Editorial

Viviane Reding

Information and communication technologies now hold a predominant place in our advanced economies and their use is a key factor of productivity for our companies. I am delighted with the dynamism of this sector, for the software industry is one of Europe's best vectors of growth in innovation and competitiveness. A more and more significant part of our growth depends strongly on the progress & advances of our software vendors. Their ability to innovate and invest importantly in R&D is a key success factor to our economies in a very competitive global environment.
Information and communication technologies now hold a predominant place in our advanced economies and their use is a key factor of productivity for our companies. I am delighted with the dynamism of this sector, for the software industry is one of Europes best vectors of growth in innovation and competitiveness. A more and more significant part of our growth depends strongly on the progress & advances of our software vendors. Their ability to innovate and invest importantly in R&D is a key success factor to our economies in a very competitive global environment.
The software industry is characterized by periodic technological disruptions that pave the way for new arrivals in a continuously evolving worldwide market. With an overall growth rate of three times that of EU GDP, software companies collectively represent a champion of European R&D, supported by high-calibre management teams nationwide. Just to give you an example: the training of computer science engineers in French higher education is recognized throughout the world.
This first edition of the Truffle 100 Europe highlights top European software firms and underscores the potential of these companies, whose success is crucial for our countries. Innovation comes from companies of all sizes, with an important role played by small and medium-sized firms. Nonetheless, the European Union still lacks a critical mass of medium-sized companies that have the capacity to become world leaders in their field.
The Truffle 100 Europe ranking is a very useful tool to analyze the vitality of these companies, their capacity to create value, and ultimately jobs. This ranking also reveals how much remains to be accomplished for Europe to become a significant software actor on the world stage; behind companies like SAP, Sage, Dassault Systmes, Business Objects, or Mysis, smaller firms can also attain world leadership in their respective segments provided that they place innovation and customer satisfaction at the centre of their growth strategy.
I wish Truffle 100 Europe every success this initiative deserves.
Viviane Reding
Commissioner for Information
Society & Media

Leo Apotheker


Information and communication technologies now hold a predominant place in our advanced economies and their use is a key factor of productivity for our companies. I am delighted with the dynamism of this sector, for the software industry is one of Europe's best vectors of growth in innovation and competitiveness. A more and more significant part of our growth depends strongly on the progress & advances of our software vendors. Their ability to innovate and invest importantly in R&D is a key success factor to our economies in a very competitive global environment.
The software industry is synonymous with innovation – todays economy is driven by great ideas fuelled by software solutions. New solutions could come from a global player like SAP, or just as easily from a local, niche player.
Back in the early 1970s, when the software industry was burgeoning, SAP was a small local player based in Walldorf, Germany. Fast forward three decades and SAP is the worldwide leader in the business applications space and proud to be #1 of the 2006 Truffle 100.
SAP serves as a symbol of what is possible in this dynamic industry. When you bring products and solutions to market that transform how businesses and people operate, making them more innovative, efficient and competitive, the opportunities are unlimited.
Software plays a pivotal role in helping companies invent and implement new business models and institutionalize new ways of doing business, which ultimately change industry landscapes. Businesses around the global recognize software as a key driver for growth and innovation.
Within the overall story of growth and opportunity in the software industry, however, one undisputable fact is that US software firms continue to dominate overall, with few notable exceptions.
It is clear that competition is increasing and for European companies to succeed and sustain double-digit growth, it requires R&D investments, education and training, and a dynamic and active software community in Europe where company executives, investors and partners can collaborate effectively.
One advantage that European companies have is the experience of operating in a diverse and multicultural environment. In a global economy this is a genuine asset – the ability to think globally and act locally.
SAPs story demonstrates that a software company with strong roots in Europe can succeed on the global stage. As we continue our corporate journey, we hope to see many more European software companies enjoying similar success.
Leo Apotheker
President Customer Solutions Operations and
SAP AG

Bernard-Louis Roques


Information and communication technologies now hold a predominant place in our advanced economies and their use is a key factor of productivity for our companies. I am delighted with the dynamism of this sector, for the software industry is one of Europe's best vectors of growth in innovation and competitiveness. A more and more significant part of our growth depends strongly on the progress & advances of our software vendors. Their ability to innovate and invest importantly in R&D is a key success factor to our economies in a very competitive global environment.
The Truffle 100, compiled by Truffle Venture from research conducted by IDC and CXP, and released during the Pan-European IP Summit in Brussels, demonstrates the dynamism & the magnitude of the European software industry.
Following its successful launch in France, where it instantly became the leading reference, the Truffle 100 is expanding to the European level, with the renewed support of Syntec Informatique.
Software is now a full-blown industry that is experiencing compelling growth (+15% year on year), is in continuous transformation, and serves as a powerful engine of job and value creation (37 000 R&D jobs, 13% profitability). With an impressive aggregated R&D firepower, the Truffle 100 is composed of national champions who have managed to expand globally from their local stronghold, often banking on regional specificities (enterprise software in most countries, public sector & finance software in the UK, business intelligence & technical software in France, telecoms in Nordic countries).
Much more than a short-lived phenomenon or a passing fad, the growth in the software sector is a fundamental trend to cultivate and nurture over the long term.
In other words, the software industry is beginning to really matter in our economic landscape. In just a few years time the figures of the current edition of the Truffle 100 will appear rather moderate.
Bernard-Louis Roques ,
General Partner & co-Founder,
Truffle Venture