The software market in Switzerland: key trends and providers

The software market in Switzerland is undergoing great disruption due to the rising importance of cloud and “as-a-service” offerings, which are not only transforming the market but also buying patterns. It must, however, be said that even though SaaS is currently the fastest-growing segment, market volumes are still rather limited and on-premises software will remain important for the foreseeable future.

Security is also gaining in importance due to the increasing number of cyber security threats and the higher risk exposure of data, resulting from cloud computing, digital transformation, automation and BI. Overall, the Swiss software market is relatively mature, which is why software spending mostly comes from modernizing and enhancing existing infrastructure and solutions. However, new and additional software is required for emerging topics such as big data and the Internet of Things. Investments in additional software tend to be made by small- to medium-sized companies purchasing enterprise applications for the first time.

Even though the software market in Switzerland is largely occupied by the key players, Microsoft, SAP, IBM and Oracle, local champions such as Avaloq and Germany-based msg systems (incl. Finnova) are successful in offering core banking solutions to retail and private banks in Switzerland and beyond. Particularly Avaloq has established itself in the IT services and BPO market for banks and is thus strongly pushing its international business.

Other local companies among the top-ranked software providers to the Swiss market include Abacus Research (a leading provider of ERP apps to smaller companies), Adcubum (strong focus on insurance software), Eri Bancaire (banking software), Noser Group (information and communication technology) and Neue Software Technologie Gemeinde (e-government).  

Besides the growing importance of SaaS and security in Switzerland, other trends such as analytics, BI and real-time analytics have emerged. Growth in the analytics segment is mainly fueled by an increasing demand for customer-related analysis. Many established vendors such as Microsoft, IBM, SAP, SAS or Oracle have all enhanced their offerings to support the analysis of big data. Particularly real-time analytics has been gaining in importance and has thus been strongly pushed by SAP and its SAP HANA platform. It is worth noting that the Swiss Federal Act on Data Protection (FADP) is currently being revised to strengthen the protection of personal data and adapt the existing provisions to the digital age. Moreover, many Swiss companies doing business across the EU will be affected by the new EU General Data Protection Regulation (GDPR), which will become enforceable in May 2018. Due to the similarity between the GDPR and the FADP, we expect the Swiss companies to be well-prepared when it comes to implementing any changes that may be necessary in this regard.

To access the full report on the software market in Switzerland (license required), please click here.