EAM/CMMS Software &

Services Worldwide
Outlook
MARKET ANALYSIS AND FORECAST
THROUGH 2005
 ARC Advisory Group
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© Copyright 2001
by ARC Advisory Group
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 Copyright  2001
ARC Advisory Group
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 EAM/CMMS Software & Services • Table of Contents

Table of Contents

List of Figures.............................................................................................................................................A
ARC Services...............................................................................................................................................a

1. Executive Overview......................................................................................................................... 1-1

Scope............................................................................................................................................ 1-2
Market Size and Forecast .......................................................................................................... 1-2
Strategies and Recommendations for Success ....................................................................... 1-6
Market ROI and ROA......................................................................................................... 1-6
Market Vertical Industry Solutions .................................................................................. 1-7
Utilize the Internet for a Broader Portfolio of Portals.................................................... 1-8
Offer a Portfolio of ASP Services and Take Ownership ................................................ 1-9
Offer eMRO Solutions ...................................................................................................... 1-10

2. Scope .................................................................................................................................................. 2-1

Key Issues Researched .............................................................................................................. 2-3
Market Size and Forecast Definitions ..................................................................................... 2-3
EAM/CMMS Business Model Segments......................................................................... 2-4
Key Supplier Segments ...................................................................................................... 2-4
Key End-User Segments..................................................................................................... 2-5
Key Regional Segments...................................................................................................... 2-5
Key Currency Factors ......................................................................................................... 2-6
Key Industry Segments ...................................................................................................... 2-6
The ASP Model.................................................................................................................... 2-7
The eMRO Model................................................................................................................ 2-7
Standard Industry Code Classifications .......................................................................... 2-8

3. Market Shares................................................................................................................................... 3-1

Leading Suppliers Of EAM/CMMS, ASP, and eMRO......................................................... 3-2
Total EAM/CMMS Market- Licenses/Services, ASP, and eMRO............................... 3-3
Distribution Of EAM/CMMS, ASP, and eMRO Revenue Options ............................. 3-4
Leading Suppliers Of EAM/CMMS Software & Services By Region ................................ 3-4
Worldwide ........................................................................................................................... 3-5
North America..................................................................................................................... 3-5
Europe, Middle East, & Africa (EMEA)........................................................................... 3-6
Asia ....................................................................................................................................... 3-6
Latin America ...................................................................................................................... 3-7

Leading Suppliers Of EAM/CMMS By Services .................................................................. 3-7

Distribution Of Services By Type...................................................................................... 3-8
Leading Suppliers Of EAM/CMMS Services ................................................................. 3-8
Leading Suppliers Of EAM/CMMS Maintenance Services.......................................... 3-9
Leading Suppliers Of EAM/CMMS Consulting Services............................................. 3-9
Leading Suppliers Of EAM/CMMS Implementation Services .................................... 3-9

Copyright 2001 © ARC Advisory Group •i

Table of Contents • EAM/CMMS Software & Services

Leading Suppliers Of EAM/CMMS Software By Tier........................................................3-10

Tier 1 ....................................................................................................................................3-11
Tier 2 ....................................................................................................................................3-11
Tier 3 ....................................................................................................................................3-11
Leading Suppliers Of EAM/CMMS Software By Computing Environment ..................3-12
Client/Server......................................................................................................................3-12
Networked PCs ..................................................................................................................3-12
Internet ................................................................................................................................3-13
Leading Suppliers Of EAM/CMMS Software By Operating System ...............................3-13
Windows NT ......................................................................................................................3-14
UNIX....................................................................................................................................3-14
Windows 3.x and 9x ..........................................................................................................3-14
Leading Suppliers Of EAM/CMMS Software By Database...............................................3-15
Oracle...................................................................................................................................3-15
Microsoft SQL Server ........................................................................................................3-15

Leading Suppliers Of EAM/CMMS Software & Services By Sector.................................3-16

Distribution of EAM/CMMS Software By Sector.........................................................3-16
Manufacturing Sector........................................................................................................3-16
Process Manufacturing Sector..........................................................................................3-17
Discrete Manufacturing Sector ........................................................................................3-17
Other Sectors ......................................................................................................................3-17
Leading Suppliers Of ASP Services .......................................................................................3-18
Worldwide ..........................................................................................................................3-18
Distribution Of ASP Service Types .................................................................................3-19
Leading Suppliers eMRO Software & Services ....................................................................3-19
Distribution Of eMRO Revenues.....................................................................................3-20
Total Worldwide eMRO Software And Services...........................................................3-20

4. Market Analysis and Forecast ........................................................................................................4-1

Total Shipments of EAM/CMMS, ASP, and eMRO Software and Services ......................4-1
Distribution of EAM/CMMS, ASP, & eMRO Software and Services ..........................4-2
Shipments of EAM/CMMS, ASP, and eMRO Software and Services by Region .............4-2
Shipments of EAM/CMMS Software & Services...................................................................4-3
Factors Contributing to EAM/CMMS Market Growth ........................................................4-4
Tier 2 and Tier 3 Companies Need EAM/CMMS Solutions .........................................4-4
EAM/CMMS Provide Real ROI and ROA Benefits........................................................4-5
EAM/CMMS Market Being Addressed by “New” Companies ...................................4-5
ERP Vendors Are More Active with Asset Management ..............................................4-6
Increased Level of Services.................................................................................................4-7

Factors Inhibiting EAM/CMMS Market growth ...................................................................4-7

Tier 1 Is Saturated ................................................................................................................4-7
The ASP Model ....................................................................................................................4-8
Europeans’ Slow Pace of Readiness for the Euro ............................................................4-8
Shipments of EAM/CMMS Software and Services by Region ............................................4-8
North America......................................................................................................................4-9
EMEA (Europe, Middle East, Africa)................................................................................4-9
Asia ........................................................................................................................................4-9
Latin America .......................................................................................................................4-9

ii • Copyright 2001 © ARC Advisory Group

 EAM/CMMS Software & Services • Table of Contents

Shipments of EAM/CMMS Software and Services by Tier................................................. 4-9

Tier 1 ................................................................................................................................... 4-10
Tier 2 ................................................................................................................................... 4-10
Tier 3 ................................................................................................................................... 4-10
Shipments of EAM/CMMS Software by Computing Environment ................................ 4-10
Client/Server ..................................................................................................................... 4-11
Networked PCs ................................................................................................................. 4-11
Internet ............................................................................................................................... 4-11
Shipments of EAM/CMMS Software by Application Platform........................................ 4-11
Microsoft High-End Windows........................................................................................ 4-12
UNIX/Linux ...................................................................................................................... 4-12
Microsoft Low-End Windows ......................................................................................... 4-12

Shipments of EAM/CMMS Software by Industry Sectors ................................................ 4-12

Shipments of EAM/CMMS Software by Process Industries............................................. 4-13
Electric Utilities ................................................................................................................. 4-14
Pulp & Paper...................................................................................................................... 4-14
Metals & Mining................................................................................................................ 4-14
Shipments of EAM/CMMS Software by Discrete Industries............................................ 4-14
Automotive ........................................................................................................................ 4-14
Aerospace/Defense .......................................................................................................... 4-15
Electronics .......................................................................................................................... 4-15
Shipments of EAM/CMMS Software by Other Industries................................................ 4-15
Facilities Management...................................................................................................... 4-16
Transportation ................................................................................................................... 4-16

Shipments of EAM/CMMS Software by Sales Channel .................................................... 4-16

Direct Sales......................................................................................................................... 4-16
Internet ............................................................................................................................... 4-17
ASP Services ............................................................................................................................. 4-17
Shipments of ASP Services ..................................................................................................... 4-18
Factors Contrinuting to ASP Market Growth ...................................................................... 4-19
User Economic Benefits.................................................................................................... 4-19
More Suppliers Offering ASP.......................................................................................... 4-19
Factors Inhibiting ASP Market growth................................................................................. 4-19
User’s Mistrust of Internet Security and Off-site Data ................................................ 4-19
No Installed Base............................................................................................................... 4-20
Shipments of ASP Services by Type...................................................................................... 4-20
Hosting ............................................................................................................................... 4-20
Leases.................................................................................................................................. 4-21

Shipments of ASP Services by Region .................................................................................. 4-21

North America................................................................................................................... 4-21
EMEA.................................................................................................................................. 4-21
eMRO Software and Services ................................................................................................. 4-21
Maintenance and Repair .................................................................................................. 4-22
Shipments of eMRO Software and Services......................................................................... 4-22
Factors Contrinuting to eMRO Market Growth .................................................................. 4-23
E-procurement Marketing Hype..................................................................................... 4-23
More EAM/CMMS Vendors to Open Marketplaces ................................................... 4-24

Copyright 2001 © ARC Advisory Group •iii

Table of Contents • EAM/CMMS Software & Services

Factors Inhibiting eMRO Market growth..............................................................................4-24

eMRO Does Not Expand Outside of North America ...................................................4-24
EAM/CMMS Suppliers Don’t Aggressively Pursue the eMRO Model.....................4-24
Shipments of eMRO Software and Services by Type ..........................................................4-25
Software ..............................................................................................................................4-25
Services................................................................................................................................4-25
Marketplace ........................................................................................................................4-25

5. Supplier Profiles...............................................................................................................................5-1
Adasoft .........................................................................................................................................5-2
ADB Systems...............................................................................................................................5-3
Advanced Software Designs .....................................................................................................5-4
AXS-One ......................................................................................................................................5-5
BAE Systems/IFS (Paradigm)..................................................................................................5-6
Benchmate Systems ....................................................................................................................5-7
Bender Engineering....................................................................................................................5-8
Cayenta EAM Solutions Group ................................................................................................5-9
Ceecom.......................................................................................................................................5-10
CHAMPS Software...................................................................................................................5-11
CK Systems................................................................................................................................5-12
COGZ Systems, LLC ................................................................................................................5-13
Comac Systems Ltd. .................................................................................................................5-14
Datastream.................................................................................................................................5-15
Desktop Innovations ................................................................................................................5-16
DP Solutions ..............................................................................................................................5-17
Eagle Technology......................................................................................................................5-18
EDS .............................................................................................................................................5-19
Engica Technology ...................................................................................................................5-20
EPAC Software Technologies .................................................................................................5-21
ESBI Computing .......................................................................................................................5-22
eXegeSys ....................................................................................................................................5-23
FBO Systems..............................................................................................................................5-24
Fleetware....................................................................................................................................5-25
Fluor TabWare ..........................................................................................................................5-26
Four Rivers Software Systems ................................................................................................5-27
Frontek Maintenance Systems ................................................................................................5-28
fsc limited...................................................................................................................................5-29
GEAC Computer Corporation Limited .................................................................................5-30
Gores Technology Group (Revere).........................................................................................5-31
GP Solutions ..............................................................................................................................5-32
IFS Industrial and Financial Systems.....................................................................................5-33
Indus International ...................................................................................................................5-34
Integrated Software ..................................................................................................................5-35
Intentia .......................................................................................................................................5-36
Invata International - Corrigo .................................................................................................5-37
Ivara............................................................................................................................................5-38
JD Edwards................................................................................................................................5-39
Juan J. Rigau & Associates.......................................................................................................5-40
Mainpac Pty Ltd........................................................................................................................5-41
Maintenance Experts (MEX) ...................................................................................................5-42

iv • Copyright 2001 © ARC Advisory Group

 EAM/CMMS Software & Services • Table of Contents

Mapcon Technologies Inc. (MTI)........................................................................................... 5-43

Mapics ....................................................................................................................................... 5-44
Masterlink ................................................................................................................................. 5-45
Mat-Man Systems .................................................................................................................... 5-46
MicroMain................................................................................................................................. 5-47
MicroTex ................................................................................................................................... 5-48
Microwest Software Systems.................................................................................................. 5-49
Mincom ..................................................................................................................................... 5-50
Miquest...................................................................................................................................... 5-51
MRO Software .......................................................................................................................... 5-52
MTAS Limited.......................................................................................................................... 5-53
NTech ........................................................................................................................................ 5-54
Ounce of Prevention................................................................................................................ 5-55
Perceptron................................................................................................................................. 5-56
Phoenix Data Systems ............................................................................................................. 5-57
Plannsoft Management Solutions.......................................................................................... 5-58
PMI Software ............................................................................................................................ 5-59
PsiSoft (Project Services International) ................................................................................. 5-60
Ramco Systems......................................................................................................................... 5-61
SAP............................................................................................................................................. 5-62
Servidyne .................................................................................................................................. 5-63
Shire Systems............................................................................................................................ 5-64
SIVECO GROUP ...................................................................................................................... 5-65
Small Maintenance Software.................................................................................................. 5-66
Soft Solutions............................................................................................................................ 5-67
Somax ........................................................................................................................................ 5-68
Spear Technologies .................................................................................................................. 5-69
SpecTech Inc. ............................................................................................................................ 5-70
Strategic Maintenance Planning ............................................................................................ 5-71
Synergen.................................................................................................................................... 5-72
Tecnica Aplicada Internacional.............................................................................................. 5-73
TMA Systems ........................................................................................................................... 5-74
Wintercress ............................................................................................................................... 5-75
Wolfson Maintenance.............................................................................................................. 5-76
Wonderware ............................................................................................................................. 5-77

Appendix A: Methodology

Appendix B: Common Industry Terminology and Abbreviations

Copyright 2001 © ARC Advisory Group •v

Table of Contents • EAM/CMMS Software & Services

vi • Copyright 2001 © ARC Advisory Group

 EAM/CMMS Software & Services • List of Figures

List of Figures

3-1 Leading Suppliers Of EAM/CMMS, ASP, & eMRO Software & Services ...................... 3-21
3-2 Leading Suppliers Of EAM/CMMS Software & Services Worldwide ............................ 3-22
3-3 Leading Suppliers Of EAM/CMMS Software & Services In North America ................. 3-23
3-4 Leading Suppliers Of EAM/CMMS Software & Services In EMEA................................ 3-24
3-5 Leading Suppliers Of EAM/CMMS Software & Services In Asia.................................... 3-25
3-6 Leading Suppliers Of EAM/CMMS Software & Services In Latin America................... 3-26

3-7 Leading Suppliers Of EAM/CMMS Services ...................................................................... 3-27

3-8 Leading Suppliers Of EAM/CMMS Maintenance Services .............................................. 3-28
3-9 Leading Suppliers Of EAM/CMMS Consulting Services.................................................. 3-29
3-10 Leading Suppliers Of EAM/CMMS Implementation Services......................................... 3-30
3-11 Leading Suppliers Of EAM/CMMS Software In Tier 1 ..................................................... 3-31
3-12 Leading Suppliers Of EAM/CMMS Software In Tier 2 ..................................................... 3-32
3-13 Leading Suppliers Of EAM/CMMS Software In Tier 3 ..................................................... 3-33

3-14 Leading Suppliers Of EAM/CMMS Software By Client/Server...................................... 3-34

3-15 Leading Suppliers Of EAM/CMMS Software By Networked PCs .................................. 3-35
3-16 Leading Suppliers Of EAM/CMMS Software By Internet ................................................ 3-36
3-17 Leading Suppliers Of EAM/CMMS Software On Windows NT...................................... 3-37
3-18 Leading Suppliers Of EAM/CMMS Software On UNIX................................................... 3-38
3-19 Leading Suppliers Of EAM/CMMS Software On Windows 3.x & 9.x ............................ 3-39
3-20 Leading Suppliers Of EAM/CMMS Software On Oracle.................................................. 3-40
3-21 Leading Suppliers Of EAM/CMMS Software On SQL Server ......................................... 3-41

3-22 Leading Suppliers Of EAM/CMMS Software In Manufacturing..................................... 3-42

3-23 Leading Suppliers Of EAM/CMMS Software In Process Industries ............................... 3-43
3-24 Leading Suppliers Of EAM/CMMS Software In Discrete Industries.............................. 3-44
3-25 Leading Suppliers Of EAM/CMMS Software In Other Industries .................................. 3-45
3-26 Leading Suppliers Of EAM/CMMS ASP Services.............................................................. 3-46
3-27 Leading Suppliers Of EAM/CMMS Software & Services For eMRO .............................. 3-47

4-1 Total Shipments Of EAM/CMMS, ASP, And eMRO Software & Services..................... 4-26
4-2 Total Shipments Of EAM/CMMS, ASP, And eMRO Software & Services..................... 4-27
4-3 Shipments Of EAM/CMMS, ASP, And eMRO Software And Services By Region ....... 4-28
4-4 Shipments Of EAM/CMMS, ASP, And eMRO Software And Services By Region ....... 4-29
4-5 Shipments Of EAM/CMMS Software & Services............................................................... 4-30
4-6 Shipments Of EAM/CMMS Software & Services............................................................... 4-31
4-7 Shipments Of EAM/CMMS Software & Services............................................................... 4-32

4-8 Shipments Of EAM/CMMS Software & Services By Region............................................ 4-33

4-9 Shipments Of EAM/CMMS Software & Services By Region............................................ 4-34
4-10 Shipments Of EAM/CMMS Software & Services By Tier ................................................. 4-35
4-11 Shipments Of EAM/CMMS Software & Services By Tier ................................................. 4-36
4-12 Shipments Of EAM/CMMS Software By Computing Environment ............................... 4-37
4-13 Shipments Of EAM/CMMS Software By Computing Environment ............................... 4-38

Copyright 2001 © ARC Advisory Group •A

List of Figures • EAM/CMMS Software & Services

4-14 Shipments Of EAM/CMMS Software By Application Platform .......................................4-39

4-15 Shipments Of EAM/CMMS Software By Application Platform .......................................4-40
4-16 Shipments Of EAM/CMMS Software By Industry Sector .................................................4-41
4-17 Shipments Of EAM/CMMS Software By Industry Sector .................................................4-42
4-18 Shipments Of EAM/CMMS Software By Process Industries ............................................4-43
4-19 Shipments Of EAM/CMMS Software By Discrete Industries ...........................................4-44
4-20 Shipments Of EAM/CMMS Software By Other Industries ...............................................4-45

4-21 Shipments Of EAM/CMMS Software By Sales Channel....................................................4-46

4-22 Shipments Of EAM/CMMS Software By Sales Channel....................................................4-47
4-23 Shipments Of ASP Services .....................................................................................................4-48
4-24 Shipments Of ASP Services By Type .....................................................................................4-49
4-25 Shipments Of ASP Services By Type .....................................................................................4-50
4-26 Shipments Of ASP Services By Region..................................................................................4-51
4-27 Shipments Of ASP Services By Region..................................................................................4-52

4-28 Shipments Of eMRO Software And Services........................................................................4-53

4-29 Shipments Of eMRO Software And Services........................................................................4-54
4-30 Shipments Of eMRO Software And Services By Type ........................................................4-55
4-31 Shipments Of eMRO Software And Services By Type ........................................................4-56

B • Copyright 2001 © ARC Advisory Group

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 EAM/CMMS Software & Services • Executive Overview

Chapter 1:
Executive Overview

The Enterprise Asset Management (EAM) and Computerized Maintenance

Management System (CMMS) market is the most enduring of all enterprise
application software arenas, and this is reflected in the fact that a number of
today’s suppliers were founded more than 25 years ago. While some of the
early CMMS companies continue to remain small private
CMMS companies, they continue to survive in a market The EAM/CMMS segment is the
segment that now also includes more comprehensive most enduring of all the enterprise
and robust EAM and ERP (Enterprise Resource Plan- application sectors, because these
manufacturing solutions go back
ning) solutions for managing the assets of a global
more than 30 years, and many of
enterprise. And, while this highly competitive market
today’s suppliers were founded
segment has more than 250 suppliers with in excess of more than 25 years ago.
400 maintenance applications, more companies continue
to enter this sector each and every year.

The leading EAM/CMMS vendors include the world-class best-of-breed

EAM suppliers like Indus International, MRO Software, Mincom, Data-
stream, and Wonderware, as well as ERP suppliers like IFS, SAP, Intentia,
and JD Edwards.

