The Top 100 European Software vendors

The European software industry ranking.

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2014


Editorials

    Bernard-Louis Roques

    Bernard Louis Roques

    It has finally happened: the 9th edition of the Truffle 100 has a graph where the lines representing profits (6.3bn€) and research & development (6.9bn€) have crossed!

    The software industry is currently going through a phase where investments are higher than revenues. Can this situation last? Companies are not governments. How long can they live with deficits, at a time when growth rates are decreasing drastically (+2% last year), and the industry is going through dramatic changes and paradigm shifts?

    In the software business, there is no other choice than to invest in the future, particularly now at the eve of the ineluctable transition towards Saas and mobile. Software vendors are by nature resolute optimists always committed to building the product of the future, determined to bring productivity and efficiency to the economy, and open new possibilities and experiences to consumers.

    It is the first time since 2006, when the Truffle 100 was first published, that European Software vendors are in such a high-risk situation: while they need more resources than they generate through their activity, their access to capital markets has significantly reduced. European stock markets have indeed shown a lack of appetite for technology companies in comparison with their US counterparts, and are not fueling the industry as they used to (only 55 quoted companies today compared to 85 in 2007).

    More than ever, with rising global competition, radical paradigm shifts in business models & technology (Saas & mobile), and price pressures, the European Software Industry deserves attention. Their call for the implementation of measures such as the Small Business Act (which has a positive budget impact and costs nothing to the governments), R&D tax breaks, or incentives for Venture Capital should not remain unheard..

    Bernard-Louis Roques
    General Partner & co-Founder, Truffle Capital

    Bo Lykkegaard

    Bo Lykkegaard

    The European software industry is currently undergoing a massive transition. Consumer driven trends, such as smart phones and tablets, social networks, predictive analytics, and cloud computing, are affecting every corner of packaged software. The consumer trends have significantly raised the expectations of business software users. These business users are consumers in their private life, searching on Google, connecting on Facebook, and purchasing on Amazon. They are not willing to accept old-fashioned, transactional, menu-driven, PC-based applications, which do not work on mobile devices or via the web. Those ISVs that are slow to adapt to the new consumer trends are experiencing declining revenues and falling profit margins, while innovators are reaping gains in market share and scale. In short, the European software vendors are under considerable pressure. .

    The technology-driven transition has many opportunities as well. The new developments will expand the overall software market size rather than collapse it and new market opportunities are emerging. The opportunities include new markets such as digital marketing applications, enterprise social networks, and file-sharing software. Other opportunities emerge from adoption of cloud software by segments that traditional software vendors found it hard to sell to, such as micro enterprises. We have seen European cloud natives enjoy very high growth rates. Traditional vendors that have launched new, cloud-based solutions have been able to create new pockets of high growth.

    For the European region, the technology transition requires the formation of new IT skills related to cloud and consumerrelated technologies. It also requires better mobile and fixed-line broadband infrastructure to fuel the adoption of the new mobile and cloud-based software models. Such investments will be key contributors for European ISVs to exploit new wave of innovation in enterprise software on the back of the consumer IT revolution.

    Bo Lykkegaard
    Research Director, European Enterprise Applications, IDC

    Laurent Calot

    Laurent Calot

    Companies of the future will be able to develop their strategies based in an entirely digital domain. With this in mind, our customers have initiated their transformation process. Their information systems will be re-focused on data: an organisation's value, positioning within worldwide economy and business orientation will thus be solely built on its informational assets. To this end, information systems must be supported by software solutions that integrate new digital technologies. These technologies come in the form of Software as a Service (SaaS), mobile applications, digitisation, analytics and Big Data, social affairs and collective intelligence and the Internet of Things for instance, not forgetting the entire system's cornerstone: the Cloud.

    With a view to facing this extraordinary challenge, the software industry is learning to adapt. The European Truffle listing is proof of this: barriers are gradually being broken down between developers, integrators and IT service providers. Traditional major software industry stakeholders are having to face new-born competition, positioned within the cloud's many possible by-products and connected offering and mobile services that enhance an increasingly "hybrid" information system, thus unveiling promising perspectives

    The world of software and digital technologies is, now, more than ever before, upending companies' usual points of reference, ways of working, producing and marketing, and their relations with employees, customers and the market as a whole. It is now safe to say we have entered the digital age

    Laurent Calot
    CEO, CXP Group





Figures


  • Revenues

    Total revenues for the Truffle 100 are 57.4 €B

    More concentration, 75% of revenues come from Top 25(76 % last year)


    % Revenues 2010 2011 2012 2013

    SAP

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




  • Profits



      Profits  
    2008 2009 2010 2011 2012 2013 % of revenues T 100
    SAP 51% 46% 31% 52% 48% 52% 39%
    TOP 3 62% 58% 40% 60% 58% 59% 47%
    TOP 5 67% 66% 44% 66% 65% 67% 53%
    TOP 10 67% 66% 52% 79% 79% 79% 63%
    TOP 50 92% 91% 84% 96% 95% 97% 90%

