Information Technology in 
Switzerland
  
   Software Manufacturing
 
The Swiss software market, like hardware, is dominated by US suppliers.  Many of the top 10 suppliers are US firms.  Other competing firms include, Cap Gemini Sogeti CGS, SAP and Software AG.  The software market segment grew by 22% in 1997over 1996, to US$ 1.51 million. (50)

Network Software Market Leaders1997 (51)
 
Novell 65%
Windows NT  35%

The domestic software market in Switzerland is primarily customization of standard software programs through licensing arrangements.  Switzerland has had success in developing network security and encryption software. There are 400 firms in the software industry with 3,000 employees.  Hardware suppliers developing custom software solutions employ 2,500 persons.  Industries which employ software development are banking, business, industry and government.  Swiss software development companies are extremely small with only two having more than 100 employees. (52)

Encryption and Security Software

ASCOM Systec, Ltd. is the Swiss conglomerate that owns the 128-bit International Data Encryption Algorithm (IDEA) patent.  The market for the IDEA encryption algorithm is expected to grow, especially in the commercial security products.  The expected growth is due to the recently discovered failures in the 20 year old 40-bit and 56-bit Data Encryption Standard (DES).  On March 17, 1998, Fortess Technologies, Inc., a developer of network security solutions won the exclusive rights to distribute the IDEA encryption algorithm through licensing in the US.  US companies currently licensing the IDEA algorithm are Microsoft, Intel, Eastman Kodak, Honeywell, Motorola, Netscape, NCR, Raytheon, Visa International and Unisys.  Fortess products and the IDEA algorithm complement each other well.  Fortress hopes to develop new uses of the IDEA algorithm in the US and abroad.  ASCOM Systec is the leading supplier of enterprise security solutions in Switzerland.  Solutions provide secure data exchange for public and private networks.  Products include secure e-mail, Public Key infrastructure and high speed VLSI implementation of the IDEA algorithm.  Switzerland has potential to create a strong market in encryption technology since the US government considers the distribution of encryption software a national security risk.(53)

Other software manufacturers include Acabus software design AG, Sesam Software and Soreco AG.

For a list of software consultants and suppliers CLICK HERE


Hardware Manufacturing                                                                                                        IT Usage 

  Table of Contents


 Author: Maureen Lucarelli
Kogod College of Business Administration
American University, Washington DC

Email: ml8359a@american.edu
Last updated: December 18, 1998