The good news is that Germany holds a leading global position in software development. According to a short study by the Fraunhofer Institute for Systems and Innovation Research (ISI) titled "The software industry in Germany," the country is the fourth largest exporter of software and IT services within the global computer software industry.
Here are the five largest German software companies, which illustrate the strength of german software on international markets:
- SAP
- Software AG
- DATEV
- CompuGroup Medical
- Nemetschek AG
Profile: German Software Companies
SAP: The Software Giant from Walldorf
SAP SE stands alone at the top of German software manufacturers and is one of the most influential German IT company leaders worldwide. The software giant achieved an annual turnover of 24.71 billion euros in 2018. A look at the European Top 100 reveals just how strong the German position is internationally. In this ranking, SAP alone represents 40 percent of total sales, while all German software companies combined account for 50 percent. Even without SAP, these manufacturers would still rank second across Europe behind the United Kingdom (as of 2016).
SAP once revolutionized the field of enterprise software with its SAP R/2 and R/3 solutions. This B2B software made it possible to combine accounting, controlling, sales, purchasing, warehousing, production, and human resources into a single interface. For small and medium-sized businesses, SAP offers Business One. This standard software can be expanded to include CRM, project management, and web shop creation alongside production planning and control.
The "R" software series entered its fourth generation in early 2015 with S/4HANA (HANA stands for a high-speed database technology) and remains on a path to success. By the end of the third quarter of 2015, 1,300 of the approximately 300,000 R/3 customers had already switched to this future-proof technology.
Software AG: Technology for the Digitized Public Sector
In addition to numerous solutions for industry, retail, and the energy sector, Software AG in Darmstadt is modernizing public administration with its digital government platform, positioning itself as a leading digitalization company. Under the keyword E-Government, the software accelerates administrative tasks and shortens processing times in government offices.
Furthermore, Software AG is active in the field of public safety. Modern IT systems support police in hazard prevention. Solutions in the Border Control segment help protect external borders through automation, monitoring, and management of control processes. In 2017, Software AG achieved a turnover of 879 million euros with its programs and services.
DATEV: The Fast Track to Tax Consulting
The registered cooperative DATEV, based in Nuremberg, was originally founded as a service provider for tax consultants, auditors, and lawyers. As a service company, DATEV took over electronic data processing for its clients’ accounting. Its flagship product has long been a core component of high-performance B2B software in professional services.
Over time, DATEV has expanded its portfolio to include IT services for its members’ clients, including companies, municipalities, associations, and institutions. With an annual turnover of 978 million euros in 2017, the cooperative ranks third among German software companies.
CompuGroup Medical: Online Services for Doctors and Patients
CompuGroup Medical AG (CGM), based in Koblenz, is the leading provider of IT services in the healthcare industry. With over 400,000 customers in 40 countries, the company generates a turnover of 460 million euros. CGM primarily develops and operates information services for doctors, pharmacies, and clinics. These systems accelerate the transfer of knowledge within the healthcare sector. Patients also benefit from digital technology through the eServices segment. For instance, eRezept is an online solution for reordering prescriptions. With eBefund, patients can view, print, and save their medical findings on a protected area of the doctor's website from their home computer.
Nemetschek AG: Milestones in Architecture
Georg Nemetschek made architectural history in 1980 with the invention of Computer Aided Engineering (CAE). At the CeBIT trade fair, he introduced software for companies that, for the first time, made it possible to calculate and design standard components digitally. To this day, Munich-based Nemetschek AG remains a leading provider of software for architects, engineers, and the entire construction industry.
Significant structures have been planned to use Nemetschek’s software, including the Centre Pompidou branch in Metz, the Citygate Tower in Vienna, and the bridge over the Panama Canal. The company’s most famous product is the CAD software Allplan, which is widely used even by students. With a total of 1.8 million users across 142 countries, Nemetschek AG generates an annual turnover of 185.9 million euros.
Software: The Key to Growth and Carbon Reduction
The growing revenues of the largest software companies demonstrate a structural shift in the economy. In recent years, industries with the highest software intensity have been the most productive businesses in Germany, reinforcing the strategic role of digitalization.
Take ecology as an example. Intelligent energy grids capable of reducing greenhouse gas emissions depend on advanced software solutions. In this context, german software and "IT made in Germany" solutions could take on a leading role in this global mission.
For more ideas around purchasing and sourcing in the software and IT sector, europages Inside Business offers helpful tools and inspiration.