    The bigger, the more profitable

    Profitability 2010 % of revenues 2011 2012 2013 Profits €M 2013
    TOP 3 15.2% 22.9% 17.0% 18.5% 3788
    TOP 25 12.0% 12.9% 5550
    TOP 50 12.2% 13.5% 10.8% 12.1% 6216
    BOTTOM 50 10.6% 5.2% 4.6% 2.6% 161
    BOTTOM 25 13.4% 6.9% 6.8% 7.9% 142

    Profit rate


    Publicly traded


  • Breakdown by country

    Top 5 countries in Europe represent 86.4% of software revenues


    Country 2011 2012 SW revenues (€M) 2013 % of total # SW companies
    Germany 18 145.7 20 328.6 21 046.4 49.9% 15
    UK 5 497.3 5 994.6 5 406.8 12.8% 20
    France 4 040.9 4 348.9 5 028.5 11.9% 21
    Sweden 2 163.5 2 326.5 2 392.0 5.7% 9
    Netherlands 2 187.9 2 236.2 2 103.7 5.0% 6
    Poland 1 005.5 1 152.4 1 229.1 2.9% 2
    Switzerland 1 110.8 1 208.2 1 174.6 2.8% 5
    Finland 618.1 625.0 656.6 1.6% 6
    Norway 486.2 544.8 639.2 1.5% 3
    Italy 516.5 557.3 625.8 1.5% 3
    Belgium 530.1 594.9 580.2 1.4% 1
    Czech Republic 248.5 361.9 375.9 0.9% 2
    Denmark 194.4 287.0 303.0 0.7% 2
    Slovakia 149.1 256.4 301.4 0.7% 1
    Spain 176.7 198.4 189.2 0.4% 2
    Austria 116.4 126.3 120.3 0.3% 2
    TOTAL 37 187.7 41 147.7 42 172.6 100.0% 100

    World-class national champions

    Vendor Country Revenues (€M) % of Truffle 100
    SAP DE 16 512 39.2%
    Dassault Systemes FR 1 888 4.5%
    Sage UK 1 523 3.6%
    Hexagon SE 1 310 3.1%
    ASSECO GROUP PL 1 063 2.5%
    SWIFT BE 580 1.4%
    VISMA NO 485 1.2%
  • Sustainable growth

    Total revenues for the Truffle 100 are 57.4 €B

     

    More concentration, 75% of revenues come from Top 25(76 % last year)

    % Revenues 2010 2011 2012 2013

    SAP

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




    Profitability under pressure



      Profits  
    2008 2009 2010 2011 2012 2013 % of revenues T 100
    SAP 51% 46% 31% 52% 48% 52% 39%
    TOP 3 62% 58% 40% 60% 58% 59% 47%
    TOP 5 67% 66% 44% 66% 65% 67% 53%
    TOP 10 67% 66% 52% 79% 79% 79% 63%
    TOP 50 92% 91% 84% 96% 95% 97% 90%

    The bigger, the more profitable
    Profitability 2010 % of revenues 2011 2012 2013 Profits €M 2013
    TOP 3 15.2% 22.9% 17.0% 18.5% 3788
    TOP 25 12.0% 12.9% 5550
    TOP 50 12.2% 13.5% 10.8% 12.1% 6216
    BOTTOM 50 10.6% 5.2% 4.6% 2.6% 161
    BOTTOM 25 13.4% 6.9% 6.8% 7.9% 142

    Profit rate


    Publicly traded


    Capital markets loose attractiveness
    # Software Revenues (€M) % of Truffle 100 R&D Spend (€M) % of Truffle 100 €M) Profits (€M) % of Truffle 100
    Publicly traded 56 34 008.1 80.6% 5 271.7 76.3% 6 055.9 95.0%
    Private 44 8 164.5 19.4% 1 635.2 23.7% 320.8 5.0%
    Total 100 42 172.6 100% 6 906.9 100% 6 376.7 100%

