Half of German companies are investing in new networking solutions and protecting digital infrastructures or are planning to do so. ÜOver 40 percent will need a fiber optic connection for digitization within the next five years. That is one of the results of a survey by telecommunications specialist 1 & 1 Versatel.
The coronavirus pandemic is promoting digitization in German companies. The main focus is on mobile and networked work. Production, logistics and purchasing, on the other hand, are still benefiting little from the current wave of digitization. This is the result of a survey by YouGov Deutschland GmbH on behalf of the telecommunications specialist 1 & 1 Versatel.
For almost half (45 percent) of the 524 surveyed decision-makers in German companies, the Corona crisis is causing a decline in sales. 54 percent of companies therefore want to focus on cost management. 49 percent have reduced investments or plan to do so. For 59 percent of companies, however, savings in recruiting and staff development are not an option. The majority also stated that the issue of digitization had come more into focus with the crisis.
Digitization initiatives despite cost pressure
More than half of the companies surveyed (52 percent) put the acceleration of digital initiatives high on the agenda despite cost pressure. The areas of communication and information exchange (58 percent), mobile working (56 percent), electronic administrative processes (42 percent) and customer care and loyalty (41 percent) benefit from this in particular. In other relevant corporate areas such as production processes, logistics (both 15 percent each) and product development (16 percent), the effect is significantly lower. However, the majority of companies seem to have recognized the future need for fast and secure data exchange: 23 percent of companies already have a fiber optic connection - 43 percent believe that they will need one within the next five years.
According to the survey, the protection of their digital data and infrastructure is particularly important to companies when it comes to digitization (50 percent). New networking solutions such as VPN access and cloud services are also being promoted by almost half (49 percent) of companies. 45 percent invest in new or expanded telephony solutions to make it easier for employees to work from home. Cloud-based IT systems are also given a high priority at 42 percent. New technologies such as artificial intelligence, blockchain or virtual or augmented reality, on the other hand, are lagging behind: 26 percent of the companies surveyed are planning an investment here or have already made one.
Expansion of the digital infrastructure
The situation is different with the expansion of the digital infrastructure and the increase in Internet bandwidths: a quarter (23 percent) of the decision-makers have already invested here, and another 23 percent are currently planning an expansion. From the point of view of companies, high-performance Internet is especially important for more flexible, more transparent and faster work (52 percent). But customer satisfaction and loyalty (36 percent), competitiveness as well as process optimization and lead time reductions (30 percent each) benefit from it.
“We can clearly see that companies - whether large or small - are primarily investing in security and business continuity in response to the crisis. This is basically understandable; However, digitization must be promoted holistically - i.e. in all areas of the company - so that the investments can have sustainable success, ”said Dr. Sören Trebst, CEO of 1 & 1 Versatel. "An important topic is of course the infrastructure: The existing potential can only be fully exploited with secure, stable and, above all, fast data transmission."
Current fiber optic coverage below ten percent
"In Germany we currently have a fiber optic coverage of less than ten percent: In order to be able to meet the future demand for bandwidth, all the actors involved from telecommunications and network providers, municipal utilities, associations and politics must pull together and promote the expansion together." 1 & 1 Versatel is already relying not only on the self-operated, approx. 50.000 km long fiber optic network, but also on cooperation and has taken on a pioneering role with the communal cooperation model it has developed. This enables energy suppliers and municipal utilities to optimally use and market their existing fiber optic infrastructures.
About the Study
The data is based on an online survey by YouGov Deutschland GmbH, in which 524 corporate decision-makers from the private, public and non-profit sectors took part between July 30, 2020 and August 6, 2020. Financial services, IT and technology services as well as the manufacturing industry were the most frequently represented sectors in the Germany-wide survey.
Directly to the study PDF at 1und1.net
About 1 & 1 Versatel
As a telecommunications specialist for corporate customers, 1 & 1 Versatel is one of the leading providers of data, Internet and voice services in Germany. The company is a 100 percent subsidiary of the listed United Internet AG (ISIN DE0005089031). 1 & 1 Versatel operates one of the largest and most powerful fiber optic networks in Germany - it is available in over 250 cities. Due to its high-performance infrastructure and its extensive product portfolio as well as its consistent focus on corporate customers, 1 & 1 Versatel is able to respond to even the most complex customer requirements. As a driver of the gigabit society, 1 & 1 Versatel is pushing the continuous expansion of the fiber optic network for Germany.