AWS supports the German economy in terms of innovation and growth

Amazon Online Services

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Amazon Web Services (AWS) creates over 600 new jobs in Germany and added economic value of € 11.2 billion[1] for tens of thousands of customers.

The German economy is facing a major challenge: new digital technologies are helping companies from all parts of the world to enter new markets quickly and economically. In doing so, they are also changing existing business models and industries. Cloud services play an important role in this context: they strengthen data-driven value creation in Germany and in Germany. They help companies and public organizations of all sizes to leverage state-of-the-art technologies to focus more on their core competencies, drive innovation and thrive.

Amazon Web Services (AWS) commissioned a study by IW Consult, an independent subsidiary of the German Economic Institute. The project aims to help better understand the use and impact of cloud computing and AWS in Germany.

Economic growth in Germany: increased resilience with AWS Cloud

The authors of the report estimate that cloud computing in Germany generated an economic value of EUR 68.5 billion in 2021.

Tens of thousands of AWS customers have EUR 11.2 billion of this – this corresponds to around 0.3 percent of Germany’s gross domestic product in 2021. However, growth in Germany was only possible thanks to the increasing use of the cloud (37.5 percent in 2021). … Because technology supports companies to focus on innovation and respond flexibly to customer requirements. It also saves costs and resources, and companies can build a high resistance to the impact of external events.

As the survey shows, the share of sales achieved with new products and services is 36.0 percent. among AWS users and thus significantly higher than the share of sales among users of other cloud providers (10.3%) and companies without access to the cloud (7.5%). In addition, 82.9 percent of AWS customers use new technologies such as machine learning (ML). 43.7% of AWS users are even particularly active here. Only 22.2 percent said so. customers of other cloud providers.

According to the survey, companies with access to cloud services describe themselves as more agile – AWS customers (77.1 percent) especially stated. 64.7% of cloud users attribute greater efficiency to easier access to a wide range of services that drive innovation, serve customers better, and improve competitiveness.

Economic crises, pandemics, international conflicts or environmental disasters pose a great challenge for companies, and cloud computing increases resilience to such external events. 86.2% of AWS users said that they felt very well or prepared for it. Among the users of other cloud services, only 73.0% said it. 64.9 percent of AWS customers say they can increase their operational resilience by leveraging cloud technologies. It was only given by 37.1 percent. users of other cloud providers.

Overall, the study found that AWS customers are more successful: they are more likely than other cloud users to increase their revenue by 10 percent between 2020-2021. According to IW Consult, 73.1 percent of AWS users increased by ten percent or more over the period. For users of other cloud providers, this share is only 26.9%.

Digitizing the German economy with the AWS cloud

Small and medium-sized enterprises (SMEs) are the backbone of the German economy. According to the Federal Statistical Office, 99.4 percent of the 2.6 million German companies in 2019 were SMEs. However, to remain competitive, they need access to the latest technology. Only then can your business be successfully digitized. Examples of small and medium-sized companies in Germany that use AWS for this purpose are Bettercard, Biomax, defineMedia, MyPoster and Unzer.

According to IW Consult, SMEs using cloud services are also more innovative: their share in the sale of new products and services is 13.8%. This applies in particular to AWS customers (36.2 percent). However, only 7.5% of companies without access to the cloud can be considered innovative. 58.4 percent of AWS small and medium-sized customers said the cloud has enabled them to better respond to changing customer demand, thereby generating additional revenue. Only 48.3 percent of SMEs with another cloud provider said this. In addition, in the years 2019-2021, small and medium-sized AWS customers recorded an average increase in the number of employees by 17.1 percent. On the other hand, SMEs with other cloud providers or without access to the cloud recorded an increase of 10.9% and 3.9%, respectively.

German innovations thanks to AWS Cloud

According to BMWK (Federal Ministry of Economy and Climate Protection), the federal government invested around EUR 7.6 billion in start-ups in 2021 to remain one of the most innovative countries in the world. According to the EY Startup Barometer of 2021, German start-ups were able to collect a total of approx. EUR 17 billion. Many of them use the AWS cloud – including Personio, Scalable Capital, solarisbank, Tier Mobility, and Trade Republic. Zalando and HelloFresh are examples of former startups that are now big companies.

