EditorialsDownload the Truffle 100 (PDF)
The Truffle 100 Europe 2009 emphasizes again the dynamism of the software sector in Europe, that remains a uniquely strong driver for creating highly qualified jobs and R&D investments are continuing to rise!
The achievement of a single market for ICT innovations is essential to improve the attractiveness of European SMEs to investors. The growth capacity of companies depends on their potential market size. The EU ICT market is the largest world-wide but is highly fragmented. We support the achievement of a single market through a renewed strategy for ICT research and innovation in Europe, whose objective is to enable Europe to lead ICT progress and to make the best use of ICT innovations. We are also committed to supporting large scale research projects that develop modern pan-European ICT-based service infrastructures and address key societal challenges.
Europe is behind our main competitors in R&D spending To step up investments, actions are needed both on the public and the private side: on our side, annual commitments to ICT R&D under FP7 will increase from ? 1.1 billion in 2010 to ? 1.7 billion in 2013 and we have also established Joint Technology Initiatives under FP7 to speed up innovation.
The European Small Business Act, which was approved by the European Council in December 2008, is an overall strategy to promote entrepreneurship and the Commission invites Member States to pursue their efforts to facilitate SMEs' access to public procurement markets. However, a key factor for the growth of innovative SMEs in ICT is the existence of a single EU-wide market for innovative ICTbased products and services.
We are glad to welcome the 2009 Truffle 100 Europe index as a very valuable tool to measure and analyze the software industry, which remains at the heart of our concerns in Europe!.Viviane Reding
EU Commissioner for Information Society & Media
In turbulent economic times,we know that investing in innovation remains critical. It is clear that information technology will play a crucial role in driving and supporting a worldwide economic recovery. Proving this belief, Microsoft invests more than $600 million annually in R&D in EU countries.
According to a recent study we sponsored, the software industry will add 668,000 jobs in 2009, an increase of 3.8 percent over 2008. In contrast, global GDP is projected to contract by 1.4 percent in 2009, according to the IMF. By 2013, the software industry will have created 2.2 million new jobs, with 2 million of them expected to be outside of the United States.
This year, I am honored to be one of the EU Ambassadors for the European Year of Creativity and Innovation. As an Ambassador, I’ve had the opportunity to participate in numerous discussions about how we Europeans can foster the skills critical for innovation and growth here at home. As a result, the things I believe to be most critical to a sustainable recovery are investing in education, increasing R&D, and supporting entrepreneurs.
It was an entrepreneurial spirit that initially fueled each of the companies in the Truffle 100. It is critical that we foster this type of entrepreneurship and innovation in our local software economies and encourage our young people to take the necessary risks to drive tomorrow’s big advances. One example is Microsoft’s BizSpark program, through which we encourage technology startups in Europe and around the world to drive breakthrough innovation in areas like cloud computing, by providing them with free access to our software platforms and tools, as well as help with their business strategy.
The opportunities that will be created through technology are limitless. There will surely be incredible advances in the coming years in critical areas such as e-health, energy research, and digital education. I look forward with great anticipation to the amazing things our industry has in store.Jean-Philippe Courtois
President, Microsoft International
Senior Vice President, Microsoft Corporation
Europe is confronted with unprecedented challenges, as highlighted in this new edition of the Truffle 100. Not only will we have to overcome the most severe crisis in decades, but at the same time Europe needs to take firm actions to address longer term issues such as fostering innovation and competitiveness, coping with demographic change and the transformation into a low-carbon economy. In essence, the task is to ensure sustainable growth with a shrinking workforce in a highly competitive global economy.
The European software industry can make a major contribution to the future of Europe. In fact, the political challenges will provide tremendous business opportunities for all European software vendors. Investments in modern software is essential for the structural adjustments that companies need to make to survive the crisis and to prepare for future growth, enhance transparency and better manage risks. I firmly believe it is a pre-condition to prevent the next crisis in an increasingly complex global economy.
IT will be a driver towards a low-carbon economy. Europe is at the forefront of the debate on climate change. European software vendors should lead the way into developing IT solutions facilitating a more sustainable economy. SAP is committed to help its customers become more transparent, accountable, and sustainable.
The European software industry is in the pole position to leverage this multitude of opportunities. Technology today and in the future is the basis for sustainable growth in every industry.
However, the European software industry needs a favorable regulatory framework in Europe.In particular, European policy makers must cultivate skills and entrepreneurship to establish a truly leading-edge market for IT. We encourage the European Union to support large-scale, pan-European R&D projects in future growth areas, such as smart mobility and energy efficiency, where IT makes a difference.
I am pleased that a strong foundation is already in place with the announcement from the President of the European Commission, José Manuel Barroso, that a “Digital Agenda” will become one of his core political objectives for the new European Commission until 2015. SAP is fully committed to support European policy makers in developing the European software industry so that it contributes to a thriving Europe, a Europe that will successfully manage its challenges and become the best place to work, to invest, and to live.Léo Apotheker
We are pleased to present the 4th edition of the Truffle 100, the leading ranking of the top 100 software vendors in Europe. Despite harsh, we remain in the midst of a difficult economic environment, and despite a revived acquisition appetite of the US vendors, the Truffle 100 vendors once again demonstrate their resilience and optimism. As they keep growing, be it moderately, can count on them to remain a strategic and dynamic engine of value growth and job creation for European economies.
Relentless innovators, the European vendors are strong investors in R&D (14.4% of their revenues last year!), and have created over 11 000 R&D jobs year on year.
They are perennial and well managed too, with improved profitability.
However the industry faces major challenges:
- global consolidation,
- new business models such as Software as a Service that require massive investments over the coming years.
SMEs represent the vast majority of the Truffle 100, with the smaller companies growing faster.
They represent an industry that is critical to our future.
For Europe to remain a place where decisions are made and innovations originated, we must create a favorable framework and implement measures such as R&D tax breaks (which 76% of vendors think are critical), Publicly financed R&D programs, or a European Small Business Act.
The Truffle 100 is not only research made freely available to the public so as to increase the general knowledge on European software vendors, it is also intended to serve the industry & contribute to its sustainable development.Bernard-Louis Roques
General Partner & co-Founder, Truffle Capital