SAP system integration ecosystem the largest: IDC

Framingham: The worldwide and US SAP consulting and systems integration ecosystem is the largest, followed by Oracle and PeopleSoft, according to a newly released study by IDC. The study which analyzes the services competitive landscape and ecosystems around the leading enterprise applications, ranked IBM Global Services and Accenture as the leading systems integrators in both of these markets globally and in the US. In addition, Capgemini fared well in the global markets while Deloitte was strongly positioned in the US.

The study also found that the continuing consolidation in the enterprise application software industry is generating uncertainty for many clients regarding the placement and timing of their next software investment. Customers are also increasingly turning to the systems integrators (SIs) for insight into potential software investment.

"The unprecedented consolidation within the enterprise application software industry may shift the dynamics in the enterprise application services market and create further uncertainty," said Stephanie Torto, program manager for Systems Integration Business Strategies research at IDC. "However, systems integrators with strong capabilities, a forward-looking vision, and close relationships with customers will be poised to capitalize on these opportunities."

As per the study, SIs will play a key role in advising clients on the future of the enterprise applications space, creating a product roadmap for clients, and advocating and communicating client needs to the independent software vendors (ISVs). The SIs and ISVs will continue their relationship as both competitors and allies in order to create revenue and drive growth for the Oracle, PeopleSoft, and SAP ecosystems.

"Customers are turning to the SIs as their trusted advisor and eye into the ISVs more so than ever," said Torto. "IDC recommends that SIs promote the strength of their relationships with the ISVs to play the role of advisor and assist clients in making sense of the uncertainty."

The IDC study titled, 'Worldwide and US ISV Services Ecosystems: Leaders for SAP, Oracle, and PeopleSoft Services, 2004' discusses the services ecosystems for three leading enterprise application independent software vendors (ISVs), Oracle, PeopleSoft, and SAP. The study also profiles the services arms of the ISVs and the enterprise resource planning (ERP) practices of the leading systems integrators (SIs). Furthermore, the study analyzes the impact of Oracle's acquisition of PeopleSoft on the SIs practices and strategy, and makes recommendations for SIs and the services arms of the ISVs competing in this market.