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Posts Tagged ‘IBM’

Survival Strategies for the Startups in Current Financial turmoil

Posted by vishalsinghal on October 15, 2008

You need to build your business, or your portfolio, based on underlying fundamentals that will carry you through good times — and bad.

Here are a few things Bryan Roberts thinks all entrepreneurs should do now:

1) Reaffirm the value-creating milestones for your business.

2) Focus your capital on hitting them in the most efficient way possible.

3) Ensure that your current cash is safe. Is it invested in stable corporate bonds (like GE)? Or is it sitting in financial institutions, even the finance arms of manufacturing companies (like GMAC)? Are your lenders likely to deliver money they have agreed to lend? Do your investors have reserves for future rounds?

4) Look at your burn rate to make sure current expense rates still make sense. This has more urgency for later-stage companies that are selling a product, but those in R&D mode should always be thrifty.

5) Lead. Reaffirm the viability and vision of your company to the troops. This will counterbalance people’s tendencies to worry about their jobs and dreams, even decrease the time spent watching stock tickers.

However, while funding will be harder to come by, there will continue to be capital available for really great companies and good ideas. Keep in mind that many of our greatest companies were founded during, or toward the end of, recessions, among them IBM, Hewlett-Packard and Microsoft

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The Top 10 Systems Integrators

Posted by vishalsinghal on October 15, 2008

IDC just published a report that lists of the top 10 systems integration vendors.

Among the findings in the report:

  • Accenture and IBM Global Services are the biggest SI firms in the world and are virtually tied as the industry leaders – there’s less than a 0.01% difference in market share between them.
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  • The U.S. market is dominated by Lockheed Martin, CSC, and SAIC, companies that IDC says do a lot of business with the federal government. 
  • Like just about every other market, the first quarters of 2009 should show what kind of affect the current economic turmoil will have on the market.

“Infrastructure improvement, including data center consolidation and virtualization, application consolidation, and data consolidation, was most frequently mentioned by IT executives as a priority aimed at achieving lower-cost and higher-performance IT,” Zaidi said. “Many U.S. IT organizations are already reducing their spending for 2008 and for 2009, with more than half of the executives citing existing negative impact on their budget from the economy. Further, IT executives indicated that funding is moving back to being more centralized, in part for better control and efficiency. However, IDC notes that as far as the strategic SI projects are concerned, the SI market will not slow down per se, as companies continue to carry out mission-critical SI projects.”

I read somewhere that top 50 fortune companies have budgets of $2 billion and if they outsource their infrastructure management, this alone will save them close to $500 million, the savings which cannot be ignored.

Top 10 SI Services Vendors (Worldwide)
(In alphabetical order; based on 2007 market share)

Accenture
Capgemini
CSC
Fujitsu
Hitachi
IBM
Lockheed Martin
NEC
Northrop Grumman
SAIC
Source: IDC

Top 10 SI Service Vendors (U.S.)
(In alphabetical order; based on 2007 market share)

Accenture
BearingPoint
CSC
IBM
Lockheed Martin
Northrop Grumman
Oracle
SIAC
SAP
Unisys
Source: IDC

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