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Software Infrastructure
By Isabelle Chan, ZDNet Asia
Today's business goals remain the same despite the growing complexities of IT infrastructures. Management expects the IT department to keep the computer networks and daily business operations running as smoothly and cost-effectively as possible. In response, every software company, ranging from the database management to application management tool companies, has focused on making its products more reliable, easier to use, and cheaper to operate.
This directive for IT to do more with less also explains the huge growing interest in open-source software. Therefore, it's no surprise that Red Hat ranks among the ZDNet Asia Top Tech 50 companies in the software infrastructure segment which includes database management, middleware, application delivery, and systems management. The Raleigh, N.C.-based Linux seller outpaced analysts' revenue and profit expectations for its most recent quarter.
As expected, IBM, Microsoft and Oracle made it to the Top Tech 50 Index. These three companies led the worldwide relational database management software market for 2004, according to research analyst firm IDC.
Oracle CEO Larry Ellison, who has been vocal about supporting open source, hopes to double the software giant's revenues to US$30 billion over the next few years, and he plans to achieve it with an acquisition strategy.
Microsoft, which spent much of 2005 trumpeting the next release of the Windows client, as well as the upcoming Visual Studio 2005 and SQL Server 2005 products, has reorganized itself into three new divisions.
Industry analysts expect the software industry to consolidate further as the players race to expand their product portfolio and international reach, and no sector will be immune. For example, Hewlett-Packard announced on Sept. 19, 2005, plans to acquire Peregrine. Upon completion, Peregrine's IT asset and service management software portfolio will be integrated into the HP OpenView business unit.
Other mergers and acquisitions in the systems management segment include IBM's purchase of Candle and BMC's Marimba acquisition in 2004.
Another important area that has gained interest and grown in importance is application management and delivery. IT departments continue to be pushed to deliver higher-quality applications that the business can also be faster to market. Therefore, as the emphasis on IT compliance and governance grows, expect more noise from companies like Mercury that track change and performance of applications during their lifecycles. Growth is expected to be higher in the application life cycle management segment as compared to the more mature markets such as the database management software markets, according to research firm IDC. The growing importance of integration will help drive the deployment market, the second largest contributor to the overall application development and deployment market size.
Competition continues to be rife in the middleware front among IBM, BEA and Oracle. Due to a strong surge in demand for application management services, the worldwide market is expected to grow at an overall compound annual growth rate (CAGR) of 9.2 percent and reach US$27.2 billion by 2009. According to IDC, about US$18 billion was spent worldwide on application management (AM) services in 2004.
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Top Tech 50 companies in Software infrastructure
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Altiris
Altiris was founded in 1998 to develop tools that reduce the cost and complexity of managing the IT lifecycle.
Apple Computer
Think Different. One of the most successful slogans in Apple Computer's history, these two words effectively sum up the company.
Autodesk
A household name among architects and engineers, Autodesk is best known for AutoCAD, a drafting software which it introduced in 1982.
BMC Software
Founded in September 1980, BMC Software makes enterprise management software designed to enable companies to better maintain their networks.
Fujitsu
The world's third-largest IT services provider, Fujitsu was established in June 1935 as a subsidiary of Fuji Electric.
Hewlett-Packard
Do not dismiss Hewlett-Packard just yet. The once-troubled ship found itself a new captain, CEO Mark Hurd, and he could be just the one to steer the company back onto the right course.
IBM
Over the last 10 years, IBM has succeeded in transitioning from a mainframe systems company to a top provider of IT business services. This business now accounts for about half of its revenues.
Infosys
Founded in 1981, Infosys has seen a 10-fold increase in its business in less than a decade.
The consulting and IT services company crossed the US$100 million mark for the first time in 1999, and in March 2005, it boasted a revenue of nearly US$1.6 billion.
Microsoft
This company needs no introduction. What started in 1975 as two college boys' aspiration to turn PCs into useful machines, Microsoft has since blasted its way into becoming a key player in the software industry today.
Oracle
CEO Larry Ellison has been busy these past 18 months acquiring companies. Its acquisition targets include HR specialist PeopleSoft and CRM leader Siebel.
Red Hat
Almost all Linux companies would have to grapple with the perennial question of how they can make money through software subscriptions and services rather than selling packaged boxes. For a while, investors have questioned if the shares of top Linux company Red Hat are indeed overvalued.
Tata Consultancy Services
A company as old as Tata Consultancy Services risks being overshadowed by hungrier newcomers, but the software-services giant, founded in 1968, knows exactly how to edge forward.
Unisys
In 1837, E. Remington & Sons introduced the first commercially-viable typewriter. Remington then delivered its UNIVAC computer to the U.S. Census Bureau, and makes history in 1952 by predicting the election of the country's president before the polls closed.
ZDNet Asia Top Tech categories
Systems | Networking and communications | Storage management | Security | Software Infrastructure | Services | Business applications | Internet services
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