Time for a new water heater?

The problems is cause by two dissimilar metals. From what I can see you have galvanized pipe coming out of the top of heater to copper. While it will work just fine. Over time the galvanized pipe though electrolysis the pipe actually breaks down from corrosion. And the thinnest part of the pipes is where the threads are cut. I would replace the pipe with schedule 80 black pipe or all copper.

The threads have probably started to rot out over the past 11 years. And basically you have a seepage leak at the base threads where it screwed into the water heater. The crusty stuff is deposits (calcium / rust ) hence what you are seeing. At somepoint it may leak. Replace the pipes and you should be fine. Your going to need a pipe wrench to remove these and some pipe dope for re-install.

The heater is probably fine. But most hot water heaters generally last 10 years and typically the inner tank fails at the bottom. Once she leaks out the bottom it trash.

Appears you have some hard water there in your area along with some iron minerals. If the heater is still giving you plenty of hot water, there is most likely nothing wrong with the heater itself. I would suspect that the inside of the heater has a build up of the same stuff and it may need to be taken out and given a good cleaning. Try cleaning the stuff from around the pipes and see what it looks like once it is cleaned. If the pieces that connect to the heater look pretty rusty or pitted out, you probably should replace them. Between the pipes sweating and a possible small leak around the threads that screw into the heater, the minerals and all the other stuff starts to build up. If the pipes clean up ok, you may need to tighten the pieces that connect to the heater to stop any small leaks.

You've got a little seeping leak in the fittings connections, but not involving the water heater itself.

Anytime it's leaking out the bottom, however, time for a new heater.

Best guess is that the nipple (short, threaded pipe) on the right wasn't "Doped" well enough to seal the threads going into the heater. Also looks like copper flare fittings onto galvanized steel nipples (with reducers for 3/4 to 1/2 for the flare fittings), and a little dielectric corrosion happening. I'm in the habit of using only brass nipples going up to sweat copper fittings to reduce that risk.

If I was going to market the house, I'd replace it, as it's nasty looking.

If not, however, you could get several more years use. But if I was bored in the winter and the wife was gone on business, I'd shut it down, disconnect everything, and refit 'til it was clean and dry.

This is the sign of a very very small leak around that piping joint. It has no indication whatsoever of impending failure of the water heater. It could be that to fix the small leak you would have to replace the water heater.

Additional info answer= The encrustations are lime/solids built up from the water. As the hot water leaks out it evaporates away leaving the crusty solids behind which you are seeing.

It could be any time it is going to let go. Its time to buy water heater. Give your plumber a call soon. Good luck.