.
- The "Truffle 100 Europe" ranks the region's top software companies in terms of software revenue
- Software industry revenue was up by 2.8% in 2008 (total EU growth rate 1.8%) despite the global recession
- European software industry employment up 9% against an overall EU decline of 0.6%
- Industry profits rose by 14% in 2007 from €2.8bn to €3.2bn; Software AG up by 31% in 2008
- The software industry is proving more recession resistant than "traditional manufacturing"
- The economic downturn is highlighting the importance of industrial diversity to European economies
Software AG, a global leader in business infrastructure software, welcomed the fourth edition of the "Truffle 100 Europe" unveiled on November 3rd, 2009, with the support of Viviane Reding, European Commissioner for the Information Society and Media. The "Truffle 100 Europe" is the leading ranking of the top 100 European software companies and the 2009 issue shows that the software industry increased revenue, profits and employment above the European Union industrial averages in 2008 despite the global recession. While Europe's manufacturers are being hit hard by a drop in export demand, Europe's software vendors are showing some resilience to the current economic climate. Of particular significance was the increase of over 9% in employment within the software industry at a time when overall employment was shrinking. The report shows that a larger software sector in Europe would provide a buffer to economic contraction and provide an earlier return to growth.
"We see the significance of a powerful software industry to a modern economy increasing year by year", commented Bernard-Louis Roques, General Partner, IT, at Truffle Capital. "Revenue, profit and employment all increased in the midst of a difficult economic environment. The software industry is critical to Europe's future and critical to Europe remaining a place where decisions are made and a source of innovation."
The Truffle 100 companies last year collectively raised revenue to €25 billion (€24.5 billion in 2007) and net profits to €3.6 billion (2007: €3.2 billion). Employment in the top-100 companies grew by over 9% to 212,000 and Research & Development headcount increased by 25% to 52,000. This significant increase in Research & Development investment is reflected in that tax breaks for R&D investments was seen as a critical measure in growing the industry by over 75% of vendors.
A major contributor to the economic resilience of the software sector in Europe is the role played by business infrastructure software in enabling companies to counter the recession. Organizations facing contradictory pressure to reduce costs, increase efficiency, implement new industry regulations and effectively deal with industry consolidation are turning to a flexible and agile IT infrastructure to deliver on all fronts.
On publication of the report, EU Commissioner for Information Society & Media, Viviane Reding (Video interview), called for a renewed strategy for ITC research and innovation in Europe as well as support for large scale research projects that develop modern pan-European ICTbased service infrastructure.
"It is fundamental to our future prosperity that the software industry is seen as strategic at a national and indeed European level", said Karl-Heinz Streibich, Chief Executive Officer, Software AG. Looking internationally, Mr. Streibich added "I have continuously said that Germany, as Europe's largest economy and representing nearly 50% of Europe's software industry must contribute a leading role in further developing Europe's hightech industries. I will be driving this issue at Germany's fourth national IT Summit to be held in December in Stuttgart and welcome EU Commissioner Viviane Reding's efforts at a European level."
- The "Truffle 100 Europe" ranks the region's top software companies in terms of software revenue
- Software industry revenue was up by 2.8% in 2008 (total EU growth rate 1.8%) despite the global recession
- European software industry employment up 9% against an overall EU decline of 0.6%
- Industry profits rose by 14% in 2007 from €2.8bn to €3.2bn; Software AG up by 31% in 2008
- The software industry is proving more recession resistant than "traditional manufacturing"
- The economic downturn is highlighting the importance of industrial diversity to European economies
Software AG, a global leader in business infrastructure software, welcomed the fourth edition of the "Truffle 100 Europe" unveiled on November 3rd, 2009, with the support of Viviane Reding, European Commissioner for the Information Society and Media. The "Truffle 100 Europe" is the leading ranking of the top 100 European software companies and the 2009 issue shows that the software industry increased revenue, profits and employment above the European Union industrial averages in 2008 despite the global recession. While Europe's manufacturers are being hit hard by a drop in export demand, Europe's software vendors are showing some resilience to the current economic climate. Of particular significance was the increase of over 9% in employment within the software industry at a time when overall employment was shrinking. The report shows that a larger software sector in Europe would provide a buffer to economic contraction and provide an earlier return to growth.
"We see the significance of a powerful software industry to a modern economy increasing year by year", commented Bernard-Louis Roques, General Partner, IT, at Truffle Capital. "Revenue, profit and employment all increased in the midst of a difficult economic environment. The software industry is critical to Europe's future and critical to Europe remaining a place where decisions are made and a source of innovation."
The Truffle 100 companies last year collectively raised revenue to €25 billion (€24.5 billion in 2007) and net profits to €3.6 billion (2007: €3.2 billion). Employment in the top-100 companies grew by over 9% to 212,000 and Research & Development headcount increased by 25% to 52,000. This significant increase in Research & Development investment is reflected in that tax breaks for R&D investments was seen as a critical measure in growing the industry by over 75% of vendors.
A major contributor to the economic resilience of the software sector in Europe is the role played by business infrastructure software in enabling companies to counter the recession. Organizations facing contradictory pressure to reduce costs, increase efficiency, implement new industry regulations and effectively deal with industry consolidation are turning to a flexible and agile IT infrastructure to deliver on all fronts.
On publication of the report, EU Commissioner for Information Society & Media, Viviane Reding (Video interview), called for a renewed strategy for ITC research and innovation in Europe as well as support for large scale research projects that develop modern pan-European ICTbased service infrastructure.
"It is fundamental to our future prosperity that the software industry is seen as strategic at a national and indeed European level", said Karl-Heinz Streibich, Chief Executive Officer, Software AG. Looking internationally, Mr. Streibich added "I have continuously said that Germany, as Europe's largest economy and representing nearly 50% of Europe's software industry must contribute a leading role in further developing Europe's hightech industries. I will be driving this issue at Germany's fourth national IT Summit to be held in December in Stuttgart and welcome EU Commissioner Viviane Reding's efforts at a European level."
