Feeds

IBM dominates network consultancy market

EDS, HP, Alcatel prop up the table

  • alert
  • submit to reddit

The essential guide to IT transformation

IBM Global Services has reasserted itself as the number one player in the services industry this week, courtesy of some good old fashioned bean counting at IDC. The analyst has completed its assessment of the Network Consulting and Integration Services vendors and IBM's ever growing, shrinking teams of consultants has taken the top notch.

IDC reckons the network consulting and integration services marketplace is worth $19.2 billion annually.
IBM has stormed ahead of the pack with, presumably, a blistering performance on the part of its sales teams. IDC estimates that it now controls as much as 17.5% of the global market for such services.

The other players in the market fade out to become almost 'also-rans' in comparison. EDS, ranked by IDC as the number two global player, accounted for a market share of 7.9%. That still gives it a healthy chunk of revenues - approximately $1.44 billion. Even Compaq, which together with HP has had high aspirations for stealing a march on Big Blue, could only stake a claim to 7.3% of the market. This put it in third place, above Alcatel, with 6.3%, and Getronics, with 5.6%. But there is an awful lot of work to do before it can claim to challenge IBM in this sector.

IBM may be dominant in this networking services but the leader-board position hasn't translated into profits for the Global Services division. The last two quarters have seen the one-time IBM cash cow slump badly - with revenues falling. In July of 2002 it notched up the unenviable achievement of two consecutive quarters of falling revenues, with a drop of 1% to $8.7 billion. Only days later IBM announced that it was slashing headcount, to the tune of some 14,000 worldwide, from the division too.

But last month IBM set the market alight with the news that it was set to PWC's consulting arm, for a steal - only $3.5 billion.

© IT-Analysis.com.

Boost IT visibility and business value

More from The Register

next story
Pay to play: The hidden cost of software defined everything
Enter credit card details if you want that system you bought to actually be useful
Shoot-em-up: Sony Online Entertainment hit by 'large scale DDoS attack'
Games disrupted as firm struggles to control network
HP busts out new ProLiant Gen9 servers
Think those are cool? Wait till you get a load of our racks
Silicon Valley jolted by magnitude 6.1 quake – its biggest in 25 years
Did the earth move for you at VMworld – oh, OK. It just did. A lot
VMware's high-wire balancing act: EVO might drag us ALL down
Get it right, EMC, or there'll be STORAGE CIVIL WAR. Mark my words
Forrester says it's time to give up on physical storage arrays
The physical/virtual storage tipping point may just have arrived
prev story

Whitepapers

Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Backing up distributed data
Eliminating the redundant use of bandwidth and storage capacity and application consolidation in the modern data center.
The essential guide to IT transformation
ServiceNow discusses three IT transformations that can help CIOs automate IT services to transform IT and the enterprise
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.