30.4 percent companies that were founded no more than ten years ago believe that operating without the cloud is impossible. And among young companies with access to AWS, almost all (98.6%) feel well or very well prepared for crises. Only 77.4 percent. companies with other cloud providers stated this. In addition, AWS customers rely more on new and advanced technologies: 73.6% rely on two or more technologies, such as machine learning or artificial intelligence. Among newer companies with other cloud providers, it is only 26.7%. The share of sales of new products and services is also much higher for AWS users (69.9%) than for young companies with other cloud providers (15.1%).

Germany: Key industries use the AWS cloud

Many German companies use the cloud – also for business-critical data. At 65.1 percent cloud computing is most widespread in the information and communication technologies (ICT) sector. It is followed by services (48.4%), media and entertainment (44.61%), and finance and insurance (40.3%). 36.0 percent uses cloud services in retail and wholesale, 31.8 percent. in vehicle construction and 28.8 percent. in production.

58.4 percent of AWS customers said cloud services allowed them to better respond to customer needs and thus increase their revenue. In the case of companies with other cloud providers, it was 48.3 percent. According to the study, AWS services also help to compete better with larger companies than other vendors’ cloud services (55.2% compared to 33.8%) and in the development of new products and services (49.8% compared to 29.6 percent). And 54.0% of AWS customers said that cloud services help them develop new markets and customer groups. Only 26.0 percent. companies with other cloud providers said so.

91.7 percent manufacturing companies using cloud services AWS already uses technologies such as machine learning, artificial intelligence or virtual / augmented reality. Among companies with other cloud providers, only 44.7 percent. is active in these areas.

Germany – a safe place for sensitive digital products

Cloud providers such as AWS offer access to technology and expertise to accelerate digitization in Germany. At the same time, it is easier to comply with local data protection laws and regulations in the cloud.

In a study by IW Consult, 87.5% of cloud users said that continuous security updates from the cloud provider are very helpful. AWS users in particular feel well supported by their provider in this regard (90.9% compared to 87.0% of users of other cloud providers). In the automotive sector, approximately 99.2 percent of users said their cloud provider has met their IT security requirements. 94.6 percent of users said this with regard to their legal certainty requirements. In the case of banks and insurance companies, it was 91.4 and 87.7 percent, respectively.

Improved durability thanks to AWS

One of the most important issues today is the sustainable use of resources. AWS commissioned a study from 451 Research on the subject. Result: The average company in Germany can reduce energy consumption by shifting workloads to the cloud. German companies saw the use of cloud services to reduce emissions and create more sustainable products and services.

This is also confirmed by the study carried out by IW Consult. As a result, 58.4 percent of respondents feel fully or partially committed to the socio-ecological business code. The majority of participants (70.5 percent) also said they benefited from less equipment purchases and could more easily meet their sustainability goals. In this context, lower energy consumption is also seen as the main advantage of the cloud (64.5% mentions). 78.6 percent of AWS customers pay particular attention to improving their sustainability. Of the users of other cloud providers and non-cloud companies, these numbers are 72.5 percent and 49.3 percent, respectively. 78.8% AWS customers said they particularly benefited from reduced hardware purchases (users of other cloud providers: 69.3%). And 74.8 percent. emphasized lower energy consumption (other cloud providers: 62.9%).

AWS in Germany

AWS continues to invest in infrastructure in Germany. In October 2014, the company opened the AWS Frankfurt region with two availability zones. A third Availability Zone was added in 2017, and since the opening of the EU region (Frankfurt), the infrastructure has been expanded to include 21 edge locations and a regional edge cache. In February 2022, AWS also announced the opening of two new Local Zones over the next two years – one in Berlin and one in Munich. As a result, AWS offers its German customers even lower latency for their applications.

Important AWS cloud technologies – such as AWS Nitro System – are being developed in Dresden, Aachen, Berlin and Tübingen, among others. On May 25, 2022, a research team from Tübingen announced cooperation with the German Max Planck Institute. The collaboration aims to intensify research in the fields of artificial intelligence, computer vision and machine learning.

This year, over 600 new jobs will be created in data centers, development locations and offices in Germany – incl. in Berlin and Munich, but also in other locations.

Link to the full report:

[1] According to the “AWS Impact Study Germany” IW Consult.

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Original content from: Amazon Web Services, provided by news news

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