IDC Study Identifies Largest Vendors of IT and IT-Related Products and Services in the U.S. Utilities Industry

FRAMINGHAM, MA – FEBRUARY 3, 2005 – A new IDC study which identifies the largest vendors of IT and IT-related products and services in the U.S. utilities industry by 2003 revenue reveals that horizontal vendors again led utilities IT vendors, with Dell, HP, Microsoft, IBM, and Cisco taking the top spots. For the most part, these vendors were able to leverage strong horizontal product plays that addressed the key needs of the industry.

"In 2003, vendors experienced little movement on the list of top utilities IT vendors based on revenue, with HP, Dell, and IBM continuing to lead the way," noted Jason Spaulding, research analyst, U.S. Vertical Industry Research. "These vendors leveraged horizontal product plays with cross-industry marketing efforts leading to strong positions on IDC's Industry Presence and Perception Map."

Among the key findings presented in this study include the following:

— With the exception of Itron, no vendors on the top 10 list sell exclusively to the utilities industry. However, with ongoing consolidation among utility niche vendors such as Itron, Indus, and SPL, next year's top 10 list may include additional utility niche players.

— Despite the seemingly strong business case made by business process outsourcing, firms in 2003 continued to take a wait-and-see approach to these relationships. Financial pressures, along with the announcement in May 2004 of a $3.5 billion outsourcing deal between TXU and Capgemini, will drive increased business process outsourcing next year, especially in back-office processes (e.g., finance, HR, supply chain, IT) as well as customer care and billing.

— Schlumberger began its exit from the U.S. utilities industry in 2003 with the sales of its IT service assets (SchlumbergerSema) to Atos Origin and its meter manufacturing assets to Itron. Schlumberger competed its utility asset divestiture in 2004 with the sale of its automated meter reading assets to Cellnet.

In this study, U.S. Utilities IT 2003 Vendor Analysis: IDC's Top Vendors (IDC #32583), IDC identifies the largest vendors of IT and IT-related products and services in the U.S. utilities industry by 2003 revenue. IDC's vertical revenue estimates are combined with IDC demand-side research and analysis to provide a more complete picture when comparing top vendors. This study presents the methodology for the creation of IDC's vendor industry revenue estimates and discusses each vendor on the top 10 list and the reason for their placement on the list. A graphical depiction of select vendors is presented in IDC's Industry Presence and Perception Map.

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