Monday, October 19, 2015

Exclusive: The insolent health of French software vendors – Digital Factory

 France does not intend to as big software vendors that American Microsoft, Oracle and IBM, SAP or German, which dominate the world market today. But its software sector is doing much better than that of the United States. In 2014, its revenue jumped 17% to 10.5 billion euros. This is more than the increases of 12% in 2012 and 4.6% in 2013. It is also much better than the French and world markets software that, according to IDC, up 3.4% and 5 respectively, 9% in 2014. This is one of the surprises of the Panorama top 250 French software publishers and creators revealed on October 15 in Paris by the Syntec Numérique and EY office.

 

  Ubisoft and Criteo, two large locomotives

 This exceptional growth was driven by the biggest publishers tricolor. The Top 10 ranking, which includes 381 entries this year, shows an increase of 22%, against 10% for the rest of the panorama. Two actors play the particular driving force: the number two ranking Ubisoft (+ 43%) behind Dassault Systèmes, and number three Criteo (+ 68%). “Ubisoft has a catch-up effect, since shifted to 2014 the output of stars games originally planned for 2013, analyzes Jean-Christophe Pernet, senior manager at EY . The strong rebound, which he recorded in 2014 offset the 20% fall it suffered in 2013 due to the postponement. “

 

  French Syndrome ETI

 The dynamic is particularly strong among publishers horizontal (+ 25%) and vertical publishers (+ 22%). The publishers of consumer video game software and follow with 15% growth year on year. The sector is still characterized by high concentration. Only 7 publishers generate more than 100 million turnover. But they account for 68% of revenues panorama. The editors of less than 10 million euros of income represent 62% of the players while they weigh only 7% in the total sales.

 

  “We find in the software the French syndrome ETI with, on one side, very few large publishers and on the other, many small players, says consultant EY . SMEs are struggling to grow and cross the ETI step. “ One of the causes is the lack of offensive abroad. If publishers of more than 100 million sales derive 64% of their income from abroad, the figure drops to 20% for those under 10 million euros. “International remains a key path to growth” , concluded Jean-Christophe Pernet.

 

  the cloud Effect

 The good results in 2014 also came from the popularity of the digital transformation of levers such as mobile, big data, security and cloud computing. A total of 160 vendors sell their software as a cloud service (SaaS Software as Service) and 60 of them make more than half their publishing revenues with this model. Great paradox: the smaller players are more advanced in this area than the giants “The migration to the cloud is much more complex for a big publisher for a small” , says the analyst of. EY.

 

  hiring forecast in 82% of publishers

 On the employment front, the software claims to have created nearly 7,000 jobs in 2014 and 15,000 over two years. Numbers in perspective, however, because some actors like Steria, Sopra, GFI Informatique, Neopost or Bigben Interactive, they include jobs created in other activities that software. Moreover, they relate to both the France and abroad. “Since the 2012 study, the distribution of staff between France and abroad remains stable, with a share of 55% or 56% for France, decrypts Jean-Christophe Pernet . We can apply the same distribution to job creation. “ The evolution of employment prospects are good, with 82% of the publishers surveyed by the study plan to hire in 2015. They were 75% to do so last year. This is the sign of a real acceleration of the sector confirm that, hopefully, the next edition.

 Panorama Top 250 publishers and creators of French software

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