    Top 5 countries in Europe represent 86.4% of software revenues



    Country 2011 2012 SW revenues (€M) 2013 % of total # SW companies
    Germany 18 145.7 20 328.6 21 046.4 49.9% 15
    UK 5 497.3 5 994.6 5 406.8 12.8% 20
    France 4 040.9 4 348.9 5 028.5 11.9% 21
    Sweden 2 163.5 2 326.5 2 392.0 5.7% 9
    Netherlands 2 187.9 2 236.2 2 103.7 5.0% 6
    Poland 1 005.5 1 152.4 1 229.1 2.9% 2
    Switzerland 1 110.8 1 208.2 1 174.6 2.8% 5
    Finland 618.1 625.0 656.6 1.6% 6
    Norway 486.2 544.8 639.2 1.5% 3
    Italy 516.5 557.3 625.8 1.5% 3
    Belgium 530.1 594.9 580.2 1.4% 1
    Czech Republic 248.5 361.9 375.9 0.9% 2
    Denmark 194.4 287.0 303.0 0.7% 2
    Slovakia 149.1 256.4 301.4 0.7% 1
    Spain 176.7 198.4 189.2 0.4% 2
    Austria 116.4 126.3 120.3 0.3% 2
    TOTAL 37 187.7 41 147.7 42 172.6 100.0% 100

    World-class national champions
    Vendor Country Revenues (€M) % of Truffle 100
    SAP DE 16 512 39.2%
    Dassault Systemes FR 1 888 4.5%
    Sage UK 1 523 3.6%
    Hexagon SE 1 310 3.1%
    ASSECO GROUP PL 1 063 2.5%
    SWIFT BE 580 1.4%
    VISMA NO 485 1.2%

    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 23 085 37.7% 2 889.0 41.80%
    France 11 409 17.8% 1 088.8 15.8%
    UK 6 887 10.8% 859.3 12.4%
    Netherlands 5 584 8.7% 702 10.2%
    Sweden 4 849 7.6% 457.5 6.6%
    Switzerland 1 027 1.6% 148.5 2.2%
    Poland 3 905 6.1% 122.9 1.8%
    Norway 797 1.2% 111.5 1.6%
    Finland 1 157 1.8% 107.3 1.6%
    Italy 1 677 2.6% 96.8 1.4%
    Czech Republic 667 1.0% 92.9 1.3%
    Denmark 638 1.0% 74.7 1.1%
    Belgium 485 0.8% 67.9 1.0%
    Spain 298 0.5% 34.8 0.5%
    Slovakia 350 0.5% 33.2 0.5%
    Austria 142 0.2% 19.6 0.3%
    Total 63 957 100.% 6 906.9 100.%



    Major M&A transaction


    M&A highlight

    2013

    • Adobe acquired Neolane
    • Advanced Computer Software Group acquired Computer Software Holdings
    • Constellation Software acquired Total Specific Solutions
    • IRIS Software acquired Kashflow
    • Kewill acquired Four Soft
    • Lefebvre Software acquired Cezanne Software
    • Lefebvre Software changed name to Talentia
    • OMERS Private Equity acquired Civica
    • Opentext acquired Cordys
    • R12 Kapital acquired Aditro from Nordic Capital Fund
    • Sage divested Act! And SalesLogix
    • SAP acquired Hybris
    • SAP acquired KXEN
    • Sopra acquired HR Access
    • Symphony acquired Aldata Solution and merged it with EYC

    2014

    • Autodesk acquired Delcam
    • Advent International acquired Unit4
    • 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
    • Misys acquired Custom Credit Systems
    • Misys acquired IND Group
    • Lexmark acquired ReadSoft
    • 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
    • Wincor Nixdorf acquired Datec Retail Systems