The EAM/CMMS sector is unique in that while its roots are in manufactur-
ing, it has easily spanned the spectrum from Tier 3 users up to Tier 1. In fact,
it was the Tier 1 space that was very successful for the leading best-of-breed
EAM suppliers and ERP vendors in the late 90s. However, Tier 1 is satu-
rated, and all solutions are now focusing on Tier 2 and Tier 3. The
EAM/CMMS solutions have also easily transitioned into other sectors with
assets other than manufacturing plant, equipment, and processes. It has
found strong markets in Government, Telecommunications, Facility Man-
agement, and Transportation.

The recent success of the EAM/CMMS solutions is directly related to the

strong corporate concentration on profitability, because the EAM/CMMS
solutions are the only ones where a quick and substantial ROI can be real-
ized. More importantly, these solutions are paramount for a successful ROA
on capital intensive assets that are found in the process industries.

Services have always played a major role in enterprise-wide solutions, and

that is very evident in the EAM/CMMS sector, where revenues from services

Copyright 2001 © ARC Advisory Group • 1-1

Executive Overview • EAM/CMMS Software & Services

account for two-thirds of the total revenue. When there are more than 400
applications on the market, the key differentiator becomes services. In this
space it became even more evident in 2000 as revenues from software li-
censes flattened out while the services continued to grow strong. 2000 was
also a transitional year for most suppliers, as they introduced alternative
business models for ASP (Application Service Provider) and eMRO (Mainte-
nance, Repair, Operation) through on-line e-procurement.

Scope

This study quantifies, analyzes, and forecasts the market for EAM/CMMS
software licenses and associated services, and this is the core analysis of the
study, and within the study chapters is referred to as “EAM/CMMS.” The
study also analyzes the ASP and eMRO models with relationship to the solu-
tions from the EAM/CMMS suppliers. Base year market size segmentations
and forecasts are presented. Data on market size and segmentation were de-
rived from interviews with major suppliers of EAM/CMMS software and
services around the world. Forecasts were generated from a combination of
user survey results regarding current and anticipated software strategies and
ARC's assessment of the potential for growth in each segment. Dollar fore-
casts are given in current dollars and are based on an inflation rate of about
three percent.

Market Size and Forecast

EAM/CMMS, ASP, and eMRO software and related services, which ex-
ceeded $1.3 billion in 2000, are forecasted to reach $1.9 billion in 2005 with a
CAGR of just less than 8 percent
2,500

1,907
Revenues from EAM/CMMS, ASP and eMRO
2,000
1,719 software licenses and services amounted to
1,583
1,478
1,394
1,500 1,327 $1.3 billion million in 2000. With a CAGR of 8
percent, this market will grow to $1.9 billion in
1,000
2005. The EAM/CMMS portion accounted for
500 more than 95 percent of total market revenues
in 2000. The revenues for EAM/CMMS ser-
0
2000 2001 2002 2003 2004 2005 vices, which have exceeded license revenues
EAM/CMMS, ASP, and eMRO Forecast since 1997, reached $796 million in the base
Millions of Dollars

1-2 • Copyright 2001 © ARC Advisory Group

 EAM/CMMS Software & Services • Executive Overview

year. The service revenues come from consulting, implementation, software

maintenance contracts, and training. Revenues not associated with package
sales, such as development of custom software, are excluded.

EAM/CMMS service revenues will continue to grow faster than the license
revenues, and with a CAGR of 6 percent, will exceed $1 billion in 2005. Over
the same period, the license revenue will grow to just over $534 million at a
CAGR of 3 percent.

The eMRO model is supported by just a few EAM/CMMS suppliers, but it

represents more than 3 percent of the total for 2000. With a CAGR of 21 per-
cent, this model will grow to exceed $115 million in 2005.

In 2000, the ASP model accounted for $25 million, or just 2 percent of the to-
tal revenues in this space. However, ARC believes this is strong sector for
the EAM/CMMS market and sees the CAGR of 47 percent to bring the ASP
revenues to $175 million in 2005.
I ndus I nt 'l 11.5%
It should be no surprise that the
MR O Soft ware 11.1%
top eight market share slots of I FS 10.3%
EAM/CMMS software and ser- M incom 8.7%
vices are split between four best- SA P 7.8%
Dat ast ream 7.6%
of-breed providers – Indus Inter-
I nt ent ia 7.2%
national, MRO Software, Mincom,
JD E dwards 4.2%
and Datatstream – and four ERP
W onderware 2.4%
suppliers – IFS, SAP, Intentia, and Spear T echnologies 1.1%
JD Edwards. They are all public DP Solut ions 1.0%
companies that have been pushing 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0%
the envelope with new technolo-
EAM/CMMS Market Share
gies and functionality that have
expanded the footprint into what we now know as EAM.

Indus International, headquartered in San Francisco, California, is a very

formidable force in the industry and is the leading supplier of EAM software
and services with a market share in excess of 11 percent. The company still
maintains its two-product offerings, PASSPORT and Enterprise MPAC, but
is able to provide the best of both worlds through its Indus Solution Series
strategy.

Following Indus International is the Bedford, Massachusetts-based MRO

Software, and previously called PSDI. The company, which has been an in-
novative technology leader on many fronts, was the first EAM supplier to

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Executive Overview • EAM/CMMS Software & Services

adopt the client/server technology in the early 90’s, and has been leading the
way with eMRO service offerings through its subsidiary MRO.com.

IFS, the Swedish ERP vendor, has a formidable asset management suite
within its overall ERP suite of applications, and in recent years has aggres-
sively attacked the asset management market. As a result, is a global
competitor who has done extremely well in the electric utilities sector due to
some large contracts in eastern and central Europe. The company also has a
focus on aerospace MRO.

EAM/CMMS solutions are provided by hundreds of large and small suppli-

ers to users across a wide range of applications. These users range from very
large Fortune 500 companies to very small facilities management environ-
ments. In an effort to better understand who is providing what types of
solutions to what segment of users, ARC divides the end-user space into
three Tiers. Tier 1 represents users who have an annual turnover in excess of
$1 billion, while Tier 2 represents users with annual revenues of $250 million
to $1 billion. Tier 3 is comprised of users with less than $250 million in an-
nual sales.

More than 47 percent of the $1.26 billion in revenue from EAM/CMMS soft-
ware and services in 2000 came from Tier 1. These implementations tend to
be very large enterprise asset management solutions provided by the best-of-
breed suppliers. Tier 1 has become saturated and has a CAGR of only three-
tenth of a percent through 2005.

2000 2000 2005 2005 CAGR

$ Million Perrcent
Pe $ Millions Percent

Tier 1 600.3 47.7% 609.8 37.7% 0.3%

Tier 2 520.2 41.4% 754.9 46.7% 7.7%

Tier 3 137.0 10.9% 252.3 15.6% 13.0%

Total 1,257.5 100.0% 1,617.0 100.0% 5.2%

EAM/CMMS Software and Services by Tier

Tier 2 represents 41 percent of all the software and services revenues in 2000,
and this segment will gain five percentage points over the next five years on

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 EAM/CMMS Software & Services • Executive Overview

a CAGR slightly less than 8 percent. All of the EAM/CMMS suppliers, in-
cluding the ERP players, are now selling into this market. A majority of the
solutions tend to be more traditional CMMS software, but the segment is
quite broad and does have a lot of users looking for EAM solutions from
best-of-breed suppliers and ERP providers.

Tier 3, where most of the unit volume is, accounts for 11 percent of the reve-
nues, and this tier will grow to 16 percent in 2005 at a CAGR of 13 percent.
In this segment, the users tend to be very small maintenance shops wanting
to computerize their processes and better manage the work orders and in-
ventory. A lot of the facility management opportunities fall into this
segment, but there are many small manufacturers who still need to better
address the management of their assets.

North America is by far the largest EAM/CMMS

9.0% 3.7%
market for a number of reasons. It is highly indus-
trialized, technologically innovative, focused on
short-term, bottom-line results, and is the head-
31.4% 55.9%
quarters for many global enterprises. As a result,
North America has commanding 56 percent of the
market for EAM/CMMS software and services so-
N. A mer. EM EA A s ia L . A mer.
lutions. The North American market is lead by
Indus International with more than 17 percent of Regional Distribution of EAM/CMMS
the market. MRO Software is number two with 13 Software & Services in 2000
percent and Datastream is third with 9 percent
share.

Europe, including the Middle East and Africa (EMEA), is a distant second
with more than 31 percent. The European-based ERP suppliers dominate the
top three slots, with IFS holding a strong leadership position at 28 percent.
Intentia ranks second with 19 percent, and SAP follows at 12 percent.

The Asia/Pacific region, including China and India, is well behind Europe,
but still has a very respectable 9 percent market share. The Australian EAM
supplier, Mincom, has had a strong presence and installed base in this region
for many years, and it currently enjoys a commanding leadership position
with more than 40 percent of the market. Intentia ranks second in the
Asia/Pacific market with a strong 9 percent share followed by MRO Soft-
ware in third place with less than 9 percent.

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Executive Overview • EAM/CMMS Software & Services

Latin America, the sleeping EAM/CMMS giant, has just 4 percent of the total
EAM/CMMS market. Mincom has established a strong presence throughout
South America, leveraging its mining expertise and solutions, and now main-
tains a market leadership position with a 21 percent share. Datastream
acquired Argentine CMMS supplier Computec Sistemas in 1998, and now
ranks second in Latin America with 15 percent. The internationally focused
MRO Software is third with 12 percent

Strategies and Recommendations for Success

In the base year of this study, as well as in previous years, many suppliers
had one of two very specific strategies for the EAM/CMMS market. The first
one was, acquire an existing EAM/CMMS company and/or product, and the
second was, change the name of the company to better reflect the
“New” EAM/CMMS
market we are in. Acquisitions are quite normal in the software in-
companies through an
acquisition or name dustry, as they are made to acquire an installed base, the
change: application, new technology, key personnel, presence in a geogra-
• AXS-One phy, or to eliminate a competitor.
• BAE Systems – IFS
• Cayenta Early this year, one of the leading best-in-class EAM vendors
• Ceecom changed its name to better reflect who the company has become
• Fleetware over the years, as well as where it is going with its long term strate-
• EPAC Software
gic direction. The company is MRO Software, previously known as
• Corrigo
PSDI (Project Software Development, Incorporated). The com-
• Mainpac Pty
• Masterlink pany’s new name, MRO Software, definitely reflects its
• MRO Software commitment to being the leading provider of solutions for stream-
• Perceptron lining the supply chain for maintenance, repair and operations
• SpecTech (MRO) materials, and in April 2001 announced it released its next
• Technica Aplicada generation of hosted products that will quickly and affordably e-
Internacional
Commerce enable distributors and manufacturers of industrial
parts and equipment. That’s a strategy.

Market ROI and ROA

The true purpose of EAM/CMMS solutions is to realize cost and productiv-
ity benefits through optimum utilization of tangible and intangible assets.
Traditional solutions focus on improving maintenance operations and offer
little feedback on the real measurable benefits. EAM solutions impact the
whole enterprise, not just maintenance. They truly manage the assets of the
enterprise offering significant payback. Suppliers need to offer vertical in-

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 EAM/CMMS Software & Services • Executive Overview

dustry market solutions with measurable ROI and ROA performance indica-
tors built into the software to allow the customers to quickly assess and
identify these benefits. Examples of useful EAM performance indicators
would be for improvements in productivity, inventory, reliability, response
times and maintenance costs.

There are two very basic areas where users

Performance indicators must be built into
can realize economic benefits towards ROI
software to measure ROI and ROA. New
and ROA. These are the highly visible cost
technologies and integration of other
reduction, and the somewhat hard to track enterprise applications can help improve ROI
cost avoidance. A reduction in spare parts and ROA measurements.
and maintenance inventory costs is typically
the first area targeted for ROI, and this is a major factor for the process flow
industries, such as utilities, oil & gas, pharmaceutical, steel, and chemical.
An oil refinery cannot affect the price of oil, so they have to play with the ex-
pense side, and spare parts inventory is usually open to huge savings. By
doing an analysis on safety stock levels, reordering levels, centralized vs sat-
ellite, and supplier channels, the manufacturer can start to realize benefits
within the first year. In these industries, a 5 percent savings in inventory
costs can result in savings of millions of dollars.

Cost avoidance is another area where additional savings are realized, but this
is less quantifiable than cost savings, like a reduction in inventory. There are
two elements associated with cost avoidance, and they are reduced equip-
ment downtime and better tradesman utilization. Reduced equipment
down time is difficult to really measure, because downtime is measurable in
many different ways: lost production, scrap, overtime, customer satisfaction,
and potentially even market share. This is even more difficult to appreciate,
because if there was no lost production as a result of improved maintenance
solutions, how can a cost avoidance value be identified? Over a longer pe-
riod of time, the decrease in downtime occurrences can be plotted, along
with an associated value.

Market Vertical Industry Solutions

Vertical industry solutions should be a standard part of the solution offering
by all EAM/CMMS suppliers, especially as they need to use this to differen-
tiate themselves from their competitors. The trend from a generic
EAM/CMMS solution to a tailored vertical industry solution has been evolv-
ing for a few years now, and it is has been adopted by many of the best-of-
breed EAM and ERP vendors. A number of EAM/CMMS solutions have

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Executive Overview • EAM/CMMS Software & Services

evolved from individual industries, like Indus International’s PassPort and

the electric utilities, and others have the industry solutions comprised of the
core EAM/CMMS application complemented by related third-party applica-
tions.

EAM suppliers must also wrap their core applications with complimentary
third party applications and services that address the specific needs of the
individual verticals to maximize the potential ROI and ROA benefits. Com-
prehensive EAM solutions must integrate with other enterprise applications
such as Condition Monitoring, Plant Asset Management, Knowledge Man-
agement, Supply Chain Management, and ERP to achieve true asset
optimization. Suppliers must strive to provide these more comprehensive
and beneficial EAM solutions through strategic alliances and acquisitions.

Very well structured industry solutions are evident in SAP’s Industry Solu-
tion Maps. Spear Technologies concentrates exclusively on transportation as
a vertical, and its solution is designed for managing moving and linear (track
or roadways) assets.

Utilize the Internet for a Broader Portfolio of Portals

Portals are an information source. They provide a window to a wide range
of related industry content and maintenance related web sites, like Reliability
Centered Maintenance (RCM) resource centers and industry standards
groups, like MIMOSA (the Machinery Information Manage-
Portals provide a window to a
wide range of related industry
ment Open Systems Alliance) and OPC (OLE for Process
content and maintenance Control). On the Portal there usually is EAM/CMMS prod-
related Web sites for the user. uct information and editorial content about industry trends
and unique goods and equipment applications. A chat room
is another function whereby users can exchange information about product
performance.

MyPlant has been launched as a true B2B industry portal that is sponsored
by Honeywell and Microsoft. MyPlant.com, at http://www.myplant.com, is
an Internet community for the delivery of knowledge-based solutions, re-
sources and services for the plant-centric process industries. MyPlant.com
was created in response to the manufacturing industries' need for easy access
to resources and solutions, and the MyPlant.com web site brings together a
global community of consultants, software providers, equipment providers,
academic professionals and engineering service firms into a single site fo-
cused on serving the industrial plant-centric customer.

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 EAM/CMMS Software & Services • Executive Overview

Offer a Portfolio of ASP Services and Take Ownership

As this study shows, the ASP model has caught on and started to ramp-up in
2000, but this segment of EAM/CMMS solutions is still relatively small and
full of opportunities for all suppliers. The ASP model is extremely attractive
to Tier 2 and Tier 3 users across all industrial sectors, especially those in the
capital-intensive process industries who want a best-of-breed EAM solution.
The suppliers’ ASP model has to have the capability of providing as much or
as little application functionality as the user wants, or needs. The reasons are
obvious, but the primary factor for the user is the economical one, and for the
supplier it is a recurring revenue model.

Within the ASP model there are a number of varia-

User Benefits from ASP
tions that should be included in the ASP Portfolio.
• Reduced up-front costs
The first one is the typical model where the applica-
• Faster implementation
tion is hosted at a data center – either the suppliers
• Committed Service Level
or a third party’s – and the user accesses the appli- Aagreements
cation, which has been leased for a basic per user • Scalability
monthly fee, via a secured Internet access or a pri- • Anywhere, anytime access
vate leased line. In this scenario more than two- • Access to other BOB applications
thirds of the applications were hosted by third • Reduced dependency on IT staff
• Single point of accountability
party data centers. ARC recommends that the us-
• Fixed monthly expense
ers seek an ASP offering that is hosted by the
• Protection from technology
supplier of the application. obsolescence

A second variation on the ASP model is remote

control. In this scenario the enterprise has already invested in the EAM solu-
tion, but now find it difficult to support and maintain in-house IT
competence and infrastructure. Remote Control ASP monitors the enterprise
applications and the system’s IT infrastructure and operations at the user’s
premises—taking full responsibility for performance, availability and secu-
rity. Remote Control ASP even contacts the hardware vendors should
problems arise. All the users have to do is change the back-up tapes regu-
larly.

A third alternative of ASP is outsourcing, whereby the EAM/CMMS sup-

plier assume complete responsibility for the EAM/CMMS applications,
Internet applications and integration, as well as the system’s IT infra-
structure and operations. This means the user can concentrate on their core
operations and still enjoy the full value of a world-class EAM/CMMS solu-
tion. IFS offers this alternative on a ‘‘pay-as-you-go’’ basis with no long-term
contracts involved.

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Executive Overview • EAM/CMMS Software & Services

ARC recommends that the application suppliers take ownership of the WAH
(Web Application Hosting) facility, the SLA (Service Level Agreement), and
they support guaranteed performance goals.

Offer eMRO Solutions

It is absolutely imperative that manufacturers have a visionary strategy for
purchasing the appropriate maintenance and repair parts and services as
needed within the company’s MRO business processes to keep production
equipment functioning. At the same time, they need to be improving the
procedures and processes for spot-buys, the unplanned purchases required
to keep the business functioning. eMRO in the EAM/CMMS space is specifi-
cally associated with the M&R (Maintenance & Repair) side of MRO for asset
management, and it should not be confused with the more generic e-
Procurement solutions that capture the Operations’ materials.

There is a huge opportunity for more EAM/CMMS suppliers with an eMRO

solution, whether it’s selling products and services to be used for creating
private or public Marketplaces for users, or facilitating a branded Market-
place with exchanges, auctions, and portals. Regardless of the strategy,
eMRO software and services versus an eMRO Marketplace, alliances are im-
perative. Both MRO Software and Datastream have been making a very
conscientious effort to sign as many distributors and catalogues of mainte-
nance parts and services as possible, because the users need to have a
substantial network of suppliers and parts behind the Marketplace, whether
it’s a public or private one. A good example of MRO Software’s MRO strat-
egy and alliance/acquisition program is its announcement last fall that it had
acquired Applied Image Technology, who specializes in web-based illus-
trated parts cataloging systems and graphical maintenance and repair
documentation – this technology is a key element of a successful eMRO strat-
egy.

To date, only MRO Software and Datastream have made any serious inroads
with eMRO, but in different facets. MRO Software is more successful selling
software applications and services so that users can develop their own pri-
vate or public marketplace, while the iProcure Marketplace gathers the
eMRO revenue for Datastream. In many cases the functionality in the core
EAM/CMMS solution, especially the components associated with purchas-
ing, can be tweaked and renamed for the MRO segment; i.e. BUYmro or
SELLmro. There’s more to it than that, but the services are basically the same
as for the EAM/CMMS solution, and services are bringing in the revenue.

