Table of contents

CeBit 2004: Optimistic but careful

CeBit 2004 in numbers

The state of the German IT sector

Focus on SMEs and compliance

Technology trends 2004

Going off-shore: it is a trend but sometimes a bridge too far

CeBit 2004: optimistic but careful

Every year in March, CeBit, the largest IT trade fair in the world is held in Hannover. This year the event was one day shorter than last year (18 - 24 March 2004). Visitors and exhibitors from all over the world gather in Hannover to see the latest trends and innovations in ICT, hardware and software. We look at CeBit 2004 through the eyes of off-shore IT service providers and buyers.

First of all Deutsche Messe AG, the organiser of CeBit, provides a complete catalog of exhibitors on-line (www.cebit.de). This makes it easier for both visitors and exhibitors to prepare for the fair beforehand especially because CeBit is huge.

At the closing of the gates on the 24 March, the visitor count was at 510.000. The show, had an average of 3,400 more visitors per day than in 2003 - the first such rise in three years. (In 2003 there were 560.000 visitors, but the fair was also one day longer). About 25% of the visitors (125,000) to CeBit were foreigners (of which 28,000 from Asia). German companies definitely realized that CeBit attracts more and more foreigners and in most case it was possible to obtain English documentation (which was not entirely the case in previous years).

CeBit is considered a B2B fair of ICT product and services. However this year a considerable shift was obvious. First of all the exhibition halls (and therefore the exhibitors) are organized by product categories (see above). However, in many cases companies, especially at collective stands, exhibited all types of products and services. It was not unusual that in a single stand visitors could find CRM software, digital cameras and memory modules or storage solutions, all in a hall which was supposed to be dedicated to telecommunications and networking.

Secondly, this year games and consumer products/services were present in large numbers (not really the B2B area of ICT) from flat panel TVs to games and digital cameras. When asked, Deutschen Messe AG explained the presence of consumer products as a result of convergence of many technologies and business areas. Nevertheless the presence of consumer products might explain the high number of visitors to this year’s CeBit.

In general the mood was optimistic regarding expected growth in the IT industry. This was the first time in the past few years when visitors arrived with ICT buying plans. Regardless of optimism, IT companies have to face the fact that ICT budgets were made for 2004 in mid 2003, when conditions were difficult and the outlook quite dark shaded. This influenced both the exhibitors (as they have decided to participate at CeBit much latter than normal) and buyers as they have to live with the budgets planned last year. All in all considerable market upturn is expected by 2005.

Key focus areas of software and services product category at the fair;

Enterprise systems (ERP, CRM, SCM, etc.)

Content management

Workflow management

Document management

Knowledge management

Security

The off-shore offer

All of the key countries relevant to the European off-shore outsourcing were present at CeBit 2004.

Interestingly the Indian presence and stand was much smaller than in previous years (2004:34 exhibitors on 539sqm, 2003:36 exhibitors on 881 sqm).

Even countries like Brasil, Iran, Serbia and Indonesia participated at the fair.

The Sri Lankan, Bangladeshi and Jordanian stands were more-or-less the same as last year. Unfortunately the location and design of the Sri Lankan and the Bangladeshi stands did not improve significantly. However Thailand doubled its presence at the fair (2004: 20 exhibitors on 227sqm, 2003: 10 exhibitors on 109sqm). The Jordanian and Thai stands were professionally designed.

The most significant growth in presence;

China - 2004: 189 exhibitors on 3.721sqm, 2003: 111 exhibitors on 2.195sqm

Egypt - 2004: 18 exhibitors on 495sqm, 2003: 2 exhibitors on 52sqm

Turkey – 2004: 40 exhibitors on 1.019sqm, 2003: 38 exhibitors on 755sqm

Turkey had the most visible increase of presence. The impressive stand was at a prime location in Hall 6. Information was available on the exhibitors, but information on the Turkish IT industry, its value proposition, capacities and capabilities was not available.