Darmstadt, Germany and Brussels, Belgium, 9/28/2010
Software AG welcomed the fifth edition of the "Truffle 100 Europe" unveiled on September 28th, 2010, with the support of Neelie Kroes, European Commissioner for the European Commissioner for the Digital Agenda. The “Truffle 100 Europe” is the leading ranking of the top 100 European software companies. The 2010 issue shows that the software industry dynamically increased investment in research, employment, and revenue above the European Union industrial averages in 2009 despite the global recession. The industry maintained profit levels in 2009. Of particular significance was the increase of over 4% in investments and employment in research 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.
“This phenomenal performance in a difficult market highlights the positive effect a fully developed software industry would have on Europe’s economy”, said Software AG CEO, Karl-Heinz Streibich. “An increase in research investment and high value employment of over 4% dramatically shows where Europe’s future growth will come from. It is ever more pressing that the European Union focuses on the development of the software industry as central to its Digital Agenda 2015. I will be driving this issue at Germany’s fifth national IT Summit to be held in December and welcome EU Commissioner Neelie Kroes’ efforts at a European level.”
The Truffle 100 companies last year collectively raised revenue to €27.1 billion (€25 billion in 2008) and net profits to €3.7 billion (2008: €3.6 billion). Research & development employment in the top-100 companies grew by over 4% to 54,180. This significant increase in Research & Development investment is reflected in that tax breaks for R&D investments was seen as primary measure in growing the industry by vendors.
“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. European governments must accentuate supporting measures so that more money is poured into R&D and thousands of added-value jobs are created”, commented Bernard-Louis Roques, General Partner, IT, at Truffle Capital.
A major contributor to the economic resilience of the software sector in Europe is the role played by business software where Europe has 36% of global market share. 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. The potential of the region has been recognized as the German Federal Government, together with the companies in the region, will invest €80 million in developing the next generation of business process technologies.
On publication of the report, EU Commissioner for the Digital Agenda, Neelie Kroes, called for a strengthened partnership between the private sector, EU Member State governments, regional political institutions and education. The partnership is to focus on developing the markets where ICT plays an essential role in dealing with the policy challenges of our times.
About Software AG
Software AG is the global leader in Business Process Excellence. Our 40 years of innovation include the invention of the first high-performance transactional database, Adabas; the first business process analysis platform, ARIS; and the first B2B server and SOA-based integration platform, webMethods.
We are unique in offering the world’s only end-to-end – and easiest to use – business process management (BPM) solutions, with the lowest Total-Cost-of-Ownership. Our industry-leading brands, ARIS, webMethods, Adabas, Natural and IDS Scheer Consulting, represent a unique portfolio for: process strategy, design, integration and control; SOA-based integration and data management; process-driven SAP implementation; and strategic process consulting and services.
Software AG had revenues of 847 million euro (IFRS, unaudited) in 2009 and has more than 6,000 employees serving 10,000 enterprise and public institution customers across 70 countries. Our comprehensive software and services solutions allow companies to continuously achieve their business results faster. The company is headquartered in Germany and listed on the Frankfurt Stock Exchange (TecDAX, ISIN DE 0003304002 / SOW).
About IDS Scheer
IDS Scheer is part of the Software AG Group and a leading provider of Business Process Management (BPM) software, solutions and services for corporations and public organizations worldwide. With the ARIS Platform for Process Excellence, the company offers an integrated, comprehensive solution portfolio for the strategy, design, implementation and controlling of business processes, allowing companies to continuously improve their overall business performance. Utilizing the ARIS Value Engineering (AVE) approach, IDS Scheer consultants bridge the gap between corporate strategy, business processes, IT solutions and process controlling.
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