The Top 100 European Software vendors

The European software industry ranking.

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2015


Editorials

Bernard-Louis Roques
Bernard Louis Roques

Bernard-Louis Roques

General Partner
& co-Founder,
Truffle Capital

It's that time of year again, when we produce the Truffle 100, search and share the data, an opportunity to reconnect with the stakeholders of the industry. I guess the Truffle 100 has found its place in the European business environment and brings its contribution to the software ecosystem.

You are more than 100,000 to use this free research as a tool, a barometer, a source of data to increase your knowledge and enrich your vision of the European software market. Truffle Capital, CXP and IDC are happy to provide you this service, with the support of the European commission and ESSEC Business School.

With €44 billion in aggregated revenues, 67,000 R&D jobs, 5.2% growth and €7 billion invested into research, the software vendors have become a major component of the European economy and the most important contributor to its innovation.

On the eve of major paradigm changes driven by mobility, cloud computing, applications, they are going through challenging but thrilling transformations. We're experiencing one of the most exiting chapters of the industry's history, and remain reasonably optimistic, betting on the proven resilience and innovative agility outlined year after year in all the Truffle 100 search

Laurent Calot
Laurent Calot

Laurent Calot

CEO,
CXP Group

We have entered the digital age and there is no turning back. Although not all businesses have made the transition yet, there is now real awareness, shared by everyone, of digital considerations. In sectors such as distribution and finance and in the B2C sector, digital technologies are already revolutionising the way in which businesses interact with their customers. Digitalisation is transforming the value chains of businesses, their business models and their ecosystems. Adopting and making optimum use of technologies, such as cloud computing, mobile technologies, analytics or the Internet of Things, make new business objectives possible. Digitalisation throws the doors wide open to innovation and new projects.

To meet these potentially huge challenges, the software industry is adapting; the European Truffle listing is proof of this. The new solutions offered integrate SMAC (Social, Mobile, Analytics, Cloud) technologies to meet the demand of business users who now require customer-oriented, web-designed tools, access to mobile applications, agile management tools, visual and easy-to-interpret dashboards, and analysis functions capable of deriving value from increasingly large and less structured sets of data. Software publishers have realised that cloud infrastructures and SaaS applications now represent the strongest market driver (with growth rates of between 30% and 40%) and are revising their business models to base their growth on recurring turnover. Finally, software vendors, integrators, service companies and cloud brokers are working to provide a high value-added, business-oriented "service" dimension which will make the difference, boost the competitiveness of businesses and accelerate their modernisation.

Bo Lykkegaard
Bo Lykkegaard

Bo Lykkegaard

Associate Vice
President, European
Software Research,
IDC

2014 was a year of solid growth overall for Europe's software industry. It was also a year of change, as an increasing proportion of top 100 vendors made significant bets on new cloud businesses to complement their traditional software businesses. IDC estimates that just under half of the top 100 software providers have built or acquires significant cloud offerings today. For those vendors, cloud has moved beyond the trial-and-error state into mainstream business. The ones that have moved first are typically vendors of horizontal business applications, such as marketing, CRM, Human Capital Management, accounting, etc. Three top vendors, SAP, Dassault, and Sage, have each made significant advances in cloud computing.

The question that arise is then: What about the vendors that have not yet made a significant bet in cloud. IDC research shows that different software areas have different level of cloud maturity and hence different urgency of business model transformation. Many industry-specific packaged software applications are replacing custom software or manual processes. They are not at a level of standardization to warrant a software-as-a-service approach. However, IDC believes that by 2020 cloud computing will cover the majority of IT workloads, even in large enterprises. Consequently, all software vendors in Europe must consider the cloud computing model at some point in their planning horizon.

The transition to cloud and major disruptive computing trends, such as mobile applications, real-time analytics, and internet of things, is complex and costly and carries a risk of cannibalizing existing revenue streams from software licenses and maintenance contracts. However, staying abreast of disruptive technology developments is vital for the longer-term sustainability of the European software industry and strong linked to R&D investments and access to capital. For those making the leap, the future holds promises and growth opportunities.

Karl-Heinz Streibich
Karl-Heinz Streibich

Karl-Heinz Streibich

Chief Executive Officer,
Software AG

Digitization is changing everything. It is impacting every industry and opening huge new business opportunities for any enterprise that reacts quickly enough with an imaginative and innovative digital strategy. It is having a positive impact on the lives of billions of citizens worldwide through better managing health services to streamlining the use of global resources.

