Verdantix, the sustainable business analyst firm, has come up with a list of ten carbon and energy management software providers that it believes will benefit most from the growth in market spending in 2011. The ten are CA Technologies, CarbonSystems, Enablon, Enviance, Hara, IHS, ProcessMAP, SAP, TRIRIGA and Verisae.
The list comes from a study based on 28 live product demonstrations involving 99 assessment criteria that went into the Verdantix’s Green Quadrant Carbon And Energy Management Software report. The products included were those offered by suppliers with at least five named $1 billion revenue customers. As well as things like data capture, supply chain emissions, organisation modelling, workflow, carbon emissions calculation engines, etc. the assessment also scored each supplier on market vision, product strategy, architecture, customer momentum, value delivery, financial resources and implementation partnerships.
Peter Charville-Mort, author of the report, said; “According to our customer interviews, the biggest change with corporate buyers in 2010 has been a shift from tactical carbon accounting to strategic energy and carbon management. Buyers also want advanced carbon management tools for target setting, forecasts and audits. This explains why some carbon management software deals exceeded $10m in 2010.”
Other report findings were:
Many potential buyers only need basic functionality but expect suppliers to offer a roadmap for more advanced functionality.
Some firms have more sophisticated requirements for use by Chief Sustainability Officers and CFOs.
Software suppliers are raising funds to out-innovate the competition with greater ability to address energy reductions.
Aside from C3 and Oracle, no new entrants will succeed in an over-crowded and intensely competitive market.
As the report points out, this is a highly competitive market so consolidation is expected, with the market leaders pulling away from the field. This report will help that move.
An interesting comment is that suppliers are trying to out-innovate each other, pushing product functionality and capabilities. But as yet, users don’t really want that functionality, but think they might need it in the future. It’s not a recipe for making money in the market if you’re not one of these leaders.