IDC Identifies Top 10 Application Management (AM) and Software as a Service (SaaS) Vendors by 2002 Revenues

FRAMINGHAM, MA – OCTOBER 15, 2003 – IDC recently released two new studies identifying the world's ten largest Application Management (AM) and Software as a Service (SaaS) vendors by 2002 revenues.

In the AM space, IDC's new research shows that the top 10 AM service providers collectively captured an impressive 62.4% of the market in 2002. Among the leaders are firms with well-established reputations in the IT services market, including EDS, who once again nabbed the number 1 seat. Accenture remains the second largest AM vendor in the world, followed by CSC, which also had the most software as a service revenue among the top 10 AM vendors.

Even though software as a service has been around for more than 5 years, IDC's research reveals that it is still a highly fragmented market with less than one third of the market captured by the top 10 vendors. This implies that much of the revenue is being captured by niche independent software vendors (ISVs) that have begun to offer their software as a service. To do this, some have chosen to partner, while others have elected to do it all themselves. Progressing from a technology vendor to a services firm is no easy feat and IDC expects the majority of software vendors to eventually turn to traditional AM vendors for assistance. Like 2001, the top 3 spots in the SaaS market belonged to Digital Insight, Trizetto, and USI.

"It is interesting to note that without even trying, traditional AM vendors like CSC and EDS are earning a place among the leading software as a services companies," said Jessica Goepfert, program manager, AppSourcing Services research. "Years ago, IDC dubbed these firms the 'sleeping giants' of the ASP market, and sure enough, they are slowly awakening."

IDC's two new studies, Worldwide Application Management Competitive Analysis, 2003: IDC's Top 10 Vendors for 2002, (IDC #30118) and Worldwide Software as a Service Competitive Analysis, 2003: IDC's Top 10 Vendors for 2002 (IDC #30131) present IDC's ten largest AM and SaaS service firms in 2002 by revenue. Brief profiles of the leading vendors are included.

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