At a national economic level the impact is startling. According to the World Economic Forum , a 10 percentage point increase in a country’s digitization index can result in a 0.75% rise in GDP and a 1.02% drop in unemployment. More tangibly, IDC forecasts that the worldwide market for Internet of Things solutions will grow from $1.9 trillion in 2013 to $7.1 trillion in 2020. This is simply the largest growth phase in history.

The growth potential for the Industrial Internet should be music to European ears. It is imperative that Europe leverages its unequalled engineering heritage to spearhead the Industrial Internet. Europe must ensure that it makes an impact in this digital revolution that reflects and builds on its manufacturing economic might.

Digitization is changing everything. Europe has to be at the forefront of this change.


Figures


  • Revenues

    44 €bn software revenues

    All Truffle have revenues > 41.7 €m


    % Revenues 2010 2011 2012 2013 2014

    SAP

    31 38 39 39 39
    TOP 3 40 46 47 47 47
    TOP 5  44 53 53 53 53
    TOP 10 52 63 63 63 63
    TOP 50 84 90 90 90 91



  • Profits



      Profits  
    2008 2009 2010 2011 2012 2013 2014 % of revenues T 100
    SAP 51 46 31 52 48 52 51 39
    TOP 3 62 58 40 60 58 59 60 47
    TOP 5 67 66 44 66 65 67 68 53
    TOP 10 67 66 52 79 79 79 80 63
    TOP 50 92 91 84 96 95 97 97 91

    The bigger, the more profitable

    Profitability % of revenues Profits €M 2013
      2010 2011 2012 2013 2014  
    TOP 3 15.2 22.9 17.0 18.5 17.7 3804
    TOP 25 12.0 12.9 11.7 5301
    TOP 50 12.2 13.5 10.8 12.1 11.1 6174
    BOTTOM 50 10.6 5.2 4.6 2.6 3.2 201
    BOTTOM 25 13.4 6.9 6.8 7.9 2.3 40

    Profit rate


    Publicly traded


  • Breakdown by country

    Top five countries in Europe represent 53% revenues



    Country 2011 2012 SW revenues (€M) 2013 2014 % of total # SW companies
    Germany 18 145.7 20 328.6 21 046.4 22 139.7 49.8 17
    UK 5 497.3 5 994.6 5 406.8 5 524.1 12.4 19
    France 4 040.9 4 348.9 5 028.5 5 433.0 12.2 22
    Sweden 2 163.5 2 326.5 2 392.0 2 434.5 5.5 7
    Netherlands 2 187.9 2 236.2 2 103.7 2 223.9 5.0 7
    Poland 1 005.5 1 152.4 1 229.1 1 384.8 3.1 2
    Switzerland 1 110.8 1 208.2 1 174.6 1 319.9 3.0 5
    Norway 486.2 544.8 639.2 688.5 1.5 3
    Italy 516.5 557.3 625.8 687.0 1.5 3
    Belgium 530.1 594.9 580.2 596.8 1.3 1
    Finland 618.1 625.0 656.6 568.3 1.3 5
    Czech Republic 248.5 361.9 375.9 444.7 1.0 2
    Denmark 194.4 287.0 303.0 353.5 0.8 2
    Slovakia 149.1 256.4 301.4 328.8 0.7 1
    Austria 116.4 126.3 120.3 162.7 0.4 2
    Spain 176.7 198.4 189.2 129.2 0.3 2
    Total 37 187.7 41 147.7 42 172.6 44 419.3 100.% 100

    World-class national champions

    Vendor Country Revenues (€M) % of T100
    SAP DE 17 244 38.8
    Dassault Systemes FR 2 079 4.7
    Sage UK 1 540 3.5
    Hexagon SE 1 442 3.2
    Wincor Nixdorf DE 1 367 3.1

