Financial Analysis of Systems Integrators

This document, published in August 1989 by Digital Equipment Corporation's Consulting and Research Service, provides an analytical overview of the emerging systems integration industry. Key findings include:

• Market Growth: The total U.S. systems integration market was valued at $4.8 billion in 1988, with a projected growth to $14.7 billion by 1993.
• Sector Divergence: While the commercial and federal sectors were roughly equal in 1988, commercial spending is projected to grow significantly faster (30% CAGR) compared to the federal sector (19% CAGR).
• Industry Structure: The report characterizes the business as capital-intensive, dominated by large, established firms. It highlights the difficulty in standardizing revenue data due to inconsistent definitions across the industry and lack of disaggregated financial reporting.
• Competitor Analysis: The report provides detailed financial breakdowns, comparing revenue, headcount, and efficiency metrics for various types of providers, including hardware vendors, pure systems integrators, and facilitators (such as accounting firms).
• Vendor Profiles: Specific profiles for major players, including IBM, EDS, Anderson Consulting, and Digital Equipment Corporation, are included, outlining their market focus, service offerings, and typical contracts.