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The Future Of French Software Is In The Cloud

French software publishers see the cloud as an opportunity to grow, especially internationally. While some have begun their transition successfully, it is the start-ups who shine by their audacity by launching 100% in the cloud.

French software takes the path of the cloud. According to a CXP study, 42% of the top 100 publishers already have an offer in the cloud. But according to Dominique Dupuis, an analyst in this firm, few make the real cloud Salesforce, the US leader in customer relationship management 100% cloud and reference in the field. “Many are more on the old ASP model of online software rental, without pooling resources, or sharing software between users,” says the analyst. The weight of the cloud is still small but progresses. According to the 2014 study by PwC and AFDEL (French Association of Software and Internet Service Publishers), its share in the turnover of the top 100 French publishers has increased from 6% in 2010 to 9% in 2013.

Cloud or die?

The stake is vital. “The move to the cloud is like moving from digital to digital,” says Thierry Debleds, manager at Solution, an IT consulting firm, “Kodak’s specter of bankruptcy hangs over everyone who has not made the switch.” The French software industry must accelerate its transition. Especially since it tends to run out of steam. According to the 2014 study by PwC and AFDEL, the growth of the Top 100 fell from 14% in 2010 to less than 2% in 2013. But for the champions of the cloud, the progression goes 24% for sidegrade (publisher of customer invoice management software) at 115% for Trace One (product management solution for traceability of products in the distribution) over the same period. It even exceeds 2000% for Pretty Simple, publisher of games on Facebook.

A delicate transition

For traditional publishers, migration is not easy. “The transformation is of such magnitude that they are forced to go with caution,” says Eric Menard, director in charge of studies and strategy at AFDEL. The financial and technical risks associated with switching from the sale of lucrative one-time licenses to the subscription-based online sales model are significant. The transition is delicate, as it leads at the beginning to a fall in income and a surge of investments. According to CXP, it lasts up to 8 years. But once this difficult course is over, the publisher moves into a virtuous model with recurring revenues, a streamlined innovation process and an extended commercial target all over the world.

Demoncratizing its technology

“We won customers who were not ready to pay for licenses.” The cloud has opened up the business market to 500 to 800 million euros of turnover, whereas before we were limited to those of more than 1 billion euros, “says Gérard Dahan, General Manager of Ivalua, a specialist in purchasing management. Even benefits at Dassault Systèmes. “With the cloud, we target professionals, who work by project, who have occasional needs or who can not afford to invest in own CAD means: architects, designers, engineers, design offices, etc., “explains Pascal Daloz, Deputy Director General in charge of Strategy and Development. Goal: to achieve 25% of software sales by this mode in three years, against about 7% today.

A sesame for international

Another interest of the cloud: access to the International. “The cloud is breaking down borders and making it easier to export, as Criteo’s success in online advertising or Talend in Big Data shows, and the French champions will become more international,” says Jamel Labed, president of the industry. ‘AFDEL. “Without the cloud, we would not have been able to break through,” says Damien Duchateau, CEO of Ines, a small customer relationship management solution publisher, “We’ve been able to expand abroad without being there and to learn from it. almost half of our income. ” And “no need to open a subsidiary to go to export, an international payment system is enough,” said his side Alain Garnier, manager of Jamespot, publisher of social networking solution company, which is thus attacked Benelux, the Netherlands, Switzerland and the United Kingdom.

A new market in itself

For Bruno Vanryb, president of Syntec Numérique’s Software Consulting, the cloud is not just a new model of software sales. “This is also a great opportunity for infrastructure software vendors, as it calls for measurement, flow management, data security, etc. that did not exist in the traditional model.” Publishers like Axway (data flow governance), Talend (Big Data data integration) or Scality (software-defined online storage) are taking full advantage of it. The phenomenon also benefits a myriad of nuggets like Clever Cloud (application deployment), Teevity (cloud usage cost analysis), Cloud Labs (gateway to online storage) or Hedera Technology (value for money).

An eldorado for start-up

Unlike traditional players, who are reluctant to go fast for fear of destabilizing the existing, young publishers do not ask themselves a question: they jump right into the cloud. “After a start in 2001 on the ASP model, we naturally evolved into the cloud model,” says Jerome Malavoy, president and founder of Trace One, a specialist in the management of traceability of products in the distribution. At the time, technology was still uncertain, and it is thanks to this model that we are developing today in 115 countries. ”

For these nuggets with high potential, the challenge lies in the control of distribution channels, different from traditional channels, and access to financing necessary for their growth internationally. “They need help to grow, otherwise they end up being bought by foreign players,” warns Emmanuelle Olivié-Paul, consultant at Markess International. As evidenced by the acquisition in 2013 of Neolane (online marketing) by the American Adobe, Run my Process (business process management) by the Japanese Fujitsu or Kxen (predictive analysis) by the German SAP.


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