IT INDUSTRY COVERAGEAnnual Analysis of the Annex Research 1998 Industry Coverage To Up Over from Down Under IT Services Topics Continue to Dominate; EDS Ends 1998 with a Bang!
WESTERN AUSTRALIA, Jan. 1 - First of all, happy new year 1999 from Down Under to all of you! True enough, things around here may seem to you to be upside-down from your Up Over vantage point. But fret not. We've learned over the years to gaze at the global IT industry from just about any angle and perspective - up, down, over, under, lateral or collateral. J
Anyway, our 1998 "Bulletin on Bulletins" shows that most of the 1997 trends carried into 1998. The IT services topics continue to dominate all others, and at a greater margin. Back in 1997, these top-of-the-food-chain industry issues accounted for 27% of all Annex Bulletins. Last year, the IT services represented 30% of the total number of Annex Bulletins. The next highest category were the financial and stockmarket topics, which accounted for 20% of all Annex Bulletins, up from 18% in 1997.
Global trends, high-end and leasing topics were tied for the third place, at 9% each, roughly what they were in 1997, too. Software, midrange, general industry, and PC topics rounded out the rest of our 1998 IT industry coverage with 7%, 6%, 5% and 3% respectively.
Overall, strategic issues concerning the services and software companies, along with the global and industry trends, accounted for one half of the total coverage. Corporate/financial reports represented 32% of the Annex Bulletins' topics in 1998, roughly the same share as in 1997 (31%). But our technology analysis moved up slightly - from 15% to 18%.
IBM continued to dominate the Annex Bulletin scene with 25% of the total issues devoted to its financial and corporate travails. But even that's a story within a story, as they say.
In the 1980s, the Big Blue used to figure in 70% or more of the topics which the Annex Bulletins covered. Since we tend to follow the IT industry leaders, IBM's shrinking share of our coverage is, therefore, commensurate with its declining influence on the global IT industry trends.
EDS was the next most frequently analyzed vendor in 1998, figuring in a title role in 11% of the Annex Bulletins. Global and leasing trends (ICC) accounted for 9%; while CSC, Compaq and general IT industry analyses each starred in 7% of our coverage.
Amdahl and Andersen Consulting were featured in 5% of the Annex Bulletins respectively, while Cap Gemini, Microsoft, CA, Unisys, Sun Microsystems and Novell had just over 2% of our coverage dedicated to their business issues.
Of course, things are never as cut and dried as raw statistics would lead one to believe. Preceding figures should be viewed as the minimum coverage shares for each vendor, as most of our reports analyze issues which concern multiple companies' in the same or related markets.
EDS Ends 1998 with a Bang
One way to start a new year in a festive mood is to finish the old one with a bang. Which is exactly what EDS did on Dec. 30 when it won the $1 billion, seven-year, State of Connecticut "megadeal." beating out its two top U.S. rivals - IBM and CSC, as well as Connecticut State Employees Association.
EDS said that it would take at least six months before the contract is formally executed, following an audit review and approval by the Connecticut General Assembly.
Connecticut's outsourcing of its IT services marks the first time that a U.S. state has solicited bids from private companies to run its information technology. Perhaps more states may also take a cue from a 1997 idea, outlined in this writer's Nov. 6, 1997 letter to the New York Times. Here's an excerpt:
" So why not take a cue from business, and outsource the whole darn federal government?
It's been done before, and successfully at that. EDS, for example, is practically running the British government. Much more efficiently than the civil servants did. And the business is booming.
In the end, everybody wins: The taxpayers are happy because they save money. The EDS shareholders are happy because the company makes money.
But there would be a few unhappy losers, too - the crooked politicians and some laid-off government bureaucrats. But then, they are losers even now while in the federal government.
Bob Dj."Happy New Year!
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Editor: Bob Djurdjevic
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