According to research from Verdantix, CA Technologies, CarbonSystems, IBM and Verisae are the leading providers in the enterprise-scale energy management software market. The finding comes from the company’s Green Quadrant Energy Management Software 2011 report, which benchmarks 15 applications selected from more than 60 identified globally.
It’s an in-depth analysis based on live product demonstrations, supplier responses to a 115 point questionnaire and in-depth interviews with buyers of energy management software representing firms with combined revenues of $306bn.
The report also notes a number of fast-moving new entrants to the market, including C3, Hara, Infor, JouleX and SAP. Verdantix says that these suppliers have strong product roadmaps and innovation strategies (Joulex is a company that I have reported on several times this year already).
However, David Metcalfe, Verdantix CEO, said that “In the scramble to win market share in the enterprise-scale energy management software market some suppliers adopted a ‘boil the ocean’ product strategy offering functionality for every conceivable energy domain. Our research suggests that a product strategy focused on one or two energy domains is the most successful for suppliers and their customers”.
The research also forecasts that the US market for energy software will be worth $660m in 2014 and will reach a 51% compound annual growth rate over the five years from 2010 to 2014.
Well the market growth rate predicted by the report shows just why this is an attractive and competitive green IT sector. Any annual compound growth rate of over 50% is almost unheard of in these economic times.
But the finding that it’s better to focus on one or two energy domains is interesting. There has certainly been an inclination in the market, at least among ‘pure-play’ suppliers, to try and be all things to all people. If Verdantix is right then it’s not the best strategy. Companies like CA and IBM have a focused market approach and sector experience to back their solutions and also benefit from having the scale for global deployment of solutions.