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 EAM/CMMS Software & Services • Scope

Chapter 2
Scope

There is an overwhelming need for the right information, in the right place,
at the right time, in the right format, for people to make informed business
decisions across the entire global enterprise. This need drove the phenome-
nal growth of Enterprise Resource Planning (ERP) solutions in the late 1990s
and now the collaborative supply chain solutions. EAM solutions should
have that same degree of visibility too. There is considerable uncertainty
among the users, but the uncertainty is not about whether there is a need for
information, it is about the appropriate strategic directions to undertake re-
garding maintenance process reengineering and the question of an integrated
ERP implementation with maintenance functionality versus best-of-breed
EAM/CMMS.

This has been one of the fastest growing segments of both the information
technology and the industrial automation markets for the last decade. How-
ever, the market, especially Tier 1, slowed considerably in late 1999 and
throughout 2000, which was a transitional year for EAM/CMMS as many
suppliers retrenched from the traditional software license model in favor of
the Application Service Provider (ASP) and Maintenance, Repair, Operations
(eMRO) models.

ARC’s Global Manufacturing Software Outlook studies are specifically de-

signed to help clients lower their risk in making global strategic decisions.
Each study is intended to serve as an effective planning guide for software
companies providing manufacturing application software. The studies also
provide strategic information to industry user executives responsible for
planning and developing their company's business systems and industrial
automation environment. ARC, through its extensive experience, back-
ground and contacts, is in a unique position to provide clients with the most
in-depth information about the global unified enterprise. These studies
cover the entire spectrum of applications for the corporate business system,
down to, and including plant automation on the plant floor.

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Scope • EAM/CMMS Software & Services

Overview of EAM/CMMS Global Outlook Study

EAM/CMMS Global Outlook

Chapter 1
Executive Overview

Chapter 2 Chapter 3 Chapter 4 Chapter 5

Scope Market Shares Market Forecast Supplier Profiles

Background Worldwide Worldwide Profile

Definitions Regions Regions

Scope Tiers Tiers

Computing Computing

O/S O/S

Indusry Industry

Channel

This report offers EAM/CMMS software suppliers and users a comprehen-

sive assessment of the market. ARC's insightful analysis provides suppliers
and users with a sound foundation for strategic planning through the year
2005. This report is part of a series of studies on the Global Manufacturing
Software outlook:

• Transportation Management & Global Logistic Systems (TMS)

• Enterprise Resource Planning (ERP)
• Supply Chain Planning (SCP)
• Enterprise Production Systems – Process (EPS – Process)
• Enterprise Production Systems – Discrete (EPS – Discrete)
• Enterprise Asset Management (EAM/CMMS)
• Simulation and Model-Based Control (MBC)
• Discrete Event Simulation (DES)
• HMI Software (NT &CE-based)
• Open Control Software (NT & CE-based)

2-2 • Copyright 2001 © ARC Advisory Group

 EAM/CMMS Software & Services • Scope

ARC’s Global Manufacturing Software Outlook studies are specifically de-

signed to help our clients lower their risk in making global decisions. Each
study is intended to serve as an effective planning guide for companies pro-
viding software for manufacturing or supply chain applications. The studies
are prepared to provide strategic information to industry executives respon-
sible for planning, marketing, sales, and develop-
ment of their company's business. Additionally, for ARC’s Global Manufacturing
Software Outlook studies are
EAM/CMMS suppliers who seek alliances, or
specifically designed to help our
competitive analysis, with ERP (Enterprise Re-
clients lower their risk in making
source Planning) or EAI (Enterprise Application global decisions.
Integration), ARC sells reports on these systems as
well.

Key Issues Researched

Some of the key issues researched in this study include size of the
EAM/CMMS market. Other issues addressed include:

1. How large the market is for the core EAM/CMMS business and the
ASP and eMRO models, and what impact will ASP and eMRO have
on EAM/CMMS.
2. How large the market is for each geographical region of the world
and which regions will provide the greatest growth potential through
the year 2005.
3. How large the market is for key user industry segments and what
segment will provide the greatest growth potential.
4. How large the market is for each operating system platform and
which operating systems will provide the greatest growth potential.
5. Who the leading suppliers are by region, customer tier, and applica-
tion server, and operating system platform.

Market Size and Forecast Definitions ARC Market Segments

• Regions
• Tiers
Like all other ARC Global Outlook studies, this seg- • Industries
ments the total market into smaller pieces in an effort • Channels
to provide real added-value in understanding and • Operating Systems
appreciating the current market, as well as the future • Computing Environment
of the particular segment. Unlike many other soft-

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Scope • EAM/CMMS Software & Services

ware application segments, this one has been evolving over the last thirty-
plus years. The term CMMS (Computerized Maintenance Management Sys-
tem) evolved in the 1970’s when Digital Equipment Corporation dominated
manufacturing with its series of VAX mini-computers, the platform of choice
at that time.

EAM/CMMS Business Model Segments

The CMMS market segment has evolved over the last three decades, and the
evolution continues. The Internet and the associated technologies are facili-
tating the evolution, but the evolving business models are market driven.
One such model is the ASP (Application Service Provider) model. The ASP
model allows users the advantages of a world-class best-of-breed EAM solu-
tion via a lease program versus the model whereby huge amounts of money
had to be spent, up-front, for the application license, the computing infra-
The eMRO model allows users to structure, the required support, and the IT staff to keep
utilize the Internet and e- everything operational and up-to-date. The users in
procurement opportunities for Tier 2 and Tier 3 want and need these best-of-breed ap-
their on-line procurement of plications, but in the 90s, the suppliers were marketing
MRO supplies and services,
and selling huge solutions in the Tier 1 space. Tier 2
especially those required for
and Tier 3 had to settle for lower functionality in a basic
maintenance and repair.
CMMS solution, but the ASP model is changing that.

Also coming with the 2000 evolution is the eMRO model that allows users to
utilize the Internet and e-procurement opportunities for the on-line procure-
ment of MRO supplies and services. Within the EAM/CMMS model the
focus is on the M&R (Maintenance and Repair) of MRO, because in capital
asset intensive manufacturing industries, maintenance and repair, can ac-
count for more than 80 percent of all non-production purchases, and the
production equipment must be maintained or manufacturing cannot pro-
ceed. Maintenance and repair items are vastly different form the items
associated with operations, because plant performance is dependent on com-
plex equipment, where attributes really matter – stainless steel versus carbon
steel is more important in maintenance items like motor bearings than opera-
tional items like paper clips.

Key Supplier
Supplier Segments
Now, we have EAM solutions that have extended themselves beyond the
traditional automation of work order management and repair maintenance,
and the market even sees a growing number of ERP (Enterprise Resource
Planning) suppliers playing a bigger role in maintenance applications. As a

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 EAM/CMMS Software & Services • Scope

result, the EAM/CMMS market has a number of vendors coming from each
one of those sectors. While this study has focused on the total EAM/CMMS
market and the more than 250 suppliers, ARC does recognize the fact that the
market could be segmented by traditional CMMS, Best-of-Breed EAM, and
ERP suppliers. These all play an important role in the total market, but the
market share analysis has grouped them all together.

Key End-
End-User Segments
ARC focuses on the end-users, as well as the suppliers, when analyzing the
market, and for this study the end-user clients have been segmented into
three tiers, based on the annual revenues. Tier 1 is the high-end of the mar-
ket for the few best-of-breed EAM suppliers and the ERP vendors, and this is
defined as companies that have an annual
turn-over in excess of $1 billion. Tier 2 is
the heart of the market, and the one that all User Annual Turnover
three groups of suppliers compete for, and
in this tier the user’s revenue ranges be- Tier 1 > $1 Billion
tween $250 million and $1 billion. While
Tier 3 includes users with revenues below Tier 2 $250 Million to $1 Billion
$250 million, and is the typical market for
the CMMS vendors, many of the best-of- Tier 3 < $250 Million
breed suppliers also play in this space with
low-end products.

Key Regional Segments

Geographically, ARC has divided the marketplace into five major segmenta-
tions: North America, Latin America, EMEA, Japan, and Asia. North
America consists of the United States and Canada. Latin America is com-
prised of Central America, Mexico, and Latin America. EMEA consists of
Western Europe, Eastern Europe, CIS, Africa, and the Middle East. Asia con-
sists of China, India, Taiwan, South East Asia, Korea, and Australia.

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Scope • EAM/CMMS Software & Services

Geographic Segmentations

North America Europe

Asia

Latin
America

Key Currency Factors

To eliminate changes in market size due to ongoing currency variations, ARC
uses average exchange rates for the leading currencies. All forecasts are pre-
pared in current US dollars and are based on the assumption that the current
inflation rate of approximately 3 percent will continue throughout the period
covered by this report.

Country National Currency Exchange Rate

(Abbreviation) National Currency units
per US Dollar ($)
France French Franc (FF) 5.50
Germany D-Mark (DM) 1.50
United Kingdom Pound Sterling (£) .65
Japan Yen (¥) 100
Average Currency Exchange Rates Used In ARC Market Studies

Key Industry Segments

Industrial markets are typically classified into process and discrete indus-
tries. This report contains analysis of those industries, and it also brings into
account the solutions that are implemented in other industries, like govern-
ment, facilities management, telecommunications, and transportation. This
latter grouping accounts for 26 percent of the total software and services
revenues in the base year. (See Figure 2-1)

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 EAM/CMMS Software & Services • Scope

The ASP Model

The ASP model has just started to come into its own in the EAM/CMMS sec-
tor, and this study analyzes the base year by services types and regions. This
segment of the EAM/CMMS has the highest CAGR – 47 percent – over the
next five years. The study analyzes market share and forecasts the market by
the services and regions.

The eMRO Model

The eMRO model has only been adopted by a handful of suppliers, but it has
generated more revenue in 2000 than the ASP model. The eMRO revenues
have all been from North America, so there is no base to forecast the regional
distribution growth. However, the three types of revenues – software, ser-
vices, and marketplace – are forecasted through 2005.

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Scope • Study Title

Figure 2-1
Standard Industry Code Classifications

Process Industries SIC Code NAICS Code NACE Code

Oil & Gas 13, 46, 492 211, 486, 213111, 13, 612.1, 612.2
213112, 2212
Refining 29 324 140
Cement & Glass 324 327 23, 24, 613
Chemical 30, 28 325 25, 612.7
Pharmaceutical 283 3254 257, 618
Food & Beverage 20, 21, 284 311, 312 41, 42, 641, 617
Pulp & Paper 24, 26 322 47, 619.1
Electric Power 491, 492, 493, 496 22 16
Mining & Metals 10, 12, 14, 33 21, 331 21, 22, 120.2,
612.4, 612.5
Plastics & Rubber 30 326, 3252 48, 619.7
Textiles 22, 23 313, 314, 315, 316, 43, 44, 45, 616,
32522 260, 645, 646,
614.3
Water & Wastewater 494, 495 2213 17
Other Process 25, 31, 32, 39 11, 321 495, 619

Discrete Industries SIC Code NAICS Code NACE Code

Automotive 371, 375, 379 336 35, 651, 614.7

Aerospace 372 & 376 3364 364
Machinery 35 333 32, 614
Building Automation 15 3334 501.7
Electrical 36 335 342, 343, 346, 347,
615.2
Electronics 38, 357, 365, 366, 334 344, 345, 37, 615.3
367
Fabricated Metals 34 332 223.3, 31, 612.6
Other Discrete 27, 31, 39, 373, 374 337, 339, 3365 49, 619

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 EAM/CMMS Software & Services • Market Shares

Chapter 3
Market Shares

The overall market for Enterprise Asset Management (EAM) and Computer-
ized Maintenance Management (CMMS) solutions, which amounted to over
$1.33 billion in 2000, is just emerging from a year of transition and is on the
rebound. The market, which has well over 200 suppliers, includes a mixture
of older, traditional CMMS companies, innovative EAM suppliers, and a
handful of Enterprise Resource Planning (ERP) providers with a focused as-
set management application. The overall market leader is MRO Software,
formerly PSDI, which has a market share of 13 percent. The next largest
supplier has 11 percent. (See Figure 3-1).

Market shares are based on software and service reve-

nues. This study considers revenues from the traditional A higher proportion of revenues
EAM/CMMS model based on selling a software license, comes from recurring service
revenues in this market than any
as well as the developing models of Application Service
other software market. In the
Providers (ASP) and Maintenance, Repair, and Opera-
EAM/CMMS market, service
tions (eMRO). During 2000, several suppliers embarked revenues account for 63 percent of
on the two newer models in an effort to bolster sales and total revenues,
win new clients in the Tier 2 and 3 market segments.

The traditional EAM/CMMS market is based on selling software licenses

and associated services to complement and support the solution, and those
services over the last five years have grown to the point where they account
for two-thirds of the revenues for this model. On the other hand, the ASP
model is all about services, and that is one of the things that makes it very
attractive to the users because they do not need to make a large capital in-
vestment in a software license to receive a world-class EAM solution. The
eMRO model is just emerging as more manufacturers slowly move into e-
procurement over the Internet, and the MRO market is an ideal sector for e-
procurement in the capital-intensive industries. The eMRO model also pro-
vides for users to purchase software applications for buyers (procurement)
and sellers/distributors (marketplace), so the eMRO market is comprised of
both software and services. This overall market has recognized that service
now tends to include recurring revenues from ongoing maintenance sub-
scription in the traditional model, leases from the ASP model, and
transaction revenues from an eMRO Marketplace.

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Market Shares • EAM/CMMS Software & Services

Leading Suppliers Of EAM/CMMS, ASP, and eMRO

The emergence of the Internet and Web-based technologies, which enable

software providers to offer their solutions as a service instead of as a product,
is transforming the software industry and even impacting the revenue
streams of suppliers in the “older” market segments such as EAM/CMMS.

The Internet has affected the traditional software models, such that many of
the CMMS offerings have Web-based technology and allow solutions to be
purchased over the Internet. More and more suppliers are follow the ASP
model. And a few are providing an on-line Marketplace to bring buyers and
sellers of MRO products and services together, and some of these have de-
veloped Buyer and Supplier applications that allow a user to establish their
own private or public Marketplace.

In general, ASPs enable customers to access software applications via the

Internet or Virtual Private Network (VPN) for a recurring fee, such as trans-
action, subscription, and/or hosting fees. Many customers prefer this model
because it generally translates into lower up-front investments, faster time to
market, and predictable costs. By comparison, the traditional model requires
customers to implement the solution in-house and incur significant up-front
costs for license fees, implementation services, maintenance fees, and hard-
ware. In the EAM/CMMS market, a greater number of suppliers are using
this recurring revenue model than the eMRO model.

There are two reasons for this market’s perceived downturn in 2000. One is
the fact that almost all suppliers, even the ERP providers, have shifted their
focus to Tier 2 and Tier 3, where the solutions tend to be less lucrative. The
second is the difficult transition from the traditional model, which provides
suppliers with a significant up-front revenues to offset existing operating
costs, to the recurring revenue models. With the ASP and eMRO models, the
short-term revenue from hosted customers is low compared to customers
that pay traditional up-front license fees.

If the supplier decides, for example, to eliminate license fees abruptly, it will
significantly reduce its short-term revenue and severely impact its balance
sheet. Therefore, companies that go after the ASP and/or the eMRO models
need to acquire a critical mass of customers (or transaction volume) relatively
quickly in order to offset their operational costs.

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 EAM/CMMS Software & Services • Market Shares

Total EAM/CMMS Market-

Market- Licenses/Services, ASP, and eMRO
Leaders & Market Shares: (See Figure 3-1)
• MRO Software - 13 percent
• Indus International - 11 percent
• IFS – 10 percent

MRO Software, the leader, has always been an EAM/CMMS market innova-
tor and early adopter of new technologies. The company, originally PSDI,
changed its name to reflect the new direction it has undertaken over the past
few years, especially in the MRO space. The company has a subsidiary,
MRO.com, to develop, market, and support B2B e-commerce systems for
MRO buyers and suppliers, and the new name better reflects the focus on
solutions for streamlining the supply chain for MRO materials.

One key to this type of diversification is a long-term strategy that supports

an innovative vision with aggressive acquisitions and R&D investment in
core product technology. MRO Software acquired Modern Distribution
Management, INTERMAT, IDFM, and Applied Image Technology to help
the company enhance its B2B MRO solutions.

In July 2000, MRO Software launched its MRO Software Hosting Center to
provide ASP solutions to customers of its MAXIMO and MRO.COM suite of
products. This new business gives it an alternative way to deliver its applica-
tion solutions and expands the company’s reach to a vast number of small- to
mid-sized companies who were previously excluded from enterprise level
applications.

Indus International is in second place with solutions originally developed by

two EAM companies, The Indus Group and TSW International, which
merged in 1997. The Indus Solution Series includes PassPort (a world-class
maintenance, inventory, and procurement management application); Enter-
prise MPAC (an asset maintenance and materials management application);
and the Volumetric Management and Customer Service (manages the pipe-
line transportation lifecycle).

In 2000, Indus International launched its IndusASP model, which offers users
full functionality combined with the ability to reduce initial outlay and help
control ongoing costs. IndusASP provides the flexibility of both packaged
and tailored solutions. The packaged solution is a pre-configured, turnkey
system that addresses the traditional needs of organizations. The tailored

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Market Shares • EAM/CMMS Software & Services

solution provides the flexibility to ensure that an organization’s needs are

completely fulfilled.

IFS Industrial & Financial Systems, the Swedish ERP supplier, has adopted
an aggressive EAM position in the market around its IFS Maintenance suite
of applications and an MRO initiative with IFS MRO for Aviation. IFS Main-
tenance, an integrated part of IFS Applications, is a complete maintenance
system that can communicate and collaborate with the other departments
and processes in the company. Information from departments and systems
can be gathered, structured, and made easily available to users, and together
with data about scheduled measures and experience from the plant, the sys-
tem becomes a proactive tool for efficient maintenance.

@IFS, the company’s ASP, offers a range of “pay-as-you-go” alternatives to

running IFS Applications, allowing users all the benefits of a modern busi-
ness solution with low investment costs, minimal risk, and rapid access to the
latest software. IFS eBusiness provides the framework and e-procurement
application to drive its growing eMRO business.

Distribution Of EAM/CMMS, ASP, and eMRO Revenue Options

While the EAM/CMMS market has been going through a transformation
from traditional implementations to a more diverse Internet-based environ-
ment with ASP and eMRO models, the traditional model continues to
dominate this space, accounting for 95
1 .9 % percent of the total EAM/CMMS re-
3 .3 %
E AM / CM M S lated revenues in 2000.
eMR O
AS P
94 .8 %
Leading Suppliers Of
EAM/CMMS Software &
Services By Region

The EAM/CMMS software solu-

tion is one of oldest manufacturing
application sectors, with numerous 9.0% 3.7%
N. Amer.
suppliers having their origin in the E ME A
1950s. The sector continues to Asia
31.4% 55.9%
have more than 200 suppliers and L . Amer.
continues to be a ‘strong’ market.
This section exclusively analyzes

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 EAM/CMMS Software & Services • Market Shares

the revenues attributed to EAM/CMMS software licenses and the services

associated with those solutions at an end-user’s site. It is not surprising to
find that North America dominates the worldwide distribution of
EAM/CMMS software and services with 56 percent.

The revenues from the ASP model and eMRO specifics are excluded from
this section.

Worldwide
Leaders & Market Shares: (See Figure 3-2)
• Indus International - 12 percent
• MRO Software - 11 percent
• IFS - 10 percent

Indus International has been the worldwide leader of EAM/CMMS solutions

ever since the merger of The Indus Group and TSW International in late 1997.
Prior to the merger both companies were individually market leaders, The
Indus Group with its PassPort and TSW International with its Enterprise
MPAC.

MRO Software is the overall market leader of EAM/CMMS solution, includ-

ing ASP and eMRO, and the company ranks second in worldwide
EAM/CMMS software licenses and related services. Based in Massachusetts,
USA, the company has always had an aggressive international strategy. It
has closed the gap considerably between it and Indus International in 2000.

