New research released today from IT market research firm IDC identifies the top U.S. application infrastructure providers (AIPs), according to their 2000 U.S. service revenues.
In its latest study, IDC reports that the U.S. market for AIP services was $1.11 billion in 2000 and it estimates it will grow to approximately $9.37 billion by 2005.
“The AIP market is undergoing tremendous changes,” says David Tapper, program manager for IDC’s Networked Infrastructure Management Services research service.
“These changes involve consolidation, expansion of service offerings through partnerships, and the slow shift from managed/outsourcing services to more on-demand or computing utility offerings.”
According to IDC’s research, the top five AIPs are:
- EDS
- IBM Global Services
- Hewlett-Packard
- Usi
- Totality
IDC says that IBM Global Services and EDS have become major players in the AIP market through demonstrating financial stability, supporting extensive capital investments, and offering a broad set of services.
Defining the AIP market model, IDC says it involves delivering outsourced, managed or fully-managed services, from a remote Internet data center (iDC).
The focus of the AIP, it says, is to provide the consulting, integration, and operational services needed to manage the computing infrastructure (e.g., networks, storage, servers, and operating systems) and enable the delivery of an application.
AIPs are described as similar to ASPs, but are not responsible for managing software application codes. AIP services are argued to be applicable to more complex infrastructure needs.
“Today’s market is making survival the paramount issue for many AIPs, in particular those AIPs that are smaller and newer,” says Tapper.
He says that the stark contrast between the more successful AIPs, and those barely surviving — often emerging and small players — means the outlook will likely result in only a few dominating companies.
“It is this future AIP market structure that will be the basis of an intense rivalry between a few behemoth service providers slugging it out to build leadership in an increasingly commoditized market,” he concludes.
ASPNews.com recently published its own Top 20 list,.
naming the AIP market’s leading players.
