Software AG Among Cloud Top 500

Uhlandstrasse 12

Darmstadt, x, 64297, Germany

49 6151 920


Software AG Strengths, Domain Expertise, and Key Differentiators

Software AG's first-quarter financial results showed accelerating growth due to its recent shift to a subscription-based model. Recurring revenue has reached 89 percent of the total product revenue, which means increased predictability and quality of the revenue stream. Digital Business delivered a seventh consecutive quarter of double-digit growth, with bookings up 21 percent and annual recurring revenue (ARR) up 11 percent year-on-year.

Bookings from subscriptions grew 50 percent year-on-year, and Software-as-a-Service (SaaS) bookings grew 69 percent. Subscription and SaaS bookings comprised 81 percent of Digital Business. Recurring revenue grew 6 percent and was 89 percent of total product revenue in the first quarter. Subscription and SaaS recurring revenues grew 77 percent and 42 percent respectively. Software AG’s third-quarter results continued this trend with continued double-digit revenue growth.

Software AG Recent Developments

In September 2021, Software AG launched an app to automate Overall Equipment Effectiveness (OEE) calculation for its Cumulocity IoT platform. The new app will enable manufacturers of any size to collect and process key data as it’s created and quickly understand production effectiveness. This will help organizations be more responsive to inefficiencies in their operations, enabling them to avert problems and capitalize on opportunities.

In May 2021, Software AG announced the release of TrendMiner 2021.R2. This update allows analysts to make their data model outputs available to the rest of the organization. It also has a multivariate Anomaly Detection Model that spots deviations from the desired operational behavior, as well as functionality that breaks down data silos to create cross-departmental workflows.

Since 2020, Software AG has been shifting all sales agreements with customers to a subscription model.

Software AG Mergers and Acquisitions (M&A) Activities

Software AG didn't make any acquisitions in 2020 and has continued to rely on its organic growth in 2021.

Software AG Customers in ARTW Customer Database

Leveraging a rigorous data-centric research methodology, APPS RUN THE WORLD asks the simple question: Who’s buying Software AG applications and why? And we provide the answers – supported by decades of research – to our clients around the world. Our Customer database has over 100 data fields that detail company usage of Software AG and other enterprise apps by function, customer size, industry, location, implementation status, partner involvement, Line of Business Key Stakeholders and IT decision makers contact details. List of Verified ARIS Process Mining customers.

Software AG Key Enterprise and Cloud Applications

ARIS Process Mining

Software AG Revenues, $M:

Type/Year20202021YoY Growth, %
Total Revenues, $M Subscribe Subscribe Subscribe
Enterprise Applications Revenues, $M Subscribe Subscribe Subscribe
Cloud Applications Revenues, $M Subscribe Subscribe Subscribe

* Enterprise Applications Revenues = License + Support & Maintenance + SaaS
** All revenue figures are estimates based on public records, Cloud and Non-Cloud business models in Apps Run The World's vendor database, and annual survey results including vendor feedback.

Software AG Revenue Breakdown By Type, $M:

TypeLicenseProf. ServicesHardwareSupport & MaintenanceSaaSPaaSIaaSOther (Non Enterprise Application Revenues)Total
% of Total Revenues Subscribe Subscribe Subscribe Subscribe Subscribe Subscribe Subscribe Subscribe 100%
Revenues, $M Subscribe Subscribe Subscribe Subscribe Subscribe Subscribe Subscribe Subscribe Subscribe

Software AG Revenues By Region, $M

Region% of Total Revenues2021 Total Revenues, $M2021 Enterprise Applications Revenues, $M2021 Cloud Applications Revenues, $M
Americas Subscribe Subscribe Subscribe Subscribe
EMEA Subscribe Subscribe Subscribe Subscribe
APAC Subscribe Subscribe Subscribe Subscribe
Total Subscribe Subscribe Subscribe Subscribe

Software AG Direct vs Indirect sales

RegionDirect SalesIndirect SalesTotal
Type % Subscribe Subscribe Subscribe
Revenues, $M Subscribe Subscribe Subscribe

Software AG Customers - Breakdown by Geo, Size, Vertical and Product

List of Verified Software AG Customers

No. of Software AG Customers: 1150

No. of Software AG Enterprise Applications Customers: x

No. of Software AG Cloud Customers: x

No. of Software AG Cloud Subscribers: x

In August 2021, Software AG extended a multi-year partnership with Australian supermarket chain Woolworths, which will continue to use the webMethods integration platform that has helped it implement innovations like scan-and-go, digital electronic receipts, and real-time stock-on-hand visibility.

In June 2021, Software AG announced it would be providing Industrial Internet of Things (IoT) solutions to GeicoTaikisha, the surface treatment and painting equipment supplier to automotive manufacturers worldwide. This will help it digitalize the entire painting process for its customers’ vehicle production plants.

In May 2021, German automaker Daimler signed a new three-year global usage agreement for Software AG’s Alfabet IT portfolio management solution. Alfabet unites the perspectives of IT, business, and finance, as well as risk assessment, into one solution. The automotive group’s contract renewal also signifies a change to the subscription model, which will open up significant new options for the auto manufacturer in the future. For example, the subscription model will enable the company to run Alfabet as a cloud solution and migrate other applications to the cloud as well.

Software AG Market Opportunities, M&A and Geo Expansions

In May 2021, Software AG published new research revealing that 97% of IT leaders believe it would be beneficial to combine the utilization of APIs, microservices and integration, while only 1% say that they do so already. The need for fast and efficient integration between systems, applications, departments, and individuals in enterprise organizations has never been greater, according to 92% of survey respondents. This represents an excellent growth opportunity for Software AG. Software AG’s Truly Connected Enterprise vision is responding to a €28 billion market opportunity. The COVID-19 pandemic has strengthened the imperative for businesses to drive toward having a truly connected enterprise, particularly as they grapple with changes to the working locations, practices, and needs of their employees.

Software AG Risks and Challenges

Despite widespread adoption, barriers remain that limit the maximization of APIs, microservices, and integration systems. Notably, there are concerns around lacking the needed skillset across all areas. Other risks include limited budgets to invest in microservices, limited staff skillset, difficult-to-manage overall IT environments, complexity, and difficult-to-integrate apps and services.

Software AG Ecosystem, Partners, Resellers and SI

In May 2021, WAINS GmbH announced that it has developed a digital monitoring system to support exterminators in their work. GmbH relies on Software AG’s Cumulocity IoT solution to connect smart pest traps and the Internet of Things (IoT). The solution is called Traptice. It enables users to detect a pest infestation early on so they can implement countermeasures accordingly. The traps are connected with the Cumulocity IoT platform from Software AG. Exterminators use a dashboard to check online whether there is a pest infestation or not. Routine inspections can be performed digitally.

Software AG Cloud Infrastructure Insights

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Research Methodology

Data used in research reports are derived from publicly available documents, continuous surveys of applications vendors, customers, resellers, Independent Software Vendors, systems integrators and other verifiable sources.

Vendor shares and market forecast results are based on a combination of existing databases as well as demand side and supply side research conducted throughout the year with validation from vendors, customers, channel partners and documentations such as earnings releases and 10Q and 10K filings, vertical industry studies, regional and country-level statistics from public and private institutions(i.e. colleges, universities, government agencies and trade associations).

For additional information on our methodologies, here's the link: Us

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