IFS, the Swedish ERP company, has a very large North American headquar-
ters in Phoenix, Arizona, and through this operation and commitment to
North American, it is ranked third worldwide.

North America
America
Leaders & Market Shares: (See Figure 3-3)
• Indus International - 17 percent
• MRO Software - 13 percent
• Datastream - 9 percent

Based in San Francisco, California, Indus International, has always focused

more on the North American industrial markets, and in 2000 the company
still leads this region, albeit not by what it has in the past.

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Market Shares • EAM/CMMS Software & Services

MRO Software, formerly PSDI and sometimes better known as “MAXIMO”

has continuously provided comprehensive solutions from its EAM product,
MAXIMO, in this region. The company basically markets across the board,
including all industries across all Tiers, and it has been known to be more of
a software company than a service organization, unlike its major competi-
tors.

Datastream captured 9 percent of the North American market from its head-
quarters in Greenville, South Carolina. The company’s two major
EAM/CMMS products, MP2 and MP5, are complete maintenance solutions
that allow Datastream to address the high and low ends of the industrial
markets, while providing the flexibility to address the other industries, espe-
cially facility management and transportation, just as well.

Europe, Middle East, & Africa (EMEA)

Leaders & Market Shares: (See Figure 3-4)
• IFS - 28 percent
• Intentia - 19 percent
• SAP - 12 percent

It is not uncommon for new software solutions to originate in North America

and then migrate to the broader international markets, starting with Europe.
However, with EAM/CMMS solutions for EMEA, there are three European
firms, all ERP suppliers, at the top of the list. IFS has managed its market
globalization of EAM/CMMS solutions extremely well, while maintaining a
very strong lead in EMEA. Intentia, another Swedish firm, has leveraged its
Movex Maintenance integration with the full Movex ERP and its concentra-
tion on the European market to capture the second position within EMEA.
SAP, based in Walldorf, Germany sits behind Intentia with its own inte-
grated Plant Maintenance application.

Asia
Leaders & Market Shares: (See Figure 3-5)
• Mincom - 41 percent
• Intentia - 9 percent
• MRO Software - 9 percent

Mincom, a pure EAM supplier based in Brisbane, Australia, is strategically

focused on four vertical markets, Mining, Utilities, Transport, and Defense &
Government. The company’s corporate presence in the Pacific Rim and its
extensive commitment to just four capital-intensive vertical markets provides

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 EAM/CMMS Software & Services • Market Shares

the leverage to dominate the Asia Region. The company’s EAM solution,
Ellipse (formerly MIMS Open Enterprise) is a Web-enabled solution that is
functionality rich and focused for capital-intensive applications.

Intentia has made huge progress in Asia with its Movex Maintenance appli-
cation and holds down the number two position. MRO Software has had an
entrenched position in the region for a long time, as part of its international
strategy.

Latin America
Leaders & Market Shares: (See Figure 3-6)
• Mincom - 21 percent
• Datastream - 15 percent
• MRO Software - 12 percent

Mincom has leveraged its experience, expertise, and solutions for the mining
industry to garner a large presence and market share in Latin America. For
the mining industry, the Mincom Enterprise Solution integrates Ellipse with
three additional mining applications, MineScape, MineStar, and MineMarket,
providing an end-to-end vertical solution. This approach allowed Mincom to
win big contracts with Minera Yanacocha S.A, Latin America’s largest gold
producer, Southern Peru Copper Corporation, the largest mining operation
in Peru, and Alumbera, an Argentinean-based copper concentration opera-
tion.

Datastream emerges as the runner-up in Latin America. This is based on a

number of factors, including the functional capabilities of the MP2 and MP5
products, as well as the company’s 1998 acquisition of Computec Sistemas
S.A. and its affiliate, Datastream Systems de Mexico. Of all the EAM/CMMS
vendors, Datastream has made the largest investments in Latin America, and
the results speak for them selves.

MRO Software is like the company’s earlier ads, “MAXIMO is everywhere.”

Latin America is no exception.

Leading Suppliers Of EAM/CMMS

EAM/CMMS By Services

Normally, services are not broken out in ARC Software & Services World
Outlook studies, but in the EAM/CMMS sector, services play a major role in
the global solutions. It would be a disservice not to acknowledge some of the

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 Market Shares • EAM/CMMS Software & Services

key essence of this, because in 2000 the EAM/CMMS services accounted for
63 percent of the EAM/CMMS revenues.

Back in 1996 ARC forecasted that EAM/CMMS service revenues would sur-
pass the license revenue, and that crossover happened in 1997. This trend
continues stronger than ever.

Distribution Of Services By Type

Within the service types, Maintenance just edged out Consulting, and this is
based on two key factors. First of all, the installed base continues to grow an
annuity service, and second, the
EAM/CMMS solutions have satu-
12.6% 5.3% Maint enance
28.0% rated the Tier 1 market sector where
Consulting
comprehensive consulting and im-
Implementation
T rainig plementation services were part of the
26.5%
27.6% Other solution. Today, there is more of a
focus on Tier 2 and even Tier 3 by all
of the EAM/CMMS suppliers.

Leading Suppliers Of EAM/CMMS Services

Services
Leaders & Market Shares: (See Figure 3-7)
• Indus International - 17 percent
• Mincom - 11 percent
• MRO Software - 10 percent

Indus International has always provided a large proportion of its solutions

through services, and in 2000, the company’s services account for 92 percent
of their EAM/CMMS revenues.

Mincom’s concentration on the four capital-intensive vertical markets also

depends heavily on services for its comprehensive solutions, and Mincom’s
services represent 78 percent of its EAM/CMMS revenues.

MRO Software was more of an EAM/CMMS software provider a few years

ago, but they have since recognized the importance of complete solutions
comprised of software and services. Plus, the company’s large installed base
of MAXIMO provides an extremely good foundation for the recurring reve-
nues from maintenance contracts. As a result, MRO Software now has 10
percent of all the EAM/CMMS service revenues.

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 EAM/CMMS Software & Services • Market Shares

Because the EAM/CMMS services grew to more than 60 percent of the total
revenues in 2000, the author has elected to present graphs that represent
where the EAM/CMMS solution vendors are providing specific services for
the end-user solutions. The next three graphs look at Maintenance, Consult-
ing, and Implementation.

Leading Suppliers Of EAM/CMMS Maintenance Services

Services
Leaders & Market Shares: (See Figure 3-8)
• Indus International - 13 percent
• MRO Software - 13 percent
• Mincom - 11 percent

The top four leaders in revenues associated with maintenance services (main-
tenance support contracts on the installed product) are all best of breed EAM
suppliers, and they are separated by just less than three percentage points.
Indus International and MRO Software are at the top, while Mincom and
Datastream follow close behind.

Leading Suppliers Of EAM/CMMS Consulting Services

Leaders & Market Shares: (See Figure 3-9)
• Mincom - 21 percent
• SAP - 14 percent
• Indus International - 12 percent

Because of its focus on just four vertical markets aligned with capital-
intensive assets, Mincom took advantage of the recent depressed enterprise
application market with a deliberate shift to targeted process improvement
consulting within the existing client base. This action provides Mincom with
a commanding lead in consulting services.

Indus International is a long-standing believer in “solutions.” As a result, the

company’s offerings are referred to the Indus Solution Series, and consulting
on business process improvement through asset process improvement is a
key ingredient of that “solutions” philosophy at Indus International.

Leading Suppliers
Suppliers Of EAM/CMMS Implementation Services
Leaders & Market Shares: (See Figure 3-10)
• Indus International - 31 percent
• IFS - 16 percent
• MRO Software - 11 percent

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Market Shares • EAM/CMMS Software & Services

It is very interesting to note that the three leaders in implementation services

have a methodology specific to implementing successful EAM solutions.
This is a critical factor in this competitive market where services tends to be
more important that just the product functionality – service is the differenti-
ator.

Indus International has been utilizing its rapid, cost-effective implementation

services to its clients for a number of years. The company’s Indus Solutions
are implemented through the company’s proprietary ABACUS Implementa-
tion Methodology. ABACUS has been instrumental in Indus International’s
highly successful, multi-million dollar implementations in Tier 1, and is now
being instrumental in Tier 2 and Tier 3.

IFS’ Applications Implementation Methodology (IFS AIM) is used from the

start of a project to the hand-over to business development and support. It is
based on experience gained from successful projects, a thorough knowledge
of customers’ areas of maintenance, and the use of leading technology. IFS
AIM has been extremely successful in Europe, and the company claims to
have a 100 percent implementation success rate because of it and the com-
pany’s total commitment to the long term relationship with the end-users.

MRO Software’s Practicum was created to help companies leverage the

power of MAXIMO, based on “best practices” for asset maintenance and ma-
terials management. Practicum focuses on using proven methodologies to
address MAXIMO implementation issues in a methodical and quantifiable
fashion. By establishing a logical progression between the various phases of
development and implementation, Practicum assists users in the pursuit of
enhanced efficiency, greater profitability, and a return on investment.

Leading Suppliers Of EAM/CMMS Software By Tier

ARC classifies customers by their size. Tier

1 companies are companies with over a bil-
lion dollars in revenue. Tier 2 companies 13.7%
have revenues of between $250 million and 41.8% T ier 1
$1 billion. Tier 3 companies have less than T ier 2
$250 million in revenues. In the previous T ier 3
44.5%
ARC studies on the EAM/CMMS market
sector, the majority of the revenues came
from the Tier 1 segment, but in 2000 the

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 EAM/CMMS Software & Services • Market Shares

pendulum has swung over to Tier 2. This is attributed to the Tier 1 segment
being saturated and all EAM/CMMS solution providers, including the global
ERP companies, have set their sights on Tier 2 and 3.

Tier 1
Leaders & Market Shares: (See Figure 3-11)
• IFS - 19 percent
• SAP - 17 percent
• MRO Software - 17 percent

The leadership of these three suppliers in Tier 1 is not particularly surprising.

IFS and SAP are ERP vendors with suites of business applications that are
integrated into their IFS Maintenance and Plant Maintenance respectively.
MRO Software, a best-of-breed EAM supplier, has developed the integration
to the more popular ERP packages, and that allows its MAXIMO to co-exist
in the Tier 1 space as a complimentary application.

Tier 2
Leaders & Market Shares: (See Figure 3-12)
• IFS - 18 percent
• SAP - 12 percent
• MRO Software 9 percent

It is extremely interesting to note that the same three suppliers that topped
Tier 1 also are at the top of Tier 2, even in the same order. The first two, IFS
and SAP, are European-based ERP vendors, and their presence in Tier 2 is
attributable to the Tier 2 markets they service in Europe. MRO Software has
always presented a broad range of MAXIMO solutions across all three Tiers,
so their presence here is of no surprise to the author.

Tier 3
Leaders & Market Shares: (See Figure 3-13)
• MRO Software - 11 percent
• Intentia - 10 percent
• Mincom - 8 percent

MRO Software is in the top position in Tier 3, because the company has al-
ways been more concentrated on software solutions with a limited amount of
services being required. The company sells its MAXIMO solution across all
Tiers and all industries.

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 Market Shares • EAM/CMMS Software & Services

What is surprising is the presence of Intentia, the Swedish ERP vendor, fol-
lowed by Mincom. Intentia’s presence in the number 2 slot can be
attributable to it selling low-end solutions to more Tier 3 companies in the
Nordic region, where it is very strong.

Leading Suppliers Of EAM/CMMS Software By

Computing Environment

While a lot has been made of the Internet and Web-based or Internet-enabled
EAM/CMMS solutions, the fact remains that the Client/Server computing
environment continues to dominate this sector. In 2000, three-quarters of the
software revenues were derived from Client/Server implementations. The
Internet-based solutions accounted for only 8 percent of the market, while
the more traditional CMMS environments – Networked PCs, Host with Ter-
minals, and even Stand-alone – con-
7.2% 1.0% tinue to be sold and utilized by
8.3% Client / S erver
users in the Tier 2 and 3 segments.
9.5% Net worked P C
Int ernet Many of the older CMMS compa-
Host / Term. nies only offer one or two of these
74.0% S t and Alone options, and when taken together
they represent a good size of the
overall market.

Client/Server
Leaders & Market Shares: (See Figure 3-14)
• SAP - 16 percent
• MRO Software - 13 percent
• IFS - 13 percent

The Client/Server model is not dead yet, at least not in the EAM/CMMS
markets when the likes of SAP, MRO Software, and IFS account for 42 per-
cent of the software revenues from this computing methodology.

Networked PCs
Leaders & Market Shares: (See Figure 3-15)
• IFS - 50 percent
• Mincom - 14 percent
• Indus International - 8 percent

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 EAM/CMMS Software & Services • Market Shares

EAM/CMMS solutions in a configuration of networked PCs account for 10

percent of the revenues, and interestingly enough, three companies that are
clearly in the enterprise application business – two EAM and one ERP – de-
rive a substantial amount of software revenue from networked PC
configurations. It is a safe bet they are primarily in Tier 2.

Internet
Leaders & Market Shares: (See Figure 3-16)
• MRO Software - 38 percent
• Datastream- 23 percent
• IFS - 19 percent

Many analysts have been projecting great things for all applications around
the Internet, but for the time being, the EAM/CMMS sector tends to be
somewhat of a laggard. Considering the history of maintenance, CMMS, and
lack of attention this industry has received, Internet-based EAM/CMMS so-
lutions still have a long way to go. The top two companies in this segment
are best-of-breed EAM suppliers who have been early adopters of the Web
technologies and opportunities. Both MRO Software and Datastream also
compete in the eMRO space.

IFS, like most of the other ERP players, has adopted the eBusiness environ-
ment with a vengeance, and like the others IFS has eProcurement,
eMarketplace, and a Web-enabled IFS Maintenance solution.

Leading Suppliers Of EAM/CMMS Software By Operating

System

In previous ARC
EAM/CMMS Software & 10.7%
33.5% Windows NT
Services studies, the Mi- 24.0% UNIX
crosoft Windows Windows 3.x & 9.x
operation systems were OS/400
30.7%
categorized as “Low-End
Windows” (Windows 3.x
and 9.x) and “High-End Windows” (Windows NT). In this version of the
study the author leaves them as Windows 3.x & 9.x and Windows NT in an
effort to eliminate any confusion. Regardless of how there are referred, the
software revenues for EAM/CMMS solutions on Microsoft platforms ac-

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Market Shares • EAM/CMMS Software & Services

count for 58 percent of the total. Microsoft Windows NT continues gain

market share over the UNIX environment for high-end EAM solutions, while
Microsoft Windows 3.x & 9.x continue to grow with the CMMS applications.
OS/400 has a respectable showing, based primarily on the maintenance solu-
tions from Intentia and JD Edwards. EAM/CMMS offerings on Linux are
basically non-existent.

Windows NT
Leaders & Market Shares: (See Figure 3-17)
• IFS - 21 percent
• MRO Software - 19 percent
• SAP 15 percent

The two European ERP suppliers, IFS and SAP, have a good representation
with both Microsoft Windows NT and UNIX operating systems, and that is
very understandable, considering the high-end, complex, and integrated
business solutions they sell along with their specific asset management appli-
cations. MRO Software is second with the Microsoft Windows NT platform,
but the company just missed the top three with UNIX.

UNIX
Leaders & Market Shares: (See Figure 3-18)
• IFS - 27 percent
• SAP - 22 percent
• Mincom - 14 percent

Mincom joins IFS and SAP at the top of the UNIX rankings, because more
than 84 percent of its software revenues are attributable to solutions on a
UNIX platform. This is directly related to the four capital-intensive indus-
tries the company has strategically adopted.

Windows 3.x and 9x

Leaders & Market Shares: (See Figure 3-19)
• MRO Software - 11 percent
• Datastream - 8 percent
• DP Solutions - 2 percent

This “Low-End Windows” environment is very splintered, with many of the

200+ CMMS suppliers utilizing some form of Microsoft Windows 3.x or 9.x.
A few suppliers still offer CMMS applications on DOS. MRO Software and

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 EAM/CMMS Software & Services • Market Shares

Datastream are well established and known EAM solution providers. DP

Solutions also has a good reputation and following, albeit relatively small,
across a wide range of the EAM/CMMS markets. Going forward into 2001
the company will become iMaint Technologies to reflect its iMaint EAM
product and iMaint ASP offering.

Leading Suppliers Of EAM/CMMS Software By Database

In the EAM/CMMS database sector, it is basically Oracle or Microsoft SQL

Server. These two combined, account for 82 percent of the related software
revenues, with Oracle having the lion’s share at 64 percent.

Oracle
Leaders & Market Shares: (See Figure 3-20)
• IFS - 22 percent
• MRO Software - 15 percent
• SAP 14 percent

IFS derives 90 percent of its software license revenue from systems utilizing
an Oracle database, and as a result, the Swedish company has a substantial
lead over the runner-up, MRO Software.

Microsoft SQL Server

Leaders & Market Shares: (See Figure 3-21)
• MRO Software - 18 percent
• JD Edwards - 11 percent
• Datastream - 9 percent

However, as MRO Software is a heavy supporter of solutions on Microsoft

operating systems, it is only logical that the company leads with software
revenues from Microsoft SQL Server database systems. JD Edwards, head-
quartered in Denver, Colorado, is another ERP supplier who competes very
strongly in the EAM space, and it is a distant runner-up to MRO Software.

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Market Shares • EAM/CMMS Software & Services

Leading Suppliers Of EAM/CMMS Software & Services

Services By
Sector

Currently most EAM/CMMS solutions are implemented in the industrial

and facilities management sectors. CMMS originally was developed for
manufacturers, and they continue to dominate the implementations. The
process industries, which typically run a continuous 24 x 7 process with capi-
tal intensive plants and equipment, have long been strong advocates of an
effective EAM program. In most of the process industries, it is easy to un-
derstand the importance of keeping a plant or a mill operational for the
entire process, because downtime is lost revenue, and seriously damaged
equipment can be costly to replace. Over the years many suppliers have
moved away from the competitive indus-
25.6% trial markets and focused on facilities
P rocess management. Transportation is another
Discret e ideal market segment for EAM solutions,
55.1% Ot her
19.3% but this vertical market has not been
really adopted by any other vendor other
than Mincom and IFS.

Distribution of EAM/CMMS Software By Sector

While some of the EAM/CMMS suppliers may have designated vertical
markets they target, most all of the vendors seem to have implementations in
almost every industry. This makes the individual industries relatively small
for analysis, so this section only looks at the bigger picture.

Manufacturing Sector
Leaders & Market Shares: (See Figure 3-22)
• IFS - 16 percent
• MRO Software - 13 percent
• SAP - 11 percent

IFS has been tremendously successful across a number of vertical industries

and geographies in 2000. Forestry and Energy/Utilities have seen significant
growth in Eastern and Central Europe where there is a lot of new plant con-
struction going on, and these contribute to IFS’ position for manufacturing in
general, as well as in the process industries.

MRO Software has been one of the EAM companies that have taken ARC’s
advice with regards to target markets, and as a result the company is now

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 EAM/CMMS Software & Services • Market Shares

just behind IFS in overall manufacturing and the process industries. The
company has also made a major effort with Government accounts and actu-
ally leads by a wide margin in that sector – this significantly contributes to its
position within “other Sectors.”

SAP delivers specific solutions for more than twenty industries. SAP’s atten-
tion to vertical industry solutions is well known by its SAP Industry Maps
that give industries powerful planning tool to gain full advantage from func-
tions provided by SAP and partners. Solution Maps are used to map out the
business processes within an organization, and they present a complete busi-
ness solution of an industry in a process-oriented way - coverage information
shows, for example, whether SAP or partners support the processes.

