-to-date with new technologies and enhance the knowledge you need to be effective in your role?

Source: CIO(US), 2010 Role & Influence of the Technology Buyer Study, June 2010

0 20 40 60 80 100

Social Web

TV advertising

E-mail newsletters

Whitepapers

Technology Publications

Technology Content Sites

Germany

France

UK

Source: Wave Sixteen Survey, IDG Global Solutions, 2010, Q3 extract

Information sources during the Purchase process

Percentage and affinity

The Near Future – Taking a Hands-on Approach

The IDG Germany Approach

Follow the Audiences wherever they go

Provide Relevant Information Services

Right Place – Right Time – Right Format

2020 – Where is the ITDM Audience?

Some Assumptions

Traditional Office Desks will largely disappear, Audiences becoming even

more mobile

End-user Devices: No traditional hardware but new interfaces with broadband

access to computing power and storage

Email will be replaced by chats, wikis, blogs, forums and video meetings

IT will be a key job skill – not just for IT staff

Thank you

Contact Information: Achim SchäfersSales

Director Tel: 089 / 360 86 – 172

Fax: 089 / 360 86 – 99 172

E-Mail:

[email protected] BUSINESS MEDIA GMBHLyonel-Feininger-Str. 26 http://www.computerwoche.de 80807 München http://www.cio.deTel. (089) 360 86 – 115 http://www.tecchannel.deFax (089) 360 86 – 195 http://www.cfoworld.de