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Software AG GB 2012, englisch

SOFTWARE AG | ANNUAL REPORT 2012 152 TRANSFORMATION OF PRODUCT REVENUE DRIVERS Revenue distribution as % of total sales (medium term) In light of this strategy, we will restructure our segment reporting in the upcoming quarter. Consulting services are offered in all three segments: BPE, ETS and IDSC. In the past year the decision was made to merge the consulting activ- ities from all three reporting segments under the same direction. It took effect as of January 1, 2013. This change In Europe spending for information and telecommunications technology is expected to have risen 1.4 percent in 2013 according to the European Information Technology Observa- tory (EITO). For Germany, analysts at EITO and the German German Association of Information, Telecommunications and New Media (BITKOM) predict a total market volume of €141.6 bil- lion in 2013, which would reflect 1.8-percent growth. They foresee above-average growth in investments for software (+5.1 percent to €17.8 billion) and IT services (+3.0 percent to €35.9 billion). A BITKOM economic survey from early Feb- ruary 2013 is also optimistic: Software companies and IT service providers expect sales to increase. CORPORATE STRATEGY OPPORTUNITIES Software AG assumes that it will reap above-average prof- its from this positive market trend. Our long-term growth strategy reflects this, which we communicated at the begin- ning of 2013. • It is clearly focused on the promising BPE business line including Terracotta in-memory/big data. • We want to achieve one billion euros in product revenue with this segment by 2018. It would then account for some 80 percent of the Group’s total product revenue. • Our traditional ETS business will contribute about 20 per- cent of product sales. · Partners/OEMs · M&A/innovative technologies BPE Product Revenue · Organic growth · Integration technology · Business process mgmt. · Cloud · Terracotta/big data €1 BILLION 2006 2012 2018 ETS Product RevenueBPE Product Revenue 80% 45% ~20% 20% 55% ~80%