Process Manufacturing Sector

Leaders & Market Shares: (See Figure 3-23)
• IFS - 18 percent
• MRO Software - 13 percent
• SAP - 10 percent

Discrete Manufacturing Sector

Sector
Leaders & Market Shares: (See Figure 3-24)
• SAP - 15 percent
• MRO Software - 12 percent
• JD Edwards - 11 percent

J.D. Edwards has somewhat of a unique way of organizing its industry focus.
The company does not attempt to be all things to all industries, so it organ-
izes the industries that it does address under Industrial, Services, and
Consumer. The various discrete industries fall under Industrial, and focused
industries include automotive supply, high-tech/electronics, and manufac-
turing & distribution, among others.

Other Sectors
Leaders & Market Shares: (See Figure 3-25)
• SAP - 16 percent
• IFS - 15 percent
• MRO Software - 13 percent

Copyright 2001 © ARC Advisory Group •3-17

Market Shares • EAM/CMMS Software & Services

Leading Suppliers Of ASP Services

The ASP (Application Service Provider) model has become extremely popu-
lar, and to some degree quite successful, with various application segments
over the past few years. It’s an old story, leasing the right to use the software
application as an expense versus purchasing it outright as a capital expendi-
ture, and the ERP companies started the revival of this in an effort to market
their solutions into the lower user levels in Tier 2 and 3. The EAM/CMMS
vendors have slowly picked up on this model, with Fluor Daniel being an
early adopter with its TabWare Online, which was introduced at National
Manufacturing Week in Chicago in 1999. Since that time, numerous
EAM/CMMS suppliers have adopted the ASP model, but only a dozen or so
have actually realized any substantial revenues from their ASP.

North America represents 87 percent of the ASP revenues, while EMEA has 9
percent and Asia 4 percent.

Worldwide
Leaders & Market Shares: (See Figure 3-26)
• EDS - 32 percent
• Mincom - 23 percent
• IFS - 8 percent

EDS markets, sells, and supports its own EMPRV Maintenance application,
but EDS is better known as a service company with hosting facilities, espe-
cially with its relationship with General Motors in the United States. As part
of its growing presence within the EAM/CMMS environment, EDS hosts
numerous other EAM solutions, like, SAP’s Plant Maintenance, Indus’ Pass-
Port, Datastream’s MP5, and MRO Software’s MAXIMO. Most of the hosting
support is for MAXIMO at GM assembly sites and other customers such as
government organizations..

Mincom, the Australian EAM vendor, has had an ASP model for many years,
within Australia, but the rest of the world was unaware of it. As a result,
Mincom relaunched its Mincom ITS as Tequinox in November 1999 as part of
the company’s aggressive expansion plan to strengthen its position within
the ASP industry. Another part of Mincom’s ASP strategy has been to move
the Tequinox head office from Brisbane, Australia to Denver, Colorado. Like
EDS, Mincom’s Tequinox offers a wide range and services beyond its own
EAM product, Ellipse.

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 EAM/CMMS Software & Services • Market Shares

IFS, like EDS and Mincom, offers a full range of outsourcing services. Its
hosting APS is @IFS, and it takes complete responsibility for the enterprise
applications, Internet applications, and the system’s IT infrastructure and
operations, including operation, monitoring, and upgrading. IFS also offers
Remote Control @IFS for IFS clients who have already installed IFS Applica-
tions. Remote Control @IFS monitors the enterprise applications and the
system’s IT infrastructure and operations at the client’s premises—taking full
responsibility for performance, availability and security. IFS is the ASP host
in Europe, and in North America it is AT&T.

Distribution Of ASP Service Types

Within the ASP model there is a range of different services, very similar to
the standard EAM/CMMS license model. There are, however, two newer, or
different, services, hosting and
leases. These two make up the
Host ing
bulk of the revenues in the ASP 5.8% 2.4% 7.3%
L eases
environment, with hosting taking 10.1% 45.6% Consult ing
the lion’s share. The associated Implement
figure shows the distribution of 11.1% T raining
Maint enance
the ASP services as a percentage 17.7%
Ot her
of the total ASP revenues.

Leading Suppliers eMRO Software & Services

The eMRO market has leveraged the Internet as a vehicle for expeditiously
bringing buyers and sellers together in a global electronic marketplace for the
purpose of moving MRO (Maintenance, Repair, Operations) products and
services from the suppliers to the users in a quick and cost-effective manner.
MRO, especially the Maintenance and Repair portion, have always been an
extremely important element of any maintenance program, and the Web-
based eMRO accelerates the buying process. While the eBusiness and ePro-
curement are extremely high priority and lucrative markets for the “O”
(Operations) side of the business, the EAM/CMMS suppliers have not ag-
gressively penetrated the “MR” portion.

There are only a handful of suppliers who are attacking this market. They
offer either an online marketplace like Datastream’s iProcure, and/or they
sell applications designed for Buyer and Seller for companies to implement
their own (internal) marketplace, like MRO Software and its MRO.com.

Copyright 2001 © ARC Advisory Group •3-19

Market Shares • EAM/CMMS Software & Services

Distribution Of eMRO Revenues

The Marketplaces of the dot com companies have captured a lot of attention
and press in the past year, and many of the companies have come and gone,
and the stock market has taken a punishment with them. Within the eMRO
space for EAM/CMMS solutions, the on-
3.8% line Marketplace represents a fraction (4
S oft ware percent) of the total eMRO dollars, while
S ervice the Buyer and Seller software application
45.2% 54.8%
Market place sales captured more than half. The graph
shows the distribution as a percentage of
the total eMRO revenues.

Total Worldwide eMRO Software And Services

Leaders & Market Shares: (See Figure 3-27)
• MRO Software - 74 percent
• IFS - 11 percent
• Datastream - 3 percent

This represents the total revenue associated with the eMRO space, including
revenues from Marketplaces, Software, and Services.

MRO software is the clear industry leader with regards to eMRO software
and services with three-quarters of the total revenues. All of its eMRO reve-
nue is derived from the company selling its MRO applications, mroBuyer,
mroSupplier, and other “mro” solutions. The company’s mro.com Exchange
is a place for sellers to promote products and buyers to acquire them. MRO
Software formed the wholly owned subsidiary MRO.com in Q2FY99, and in
early CY01 changed its name to MRO Software from PSDI.

IFS also derived all of its eMRO revenues from the sales of software licenses
for the applications within its Enterprise Storefront suite.

Datastream, on the other hand, derived its eMRO revenues from its iProcure
Marketplace. The company recognizes revenues from buyers through licens-
ing and transaction fees, and the sellers/distributors are billed by transaction
fees and catalogue hosting.

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 EAM/CMMS Software & Services • Market Shares

Figure 3-1
Leading Suppliers Of EAM/CMMS, ASP, & eMRO Software & Services
(Percent Of Total Revenues)

2000 Shipments = $1,327.1 Million

MR O S oft ware 13.0%

Indus Int 'l 11.0%

IFS 10.3%

Mincom 8.7%

S AP 7.4%

Dat ast ream 7.3%

Int ent ia 6.8%

J D Edwards 4.0%

Wonderware 2.3%

EDS 1.4%

S pear Technologies 1.1%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0%

Other = 26.8 Percent

Copyright 2001 © ARC Advisory Group • 3-21

Market Shares • EAM/CMMS Software & Services

Figure 3-2
Leading Suppliers Of EAM/CMMS Software & Services Worldwide
(Percent Of Total Revenues)

2000 Shipments = $1,257.5 Million

Indus Int 'l 11.5%

MR O S oft ware 11.1%

IFS 10.3%

Mincom 8.7%

S AP 7.8%

Dat ast ream 7.6%

Int ent ia 7.2%

J D Edwards 4.2%

Wonderware 2.4%

S pear Technologies 1.1%

DP S olut ions 1.0%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0%

Other = 27.1 Percent

3-22 • Copyright 2001 © ARC Advisory Group

 EAM/CMMS Software & Services • Market Shares

Figure 3-3
Leading Suppliers Of EAM/CMMS Software & Services In North America
(Percent Of Total Revenues)

2000 Shipments = $702.6 Million

Indus Int 'l 17.2%

MR O S oft ware 12.5%

Dat ast ream 9.0%

Mincom 5.8%

S AP 5.2%

J D Edwards 4.9%

Wonderware 3.4%

IFS 1.9%

S pear Technologies 1.7%

DP S olut ions 1.6%

EDS 1.1%

S ynergen 1.0%

Cayent a 1.0%

0.0% 5.0% 10.0% 15.0% 20.0%

Other = 33.7 Percent

Copyright 2001 © ARC Advisory Group • 3-23

Market Shares • EAM/CMMS Software & Services

Figure 3-4
Leading Suppliers Of EAM/CMMS Software & Services In EMEA
(Percent Of Total Revenues)

2000 Shipments = $395.2 Million

IFS 28.0%

Int ent ia 18.7%

S AP 12.2%

MR O S oft ware 9.2%

Dat ast ream 5.2%

Indus Int 'l 4.9%

Mincom 3.3%

J D Edwards 2.7%

Front ek 2.3%

S iveco UK L t d. 1.3%

Wonderware 1.1%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%

Other = 11.2 Percent

3-24 • Copyright 2001 © ARC Advisory Group

 EAM/CMMS Software & Services • Market Shares

Figure 3-5
Leading Suppliers Of EAM/CMMS Software & Services In Asia
(Percent Of Total Revenues)

2000 Shipments = $113.2 Million

Mincom 40.6%

Int ent ia 9.0%

MR O S oft ware 8.6%

S AP 7.8%

Dat ast ream 4.2%

Indus Int 'l 3.8%

J D Edwards 3.5%

IFS 2.3%

Wonderware 1.3%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0%

Other = 18.8 Percent

Copyright 2001 © ARC Advisory Group • 3-25

Market Shares • EAM/CMMS Software & Services

Figure 3-6
Leading Suppliers Of EAM/CMMS Software & Services In Latin America
(Percent Of Total Revenues)

2000 Shipments = $46.5 Million

Mincom 20.9%

Dat ast ream 15.4%

MR O S oft ware 12.0%

S AP 10.6%

J D Edwards 8.5%

IFS 8.4%

Adasoft 2.2%

Tecnica Aplicada Int 'l 2.2%

Eagle Technology 2.1%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0%

Other = 17.7 Percent

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 EAM/CMMS Software & Services • Market Shares

Figure 3-7
Leading Suppliers Of EAM/CMMS Services
(Percent Of Total Revenues)

2000 Shipments = $796.1 Million

Indus Int 'l 16.6%

Mincom 10.8%

MR O S oft ware 10.2%

Dat ast ream 8.4%

Int ent ia 7.5%

IFS 7.2%

S AP 5.2%

J D Edwards 2.8%

Wonderware 2.5%

EDS 1.1%

S pear Technologies 1.0%

DP S olut ions 1.0%

0.0% 5.0% 10.0% 15.0% 20.0%

Other = 25.7 Percent

Copyright 2001 © ARC Advisory Group • 3-27

Market Shares • EAM/CMMS Software & Services

Figure 3-8
Leading Suppliers Of EAM/CMMS Maintenance Services
(Percent Of Total Revenues)

2000 Shipments = $223.1 Million

Indus Int 'l 13.1%

MR O S oft ware 12.7%

Mincom 11.2%

Dat ast ream 10.5%

Int ent ia 5.3%

IFS 3.8%

Wonderware 3.6%

J D Edwards 2.5%

Front ek 1.6%

EDS 1.4%

DP S olut ions 1.1%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0%

Other = 32.4 Percent

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 EAM/CMMS Software & Services • Market Shares

Figure 3-9
Leading Suppliers Of EAM/CMMS Consulting Services
(Percent Of Total Revenues)

2000 Shipments = $219.6 Million

Mincom 21.1%

S AP 14.2%

Indus Int 'l 12.1%

MR O S oft ware 10.1%

Dat ast ream 10.1%

Int ent ia 5.4%

IFS 3.9%

J D Edwards 2.5%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0%

Other = 19.6 Percent

Copyright 2001 © ARC Advisory Group • 3-29

Market Shares • EAM/CMMS Software & Services

Figure 3-10
Leading Suppliers Of EAM/CMMS Implementation Services
(Percent Of Total Revenues)

2000 Shipments = $211.1 Million

Indus Int 'l 31.4%

IFS 16.3%

MR O S oft ware 10.6%

Int ent ia 5.6%

Wonderware 3.8%

J D Edwards 2.6%

Mincom 2.4%

Dat ast ream 1.6%

S pear Technologies 1.5%

S ynergen 1.4%

EDS 1.3%

Front ek 1.0%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0%

Other = 19.6 Percent

3-30 • Copyright 2001 © ARC Advisory Group

 EAM/CMMS Software & Services • Market Shares

Figure 3-11
Leading Suppliers Of EAM/CMMS Software In Tier 1
(Percent Of Total Revenues)

2000 Shipments = $192.8 Million

IFS 18.1%

SAP 16.5%

MRO Software 16.4%

Mincom 9.2%

JD Edwards 8.4%

Datastream 6.9%

Intentia 5.3%

Indus Int'l 4.7%

Wonderware 2.0%

0.0% 5.0% 10.0% 15.0% 20.0%

Other = 12.4 Percent

Copyright 2001 © ARC Advisory Group • 3-31

Market Shares • EAM/CMMS Software & Services

Figure 3-12
Leading Suppliers Of EAM/CMMS Software In Tier 2
(Percent Of Total Revenues)

2000 Shipments = $205.5 Million

IFS 18%

SAP 12%

MRO Software 9%

Datastream 7%

JD Edwards 7%

Intentia 7%

Mincom 4%

Wonderware 2%

Spear technologies 2%

Synergen 1%

Indus Int'l 1%

DP Solutions 1%

0% 5% 10% 15% 20%

Other = 28.2 Percent

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 EAM/CMMS Software & Services • Market Shares

Figure 3-13
Leading Suppliers Of EAM/CMMS Software In Tier 3
(Percent Of Total Revenues)

2000 Shipments = $63.3 Million

MRO Software 12%

Intentia 11%

Mincom 8%

Spear technologies 3%

Siveco UK Ltd. 3%

TMA Systems 2%

Shire Systems 2%

CHAMPs 2%

MicroMain 2%

DP Solutions 2%

Soft Solutions 1%

Wonderware 1%

0% 2% 4% 6% 8% 10% 12% 14%

Other = 51.6 Percent

Copyright 2001 © ARC Advisory Group • 3-33

Market Shares • EAM/CMMS Software & Services

Figure 3-14
Leading Suppliers Of EAM/CMMS Software By Client/Server
(Percent Of Total Revenues)

2000 Shipments = $341.3 Million

S AP 15.9%

MR O S oft ware 12.9%

IFS 12.8%

J D Edwards 9.0%

Int ent ia 8.5%

Dat ast ream 5.5%

Wonderware 2.8%

Indus Int 'l 2.0%

Mincom 1.8%

S pear Technologies 1.4%

0.0% 5.0% 10.0% 15.0% 20.0%

Other = 27.5 Percent

3-34 • Copyright 2001 © ARC Advisory Group

 EAM/CMMS Software & Services • Market Shares

Figure 3-15
Leading Suppliers Of EAM/CMMS Software By Networked PCs
(Percent Of Total Revenues)

2000 Shipments = $43.7 Million

IFS 50.0%

Mincom 13.7%

Indus Int 'l 8.0%

DP S olut ions 4.6%

Dat ast ream 3.3%

TMA S yst ems 2.1%

MicroMain 1.5%

Cayent a 1.3%

Tecnica Aplicada Int 'l 1.2%

Wolfson 1.1%

Nt ech 1.1%

S hire S yst ems 1.1%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%

Other = 11.0 Percent

Copyright 2001 © ARC Advisory Group • 3-35

Market Shares • EAM/CMMS Software & Services

Figure 3-16
Leading Suppliers Of EAM/CMMS Software By Internet
(Percent Of Total Revenues)

2000 Shipments = $38.3 Million

MR O S oft ware 38.2%

Dat ast ream 22.5%

IFS 19.0%

Indus Int 'l 3.8%

S pear Technologies 3.1%

Fluor TabWare 2.0%

Adasoft 1.8%

S ynergen 1.6%

Cayent a 1.3%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0%

Other = 6.2 Percent

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 EAM/CMMS Software & Services • Market Shares

Figure 3-17
Leading Suppliers Of EAM/CMMS Software On Windows NT
(Percent Of Total Revenues)

2000 Shipments = $154.4 Million

IFS 21.2%
MR O S oft ware 18.9%
S AP 14.9%
Dat ast ream 7.4%
J D Edwards 4.6%
Wonderware 4.5%
S pear Technologies 2.3%
Indus Int 'l 2.0%
Mincom 1.5%
Ivara 1.3%
Advanced S / W Designs 1.3%
S ynergen 1.2%
Adasoft 1.1%
DP S olut ions 1.0%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0%

Other = 16.6 Percent

Copyright 2001 © ARC Advisory Group • 3-37

Market Shares • EAM/CMMS Software & Services

Figure 3-18
Leading Suppliers Of EAM/CMMS Software On UNIX
(Percent Of Total Revenues)

2000 Shipments = $141.7 Million

Descartes IFS 22.5%

27.2%

Vigilance S AP 13.3% 22.0%

SeeCommerce
Mincom 8.5% 14.2%

InterBiz
MR O S oft ware 6.5% 12.4%

JD Edwards
Dat ast ream 5.7%
6.1%

Yantra
Indus Int 'l 5.6%
4.8%

Lighthammer
J D Edwards 3.4% 4.3%

Pipechain.com
Wonderware 3.3%
1.8%

IndX
S pear Technologies 2.9%
1.7%

WhereNet
Int ent ia 2.3%
1.1%

0.0% 0.0% 5.0%

5.0% 10.0%
10.0% 15.0%
15.0%20.0% 20.0%
25.0% 30.0%
25.0%

Other = 4.4 Percent

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 EAM/CMMS Software & Services • Market Shares

Figure 3-19
Leading Suppliers Of EAM/CMMS Software On Windows 3.x & 9.x
(Percent Of Total Revenues)

2000 Shipments = $110.5 Million

MR O S oft ware 10.6%

Dat ast ream 7.8%

DP S olut ions 2.4%

FluorTabWare 2.3%

TMA S yst ems 2.0%

S ynergen 1.8%

S iveco UK L t d. 1.5%

Int ent ia 1.4%

S oft S olut ions 1.1%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0%

Other = 68.2 Percent

Copyright 2001 © ARC Advisory Group • 3-39

Market Shares • EAM/CMMS Software & Services

Figure 3-20
Leading Suppliers Of EAM/CMMS Software On Oracle
(Percent Of Total Revenues)

2000 Shipments = $294.7 Million

IFS 22.2%

MR O S oft ware 14.9%

S AP 14.4%

Mincom 7.3%

J D Edwards 7.3%

Dat ast ream 6.3%

Indus Int 'l 3.7%

S pear Technologies 1.8%

S ynergen 1.4%

Wonderware 1.4%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0%

Other = 19.3 Percent

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 EAM/CMMS Software & Services • Market Shares

Figure 3-21
Leading Suppliers Of EAM/CMMS Software On SQL Server
(Percent Of Total Revenues)

2000 Shipments = $82.7 Million

MR O S oft ware 17.7%

J D Edwards 11.1%

Dat ast ream 8.7%

Wonderware 7.3%

S AP 5.7%

IFS 4.4%

Ivara 2.3%

TMA S yst ems 2.1%

Int ent ia 1.8%

Cayent a 1.4%

0.0% 5.0% 10.0% 15.0% 20.0%

Other = 37.5 Percent

Copyright 2001 © ARC Advisory Group • 3-41

Market Shares • EAM/CMMS Software & Services

Figure 3-22
Leading Suppliers Of EAM/CMMS Software In Manufacturing
(Percent Of Total Revenues)

2000 Shipments = $343.7 Million

IFS 16.1%

MR O S oft ware 12.6%

S AP 11.1%

J D Edwards 6.8%

Int ent ia 6.4%

Mincom 5.2%

Dat ast ream 4.8%

Indus Int 'l 3.1%

Wonderware 2.9%

DP S olut ions 1.1%

0.0% 5.0% 10.0% 15.0% 20.0%

Other = 28.9 Percent

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 EAM/CMMS Software & Services • Market Shares

