ICT budget and staffing trends in Germany - … · ICT budget and staffing trends in Germany Enterprise ICT investment ... and service providers. Trends in ICT ... ICT budget and

ICT budget and staffing trends in Germany

Enterprise ICT investment plans to 2013

January 2013

ICT budget and staffing trends in Germany www.kable.co.uk / © The iD Factor Ltd / + 44 (0) 207 936 6997

TABLE OF CONTENTS

1 Trends in ICT budgets ............................................. Error! Bookmark not defined.

1.1 Introduction ................................................................... Error! Bookmark not defined.

1.2 Survey demographics ................................................... Error! Bookmark not defined.

1.3 IT budget changes ........................................................ Error! Bookmark not defined.

1.4 IT budget allocation by core technology area ................ Error! Bookmark not defined.

1.5 IT budget allocation by function ..................................... Error! Bookmark not defined.

1.6 IT spending by entity ..................................................... Error! Bookmark not defined.

1.7 IT staff distribution ......................................................... Error! Bookmark not defined.

2 Detailed IT budget allocations ................................ Error! Bookmark not defined.

2.1 Introduction ................................................................... Error! Bookmark not defined.

2.2 Hardware budget breakdown ........................................ Error! Bookmark not defined.

2.3 Software budget breakdowns ........................................ Error! Bookmark not defined.

2.4 Third party IT Services expenditure ............................... Error! Bookmark not defined.

2.5 Telecommunications budget.......................................... Error! Bookmark not defined.

3 Summary .................................................................. Error! Bookmark not defined.

3.1 German enterprises are cautious yet optimistic about their ICT investments ......... Error!

Bookmark not defined.

4 Appendix .................................................................. Error! Bookmark not defined.

4.1 Definitions ..................................................................... Error! Bookmark not defined.

4.2 Further reading ............................................................. Error! Bookmark not defined.

4.3 Contact the authors ....................................................... Error! Bookmark not defined.


List of Figures

Figure 1: German enterprise ICT survey industry breakdown .................... Error! Bookmark not defined.

Figure 2: German enterprise ICT survey breakdown by size band (number of employees) .............. Error!


Figure 3: Recent and expected ICT budget changes among German enterprisesError! Bookmark not

defined.

Figure 4: German enterprises’ (external) ICT budget allocation in 2012 .... Error! Bookmark not defined.

Figure 5: German enterprises’ (external) ICT budget allocation in 2013 .... Error! Bookmark not defined.

Figure 6: German enterprises’ ICT budget allocation by function, 2012 and 2013Error! Bookmark not

defined.

Figure 7: German enterprises’ IT budget allocation by entity in 2012 ......... Error! Bookmark not defined.

Figure 8: German enterprises’ IT budget allocation by entity in 2013 ......... Error! Bookmark not defined.

Figure 9: Average allocation of full-time IT staff members in German enterprisesError! Bookmark not

defined.

Figure 10: German enterprises’ average hardware budget allocation ........ Error! Bookmark not defined.

Figure 11: Average allocation of software budgets in the German enterprise marketError! Bookmark

not defined.

Figure 12: German enterprises’ average software budget allocation by technologyError! Bookmark not

defined.

Figure 13: German enterprises’ average IT services budget allocation ...... Error! Bookmark not defined.

Figure 14: German enterprises’ average IT consulting services budget allocationError! Bookmark not

defined.

Figure 15: German enterprises’ average telecommunications budget allocationError! Bookmark not

defined.

List of Tables

Table 1: German enterprise ICT survey industry breakdown ..................... Error! Bookmark not defined.

Table 2: German enterprise ICT survey breakdown by size band (number of employees) ............... Error!


Table 3: Recent and expected ICT budget changes among German enterprisesError! Bookmark not

defined.

Table 4: German enterprises’ (external) ICT budget allocation in 2012 ..... Error! Bookmark not defined.

Table 5: German enterprises’ (external) ICT budget allocation in 2013 ..... Error! Bookmark not defined.

Table 6: German enterprises’ ICT budget allocation by function, 2012 and 2013Error! Bookmark not

defined.

