European ISV channel rockets past $30bn mark

Explosive applications-led growth proves why vendors must build comprehensive ISV channels

Europe's ISV channel is booming and looks set to expand in 2006. That's the verdict of a new report from IT Europa, ISVs in Europe - the Top 1500, which exclusively reveals that the volume of sales reported by the top European developers has grown more than 50pc during the past two years. The top 1,000 players account for more than $30bn in revenues and 200,000 people in headcount with both figures increasing even more dramatically once the European numbers for global giants such as Microsoft, Oracle, SAP and Symantec are included. 

As vendors search for new opportunities in the ICT marketplace, the European ISV community has emerged as one of the most dynamic sectors for stimulating growth. Europe's sprawling ISV landscape is rapidly becoming an integral channel for manufacturers looking to increase market penetration in the SMB and mid-market sectors.    

ISVs offer a level of expertise and knowledge of these burgeoning markets that vendors cannot achieve with their own sales force. Furthermore, the role that ISVs play in the sales process has been significantly enhanced by changes in buying behaviour among end-users. Customers are satisfying their IT needs through complete solutions which are increasingly driven by the application rather than the hardware. ISVs possess a strong influence over the purchasing decisions of customers who prefer dealing with local companies ahead of multinational corporations.

Alan Norman, managing director at IT Europa, comments: "Vendors that once had all their eggs in the enterprise basket are now turning their attentions to the needs and demands of much smaller organisations. But success in this market often depends on their ability to form relationships with ISVs. New, market-winning applications are being developed all the time, so vendors need a comprehensive understanding of the ISV landscape if they want to profit from the opportunities this creates. We are witnessing quite explosive growth in hardware and software sales across a number of areas, such as convergence, mobility and security, but it is clear that this growth is very much application driven."

The complex needs of many SMB companies - which often compete in obscure and highly specific vertical markets - mean that generic solutions fail to offer value for money. ISVs provide the added value and customisation that vendors cannot build alone. The industry's largest enterprise software brands, and hardware manufacturers such as Avaya, Sun and Xerox, continue to invest in developing their ISV partner base. But the very nature of this evolving and innovative community requires vendors to constantly assess and strengthen their ISV channel.

IT Europa's ISVs in Europe, The Top 1500 database report provides detailed profiles of the top 1500 ISVs across 38 European countries. These profiles include sales details and breakdowns by geography, customers and vertical markets, plus details of staff, services, ownership, hardware & software platforms, databases & programming languages used, key contacts and a company overview. The report is available in both singe and multi-user versions from

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