IDC Reveals Key Success Ingredients of Top U.S. Application Infrastructure Providers

FRAMINGHAM, MA – JULY 24, 2002 – The application infrastructure provider (AIP) market is being whittled down to just a handful of players, with a few remaining stragglers hanging on, according to IDC. With the consolidation and concentration of this market nearing its end, it has become fairly clear that the traditional IT outsourcers have carved out a significant part of the U.S. market. IBM Global Services clearly leads the AIP market, followed by EDS. IDC estimates that these two IT outsourcers together compose 49.3% of the U.S. market.


"Although the AIP market is relatively new compared to its big brother, traditional outsourcing, the results of the top 10 players can be attributed to some key factors," said David Tapper, Manager of IDC's Networked Infrastructure Management Services research program. "These factors include how players are positioning themselves, how they incorporate key winning service attributes, and the degree of customer revenue." IDC ranks the top five players in the U.S. AIP market according to 2001 revenues as follows:

1. IBM Global Services

2. EDS


4. C&W/Exodus

5. Genuity

Although these firms are leading the U.S. AIP market, the future of outsourcing and managed services is being threatened by the slow emergence of providing IT as a set of utility-like offerings, IDC believes. It is this shift that IBM Global Services and EDS may not be able to manage in the long run and that may potentially allow some of their competitors in the AIP space to take the mantle of leadership. IDC also expects telecommunications companies to increase their share of the AIP market in the long run.

IDC's new document, 2001 Top 10 U.S. Application Infrastructure Providers, (IDC # 27604) ranks the leading AIPs in the U.S. market and discusses key factors attributed to their success. The document also presents insights into major industry trends and challenges, and recommends strategies to AIPs to win customers.

To purchase this document, call IDC's volume sales hotline at 508-988-7988 or email

For more information about IDC's Networked Infrastructure Management Services research, please contact Jill Toole at 508-988-6915 or by email at

About IDC

IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at

IDC is a division of IDG, the world's leading IT media, research and exposition company.


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