Table 7: German enterprises’ IT budget allocation by entity in 2012 .......... Error! Bookmark not defined.

Table 8: German enterprises’ IT budget allocation by entity in 2013 .......... Error! Bookmark not defined.

Table 9: Average allocation of full-time IT staff members in German enterprisesError! Bookmark not

defined.


Table 10: German enterprises’ average hardware budget allocation ......... Error! Bookmark not defined.

Table 11: Average allocation of software budgets in the German enterprise marketError! Bookmark not

defined.

Table 12: German enterprises’ average software budget allocation by technologyError! Bookmark not

defined.

Table 13: German enterprises’ average IT services budget allocation ....... Error! Bookmark not defined.

Table 14: German enterprises’ average IT consulting services budget allocationError! Bookmark not

defined.

Table 15: German enterprises’ average telecommunications budget allocationError! Bookmark not

defined.

ICT budget and staffing trends in Germany P a g e | 1 www.kable.co.uk / © The iD Factor Ltd / + 44 (0) 207 936 6997

1 Trends in ICT budgets

1.1 Introduction

This report presents the findings from a survey of X German enterprises regarding their Information &

Communication Technology (ICT) budgets and staff allocation. The survey investigates how German enterprises

currently allocate their ICT budgets across the core areas of enterprise ICT spend, namely hardware, software, IT

services, communications and consulting. The report also illustrates with whom German enterprises prefer to invest

their ICT Euros, thereby providing visibility into the opportunities for ICT vendors and service providers. Trends in

ICT spending are identified through to the end of 2013 following feedback from respondents on their forthcoming

investment plans.

The survey was conducted in September 2012 via an online methodology, with respondents all having ICT decision

maker responsibility (typically CIOs and IT Managers). Kable plans to repeat the survey in the second half of 2013,

in order to monitor ICT budget changes on an ongoing basis.

1.2 Survey demographics

Figure 1: German enterprise ICT survey industry breakdown

Source: Kable

X%

X%

X%

X%

X%X%

X%

X%

X%

X%

X%X%

German enterprise ICT survey industry breakdown

Financial markets Utilities Education

Retail Manufacturing Insurance

Government Healthcare EnergyX respondents


Table 1: German enterprise ICT survey industry breakdown

Industry Count Percentage of respondents

Financial markets X X%

Utilities X X%

Education X X%

Retail X X%

Manufacturing X X%

Insurance X X%

Government X X%

Healthcare X X%

Energy X X%

Media X X%

Retail banking X X%

Pharmaceuticals X X%

Total X X%

Source: Kable

Figure 2: German enterprise ICT survey breakdown by size band (number of employees)

Source: Kable

X%

X%

X%

X%X%

X%

X%

German enterprise ICT survey breakdown by size band (number of employees)

Over 10000 5000-9999 2000-4999 1000-1999 500-999 100-499 50-99

X respondents

Table 2: German enterprise ICT survey breakdown by size band (number of employees)


1.3 IT budget changes

Figure 3: Recent and expected ICT budget changes among German enterprises

Employee size band Count Percentage of respondents

Over 10000 X X%

5000-9999 X X%

2000-4999 X X%

1000-1999 X X%

500-999 X X%

100-499 X X%

50-99 X X%

Total X X%

Source: Kable


Source: Kable

Table 3: Recent and expected ICT budget changes among German enterprises

Trend 2011-12 (Count)

2011-12 (%)

2012-13 expectation (Count)

2012-13 expectation (%)

Decrease more than 6% X X% X X%

Decrease slightly (1%-5%) X X% X X%

Flat (0%) X X% X X%

Increase slightly (1-5%) X X% X X%

Increase significantly (6%+) X X% X X%

Total X X% X X%

Source: Kable

Despite the uncertain economic conditions ...................................................................................................................

(Summary of the situation in the enterprise ICT market and discussion around the degree to which IT budgets are

decreasing/increasing/staying flat.)


