NATIONAL SURVEY
potentials is understandably somewhat lower economic growth in Germany and might impact IT spending.
intense. As SAP enjoys a According to a survey from BITKOM, three out of four companies in the sector
reputation as ‘Employer of are expecting higher revenues.”
Choice’, we continue to But then, Germany is SAP’s home market. As such, SAP has long-standing
successfully attract the people relationships with its broad German customer base and a high market
we need. Nonetheless, with penetration. Germany is a mature, but critical market, he says. In 2007, SAP
more than 40,000 job vacancies had revenues in Germany of approx. €2bn, representing 20% of SAP’s global
in the ICT industry in Germany, revenue. Revenues in Germany rose by 5% in 2007, reflecting the maturity of
there is danger of slowed growth the market and SAP’s already high revenue base there. The global enterprise
and speed of innovation, which software market has seen a significant consolidation in recent years. In 2007,
could harm Germany’s leadership SAP had 28.4% of the core enterprise software market on a global basis. But
in engineering and embedded more than half of this market was still held by companies outside the top
SAP’s Volker Merk
software. This is not restricted to three providers of enterprise software.
the ICT industry, but represents competition among companies for engineers.
As it is important, that our employees not only have an excellent IT skill-set,
“A principal caveat to this positive outlook
but also knowledge about business processes, we have to continue to win top-
involves the world economic situation which
talent globally.”
...might impact IT spending.”
Germany also received a worrying rating in the Economist Intelligence
Volker Merk, MD SAP Germany
Unit’s (EIU) industry competitive index released in July 2007, which judges the
countries on the quality of the IT and communications infrastructure, the As the largest European software company, and the only European in
supply of local talent and the research and development (R&D) environment. the global top ten, SAP is the clear market leader in its home market for
Although it placed ahead of both France and Spain, its position was 16th, enterprise software and has maintained its market share in the large enterprise
behind eight other European countries including the UK. segment, while systematically increasing its penetration of the small and mid-
But the pressure on recruitment may be easing: a survey of online IT jobs size enterprise sector with a number of initiatives in the last year. SAP sees
from recruitment agency Monster, studying five European markets of the UK, particularly strong growth (from a smaller base) in the SME sector.
France, Netherlands, Sweden and Germany, found that on-line demand in “SAP is confident in the prospects for the German ICT industry overall, and
Germany’s manufacturing segment had dropped significantly. more specifically for business software. As Germany is a mature market for
But though the bright lights in Germany perhaps shine a little dimmer enterprise software, the future of our business will depend on a continuing
than last year, it is still a huge market with plenty of possibilities, and always commitment to innovation and successful partnership between business,
at the heart of the action and where others want to participate. One of government and R&D – including especially, but not limited to the universities.”
central Europe’s largest IT players, Asseco Poland, has been growing through
OUR ANALYSIS
acquisition over the last few years and is aiming for more growth. Its expansion Do not underestimate the importance of the Germany IT market in Europe.
plans cover Europe, including Germany and while currently concentrating on When we meet the incoming US vendors coming off the plane at Heathrow,
its German connections, where it already has two IT firms, it plans several their next stop is usually somewhere in Germany. The powerhouse is that
acquisitions of small firms in Germany, preferably with clients in banking. famous middle market - the thousands of mid-sized businesses that are the
So what does the future hold for the German enterprise market? A lot envy of the rest of Europe, and which helped put SAP where it is. Almost
are “confident”, including Volker Merk. “The principal caveat to this positive everyone is agreed that even in a tough world facing economic problems,
outlook involves the world economic situation, which is expected to Germany is a good place to be, and essential if you are a European player.
18 APR 2008 21
It0807 - 18-21_GERMANY_Ent.indd 21 2008-04-16 11:01
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