EditorialsDownload the Truffle 100 (PDF)
In these difficult economic times, and in the face of very difficult social challenges, it is critical that we acknowledge the role of ICT innovation in addressing our problems.
We see great software ideas and products coming from European sources, but we don't see enough of them developing into high growth companies. There is a lot of money, but we don't always use it in smart ways to support innovators. We have 500 million consumers, but still are not able to service them in one digital market.
The Digital Agenda for Europe aims to create a better environment for ICT development and investments, by supporting roll out of high speed broadband, strengthening the digital internal market, investing in ICT R&D and innovation, supporting more open standards and interoperability, and strengthening online trust and security. But this action plan will also attempt to develop the public markets where ICT plays an essential role in dealing with the policy challenges of our time, like energy efficiency, affordable quality health care, smart mobility and so on. All of these create opportunities for the development of new software applications, services and businesses.
To achieve these objectives we need to work in partnership with all relevant stakeholders. The private sector plays a pivotal role as the provider of the infrastructure, the services, the software, the capital and most importantly the many of the new ideas. But the Digital Agenda also depends critically on the EU Member States' governments, regional and municipal authorities, health care providers, educators, and others to embrace a new mind set, and acknowledge that ICT and especially the Internet will fundamentally change the way we work and live.
Together, by investments in research and innovation, investments in new software products and by creating enabling environments for deploying, we can make the economic transformations required of us in the coming years. The transformation from dumb grids to smart grids, from high carbon to a low carbon economy, to a sustainable healthcare system, to investing in industries that create the most high-paying jobs.
In part we will be relying on the entrepreneurship of the Truffle 100 and the future members of the Truffle 100. I will do my share and am determined to do everything in my power to give you fertile ground to plough.Neelie Kroes
EU Commissioner for Information Society & Media
This latest edition of the Truffle 100 highlights the dynamism of the European software industry in a tough economic climate. Dynamism in terms of creating high value employment and dynamism in maintaining high levels of investment in research and development. This performance underscores the contribution the software industry can make to building a stronger Europe. To fully capitalize on this potential, the European Union must develop an innovative software industry policy as part of overall economic strategy.
The European software industry can make further contributions to the development of Europe. Software today drives innovation across all industries: from smart grid technologies through lean-carbon logistics to eHealth initiatives. Software today drives sustainable economic development through increased productivity and efficiency gains. This presents a huge opportunity for Europe to play a leading role in developing software solutions that address the major environmental, economic and knowledge-based employment issues of our times.
In grasping this opportunity the software industry itself must take the lead.
To this effect, Software AG, alongside SAP AG and IDS Scheer AG, has been instrumental in establishing the Rhein-Main-Neckar region in south-west Germany as a cluster of business software excellence. One concrete result is that the German Federal Government, together with the companies in the region, will invest ??80 million in developing the next generation of business process technologies.
But as an industry we do not operate in isolation. We call on the European Union to focus on the development of the software industry as central to its “Digital Agenda 2015”. To establish eSkills as central to the education system from the earliest level onwards, to foster the collaboration of industry and thirdlevel educational institutes and to implement tax policies to promote research and development.
These would be major steps in establishing Europe as the centre of the knowledge-based society, of securing higher levels of employment and in strengthening European industry to the benefit of all.Karl-Heinz Streibich
CEO, Software AG
This 5th edition of the Truffle 100 emphasizes the impressive dynamism and exceptional resilience of the European software industry. In a challenging environment, software vendors have demonstrated their ability to bounce back quickly (with 8,4% year-on-year growth) and remain profitable (€3.7 billion), while maintaining a heavy level of investment in R&D (€3.8 billion).
With over 54,000 highly qualified R&D jobs, software vendors constitute a strategic industry that is absolutely critical for employment & GDP growth in Europe.
With cloud computing and "software as a service" bound to radically transform the industry in the coming years, Europe's software vendors are on the verge of a major paradigm shift and deserve a lot more attention.
European governments must accentuate supporting measures so that more money is poured into R&D and thousands of added-value jobs are created.
The Truffle 100 reveals that software vendors are clamouring for the implementation of R&D tax incentives (with the effect of leveraging investment in R&D), a European Small Business Act (whereby a fraction of public procurement is systematically allocated to small businesses) and publicly-funded R&D programmes with facilitated access and simplified procedures for SMEs.
I am convinced that Europe's industrial future, economic growth and technological independence rely on its ability to develop a sustainable, perennial software industry.
I wish to thank IDC, CXP and the national trade associations for their commitment to and support for the Truffle 100.
With increasing awareness and a growing, targeted audience of over 30,000 unique visitors per month, the Truffle 100 ranks and analyzes the top 100 software vendors in Europe and sheds valuable light on the industry's status.
The research is freely available on www.truffle100.com.Bernard-Louis Roques
General Partner & co-Founder, Truffle Capital