Figure 3-23
Leading Suppliers Of EAM/CMMS Software In Process Industries
(Percent Of Total Revenues)

2000 Shipments = $254.4 Million

IFS 18.3%

MR O S oft ware 12.9%

S AP 9.7%

Int ent ia 7.0%

Mincom 5.5%

J D Edwards 5.3%

Dat ast ream 4.2%

Indus Int 'l 3.6%

Wonderware 3.3%

S ynergen 1.2%

DP S olut ions 1.1%

Front ek 1.0%

0.0% 5.0% 10.0% 15.0% 20.0%

Other = 27.1 Percent

Copyright 2001 © ARC Advisory Group • 3-43

Market Shares • EAM/CMMS Software & Services

Figure 3-24
Leading Suppliers Of EAM/CMMS Software In Discrete Industries
(Percent Of Total Revenues)

2000 Shipments = $89.2 Million

S AP 15.3%

MR O S oft ware 11.8%

J D Edwards 11.0%

IFS 9.8%

Dat ast ream 6.8%

Int ent ia 4.8%

Mincom 4.6%

Indus Int 'l 1.8%

Wonderware 1.6%

DP S olut ions 1.3%

S iveco UK L t d. 1.0%

0.0% 5.0% 10.0% 15.0% 20.0%

Other = 29.6 Percent

3-44 • Copyright 2001 © ARC Advisory Group

 EAM/CMMS Software & Services • Market Shares

Figure 3-25
Leading Suppliers Of EAM/CMMS Software In Other Industries
(Percent Of Total Revenues)

2000 Shipments = $118.1 Million

S AP 15.9%

IFS 14.8%

MR O S oft ware 12.9%

Dat ast ream 10.2%

Int ent ia 7.3%

J D Edwards 6.2%

S pear Technologies 5.1%

Mincom 5.1%

TMA S yst ems 3.0%

Indus Int 'l 1.2%

0.0% 5.0% 10.0% 15.0% 20.0%

Other = 16.8 Percent

Copyright 2001 © ARC Advisory Group • 3-45

Market Shares • EAM/CMMS Software & Services

Figure 3-26
Leading Suppliers Of EAM/CMMS ASP Services
(Percent Of Total Revenues)

2000 Shipments = $25.2 Million

EDS 31.7%

Mincom 22.9%

IFS 7.9%

Indus Int 'l 4.4%

S ynergen 4.0%

S pear Technologies 4.0%

Fluor TabWare 4.0%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0%

Other = 21.2 Percent

3-46 • Copyright 2001 © ARC Advisory Group

 EAM/CMMS Software & Services • Market Shares

Figure 3-27
Leading Suppliers Of EAM/CMMS Software & Services For eMRO
(Percent Of Total Revenues)

2000 Shipments = $44.3 Million

MR O S oft ware 73.7%

IFS 11.3%

Dat ast ream 3.6%

S ynergen 2.3%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0%

Other = 9.1 Percent

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 EAM/CMMS Software & Services • Market Analysis and Forecast

Chapter 4
Market Analysis and Forecast

The total EAM/CMMS software and services market, which exceeded $1.3
billion in 2000, will expand to more than $1.9 billion by the end of 2005,
growing at a Cumulative Average Growth Rate (CAGR) of 7.5 percent.

ARC views the EAM/CMMS market as one of the

most enduring of the enterprise application software 2000 was a year of transition for
arenas, and this is reflected by the fact that a number EAM/CMMS as many vendors
of the suppliers were founded more than 25 years moved towards adopting ASP and
eMRO business models to address
ago. While core business is solid, there is an evolu-
the Tier 2 and Tier 3 markets.
tion to ASP and eMRO models. A number of factors
contribute to the strength of this segment, including:

• EAM solutions impact the whole enterprise, not just maintenance.

• They truly manage the assets of the enterprise.
• They provide more ROI and ROA than other enterprise applications.
• They utilize plant equipment data and integrate with business systems.
• They are applicable to a broad range of industry sectors, going beyond
manufacturing.
• There are hundreds of suppliers offering solutions across all sizes of
companies and operations.

Total Shipments of EAM/CMMS, ASP, and eMRO

Software and Services

2000 was a transitional year for many EAM/CMMS suppliers as they

adopted the ASP model as a way for moving EAM solutions down into Tier 2
and Tier 3 companies. This model is extremely attractive for high-end EAM
and Enterprise Resource Planning (ERP) suppliers because users can acquire
their solutions as a lease, versus the fairly large capital outlay previously re-
quired by a software license agreement. A larger number of EAM/CMMS
suppliers have adopted the ASP model rather than going after the more
flashy eMRO model based around e-procurement over the Internet.

The basic EAM/CMMS software sector goes back more than 30 years, and
many of the suppliers from the late 70’s and early 80’s are still around. They
still remain as small, privately held CMMS companies. As a result, the tradi-

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Market Analysis and Forecast • EAM/CMMS Software & Services

tional software license model continues to grow strongly, and it far surpasses
whatever inroads the ASP and eMRO models have made. While all of these
models and solutions relate to enterprise asset management solutions and
computerized maintenance management systems, the software license model
is referred to as EAM/CMMS.

In 2000, the software license model, EAM/CMMS, accounted for more than
$1,257 million, while both ASP and eMRO are less than $50 million each. The
combined market continues to grow, and over time the revenues from the
ASP model will exceed the eMRO. (See Figures 4-1 and 4-2).

Each of the three models is analyzed in more detail later in the chapter.

Distribution of EAM/CMMS, ASP, & eMRO Software and Services

Revenues from EAM/CMMS software licenses and related services, which
accounted for 95 percent of the total revenues from this market segment, will
decline to 85 percent in 2005. While both ASP and eMRO will gain share
from EAM/CMMS, the ASP model will benefit the most with a CAGR of
more than 47 percent. The eMRO model will have a CAGR of 21 percent and
will increase to 6 percent by 2005. (See Figure 4-2).

Shipments of EAM/CMMS,
EAM/CMMS, ASP, and eMRO Software and
Services by Region

The distribution of EAM/CMMS, ASP, and eMRO

North America will continue to software and services by region shows North Amer-
dominate every aspect of the
ica with a dominant market share of 58 percent that
EAM/CMMS market through 2005.
will grow at a CAGR of 8 percent to a 60 percent in
2005. Europe the Middle East and Africa (EMEA),
which had a 30 percent share in 2000, will only grow at a CAGR of 7 percent,
producing a slight net decline to 29 percent by the end of the period. North
America and EMEA are relatively new maturing markets for the portfolio of
EAM/CMMS solutions, whereas Asia and Latin America represented just 9
percent and 4 percent, respectively, in 2000. The CAGR for both Asia and
Latin America are lower than the average, so these two regions will lose
overall market share over the course of the forecast. (See Figure 4-3 and 4-4).

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 EAM/CMMS Software & Services • Market Analysis and Forecast

Shipments of EAM/CMMS Software & Services

Because EAM/CMMS software and services represent 95 percent of the total

market and are extremely well established with more than 250 suppliers
worldwide, this sector is analyzed in much more detail than the other two
models.

The year 2000 saw a substantial flattening of the combined revenues from
software licenses and services, with the license revenues being affected more
than the services. Some of this is due to the fall-out from the 1999 Y2K push,
and some is due to EAM/CMMS suppliers shifting focus to the ASP model
to address Tier 2 and Tier 3. The ASP model is all services and no product.

The global business landscape is becoming more complex. Companies are

procuring goods and selling their products all over the world via market-
places, exchanges, portals, and other channels that were not in existence just
a few years ago. The additional channels, along with the need to collaborate
with a larger set of business partners, demands higher quality and faster
production and comprehensive asset management programs to help manu-
facturers succeed in this new environment.

EAM/CMMS software and services revenue, which were $1,257 million in

2000, will experience a 5 percent CAGR and will hit $1,617 million in 2005
(See Figure 4-5).

In most of the enterprise markets ARC has examined,

revenues from implementation, consulting, and The services associated with
maintenance services exceed revenues from software. EAM/CMMS solutions represent
This is true of the EAM/CMMS solutions, and has almost two-thirds of the revenues
derived form EAM/CMMS software
been the case since 1997. Complex EAM software
licenses and associated services!
purchased by large capital-intensive companies tra-
ditionally includes four cost components: an up-front
software license fee; an implementation fee for installing the software; a con-
sulting fee for defining a successful enterprise asset program for predictive
maintenance and short term ROI; and annual maintenance fees entitling a
company to phone support and software upgrades.

In the base year, the EAM/CMMS services representing more than 63 per-
cent of the total, accounting for $796 million, while the software license
revenues amounted to $461 million. The CAGR for the services is more than
6 percent, and the CAGR for the software licenses is just 3 percent. As a re-

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Market Analysis and Forecast • EAM/CMMS Software & Services

sult, the services will exceed a billion dollars ($1,083 million) in 2005, and
then they will represent more than two-thirds of the total EAM/CMMS
revenues. (See Figures 4-6 and 4-7).

Factors Contributing to EAM/CMMS Market Growth

Even though 2000 was somewhat of a ‘flat’ year for EAM/CMMS, a number
of factors are contributing to it growth. First and foremost is the number of
Tier 2 and Tier 3 companies around the world that need comprehensive
EAM/CMMS solutions and asset management programs. Secondly, because
of this need, many more companies are still entering the market, either with
new products or through acquisitions. Others are doing a make-over
through a name change or marketing alliances. The final major factor is the
increasing level of services, especially maintenance contract services, as the
installed base continues to grow.

Tier 2 and Tier 3 Companies Need EAM/CMMS Solutions

The Tier 1 market is saturated. The enterprise software providers, including
the ERP and EAM suppliers, are bringing their solutions down market, and
the Tier 2 and Tier 3 companies need them more than ever. Manufacturers in
these two Tiers have survived with less functional CMMS solutions designed
to run in a single-user DOS environment or a simple networked system run-
ning Windows 3.1, or maybe Windows 95. The heart of the EAM/CMMS
market had been Tier 1, but with the new millennium, things are changing.

It is absolutely imperative for the Tier Tier 2 companies have annual revenues between
2 and Tier 3 manufacturers to have a $250 million and $1 billion, while the Tier 3 is eve-
world-class asset management rything below that. But a Tier 3 company with an
solution if they are to seriously annual turnover of $249 million is a relatively large
compete on a global scale in the new
company in many parts of the world.
world of e-commerce.

The Tier 2 and Tier 3 companies, especially manu-

facturers, are exposed to the Internet, global trading, International Market-
places, and B2B e-commerce just as much as all the multi-national Tier 1
conglomerates, and it is absolutely imperative for them to have a world-class
asset management system. While there is an extraordinary amount of market
hype on supply chain management and collaboration, the manufacturing
plant still needs to produce the product to be shipped to the customer who

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 EAM/CMMS Software & Services • Market Analysis and Forecast

ordered over the Internet. The customer service department still needs to
convincingly inform the customer as to product status.

A comprehensive asset management software solution and maintenance

program can provide the production facilities with the uptime required to
satisfy the customer’s needs. Almost all of the EAM/CMMS solutions now
have predictive and preventive maintenance functionality, and many also
have connectivity to the plant floor control systems to make these much more
effective. There’s also more Reliability Centered Maintenance (RCM), and
the Tier 2 and Tier 3 companies need this as much as the Tier 1 companies.

There are major opportunities for all the EAM/CMMS providers, including
the ERP suppliers, in the Tier 2 and Tier 3 markets, and these are being ad-
dressed in two ways. First, many best-of-breed players have taken their core
product and ‘turned off’ some of the functionality that is not needed in Tier 2
and Tier 3, allowing them to charge a lower fee for the license. The second
way is used by more and more suppliers, especially those with a functionally
rich CMMS solution, and that is to eliminate the middle man and sell their
products over the Internet like other commodities.

EAM/CMMS Provide Real ROI and ROA Benefits

Best-of-breed EAM solutions are the enterprise applications that truly pro-
vide a recognizable ROI quicker than any other application. When the EAM
solution is integrated with the larger business suite of applications known as
ERP, as well as the plant floor control systems, the return on both investment
and assets becomes more pronounced. In the e-commerce world, having the
right product, at the right place, at the right time, and at the right price is
paramount to market share and acceptability.
Asset management solutions and
Admittedly, an excellent supply chain and logis-
programs continue to be the best
tic environment is important, but it is proactive industrial solution for realizing quick
asset management that keeps the plants running ROI and ROA.
to produce the product in the first place.

Lower inventories are where the quickest returns are immediately recog-
nized, but the real savings come when the asset management program
eliminates the unplanned downtime of the production process.

EAM/CMMS Market Being Addressed by “New” Companies

The EAM/CMMS market has to have more software suppliers than any
other software application sector, and it continues to amaze the author that
there are still companies who want to enter this space. A conservative esti-

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Market Analysis and Forecast • EAM/CMMS Software & Services

mate is that there are at least 250 vendors worldwide, but it is a safe bet that
there are more than 300. Each time ARC does this market forecast study,
new companies are discovered, and admittedly, many of them are not “new”
per se. Many are “new” in the sense that they acquired another company or
merged, and others changed their name and/or image. Others were just un-
covered through communications and the Internet.

Current Name Historical Name Transaction Date

AXS-One Computron Software Name Change Nov 1, 2000
BAE Systems - IFS Paradigm Systems Acquisition 1999
Cayenta JB Systems/Mainsaver Acquisition Nov 1999
Ceecom TXbase Company Split Q1CY00
Fleetware TXbase Company Split Q1CY00
EPAC Software EQUIPAC Acquisition 1999
Corrigo Invata Acquisition 1999
Ivara N/A Founded 1997
Mainpac Pty Ltd N/A Founded Feb 2001
Mainpac Pty Ltd Geac Computers Prod Acquisition Feb 2001
MasterLink N/A Founded 2000
MRO Software PSDI Name Change Q1CY01
Perceptron Decision Dynamics Acquisition Late 2000
SpecTech MPulse Acquisition March 1999
Technica N/A First known 2000
Aplicada Intl. CMMS in Mexico
“New” EAM/CMMS Companies

ERP Vendors Are More Active with Asset Management

Four ERP suppliers make the top 10 list of market leaders for EAM/CMMS
software and services. They always had asset management in their solutions,
but are now becoming much more aggressive. Even for best-of-breed EAM
suppliers and even some CMMS suppliers, IFS, Intentia, JD Edwards, and
SAP can be competitors. IFS, the Swedish company, has aggressively at-
tacked the EAM market, and ranks near the top of most of the market share
analysis. And three of these companies are European, giving them a superb
advantage in EMEA and other parts of the world where product internation-
alization is extremely important.

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 EAM/CMMS Software & Services • Market Analysis and Forecast

Increased Level of Services

The services associated with a best-of-breed EAM solution and the attendant
asset management program are broad and well defined. These services in-
clude implementation, consulting on maintenance programs, best practices,
and even Maintenance Process Re-engineering (MPR), training, and mainte-
nance service contracts. These contracts, which accounted for more than 28
percent of the service revenues in 2000, will account for 35 percent of service
revenues in 2005, growing at a CAGR of 11 percent. Maintenance contract
revenues depend on the installed base, and most of the EAM/CMMS suppli-
ers have a very large installed base. Increasing the customer base is one of
the strategic reasons why one company will purchase another.

The maintenance contract is one of the tactics now commonly used in the
ASP market, the recurring revenue model, because they have been the best
source of recurring revenue for 25 years.

Service revenues from implementations and

training will continue to be a positive factor for With more than 250 EAM/CMMS
stimulating overall revenue growth, and consult- suppliers offering more than 400
solutions, it is imperative that
ing will also be a factor, but to a lesser degree. As
suppliers concentrate on
the implementations occur more in Tier 2 and
differentiating their solutions through
Tier 3, less consulting is required as was the case services.
with large, complex Tier 1 implementations.

Factors Inhibiting EAM/CMMS Market gro

growth
wth

The EAM/CMMS market has definitely tapered off since the late 1990’s, and
its growth is at a much slower pace. The factors inhibiting strong growth
include Tier 1 saturation, the ASP model, and the European Community’s
slow pace of accepting the Euro.

Tier 1 Is Saturated
Tier 1 saturation, first recognized by the ERP sector in 1999, has also slowly
caught up with the EAM market, and it is more pronounced than ever. There
are a number of major ERP suppliers who successfully compete in the EAM
space, and as they implemented the business applications, they also included
“maintenance.” As a result of the ERP implementations and the focus by the
best-of-breed EAM vendors, Tier 1 is saturated. In 2000, the Average Selling

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Market Analysis and Forecast • EAM/CMMS Software & Services

Price (ASP) for software in Tier 1 was just $193,000, down from $208,000 in
1990. The ASP for services is also down.

The ASP Model

While the ASP model is an excellent way for the best-of-breed EAM supplier
to capture market share in Tier 2 and Tier 3, it severely hurts the core
EAM/CMMS business model. Granted, the ASP model has excellent recur-
ring revenue, but it needs an extensive installed base to offset the loss of up
front license revenues. At this point, that kind of installed base is just not
there, unlike the maintenance contract installed base.

In the ASP model, software that was sold and operated at the customer’s site,
is now hosted off-site by an Application Service Provider (ASP). The ASP
allows access to software applications via the Internet or a Virtual Private
Network (VPN) for a recurring fee, such as transaction, subscription, and/or
hosting fees. Unfortunately for the suppliers, these recurring fees are sub-
stantially less than what they initially receive for an up-front license fee.

Europeans’ Slow Pace of Readiness for

for the Euro
While the leading suppliers do have a strong focus on the European market,
especially the European-based ERP suppliers, the European community is
still not prepared for the formal transition to the Euro on January 1, 2002. A
recent report in Eurocom, a publication of the Euro-
The ASP model is an excellent one for
pean Commission, acknowledges that only 25 percent
capturing “recurring revenues”, but it
of the small- to-medium sized businesses are fully
demands an extensive installed base
before it can recover lost software prepared for the conversion from ‘local’ currency to
license revenues. the Euro. This will have a detrimental effect on the
market growth in Europe.

Shipments of EAM/CMMS Software and Services by

Region

Maintenance management and asset management is a function of business

worldwide, and this is acknowledged by the large number of EAM/CMMS
applications that are sold around the globe. A fair amount of the systems are
accounted for by US-based EAM/CMMS providers, but a significant amount
is attributed to the European ERP suppliers. And there is a larger pool of
indigenous providers scattered around the world, with the next largest con-
centration being in the British Isles.

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 EAM/CMMS Software & Services • Market Analysis and Forecast

North America had 56 percent of the total EAM/CMMS software and ser-
vices revenues in 2000, but that leadership position will decline slightly to 55
percent by the end of 2005. EMEA, especially Europe, accounted for 31 per-
cent in 2000, and will grow slightly to 33 percent by the end of 2005. In 2000,
Asia and Latin America represented 9 percent and 4 percent, respectively.
(See Figures 4-8 and 4-9).

North America
North America, the largest single market in the
world, dominates the other regions. That’s not sur- North America is the largest
prising because the majority of the EAM/CMMS industrial country in the world and
companies are located in North America, more spe- home to a majority of the
EAM/CMMS suppliers.
cifically the US, and it easier to market, sell, and
support their solutions in this familiar market.

EMEA (Europe, Middle Ea

East,
st, Africa)
The European Economic Community and the Euro will make it easier for
EAM/CMMS suppliers to market, sell, and support their solutions across a
larger, somewhat unified, geography than in the past. At least, the euro will
give this region one currency. The European ERP suppliers will contribute to
the EMEA market share growth, too.

Asia
Asia, and the Pacific Rim, a very large geographical area with a wide range
of cultures, languages, and currencies, continues to be a more difficult mar-
ket than North America and EMEA. Asia, with a lower than average CAGR,
will lose some market position over the course of this forecast.

