PARTNERS

KEY MARKET FIGURES

Share of the worldwide software market (%)

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European software vendors in the top 20 worldwide

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Within the Top 20, the 15 US Software vendors account for more than 37% of the worldwide market


Growth in software and IT spending in Europe (%)

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Concentration of the European Software Market (%)

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European market share, in the top 200, by software vendors’ origin (%)

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A market dominated by Americans…

Number of software vendors in Top 200 European market

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Comparison of Top 3 US vs Top 3 Europe
Volume of Acquisition (total deal amount) over the 2003-2008 period

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  • US Software vendors make up three quarters of the top 20 and nearly half of the top 100
  • Total deals of the US top 3 vendors represent nearly six times the top of Europe top 3

…and a conquering European industry

  • The european market is dominated by American and local vendors
  • There is a clear national champion in each of the three biggest markets: SAP in Germany, Sage in the UK and Dassault Systèmes in France
  • Medium-sized software suppliers have also entered the race to reach critical size

Top 10 application software vendors’ revenue in Europe

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In the application domain, local specifi cities (regulations, industries) tend to reinforce market concentration: Unit 4 Agresso/Coda, CEGID (VCS Timeless and Civitas).
They also have allowed for the emergence of a solid application software industry with global, mid-sized and niche players.

Top 10 Infrastructure software vendors’ revenue in Europe

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  • Europeans are not represented in the top 10 infrastructure software vendors

European vendors recognised in development tools and BPM / SOA have acquired American players : Software AG / Webmethods or Axway / Tumbleweed.

Certain smaller European vendors have experienced dramatic growth:

  • Enterprise search: Sinequa (FR), Exalead (FR)
  • Mobility: Netviewer (DE), BIS (UK)
  • Business Intelligence: Qlik Tech (SE)
  • Vertical: GK Software (DE), COR (DE)

Strong European presence in certain industry-specific applications:

  • Banking / finance: Temenos, Murex, Simcorp, Linedata
  • Public sector: iSoft (UK), Computergroup (DE), GFI Progiciels (FR) and Berger Levrault (FR)
  • PLM: Centric, Dassault Systèmes, Nemetschek, Lectra, IGE XAO Capacity to export is correlated to the size of the business.

Comparison of international activity of the Top 100 software vendors in France, UK and Germany (in %)

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Capacity to export is correlated to the size of the business.

Weight of major national players for Germany, France and the UK (in %)

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SAP is clearly an exception in the European Industry

National champion software revenues (in millions of euros)

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Without SAP, Germany would be behind the UK. Recent acquisitions of french software vendors represented of combined revenue of €1.2 billion.

  • Germany takes third place on the European market, with its SAP champion representing 76% of the Top 100 German leaders in software. SAP’s weight was significantly strengthened with the acquisition of Business
    Objects. Germany is also well represented in the infrastructure market with Software AG, Beta Systems AG as well as SAP with Netweaver.
  • The UK market is less concentrated than the German and French ones, with a diversifi ed representation of medium to large software vendors (10 companies with more than 100 million British Pounds of revenues). This market has seen important acquisitions: Isoft by IBA health group, Coda by Unit 4 agresso, Financial Objects by Temenos,
    etc…
  • Subsequent to a wave of recent acquisitions (Business Objects, GL Trade, Ilog, XRT, etc…) the French market is left with one global player (Dassault Sytèmes). Beyond that, there are several key players mainly focusing on application software and a vast network of dynamic and growing smaller French software vendors.