The software market is forecast to resume growth in 2010 and the company believes a larger software sector would provide a buffer to economic contraction and spur an earlier return to growth. Software will also play a major role in helping both the public and private sectors adapt to economic changes quickly and economically.
“We believe the software industry provides a cost effective way of implementing competing requirements such as increasing efficiency, initiating cost reductions and ensuring new regulatory compliance,” said Dean Mericka, President of U.S. Operations for Software AG. “The innovation our industry brings will be a fundamental driver of national and global economic growth.”
A major contributor to the economic resilience of the global software sector 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.
Software AG’s beliefs were confirmed by a report – the 2009 Truffle 100 – issued earlier this month. 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 would provide a buffer to economic contraction and provide an earlier return to growth.
“The Truffle 100 report focuses on Europe but validates our view that the software sector is vital to future prosperity and growth around world,” said Mericka. “As the world’s largest economy, the U.S. software industry must embrace a leading role in enhancing high-tech industries and increasing innovation.”
About Software AG
With more than 1,000 U.S.-enterprise customers and 700 employees, Software AG’s U.S. operation contributes one third of the company’s total revenue and is Software AG’s largest market presence and R&D location. Software AG has operated nationwide in the U.S. since 1973 through a fully-owned subsidiary, Software AG USA Inc., which is headquartered in Reston, Virginia – also an R&D hub for the company’s core data management and integration technologies . R&D labs for the development of Software AG’s webMethods product suite – offering SOA integration and BPM solutions – include facilities in San José/Silicon Valley, Seattle and Denver. For more information, visit www.softwareag.com/us .
Software AG is the world’s largest independent provider of Business Infrastructure Software . Our 4,000 global enterprise customers achieve business results faster by modernizing, integrating and automating their IT systems and processes. Our leading product portfolio includes solutions for high performance data management , developing and modernizing applications , enabling service-oriented architecture , and improving business processes . Software AG has 40 years of global IT experience and about 3,600 employees serving customers in 70 countries. The company is headquartered in Germany and listed on the Frankfurt Stock Exchange (TecDAX, ISIN DE 0003304002 / SOW). Software AG posted total revenues of €721 million in 2008.