Ray Wang of Forrester delivers a blow to the myth that the enterprise application software market is consolidated. He develops an Software Insider Index of 30 software vendors, and SAP and Oracle do not even make up 50% of the total revenues. BTW - Ray's cutoff is revenues of $ 100 million, and there are plenty of software vendors under that threshold
Now let me add several vertical and business process specialists Ray does not have on his list - this is just a sample of industries and business processes and related software vendors. I also used the $ 100 million revenue cut off and there are plenty more under that.
- Banking, Financial Services - SunGard, FiServ, MiSys, Fidessa
- Healthcare - McKesson, Cerner, Eclypsis, iSOFT
- Engineering/Design - AutoDesk, PTC, InterGraph, Cadence
- Analytics - SAS, SPSS, Fair Isaac
- HR - Kronos, Kenexa, Saba
Now throw is a whole slew of SaaS vendors (Ray has 6 in his list of 30) and you can see from Jeff Kaplan's SaaS showplace how that market is mushrooming.
As I wrote last week, it's time to refocus our procurement folks away from the trend of vendor consolidation (and related lock-in) and have them rediscover the art of sourcing.
