Service revenue to top $US90 billion by 2003

Service revenue to top $US90 billion by 2003

Integration and service revenue are becoming more important for systems vendors, such as IBM and Compaq, who are seeing their server margins erode.

US corporations demanding telecom and electronic commerce services fuelled the bulk of systems integration revenue in 1998, with IBM commanding more than 10 per cent of the overall market, according to a recent International Data Corporation study.

The worldwide systems integration market rose to almost $US50 billion last year, with the US accounting for almost half of the business.

Revenue is expected to pass $US90 billion by 2003. IDC analyst Christian Munz says that service revenue will increase because of technological changes and the use of IT to get closer to customers.

The top 10 computer services companies are based in the US. Systems vendors IBM, Unisys and Hewlett-Packard placed in the top 10 along with conventional service suppliers EDS, Anderson Consulting and KPMG. Other companies that traditionally rely on services to make up the bulk of their revenue, such as Sun Microsystems and Compaq/Digital, did not make the list.

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