Latin America
Latin America is more like Europe than Asia, but many parts of it are still
considered part of the Third World. Positive factors for the area include a
common language (Spanish), with Brazil being an exception, and the grow-
ing number of free trade agreements throughout the region.

Shipments of EAM/CMMS Software and Services by Tier

Even though Tier 1 has become saturated, it still accounted for 40 percent of
the revenues in 2000, but it will drop to 31 percent by the end of 2005. Tier 2
led with 44 percent, but over the next five years, Tier 2 will grow to account

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Market Analysis and Forecast • EAM/CMMS Software & Services

for 50 percent. Tier 3, which had 16 percent in 2000, will also pick up market
share from Tier 1 and grow to 19 percent. (See Figures 4-10 and 4-11).

Tier 1
Over the past few years, the bulk of enterprise ap-
End-User Tiers
plication sales in Tier 1 occurred in the US. This
Tier 1 –> $1 Billion
Tier 2 – $250 Million to $1 Billion market is saturated with ERP and EAM solutions,
Tier 3 - < $250 million and while sales will continue here, they are drop-
ping significantly.

Tier 2
There are a lot more Tier 2 companies around the world, and they have been
the target of intense marketing from all of the enterprise application provid-
ers, including those in the EAM/CMMS space. The sale size is nowhere near
that of Tier 1, but then neither is the implementation time nor the ROI, so you
need many more sales to maintain the overall growth.

Tier 3
Tier 3 has traditionally has been the target market of the older CMMS com-
panies, but now, even the best-of-breed providers recognize the
opportunities in the segment.

Shipments of EAM/CMMS Software by Computing

Environment

Regardless of what is happening with the Internet and other technologies,

the client/server environment continues to dominate the EAM/CMMS
space. In 2000, EAM/CMMS software in a client/server environment ac-
counted for more than 74 percent, down from the 1999 market share of 81
percent, and it will continue to decline towards 66 percent in 2005. The long-
standing computer environments – host with terminals, networked PCs, and
stand-alone – are still embraced, albeit in declining numbers. Web-enabled
implementation is growing at a CAGR of 21 percent, and will account for 19
percent in 2005. (See Figures 4-12 and 4-13).

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 EAM/CMMS Software & Services • Market Analysis and Forecast

Client/Server
PSDI – currently MRO Software – was one of the first EAM/CMMS provid-
ers to adopt the client/server computing model in the early 90s. Today, the
distinctions between computing models are becom-
Regardless of the hype about the
ing blurred. This is especially true for the
Internet, the client/server model
client/server and Web-enabled models because it is continues to be the environment of
very likely that applications like MAXIMO are run- choice for EAM/CMMS solutions.
ning in a browser using Microsoft Terminal Server
in a client/server architecture.

Networked PCs
Considering all of the EAM/CMMS applications that are on the market to-
day, it is not that surprising to see that networked PCs still represent the
second largest computing environment after client/server, which accounts
for 10 percent. The networked PC is just a simple step up from the stand-
alone PC environment, which still accounts for 1 percent.

Internet
Internet implementations leverage the Web-based application in the user’s
environment, not the ASP model. Many of the EAM/CMMS solutions are
Web-enabled, allowing the application to reside in the user’s browser and be
accessed via the Internet from anywhere. This gives the user the ability to
concentrate the enterprise’s business in one or two sites using the same data-
bases for client and product information. With increased security and
international adoption of the Internet and high-speed communication lines,
this sector will grow at a CAGR of 21 percent through 2005.

Shipments of EAM/CMMS Software by Application

Platform

ARC uses the term “Low-End Windows” for Microsoft’s Windows 3.1, 95, 97,
98 and whatever Microsoft might elect to name future such systems. “High-
End Windows” basically refers to Microsoft Windows NT and its future re-
placements. There has been no attempt to breakout the various versions of
UNIX. Linux, which seemed to have promise for other applications has not
been adopted in the EAM/CMMS space at all, but it is rolled-in with UNIX
for forecasting at this point in time. ARC expects Linux-based EAM/CMMS
solutions to continue to be almost non-existent.

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Market Analysis and Forecast • EAM/CMMS Software & Services

In 2000, High-End Windows continued to move ahead of UNIX as the plat-

form of choice with a 34 percent share. UNIX has have fallen to 31 percent,
while the Low-End Windows accounted for another 24 percent. A large por-
tion of the “Other” category includes OS/400 implementations from JD
Edwards and Intentia. (See Figures 4-14 and 4-15).

Microsoft High-
High-End Windows
Microsoft Windows NT has been the clear leader in operating systems for
EAM/CMMS over the past three years, and it continues to extend its lead
over the other systems. In the capital-intensive industries where reliable and

Microsoft Windows NT continues to

scalable systems are required, Windows NT has
improve its position over UNIX- proven more than capable. High-End Windows
based systems in 2000. will have the highest CAGR, 6 percent, which will
push its market share to 38 percent in 2005.

UNIX/Linux
At one time, UNIX was the preferred operating system for the large capital
asset-intensive industries, especially by the larger Tier 1 users. But over time,
its position has eroded, and UNIX accounted for just 31 percent in 2000. The
decline will continue as the EAM/CMMS implementations on the variety of
UNIX platforms remains quite flat over the next five years.

Microsoft Low-
Low-End Windows
Low-End Windows account for the most systems. But with a much lower
ASP, they only accounted for 24 percent of the revenues in 2000. Of the 250+
EAM/CMMS suppliers, these Low-End Windows systems tend to be the sys-
tem of choice. By staying in the Microsoft environment, these EAM/CMMS
suppliers benefit from the development and application integration that Mi-
crosoft offers. This Low-End Windows environments will have a 4 percent
CAGR and a 25 percent market share in 2005.

Shipments of EAM/CMMS Software by Industry Sectors

EAM/CMMS solutions originated primarily for computerizing the mainte-

nance functions within the manufacturing industries, especially the process
industries where unplanned downtime can often equate to a company losing
millions of dollars each hour the process is down. These industries clearly
recognize the benefits of a comprehensive asset management system and an
enterprise-wide program. Therefore, it is not surprising that the process in-

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 EAM/CMMS Software & Services • Market Analysis and Forecast

dustries accounted for 55 percent of all the EAM/CMMS software revenues

in 2000. This share will decline slightly over the next five years. (See Figures
4-16 and 4-17).

In the discrete industries, the focus on asset management is not so intense

because the users deal with production lines, possibly redundant lines and
plants, and the production process can deal with a
The process industries are extremely
stop/start environment much easier than a continu- capital intensive, running on a 24 x 7
ous flow process. In 2000, discrete industries had a schedule, and they have long
19 percent share of the EAM/CMMS software reve- recognized the critical importance of
nues, which will grow at a CAGR of 4 percent to 20 comprehensive EAM solutions.
percent in 2005.

Over time, especially within the last decade, the EAM/CMMS solutions
broke out of manufacturing and into every other industry. The most popular
and logical extension was facilities management, which now has 8 percent of
the EAM/CMMS software revenues. And with a strong CAGR of 4 percent,
it will increase to 9 percent in 2005. This sector’s sub-sectors are office build-
ings, hotels/resorts, educational institutions, and health care facilities.

Transportation is another capital-intensive industry sector with lots of oppor-

tunities and challenges. This industry’s capital assets are very mobile, and
that is one of the major challenges. In 2000, this industry had a 6 percent
share, and with a CAGR of 2 percent, it will grow slightly by the end of 2005.

Shipments of EAM/CMMS Software by Process Industries

Although process industries accounted for 55 percent of EAM/CMMS soft-

ware licenses in 2000, they will experience a CAGR of only 3 percent and end
the period with a small market share decline. (See Figure 4-18).

These industries have historically been the largest market for EAM/CMMS
software and services in manufacturing. The chemical, petroleum, utilities,
food, and pulp & paper industries have been particularly strong users.
Equipment availability can spell the difference between profit and loss.
Some applications, such as many in the food industry, also involve perish-
able raw materials and finished products. Inventory and histories of
equipment and machinery assets assume critical importance in food and
chemicals where record keeping requirements are significant due to stringent
government regulations. These industries will continue to account for the

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Market Analysis and Forecast • EAM/CMMS Software & Services

majority of shipments, but for some industries that are fairly mature in the
EAM/CMMS market, shipments will not be as significant as they have been
in the past.

Electric Utilities
Electric utilities remain the primary user of EAM/CMMS solutions around
the world and they accounts for 15 percent of the industry’s EAM/CMMS
software. This segment will continue to be strong with a CAGR of 8 percent.
IFS is the market leader here, and much of the company’s success in this sec-
tor has been in the refurbished plants in eastern and central Europe.

Pulp & Paper

The pulp & paper vertical industry has a significant 12 percent share in 2000,
but will decline to 10 percent in 2005. This is a very low margin vertical, and
the low margins are driving the mills to better manage their assets. IFS also
leads here due to its history in the forestry processes of the Nordic countries.

Metals & Mining

The metals & mining sector leans very heavily toward mining, and a lot of
this is built around Mincom’s continued dominance here. The sector had 11
percent of the software license revenues for process industries in 2000. With
a CAGR of 4 percent, it will grow to 12 percent in 2005. The mining element
is exploiting newer technologies and Mincom’s relationship with Caterpillar

Shipments of EAM/CMMS Software by Discrete Industries

EAM/CMMS solutions in the discrete industries accounted for $89 million of

software license revenues in 2000, a market share of 19 percent. License
revenues here will have an above average CAGR of nearly 4 percent and will
represent about 20 percent of the EAM/CMMS license revenues in 2005.
Much of this growth will come from three verticals: automotive, aero-
space/defense, and electronics. Solutions to the machinery industry will also
do well, but the market share will remain flat. (See Figure 4-19).

Automotive
The automotive industry is the largest segment within the discrete sector,
with license revenues of $20 million and a 22 percent market share. An
above average CAGR for the discrete sector of 5 percent, automotive will
grow it to 23 percent in 2005. A major thrust here comes from auto makers in

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 EAM/CMMS Software & Services • Market Analysis and Forecast

North America and Europe. The industry also offers extensive opportunities
throughout Latin America and Asia.

Aerospace/Defense
This sector is coming on very strong, and it now represents 21 percent of the
license revenues in the discrete industries. With $19 million dollars in 2000
and a CAGR of about 7 percent, the 2005 market share will be just under 24
percent. Paradigm Systems Technology of South Africa has focused exclu-
sively on the defense sector for a number of years and realizes all of its
revenues here. Paradigm’s solutions address areas critical for defense sys-
tems, including management for operations maintenance, depot
maintenance, materials, configuration, logistics,
and budget. BAE Systems acquired Paradigm Aerospace/Defense, Automotive, and
Electronics represent 60 percent of the
Systems Technologies in late 1999 and formed a
EAM/CMMS software revenue within the
joint venture with IFS called BAE Systems IFS,
discrete industries.
which will be a very strong player in this sector.

Electronics
The electronics industry includes semiconductor processing, passive compo-
nent manufacturing, and the assembly of electronic components such as
computers and televisions. Foreign suppliers dominate the global electronics
market at the component level, serving the North American market largely
through low-cost, high-volume offshore production. Computer and other
product suppliers take advantage of the savings offered from these suppliers
by outsourcing components. Many domestic computer and electronics op-
erations consist of only assembly and test facilities. This is particularly true
of smaller computer and consumer electronics companies.

The electronics industry accounts for more than 17 percent of the

EAM/CMMS software revenues within the discrete industries, and with a
weak CAGR of 3 percent, the market share will decline slightly through 2005.

Shipments of EAM/CMMS Software by Other Industries

Industries in this category include government, telecommunications, trans-

portation, facilities management, and “other.” Combined, they account for
about 25 percent of EAM/CMMS license revenues. Individually, they each
have a strong market opportunity, and many of the best-of-breed suppliers
have targeted these sub-categories. (See Figure 4-20).

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Market Analysis and Forecast • EAM/CMMS Software & Services

Facilities Management
This segment had more than $38 million, or 33 percent of the “other” seg-
ment in 2000, and with a CAGR of 4 percent will decline to 35 percent in
2005. Facilities Management is one of the major other segments for
EAM/CMMS solutions, and every supplier has some presence in this space,
The $38 million of EAM/CMMS which breaks down into office buildings, hotels &
software revenue in Facilities resorts, health care, and educational. A big wins for a
Management equals the amount major EAM solution was Datastream’s success im-
spent for solutions in the plementing its MP2 at the Atomic Energy
Aerospace/Defense and Automotive
Commission in France. The ECA has 65 buildings
industries combined.
with 1,265,000 square feet of facility space.

Transportation
In 2000, this segment had $26 million in software license revenues, or a 22
percent share, but it will decline, primarily due to the lack of focus from the
suppliers. The transportation industry has strong growth opportunities for
the suppliers, but it also is very challenging. Only a few suppliers have seri-
ously taken up the challenge. The company to watch is Spear Technologies,
which came on very strong in 2000. Spear is dedicated to the transportation
industry and its products are designed for moving and linear (track or road-
way) assets. Another is Fleetware, a Txbase spin-off.

Shipments of EAM/CMMS Software by Sales Channel

EAM/CMMS solutions, especially the EAM side, still tend to be sold by di-
rect sales organizations, and 82 percent of the $462 million from software
licenses came from this channel. But distributors are becoming more active
as the suppliers try to move down into Tier 2 or Tier 3 where they cannot af-
ford direct sales, other than telemarketers, and they accounted for 9 percent
in 2000. But while still less than 1 percent in 2000, the fastest growing sales
channel is the Internet with a CAGR of 87 percent. This channel will take
significant share from the direct sales by 2005. (See Figures 4-21 and 4-22).

Direct Sales
EAM solutions must be sold by the direct sales force. High-end solutions
from Indus International, MRO Software, Mincom, Datastream, and others
require a sales force that understands the features and functions of the soft-
ware, but they also need to understand the intricate needs of the vertical
industries. As the EAM footprint expands with other technologies and func-

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 EAM/CMMS Software & Services • Market Analysis and Forecast

tionality that complements the basic maintenance elements, there is a grow-

ing need for the selling channel to really understand the day-to-day
operations of users. Although this channel had 82 percent market share in
2000, it will drop to 72 percent in 2005 on a CAGR of less than 1 percent.

Internet
In 2000, less than $3 million in EAM/CMMS was As a channel for selling EAM/CMMS
sold over the Internet, and this represented less solutions, the Internet has a CAGR of
than 1 percent of the software revenues. But this 87 percent over the next 5 years.
channel has a CAGR of 87 percent, and its market
share will be 11 percent in 2005. The majority of this comes from the low-
cost, low-functionality CMMS packages that offer just basic maintenance.
For the most part, these are shrink-wrapped solutions that can be installed
and operational without lots of services. With more than 250 suppliers of
EAM/CMMS, it is a very competitive market, probably more so than any
other enterprise software segment. Increasingly, CMMS suppliers see the
Internet as a way to market and sell a basic CMMS solution around the globe,
24 hours a day. They use their own Websites, and some even make their
products available through an on-line marketplace, along with other MRO
supplies and services.

ASP Services

ASP is one of the fastest growing service concepts to recently hit the software
solutions’ industry, and is now gaining acceptance with EAM solutions. The
concept is very simple and is not new, but the underlying idea of renting, or
leasing, a best-of-breed EAM software solution is catching on in the mid-
market. And there is an increasing number of CMMS/EAM suppliers who
rent their solutions as a hosted application from a data center managed by a
Web Application Hosting (WAH) provider, as well as the more users taking
advantage of the ASP benefits.

The available best-of-breed EAM solutions from the leading suppliers have
proven to be excellent investments for the capital-intensive companies in Tier
1, which have realized significant ROI and ROA. However, the total cost of
ownership associated with the application license, annual maintenance fees,
implementation, integration, and the on-going support, to say nothing of the
related system hardware/software and the required IT infrastructure, has
proven to be too costly for the mid-market. These excessive costs have

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Market Analysis and Forecast • EAM/CMMS Software & Services

driven the search for other options. One option is to but a less expensive ap-
plication of inferior quality and functionality. Another is to outsource the
entire IT operations. A better solution lies between those two and is the
hosted application and comprehensive Service Level Agreement (SLA) of-
fered by an ASP.

The ASP partners with a WAH provider to provide the data center and net-
work infrastructure, as well as the IT personnel and management to host the
EAM application. The software supplier is only considered an ASP when it
owns the customer relationship through the SLA and
The total cost of ownership associated is the single point of contact for the customer. Many
with the EAM/CMMS application
software suppliers turn the servicing of the customer
license, annual maintenance fees,
over to the WAH provider, and in this instance the
implementation and integration, the
on-going support, and the related
WAH provider is considered the ASP. A number of
system hardware/software and the EAM suppliers also have their own data centers for
required IT infrastructure has proven hosting their applications, and then they are the ASP
to be too costly for the mid-market. and WAH with the SLA. ARC believes this to be the
best scenario for the end-user.

The EAM space has not received the visibility or success with ASPs as the
other enterprise applications. So where is EAM with regards to ASPs and
WAH providers? Like ERP suppliers, leading EAM providers all have an
ASP strategy or offering. Some of the hosted offerings, like the CMMS solu-
tion TabWare OnLine, are very visible to the market place, while others have
a somewhat stealth marketing approach to ASP and WAH providers. Ad-
mittedly, vendors like MRO Software and Datastream have been putting
most of their efforts and investments into on-line MRO procurement. MRO
Software has MRO.com and Datastream has iProcure.

Shipments of ASP Services

While a number of EAM/CMMS vendors have been offering ASP services

for most of the base year, the associated revenues just exceeded $25 million.
ARC sees a strong market for ASP and forecasts a CAGR of 47 percent will
push revenues to $175 million in 2005. (See Figure 4-23).

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 EAM/CMMS Software & Services • Market Analysis and Forecast

Factors Contrinuting to ASP Market Growth

There are two very basic factors contributing to the growth of the
EAM/CMMS ASP market: the economic benefits for the user and the fact
that more EAM/CMMS suppliers are offering the ASP model.

User Economic Benefits

Users now can utilize world-class, best-of-breed EAM and ERP applications
without all the capital expenditures associated with purchasing. They need
only pay a recurring monthly rental fee, and some vendors even allow the
users to go on a month-to-month basis, versus an annual agreement. Besides
the immediate savings of not buying the license agreement, users do not
need to buy computer systems to run the software or have extensive IT staffs
to maintain and support the associated application software and underlying
systems. This really is a no-brainer for most Tier 2 and Tier 3 companies,
considering that the Tier 2 average selling price for EAM/CMMS software
was $205,000 in 2000 and the associated services had an average selling price
of $348,000. Compare that to an ASP model like TabWare where the monthly
fee is $39 per user.

More Suppliers Offering ASP

ARC interviewed about 18 EAM/CMMS suppliers with measurable revenue
streams from ASP offerings, but there were just as many, if not more, who
were just beginning to launch their ASP model. Market leaders Indus Inter-
national and MRO Software only announced their ASP solutions in 2000.
Over time, just about every EAM/CMMS supplier will have an ASP offering
of some kind.

Factors Inhibiting ASP Market growth

While the ASP model specifically targets Tier 2 and Tier 3 companies, there
are many divisions of Tier 1 companies which will also benefit from the ASP
environment. However, two major factors are inhibiting growth. Users
don’t want to trust the Internet and their data to an off-site third party and
the EAM/CMMS sector has little ASP model installed base.

User’s Mistrust of Internet Security and Off-

Off-site Data
The Internet has proven invaluable to manufacturers, retail and commercial
sellers and buyers, and consumers, but it is a little on the slow side when it

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Market Analysis and Forecast • EAM/CMMS Software & Services

comes to running an ASP model. Users view their data as a competitive ad-
vantage, even maintenance data, and the thought of accessing this data over
the very public Internet is somewhat daunting. The same is true of having
the company’s asset management information residing on a third-party site.