R&D and Jobs


Top 5 countries represent 84% of total R&D jobs

Countries Number of R&D employees % of total R&D investment (€M) % of total
Germany 25 654 38.1 2 966.8 42.0
UK 7 520 11.2 915.6 13.0
France 12 374 18.4 1 066.5 15.1
Sweden 4 799 7.1 461.9 6.5
Netherlands 5 534 8.2 700.4 9.9
Poland 4 198 6.2 130.7 1.9
Switzerland 1 052 1.6 155.7 2.2
Norway 1 170 1.7 142.1 2.0
Italy 1 575 2.3 97.8 1.4
Belgium 493 0.7 69.0 1.0
Finland 824 1.2 101.6 1.4
Czech Republic 712 1.1 78.1 1.1
Denmark 638 0.9 76.5 1.1
Slovakia 382 0.6 36.2 0.5
Austria 194 0.3 25.2 0.4
Spain 290 0.4 34.8 0.5
Total 67 407 100.0 7 058.9 100.0



Major M&A transactions



2014

  • Advent International acquired Unit4
  • Autodesk acquired Delcam
  • Automic acquired Orsyp
  • COR&FJA changed name to msg life AG
  • Dassault Systemes acquired Accelrys
  • Dassault Systemes acquired Quintiq
  • Dassault Systemes acquired SimPack
  • Hexagon acquired Devex
  • Hexagon acquired iLab Sistemas
  • Hexagon acquired Mintec
  • Hexagon acquired North West Geomatics
  • Hexagon acquired Vero Software
  • KKR reduced ownership of Visma from 76% to 31.3%, HgCapital increased from 16% to 31.3%, and Cinven acquired 31.3%.
  • Lexmark acquired ReadSoft
  • Misys acquired Custom Credit Systems
  • Misys acquired IND Group
  • Northgate Information Solutions sold off its Public Services division to Cinven
  • Opera Software acquired AdColony
  • Sage acquired PayChoice
  • SAP acquired Concur
  • SAP acquired Fieldglass
  • SAP acquired SeeWhy
  • Schneider Electric acquired Invensys
  • Software AG acquired JackBe
  • Software AG sells off IDS Scheer Consulting to The Scheer Group
  • Sopra Group acquired the COR&FJA Banking Solutions
  • Sopra Group acquired Steria
  • Wincor Nixdorf acquired Datec Retail Systems

2015

  • Apax acquired Exact
  • Asseco Group acquired Exictos SGPS
  • AVG Technologies acquired Norman Safeground
  • Bridgepoint acquired eFront
  • Cegedim sold off CRM solutions to IMS Health
  • Compugroup Medical acquired Medicitalia
  • Dassault Systèmes acquired Modelon
  • GAD merged with Fiducia and changed name to Fiducia & GAD
  • Gemalto acquired Safenet
  • Hexagon acquired Ecosys
  • Hexagon acquired Q-DAS
  • IFS acquired VisionWaves
  • InfoVista acquired Ipanema Technologies
  • Keysight Technologies acquired Anite
  • Lexmark acquired Kofax
  • Microfocus acquired Attachmate
  • Permira acquired TeamViewer from GFI Software
  • Qlik acquired Vizubi and NPrinting
  • Unit4 acquired Three Rivers Systems
  • Visma acquired e-conomic
  • Vista Partner acquired Advanced Computer Software
  • Wincor Nixdorf acquired services business from Brink
  • Wolters Kluwer acquired Effacts Legal Management Software
  • Wolters Kluwer acquired SureTax