1.4 IT budget allocation by core technology area

Figure 4: German enterprises’ (external) ICT budget allocation in 2012

Source: Kable

Table 4: German enterprises’ (external) ICT budget allocation in 2012

Category Average budget in 2012 (%)

Hardware X

Software X

Services X

Communications X

Consulting X

Other X

Total X

Source: Kable

Kable’s survey suggests that German enterprises are allocating a major portion of their IT budgets on

.......................................................................................................................................................................................

................................................ (A brief description of the way in which enterprises are allocating their IT budgets.).


1.6 IT spending by entity

Figure 5: German enterprises’ IT budget allocation by entity in 2012

Source: Kable

Table 5: German enterprises’ IT budget allocation by entity in 2012

Entity Average budget in 2012 (%)

Internal development and maintenance X

Technology (product) vendor X

Telco X

Systems integrator X

Local resellers of technology products X

Specialist outsourcer X

Total X

Source: Kable

It is noteworthy that German enterprises are allocating ................................................. (An analysis of the degree

to which enterprises are focussing on in-house IT investment, as well as how much they are willing to spend with

third parties. Of the money spent with third parties, commentary on how this breaks down by provider type).


2 Detailed IT budget allocations

2.1 Introduction

This section of the report focuses on the detailed IT budget breakdowns for hardware, software, IT services,

communications and consulting.

2.2 Hardware budget breakdown

Figure 6: German enterprises’ average hardware budget allocation

Source: Kable


Kable’s recent survey finds that almost one third of the hardware spend is on ............................................................

(A brief description on where the investments are being made and what the implications are for hardware vendors.)

3 Appendix

3.1 Definitions

Core areas of enterprise IT spending

Hardware - includes computer hardware, devices and peripherals e.g. printers, semiconductors, servers and

mainframes, storage, telephony infrastructure, data/network infrastructure.

Software - includes enterprise applications & Enterprise Resource Planning, software infrastructure (e.g. operating

systems, systems management) and information management (e.g. Business Intelligence, content management).

Services - includes spending on third party IT services e.g. Application Services, Business Process Outsourcing

Services & Infrastructure Services.

Communications - relates to all telecommunications costs in the enterprise. This would include both voice and

data communications costs (fixed-line telephony, Managed Services, connectivity etc.) as well as mobile telephony

and data costs.

Consulting - covers professional services spending with third parties e.g. Business and Strategy consulting, IT

staff contracting and Technology & Transformation consulting.

Other - any other areas not included above, where the external IT budget is spent.

IT budget by function

Table 6: German enterprises’ average hardware budget allocation

IT function Average budget (%)

Clients X

Network and communications equipment X

Mainframes X

Servers X

Security X

Peripherals X

Storage X

Semiconductors and Processors X

Total X

Source: Kable


Data centre – enterprises’ investment in facilities (in-house and from third parties) providing a secure environment

for its computer systems and associated components, including servers & mainframes, telecommunications and

data storage systems.

Service Desk – expenditure on the provision of desktop services that manage an enterprise’s desktop environment

and distributed IT assets.

End-user Computing – expenditure on end-user computing equipment, including the likes of desktops, laptops

and mobile devices.

Network – investment made in enterprises’ network infrastructure, including its wide area network (WAN) and local

area network (LAN).

Applications – expenditure on enterprise software and applications either deployed on-premise or supported

remotely and delivered as a service.

Communications – as above, the costs associated with telecommunications in the enterprise, including voice and

data communications over fixed and wireless networks.

Management – expenditure on the enterprise-wide administration of distributed computing systems, including both

systems management and network management.

Hardware budget

Clients – covers end user computing devices, including the likes of personal computers and workstations.

Mainframes – high-end computers used by corporations and governments for critical applications, bulk data

processing, and transaction processing.

Network and Communications equipment – enterprise IT infrastructure for networking and communications

covering the likes of hubs, switches, routers, access points and customer premise equipment.

Peripherals – covers additional computing devices including printers, phones and adaptors, and scanning and

imaging devices.

Security – covers security hardware and appliances including content-filtering and anti-spam appliances,

encryption/SSL accelerators, firewall and VPN gateways, smart card readers, and smart cards.