    Reasonable optimism






    European software vendors ranking 2014

    Rank Company Country
    of HQ
    location
    Public Software
    +Services
    2013 (m€)
    Total
    revenues
    2013 (m€)
    R&D
    employees
    2013
    1 SAP DE 16 512.3   16 815.0   17804  
    2 DASSAULT SYSTEMES FR 1 887.5   2 072.8   5000  
    3 SAGE UK 1 522.6   1 602.8   1178  
    4 HEXAGON SE 1 309.6   2 429.7   3204  
    5 WINCOR NIXDORF DE 1 257.3   2 463.8   726  
    6 ASSECO GROUP PL 1 063.0   1 400.6   3417  
    7 SOFTWARE AG DE 856.5   972.7   998  
    8 DATEV DE 752.8   803.0   1320  
    9 WOLTERS KLUWER NL 720.9   3 565.0   2292  
    10 SWIFT BE 580.2   618.0   485  
    11 UNIT4 NL 490.5   490.5   1383  
    12 VISMA NO 484.6   826.7   637  
    13 CEGEDIM FR 448.8   902.3   959  
    14 MISYS UK 442.6   442.6   1 100  
    15 SWISSLOG CH 383.7   514.1   110  
    16 NIS UK 383.3   804.9   608  
    17 ACISION UK 359.8   359.8   250  
    18 GAD DE 359.6   441.2   220  
    19 MUREX FR 359.0   359.0   350  
    20 SOPRA GROUP FR 355.7   1 349.0   800  
    21 QLIK SE 354.3   354.3   275  
    22 TEMENOS CH 352.3   352.3   503  
    23 COMPUGROUP HOLDING DE 338.7   396.6   1301  
    24 FIDESSA UK 328.7   328.7   334  
    25 GEMALTO NL 323.6   2 388.6   1192  
    26 MICRO FOCUS UK 322.5   322.5   320  
    27 IFS SE 316.8   316.8   450  
    28 AVG TECHNOLOGIES CZ 306.6   306.6   482  
    29 INVENSYS FR 302.1   1 702.0   564  
    30 AVALOQ CH 301.5   301.5   250  
    31 ESET SK 301.4   301.4   350  
    32 SOPHOS UK 294.2   294.2   550  
    33 CENTRIC NL 284.6   511.3   148  
    34 AVENA GROUP UK 274.5   274.5   481  
    35 ZUCCHETTI IT 273.0   315.0   1 000  
    36 REPLY IT 265.0   560.2   390  
    37 AXWAY FR 237.5   237.5   540  
    38 CEGID FR 233.6   259.9   551  
    39 SIMCORP DK 225.1   225.1   448  
    40 Civica UK 218.8   251.1   208  
    41 EXACT NL 213.2   213.2   483  
    42 KOFAX UK 209.2   209.2   226  
    43 NEMETSCHEK DE 185.8   185.9   575  
    44 ACS UK 177.1   223.2   550  
    45 COMARCH PL 166.1   223.0   488  
    46 LINEDATA SERVICES FR 160.3   160.3   373  
    47 F-SECURE CORP. FI 155.1   155.1   147  
    48 PSI DE 154.1   176.3   165  
    49 IRIS SOFTWARE UK 149.6   149.6   180  
    50 RM UK 142.6   300.7   105  
    51 PRODWARE FR 142.0   176.5   268  
    52 SDL INTERNATIONAL UK 137.9   313.5   209  
    53 PANDA SECURITY SP 135.2   135.2   200  
    54 MSG LIFE DE 127.1   131.3   96  
    55 HAUFE GROUP DE 134.5   251.0   260  
    56 AFFECTO FI 123.6   132.9   25  
    57 BASWARE FI 112.8   123.3   370  
    58 ESI GROUP FR 109.3   109.3   291  
    59 AVANQUEST SOFTWARE FR 100.2   100.2   100  
    60 ADITRO SE 100.0   158.0   240  
    61 DIGIA FI 99.7   99.7   150  
    62 ANITE UK 98.6   133.2   175  
    63 VIZRT NO 92.2   92.2   102  
    64 PERSONAL & INFORMATIK DE 92.0   93.3   135  
    65 BERGER-LEVRAULT FR 91.2   107.9   233  
    66 ISAGRI FR 91.0   138.0   275  
    67 GRUPPO ENGINEERING IT 87.8   800.1   287  
    68 SEEBURGER DE 86.0   86.0   120  
    69 READSOFT SE 85.2   88.0   116  
    70 LUMESSE FI 82.7   82.7   233  
    71 COMPTEL FI 82.7   82.7   233  
    72 GFI INFORMATIQUE FR 82.0   742.7   193  
    73 TALEND FR 82.0   82.0   150  
    74 THUNDERHEAD UK 81.3   81.3   50  
    75 IBS SE 79.8   79.8   200  
    76 BUHL DATA SERVICE DE 78.0   78.0   115  
    77 SITECORE DK 77.8   77.8   190  
    78 SMARTFOCUS UK 76.6   76.6   90  
    79 KEWILL SYSTEMS UK 75.4   75.4   135  
    80 ELCA CH 72.1   78.9   69  
    81 AFAS ERP SOFTWARE NL 71.0   71.0   86  
    82 AVAST SOFTWARE CZ 69.3   69.3   185  
    83 ISIS PAPYRUS AT 66.1   66.1   72  
    84 ERI BANCAIRE CH 65.0   65.0   95  
    85 EFRONT FR 64.0   64.0   68  
    86 GENERIX GROUP FR 63.4   63.4   67  
    87 OPERA SOFTWARE NO 62.4   127.9   58  
    88 SSP HOLDING UK 58.5   83.6   70  
    89 PROALPHA DE 58.2   58.2   90  
    90 INFOVISTA FR 57.9   57.9   91  
    91 AUTOMIC AT 54.2   54.2   70  
    92 META4 SP 54.0   54.0   98  
    93 TALENTIA FR 53.7   53.7   90  
    94 CASSIOPAE FR 53.7   53.7   195  
    95 LECTRA FR 53.6   203.0   250  
    96 IC DE 53.6   53.6   161  
    97 SMARTSTREAM UK 53.0   66.3   70  
    98 HOGIA GROUP SE 50.9   50.9   120  
    99 ORC SOFTWARE SE 48.3   48.3   106  
    100 ENEA SE 47.2   47.2   138  

    (*) R&D headcount 2012 estimated
    Software revenues: software revenues + related services