In Dialog with Dr. Matthias Traub

Dr. Traub, you describe the changes your customers are now facing as a catalyst. Why?
I see the current phase is a real turning point. Software, along with the required hardware, is now the central value driver in many products, and AI is accelerating this shift even further. Global competition is intensifying, not least due to Chinese companies entering markets at great speed. Many companies are now forced to transform their entire business model toward software-defined, data driven and, in many cases, AI based products. That fundamentally challenges established structures and ways of working.

What is new is the simultaneity of these requirements. Products must process massive data volumes while meeting the highest functional safety and cybersecurity standards. They need to be highly connected, interoperable and updateable. This creates a level of complexity that goes far beyond the software itself. This deeply impacts organizations, processes and responsibilities, posing huge challenges for companies. Many are perceiving this as a crisis. I see it primarily as a catalyst for innovation. The decisive competitive question today is who can make this complexity manageable – across the entire value chain and the full product lifecycle. This is where Vector comes in, with decades of experience.

You mentioned AI as a central value driver. What specific changes does that mean for practical development?
AI is changing the way software is created. Development becomes faster, more automated and on a scale that was inconceivable just a few years ago. OEM development teams can focus more on what matters most: architecture, innovation and brand differentiation. That’s a tremendous opportunity. At the same time, it raises a central question: can the results – the code, the models and the data that AI generates – be trusted? That is crucial for systems that protect lives, whether in vehicles, aircraft, rail transport or medical devices. An interesting point here is that what was long criticized as German overengineering is suddenly proving to be a strength. The high-quality standards and thoroughness form an excellent basis for combining speed with responsibility and unlocking the full potential of AI.

In your view, what’s the biggest difference compared to software development ten years ago?
In the past, you could buy a good tool to solve a specific problem. That worked because there were clearly defined roles and responsibilities along the established development process – the so called V model. Today, customers no longer ask which tool will help them. Instead, they ask how they can manage software along the entire value chain, from the initial architecture design to updates in the field, across all teams and systems. They are looking for the foundation that enables this. That’s a very different focus and it shows where the future lies – not in the next standalone tool, but in integrated solutions within a stable ecosystem.

What does that mean for Vector?
Vector comes from a world where we developed individual tools and software stacks. Although these are very good tools for very specific tasks, that’s no longer enough. Delivery is no longer the end of the story for software products. They need to be developed further, updated and operated safely for many years. That requires a strong foundation that combines quality, development and safety on a permanent basis.

This is the foundation we are building – with a scalable software platform, a modular tool chain and automated, reproducible processes. We are developing a comprehensive software ecosystem that provides structure without being restrictive and enables companies to absorb new requirements without having to start from scratch each time.

Our ecosystem is not a collection of individual products. It is an end to end solution to the long-term challenge of keeping software manageable. That’s why we’re evolving from an embedded software specialist into a provider of a software ecosystem that integrates software, tools and the associated hardware for developing and operating intelligent, software defined systems. Our ambition is to give our customers the foundation they need to remain capable of action, innovative and competitive over the long term.

Is building this kind of ecosystem a solo effort, or do you need partners?
A true ecosystem is, by definition, not a solo effort. It thrives on openness and the combined strengths of different players. We work closely with technology partners to develop solutions that become an integral part of our ecosystem and extend its capabilities. This ecosystem also underpins our highly individualized collaboration with customers.

The foundation remains the same, but the solutions built on that foundation are tailored. They’re open, adaptable and free from lock ins. Partners and customers work with us to create solutions that none of us could achieve alone. This leads to innovation that is greater than the sum of its parts. The trust our customers place in us is earned through openness, not dependency.

What is the biggest internal challenge in this transformation?
Technology alone does not drive transformation, people do. Anyone who seriously embraces a software ecosystem must think in terms of entire systems, not individual components. That requires a different mindset compared to the past – and I see it growing within our teams every day. We are investing heavily in upskilling, new ways of thinking and a culture of continuous learning. As a result, our customers work with teams that understand the overall system, and not just their part of it.

Many of your customers operate globally. Does it matter to them where their software is developed?
Yes, and that comes through very clearly in my discussions with customers. In a geopolitically dynamic environment, the question of where software is developed is becoming a strategic decision. Over 90 percent of our development takes place in Germany, particularly in Baden-Württemberg – and I’m not saying that to romanticize the location. In safety critical industries such as automotive, medical technology or aerospace, deep engineering expertise and a commitment to take long term responsibility – not just for the next version, but for the entire product lifecycle – are a key advantage. Our ecosystem approach is therefore a confident European response to global competition in software defined systems.

Why does Vector claim a leading role in software ecosystems?
Because mastering complexity is our core business. Our expertise is rooted in more than 35 years of work in safety critical systems. It’s evident in our architectures, our open interfaces and our teams. You can’t acquire that kind of experience and expertise overnight. And we’re not standing still. We’re specifically investing in AI, cloud technologies and modern software development methods to ensure our foundation will also support future generations. Our ownership structure supports this approach. Vector is a foundation owned company. Unlike publicly listed companies, we are not under quarterly pressure and can align and implement strategic decisions with a long term perspective.

Vector has its roots in the automotive industry. Is your approach transferable to other industries?
Automotive is where we started and it remains our most important market, but we certainly don’t stop there. The basic problem we’re solving is the same across industries. It’s not only cars that are defined by software; we see it also in operating tables, robot arms in production lines and railway systems. Similar development challenges arise in all these areas.

The answers we’ve developed over decades in one of the world’s most demanding industries are transferable. What customers get from us is not just technology, but experience from domains where failure is not an option. We already see this in projects we are implementing with partners outside the automotive sector – and this is only the beginning.

What stage is Vector at in this transformation – and what is your vision for the next few years?
We are right in the midst of it. Together with selected OEMs and industrial partners, we are bringing initial solutions to market that significantly simplify and accelerate the development of software defined systems. This frees up time and focus for our customers to concentrate on what truly differentiates them in the market – the applications for their end products. We take care of the underlying complexity.

Our vision is clear. Vector is the strategic partner for companies seeking to future-proof the development of their software defined products. We are currently building and already providing the foundation they need: Europe’s leading software ecosystem that combines AI and cloud technologies with deep engineering expertise and decades of experience. It is designed to grow through partnership, not through lock ins. The next generation of software defined systems needs a strong European signature – and we are laying that foundation now.