Semiconductors and Processors – expenditure on computer chips and processing units.

Servers – investment made in mid-range and low-end server systems. High-end servers are included in the

mainframe category.

Storage – IT storage infrastructure includes hard-disk drives, NAS filers and gateways, SAN adaptors and

connectors, SAN disk arrays, and tape libraries.

Software budget


Application Lifecycle – covers Application Development, Application Testing, Architecture and Modelling, Change

and Configuration Management, Development Methodologies, Project and Portfolio Management, Requirements

Management.

Enterprise Applications – covers Business Process Management, Commerce Applications, Customer

Relationship Management (CRM), Enterprise Resource Planning, Financial Applications, Human Resources and

Payroll, Product Lifecycle Management, Supply Chain Management.

Information Management – covers Business Intelligence, Collaboration and Knowledge Management, Content

Management, Data Management, Portals, Search.

Integration and SOA – covers Application Integration, Data Integration, Legacy Renewal, Middleware, SOA.

IT Management Software – covers Application Performance Management, Desktop Management, IT Service

Management, Network Management, Systems Management.

Security – covers Application Security, Business Protection, Communication Security, Content and Web Filtering,

End-point Security, Identity and Access Management, Information Protection, Network Security, Security Audit and

Testing, Security Management.

Software Infrastructure – covers Application Platforms, Databases, E-mail and Communication Servers, Mobile

Platforms, Operating Systems, Storage Management, Virtualization.

IT Services budget

Application development & integration – service expenditure relating to the development of enterprise

applications, including the customisation, rationalisation or modernisation of off-the shelf packages, as well as the

development of bespoke applications. Integration services cover the planning, design, and building of enterprise

applications which automate business processes.

Hosting & data centre services – Hosting & data centre services include the management and monitoring of an

enterprise’s entire IT platform. As well as covering normal servers, it includes the associated network infrastructure,

storage infrastructure, security and systems management software.

Security & privacy services – Security and privacy services help enterprises protect their IT assets and comply

with an increasingly regulated environment. Examples include Threat & Vulnerability Management Services, IT

Security Management Services, IT Security Compliance Services, Secure Communications Services and Secure

Content Services.

Desktop services & user support – Desktop services cover the management of an enterprise’s entire desktop

environment and distributed IT assets. User support services give an enterprise’s IT users a single point of contact

for IT issues in the desktop environment.

IT consultants & contractors – expenditure on third party IT consultants and contractors to undertake IT systems

design and implementation projects.

Cloud Services – expenditure on services made available to enterprises via the Internet from a service provider’s

data centre. This category excludes the allocated cost of the software licence related to such services.


IT Consulting budget

Systems planning & design consulting – expenditure with IT services providers relating to both the re-design

and overhaul of IT systems, as well as the planning phase relating to IT systems integrations.

Disaster recovery & business continuity planning – services that help enterprises ensure the continued

availability of mission-critical processes and IT resources against potential loss or damage caused by disruptions,

disasters or IT security breaches.

Training, education and other consulting – investment made with IT consultants to provide training and

education services to enterprise’s in-house IT staff.

Telecommunications budget

Fixed voice – expenditure on fixed-line communications for voice services, including line rental and call charges.

VoIP services are excluded, as well as charges for calls routed within the same WAN.

Mobile voice – enterprise expenditure on mobile voice telephony services, including monthly subscription costs

and voice minutes.

Converged voice & data networks – expenditure on services that combine voice and data functionality over one

network, including voice over IP, MPLS VPN networks, and IP VPN networks (with metered or unmetered voice).

Wireless data – enterprise expenditure on services that involve the transfer of data over wireless networks,

including third generation (3G) mobile telecommunications and WiFi.

Data – expenditure on fixed data services including internet connectivity, leased lines, WAN connectivity and other

managed data services such as ATM and Frame Relay.

Documents

ICT budget and staffing trends in Germany - … · ICT budget and staffing trends in Germany Enterprise ICT investment ... and service providers. Trends in ICT ... ICT budget and