European software vendors ranking 2015

Rank Company Country
of HQ
location
Public Software
+Services
2014 (m€)
Total
revenues
2014 (m€)
R&D
employees
2014
1 SAP DE 17 243.9 17 560.0 18908
2 Dassault Systemes FR 2 078.6 2 346.7 5562
3 Sage UK 1 539.5 1 620.5 1169
4 Hexagon SE 1 442.3 2 622.4 3430
5 Wincor Nixdorf DE 1 367.0 2 471.0 750
6 Asseco Group PL 1 193.3 1 487.6 3696
7 Software AG DE 835.6 857.8 968
8 DATEV DE 790.7 843.5 1355
9 Wolters Kluwer NL 740.2 3 660.0 2222
10 Misys UK 639.5 639.5 1100
11 Micro Focus UK 627.9 627.9 897
12 SWIFT BE 596.8 628.0 493
13 Unit4 NL 516.0 516.0 1380
14 Visma NO 464.7 851.7 730
15 Cegedim FR 460.6 911.5 959
16 Sopra Steria FR 445.4 3 370.0 800
17 Qlik SE 418.9 418.9 358
18 Avaloq CH 411.6 411.6 300
19 Swisslog CH 411.4 551.3 146
20 Northgate Information Solutions UK 373.7 826.0 600
21 Fiducia & GAD DE 369.3 458.4 220
22 Compugroup Holding DE 368.8 515.1 1426
23 Murex FR 368.0 368.0 386
24 Temenos CH 352.6 352.6 441
25 Fidessa UK 341.0 341.0 437
26 Gemalto NL 333.9 2 465.0 1105
27 IFS SE 333.4 333.4 333
28 ESET SK 328.8 328.8 382
29 Zucchetti IT 310.3 358.0 900
30 Schneider Electric FR 304.1 1 713.0 565
31 Reply IT 287.0 632.2 390
32 Sophos UK 285.0 285.0 608
33 AVG Technologies CZ 281.5 281.5 482
34 Centric NL 275.2 494.5 146
35 Axway FR 261.6 261.6 650
36 AVEVA Group UK 258.8 258.8 562
37 Cegid FR 243.0 266.6 546
38 Civica UK 242.5 272.8 236
39 SimCorp DK 241.1 241.1 448
40 Kofax (now part of Lexmark) UK 222.0 222.0 413
41 Nemetschek Group DE 218.3 218.5 605
42 Advanced Computer Software UK 217.0 273.4 238
43 Comarch PL 191.5 247.9 502
44 Exact NL 188.1 188.1 454
45 Avast Software CZ 163.3 163.3 230
46 PSI DE 158.1 175.4 264
47 Linedata Services FR 158.0 158.0 408
48 Haufe Group DE 154.5 278.7 260
49 F-Secure Corp. FI 153.8 153.8 134
50 SDL International UK 142.1 322.9 255
51 Prodware FR 139.0 174.4 274
52 RM UK 134.5 248.0 109
53 Teamviewer DE 119.9 119.9 120
54 Opera Software NO 117.3 361.7 300
55 Affecto FI 116.0 122.7 82
56 BasWare FI 115.4 127.7 332
57 Sitecore DK 112.4 112.4 190
58 ESI Group FR 111.0 111.0 317
59 Anite UK 108.9 146.9 205
60 Berger-Levrault FR 107.0 122.8 239
61 Vizrt NO 106.5 106.5 140
62 GFI Informatique FR 106.3 804.0 238
63 Personal & Informatik DE 102.9 105.5 135
64 msg life DE 102.7 104.3 83
65 Avanquest Software FR 101.6 101.6 103
66 Digia FI 97.4 97.4 150
67 ISAGRI FR 95.0 140.0 250
68 Automic AT 92.7 92.7 119
69 Raet NL 91.0 151.6 131
70 Gruppo Engineering IT 89.7 817.3 285
71 Comptel FI 85.7 85.7 126
72 Lumesse UK 81.0 81.0 127
73 AFAS ERP Software NL 79.6 79.6 95
74 Elca CH 79.1 83.8 70
75 SmartFocus UK 78.9 78.9 90
76 Buhl Data Service DE 78.0 78.0 115
77 Panda Security SP 75.2 75.2 200
78 IBS SE 75.2 75.2 200
79 Kewill Systems UK 74.3 74.3 100
80 Efront FR 72.0 72.0 78
81 Seeburger DE 70.0 70.0 120
82 ISIS Papyrus AT 70.0 70.0 75
83 ERI Bancaire CH 65.0 65.0 95
84 Lectra FR 63.4 211.3 260
85 Aditro SE 62.4 124.8 240
86 SSP Holding UK 62.2 88.9 70
87 InfoVista FR 61.0 61.0 118
88 proALPHA DE 60.3 60.3 90
89 Cassiopae FR 55.5 55.5 220
90 Hogia Group SE 54.9 54.9 120
91 Talentia FR 54.3 54.3 81
92 Meta4 SP 54.0 54.0 90
93 IRIS UK 53.6 53.6 180
94 Schleupen DE 53.5 61.5 110
95 Fiducial Informatique FR 49.5 61.9 115
96 Generix Group FR 49.4 49.4 48
97 Talend FR 48.7 48.7 157
98 ENEA SE 47.2 47.2 118
99 intershop Communications DE 46.2 46.2 125
100 Thunderhead UK 41.7 41.7 125