Industry Environment

The global markets for software & cloud and solutions & services are characterized by robust growth, driven by technology spend catalyzed both by the growing complexity of technology and the rising strategic significance businesses attach to digitalization.

Technology is becoming more important and more complex for companies, increasing the need for SoftwareONE’s solutions

Large addressable markets with attractive double-digit growth

Software & Cloud

According to external industry experts, global software & cloud spending reached CHF 525 billion in 2018 and is forecast to grow to CHF 757 billion in 2022, representing a compound annual growth rate (CAGR) of 10%, with growth across all major geographic regions and businesses of all sizes. The three market segments of on-premises software, software as a service (SaaS) and infrastructure as a service (IaaS), which in 2018 accounted for 67%, 27% and 6% of spending in the software & cloud market, respectively, are forecast to grow at a CAGR of 3%, 20% and 23%, respectively, for the period between 2018 and 2022, according to external industry experts. SoftwareONE is well positioned in the software & cloud market as illustrated by its strong track record of outperforming market growth. Between 2016 and 2018, gross profit from sale of software and other revenue grew at a CAGR of 12.0% for SoftwareONE and 12.6% for the combined group including Comparex, compared to growth in the market at a CAGR of 9%.

Solutions & Services

Global spending in SoftwareONE’s total addressable market for solutions & services reached CHF 31 billion in 2018 and is forecast to grow at a CAGR of 17% to CHF 58 billion in 2022, according to external industry experts. As a result of SoftwareONE’s investment in end-to-end capabilities across the entire technology solutions value chain, it has significantly grown its solutions & services business, achieving growth in gross profit from solutions and services at a CAGR of 20.3% for SoftwareONE and 12.4% for the combined group including Comparex between 2016 and 2018.

SoftwareONE believes that the combination of its software and cloud-only focus, its results-driven, customer-first culture, its close publisher relationships and a product mix with exposure to many of the fastest-growing software and cloud products positions it well to further capitalize on the ongoing digital transformation trend, and to continue to gain market share in a highly fragmented market.