They're both ethnic Germans, albeit with their own regional cultural and linguistic variations. The main "dividing line" (not really a rigid cultural, linguistic and genetic border, but more of a continuum) within the German peoples, however, isn't Germans and Austrians, but High Germans (southern Germany, Austria and most of Switzerland) and Low Germans (northern Germany and the Netherlands (the Dutch/Diets people, a subgroup of Low Germans)).

Since the English are mostly descended from Low German subgroups, albeit with Scandinavian and Celtic admixture, it could be argued that the English are technically Germans as well. Scandinavians (North Germanic) are NOT German, but they're definitely Germanic just like the Germans. German is basically the same thing as West Germanic, ethnically speaking.