Competition between information technology vendors for domination of the Single European Market is slowly getting underway, and Datamation has surveyed the top 25 European contenders. The first piece of the survey’s data that catches the eye is that the big European companies are growing in size – in 1987 the revenue entry level for the top 25 was $493m, in 1988 it was $723m. Taking mergers and the dollar’s fall into account, however, real turnover growth for 1988 was running at 13%. With a total European information technology market of over $90,000m, the top 25 companies represent more than 66% of European sales. Predictably, IBM the top vendor within Europe, is way ahead of the rest of the competition. In 1988 Europe accounted for 34% of IBM’s corporate sales and 43% of its profits, but its European revenues are continually declining, down 2% from 1987, and down 11% from 1984’s figure. For although IBM’s largest European subsidiary in West Germany saw sales improve by 5.5%, its second largest European operation, in France turned in a flat turnover performance, while growing sales in Spain and the Netherlands were offset by operating losses. IBM’s European operation is four to five times larger than that of that of Siemens, DEC, Olivetti and Groupe Bull which are respectively ranked second, third, fourth and fifth. For the first time two Japanese companies have entered the top 25 (although this may be solely due to Japanese companies beginning to offer geographical breakdowns of business rather than to any extra marketing effort on their behalf). Canon is in at 16 with its printers, while Hitachi is at number 20 with its plug-compatible mainframes. The remaining four new names in the top 25 are Nokia Data (14) which acquired Ericsson Information Systems last year, Prime (18), Control Data (23), and Compaq Computer (25). The half a dozen companies that have fallen from the top 25 to make room for these arrivistes are L M Ericsson (see above), Honeywell Bull (now controlled by Groupe Bull), Memorex Telex (falling sales), Mannesmann Kienzle, Econocom International and Amdahl – all of which are now simply too small (though still growing) to retain their position among the elite 25. As for the future, Xerox and Commodore are waiting in the wings and may make it in the 25 next year. In the longer term, Fortress Europe anxieties aside, the competitive focus for information technology firms in Europe would appear to be on electronic trading links, networking, and mission critical systems.