No Installed Base
Without an installed base the recurring revenue model associated with the
ASP model does not work well. It basically is the reverse of the economic
scenario above, whereby an EAM/CMMS supplier could realize, on average,
$205,000 for a software license and then another $348,000 for the associated
services. How many users are needed to make up for that $553,000 when the
revenue stream is coming in at a rate of about $50 per user per month? If the
model was $100 per user per month, then 460 users would be needed to
equal the revenue from that one sale.

Shipments of ASP Services by Type

ARC identified six basic services, and they are not unlike the regular
EAM/CMMS services. There’s the usual consulting, implementation, train-
ing, maintenance, and other, but the ASP model includes hosting and leases.
Hosting is the fee paid for having the ASP or WAH provider run the applica-
tion on their data center hardware and communications backbone, and leases
are the fees associated with renting the application software itself. These two
services accounted for 63 percent of the 2000 ASP revenues. Since the overall
ASP model has a CAGR of 47 percent, the individual services have double-
digit CAGR. (See Figures 4-24 and 4-25).

Hosting
Hosting, which represented 46 percent of ASP revenues in 2000, will have a
CAGR of 45 percent, leaving it with a 42 percent share in 2005. Of the ven-
dors reporting ASP revenues for 2000, only a few actually host the
application themselves. Most turn the responsibility over to third-party
WAHs. Mincom has had its own hosting facility in Australia for more than
twenty years, but the company just recently re-launched it as Tequinox. IFS
and NTech also host their own EAM/CMMS applications.

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 EAM/CMMS Software & Services • Market Analysis and Forecast

Leases
Leases, which represented 18 percent of 2000 ASP revenues, will grow at a
CAGR of 72 percent, giving it a 39 percent share in Leasing of software applications for a
2005. The pricing model for leases had many of the monthly fee based on the number of
vendors stymied at first, but a flat fee per user per users has a CAGR in excess of 72
month is now dominant, but the month fee per user percent, and this is what is making the
ASP model so attractive to the
ranges from $39 to $500. Obviously there is going to
suppliers of EAM/CMMS solutions.
be a huge difference in functionality.

Shipments
Shipments of ASP Services by Region

Since most of the EAM/CMMS suppliers offering an ASP model are US-
based, it is natural for North America to be well ahead of the other regions.
In 2000, North America represented 87 percent of the $25 million coming
from ASP services. EMEA was well behind with just 9 percent, but will have
the highest CAGR at 62 percent and a 15 percent share in 2005. Less than $1
million came from Asia, which will also experience a high CAGR of 60 per-
cent, giving it a 6 percent share in 2005. (See Figures 4-26 and 4-27).

North America
The majority of US suppliers are adopting the ASP model, and one of the
leaders, EDS, has been offering similar services for years. The others, even
highly marketed Fluor TabWare, are still building the requisite installed base.

EMEA
Market leader IFS of Sweden has been marketing ASP services for some time
and is very well established in the EAM space, even though it is considered
to be an ERP company. Other strong European-based ERP companies like
SAP and Intentia will also help fuel ASP growth in EMEA. The finalization
of the Euro in 2002 will also ease the transcontinental use of an ASP model.

eMRO Software and Services

EAM systems and Web-based solutions for asset management and industrial
procurement are vital to industrial businesses, governments, and other or-
ganizations. They assist in the maintenance of high-value capital assets, such
as plants, facilities, and production equipment to reduce MRO inventories
and costs, control maintenance expenses, reduce downtime, and more effec-

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Market Analysis and Forecast • EAM/CMMS Software & Services

tively deploy productive assets, personnel, and other resources. The core of
EAM is a balance between reducing the Total Cost of Ownership (TCO)
while ensuring that the right part is in the right place at the right time in or-
der to perform the required maintenance in a timely and efficient manner.
Also at the core of EAM is the timely procurement of maintenance and repair
(M&R) parts and services, much more so than the operations (O).

Maintenance and Repair

Maintenance and repair accounts for more than 55 percent of the industrial
procurement, and is usually driven by the EAM’s Material Management sub-
system. EAM is the demand engine for industrial procurement and balances
the complex internal inventory algorithms with the MRO procurement proc-
esses and systems. EAM tells the manufacturer what parts are needed when.
Maintenance and repair items are vastly different from items for operations,
because plant performance depends on complex equipment, where attributes
really matter – stainless steel versus carbon steel is more important in main-
tenance items like motor bearings than operational items like paper clips.

Annual spending by manufacturers for all equipment, software, services, and

MRO inventory for production and maintenance exceeds $100 billion and
will to grow to over $140 billion by 2005. There are over 2000 e-marketplaces
on the Internet, and more than 300 of them actually perform e-commerce
transactions. In capital asset-intensive manufacturing industries, mainte-
nance and repair (M & R of MRO) can account for more than 80 percent of all
non-production purchases, and the providers of software and services used
to build e-marketplaces report that 87 percent of these revenues are derived
from companies building private and public e-marketplaces for MRO.

It is absolutely imperative that manufacturers have a visionary strategy for

purchasing the appropriate maintenance and repair parts and services to
keep production equipment functioning, while improving the procedures
and processes for spot-buys, the unplanned purchases required to keep the
business operational. That’s a big deal and what eMRO is all about.

Shipments of eMRO Software and Services

The shipments of eMRO software and services fall into two basic groupings.
One is for EAM/CMMS software used to build private and/or public e-
marketplaces for eMRO, such as MRO Software’s mroBuyer, mroSupplier,

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 EAM/CMMS Software & Services • Market Analysis and Forecast

and mroIntegrator, so that users can develop their own infrastructure for
streamlining their MRO procurement processes. MRO Software is the clear
market leader in this space.

The other group is for the services that maintain MRO marketplaces for buy-
ers and sellers conducting transactions related to maintenance and repair
parts and services. The leader here is
Maintenance & Repair
Datastream with its iProcure Market-
Travel & Entertainment
place. The iProcure network combines 11.0%
13.0% Computer Equipment
the industry’s most comprehensive in- Office Supplies & Furniture
dustrial supply catalogue with Web- 55.0%
based procurement applications and 21.0%

hosts more than 250 companies doing Distribution of eMRO e-Procurement

procurement transactions.

Only a hand-full of companies are currently very active in either group, so

total eMRO revenues amounted to just $44 million in 2000. As this study is
only looking at EAM/CMMS suppliers, the focus of the associated eMRO is
exclusively on the M&R (Maintenance and Repair) parts and services, not the
Operations. However, ARC believes that this market is just starting to ramp-
up, and it will have a CAGR of 21 percent through 2005, ending the period
with revenues in excess of $155 million. (See Figure 4-28).

Factors Contrinuting to eMRO Market Growth

On-line purchasing through various types of Internet-based Marketplaces

can handle the acquisition of spare part inventories and other maintenance
parts and services. Users recognize that scheduled buying is much easier on
the Internet versus the spot buys so often required in asset management. It’s
time is coming, and there are a couple of very simple, basic factors that will
facilitate the growth of the market segment.

E-procurement Marketing Hype

The eMRO market has been somewhat slow to respond to the marketing of e-
procurement, e-supply chain, e-manufacturing, and e-business in general
because the maintenance and asset management users are not traditionally
known for market innovation, although the suppliers are. However, market-
ing and press coverage of e-procurement are finally beginning to make the
users see that the operations side of the house has readily adopted this tech-

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Market Analysis and Forecast • EAM/CMMS Software & Services

nology, and it works. Through the Internet and the eMRO Marketplaces
with their catalogues, auctions, exchanges, and portals, these solutions are
becoming more of a reality. The best-of-breed supplier of the MAXIMO
EAM solution believes enough in this industrial MRO supply chain process
to changed its name from PSDI to MRO Software.

More EAM/CMMS Vendors to O

Open
pen Marketplaces
There is slow, but steady movement toward the adoption of some forms of
eMRO activities. Some will be the selling of software and services for others
to create their own Marketplace. Others will open branded marketplaces.
The simplest methodology for a marketplace is a portal to allow users, espe-
cially users of that supplier’s EAM/CMMS solution, to move directly from
the EAM/CMMS application to an Internet portal. Within a year, the num-
ber of suppliers involved in eMRO is going to at least triple, if not quadruple.

Factors Inhibiting eMRO Market growth

ARC is hard pressed to see any major factors that would inhibit the growth
of the eMRO market, because this is the way manufacturers are going with
regards to such manufacturing processes as e-manufacturing and e-
procurement of direct and indirect supplies and services.

eMRO Does Not Expand Outside of North America

Until now, eMRO transactions have been limited to North America, specifi-
cally the US, for two reasons. First, the vendors are US-based and have kept
the initial implementations within their domestic market to work through
some of the logistics and to establish a base of users and sellers. Second, the
international community wants to “wait and see” how local indigenous sup-
pliers and catalogues react to e-commerce. If the other regions are slow to
adopt the eMRO models, then the revenues will be inhibited.

EAM/CMMS Suppliers Don’t Aggressively Pursue the eMRO Model

MRO Software and Datastream have really taken the lead with regards to
eMRO among the best-of-breed EAM/CMMS suppliers, and their aggressive
marketing campaigns may be enough to deter competitors from entering this
market segment. PSDI’s name change to MRO Software definitely sent a
message to the other suppliers, and the company even has a division and a
Website called MRO.com. That is somewhat intimidating. Indus Interna-

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 EAM/CMMS Software & Services • Market Analysis and Forecast

tional and Mincom, among others, have portals, but these tend to be just en-
try points to more informative and helpful Websites for their users.

Shipments
Shipments of eMRO Software and Services by Type

Key elements of the eMRO segment include software licenses for the applica-
tions that let users establish their own public or private marketplace, the
associated services for those licenses, and the supplier’s own marketplace.
Since this is a very young market, only a few suppliers are participating, and
two or three dominated the market in 2000. (See Figures 4-29 through 4-31).

Software
Software license revenues, which were 53 percent of the total in 2000, will
have a CAGR of 14 percent, dropping to 39 percent in 2005. This share drop
is due to the fact that the installed base for services is growing faster. The
software applications typically are defined for the buyer, the
seller/distributor, and an integration/transactional element. The idea is to
have a homogeneous environment for buyers and sellers to transact business
over the Internet or private Intranets.

Services
eMRO services, which amounted to $19 million in 2000, will grow to $39 mil-
lion and a 34 percent share in 2005 on a 15 percent CAGR. These services,
basically the same as for the EAM/CMMS software, typically include con-
sulting, implementation, training, and maintenance. At this early stage of the
eMRO life cycle, consulting and implementation typically represent about 50
percent of the services, and maintenance already is at 30 percent. Over time,
the maintenance service contract is going to become a much larger piece of
the service revenues, just like it has in the core EAM/CMMS business.

Marketplace
Marketplace
Only $1.6 million was attributed to marketplace revenues in 2000, and it all
came through Datastream and its iProcure eMRO site. Other vendors are
adopting various eMRO Marketplaces, so this sector has a CAGR of 81 per-
cent and will represent 27 percent of the total eMRO revenues in 2005.

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Market Analysis and Forecast • EAM/CMMS Software & Services

Figure 4-1
Total Shipments Of EAM/CMMS, ASP, And eMRO Software & Services
(Millions Of Dollars)

2,500.0

2,000.0

1,500.0

1,000.0

500.0

0.0
2000 2001 2002 2003 2004 2005

CMMS / EAM AS P eMR O

2000 2001 2002 2003 2004 2005 CAGR

EAM/CMMS 1,257.5 1,313.1 1,377.1 1,450.2 1,531.9 1,617.1 5.2%

ASP 25.3 32.6 45.1 65.7 103.0 174.5 47.1%

eMRO 44.3 48.7 55.9 67.1 84.2 115.8 21.2%

Total 1,327.1 1,394.4 1,478.0 1,583.0 1,719.1 1,907.4 7.5%

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 EAM/CMMS Software & Services • Market Analysis and Forecast

Figure 4-2
Total Shipments Of EAM/CMMS, ASP, And eMRO Software & Services
(Percent Of Dollars)

2000 = $1,327.1 Million

3.3%
1.9%

CMMS / EAM
AS P
eMR O

94.8%

2005 = $1,907.4 Million

6.1%
9.1%

CMMS / EAM
AS P
eMR O

84.8%

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Market Analysis and Forecast • EAM/CMMS Software & Services

Figure 4-3
Shipments Of EAM/CMMS, ASP, And eMRO Software And Services By
Region
(Percent Of Dollars)

2000 = $1,327.1 Million

8.6% 3.5%

NA
EMEA
Asia
29.9% 57.9% LA

2005 = $1,907.4 Million

7.6% 3.1%

NA
EMEA
Asia
29.4% LA
59.9%

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 EAM/CMMS Software & Services • Market Analysis and Forecast

Figure 4-4
Shipments Of EAM/CMMS, ASP, And eMRO Software And Services By
Region
(Millions Of Dollars)

2000 2001 2002 2003 2004 2005 CAGR

N America 768.9 808.8 860.2 924.4 1,011.4 1,141.8 8.2%

EMEA 397.5 420.2 444.9 475.4 514.4 560.4 7.1%

Asia 114.2 117.5 122.3 128.7 135.5 145.3 4.9%

L America 46.6 47.9 50.6 54.5 57.8 59.8 5.1%

Total 1,327.1 1,394.4 1,478.0 1,583.0 1,719.1 1,907.4 7.5%

2000 Percent 2005 Percent CAGR

$ Millions $ Millions

N America 768.9 57.9% 1,141.8 59.9% 8.2%

EMEA 397.5 29.9% 560.4 29.4% 7.1%

Asia 114.2 8.6% 145.3 7.6% 4.9%

L America 46.6 3.5% 59.8 3.1% 5.1%

Total 1,327.1 100.0% 1,907.4 100.0% 7.5%

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Market Analysis and Forecast • EAM/CMMS Software & Services

Figure 4-5
Shipments Of EAM/CMMS Software & Services
(Millions Of Dollars)

CAGR = 5.2 Percent

1,800.0
1,617.1
1,600.0 1,531.9
1,450.2
1,377.1
1,400.0 1,313.1
1,257.5
1,200.0

1,000.0

800.0

600.0

400.0

200.0

0.0
2000 2001 2002 2003 2004 2005

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 EAM/CMMS Software & Services • Market Analysis and Forecast

Figure 4-6
Shipments Of EAM/CMMS Software & Services
(Millions Of Dollars)

2000 2001 2002 2003 2004 2005 CAGR

Software 461.5 474.0 488.8 506.1 522.0 534.3 3.0%

Services 796.0 839.0 888.3 944.1 1,009.9 1,082.7 6.3%

Total 1,257.5 1,313.1 1,377.1 1,450.2 1,531.9 1,617.1 5.2%

2000 Percent 2005 Percent CAGR

$ Millions $ Millions

Software 461.5 36.7% 534.3 33.0% 3.0%

Services 796.0 63.3% 1,082.7 67.0% 6.3%

Total 1,257.5 100.0% 1,617.1 100.0% 5.2%

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Market Analysis and Forecast • EAM/CMMS Software & Services

Figure 4-7
Shipments Of EAM/CMMS Software & Services
(Millions Of Dollars)

Software CAGR = 3.0 Percent

Services CAGR = 6.3 Percent

1,200.0
1,082.7
1,009.9
1,000.0 944.1
888.3
839.0
796.0
800.0

600.0 534.3
506.1 522.0
474.0 488.8
461.5

400.0

200.0

0.0
2000 2001 2002 2003 2004 2005

Software Services

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 EAM/CMMS Software & Services • Market Analysis and Forecast

Figure 4-8
Shipments Of EAM/CMMS Software & Services By Region
(Percent Of Dollars)

2000 = $1,257.5 Million

9.0% 3.7%

N America
EMEA
Asia
31.4% 55.9% L America

2005 = $1,617.1 Million

8.4% 3.6%

N America
EMEA
Asia
33.1% 55.0% L America

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Market Analysis and Forecast • EAM/CMMS Software & Services

Figure 4-9
Shipments Of EAM/CMMS Software & Services By Region
(Millions Of Dollars)

2000 2001 2002 2003 2004 2005 CAGR

N America 702.6 732.4 766.1 802.7 843.5 888.7 4.8%

EMEA 395.2 417.2 440.6 468.5 501.7 535.0 6.2%

Asia 113.2 116.3 120.5 125.7 130.4 135.7 3.7%

L America 46.5 47.3 49.8 53.3 56.3 57.6 4.4%

Total 1,257.5 1,313.1 1,377.1 1,450.2 1,531.9 1,617.1 5.2%

2000 Percent 2005 Percent CAGR

$ Millions $ Millions

N America 702.6 55.9% 888.7 55.0% 4.8%

EMEA 395.2 31.4% 535.0 33.1% 6.2%

Asia 113.2 9.0% 135.7 8.4% 3.7%

L America 46.5 3.7% 57.6 3.6% 4.4%

Total 1,257.5 100.0% 1,617.1 100.0% 5.2%

4-34 • Copyright 2001 © ARC Advisory Group

 EAM/CMMS Software & Services • Market Analysis and Forecast

Figure 4-10
Shipments Of EAM/CMMS Software & Services By Tier
(Percent Of Dollars)

2000 = $1,257.5 Million

10.9%

47.7%
Tier 1
Tier 2
Tier 3

41.4%

2005 = $1,617.1 Million

15.6%

37.7%
Tier 1
Tier 2
Tier 3

46.7%

Copyright 2001 © ARC Advisory Group • 4-35

Market Analysis and Forecast • EAM/CMMS Software & Services

Figure 4-11
Shipments Of EAM/CMMS Software & Services By Tier
(Millions Of Dollars)

2000 2001 2002 2003 2004 2005 CAGR

Tier 1 600.3 608.3 613.7 614.7 613.2 609.8 0.3%

Tier 2 520.2 556.9 598.9 645.3 697.7 754.9 7.7%

Tier 3 137.0 147.9 164.4 190.2 221.0 252.3 13.0%

Total 1,257.5 1,313.1 1,377.0 1,450.2 1,531.9 1,617.0 5.2%

2000 Percent 2005 Percent CAGR

$ Millions $ Millions

Tier 1 600.3 47.7% 609.8 37.7% 0.3%

Tier 2 520.2 41.4% 754.9 46.7% 7.7%

Tier 3 137.0 10.9% 252.3 15.6% 13.0%

Total 1,257.5 100.0% 1,617.0 100.0% 5.2%

4-36 • Copyright 2001 © ARC Advisory Group

 EAM/CMMS Software & Services • Market Analysis and Forecast

Figure 4-12
Shipments Of EAM/CMMS Software By Computing Environment
(Percent Of Dollars)

2000 = $461.5 Million

7.2%
8.3%
1.0%
Client / S erver
9.5%
Net worked
S t and-Alone
Host w Term
Int ernet
74.0%

2005 = $534.3 Million

18.8%
Client / S erver
6.2%
Net worked
S t and-Alone
0.6% Host w Term
8.5% 65.9% Int ernet

Copyright 2001 © ARC Advisory Group • 4-37

Market Analysis and Forecast • EAM/CMMS Software & Services

Figure 4-13
Shipments Of EAM/CMMS Software By Computing Environment
(Millions Of Dollars)

2000 2001 2002 2003 2004 2005 CAGR

Client/Server 341.3 344.0 346.8 349.2 351.3 352.4 0.6%

Networked 43.7 44.2 44.6 45.1 45.3 45.2 0.7%

Stand Alone 4.7 4.6 4.3 4.0 3.6 3.1 -7.9%

Host w Terms, 33.4 33.5 33.6 33.7 33.5 33.3 -0.1%

Internet 38.3 47.7 59.4 74.1 88.3 100.4 21.2%

Total 461.5 474.0 488.8 506.1 522.0 534.3 3.0%

2000 Percent 2005 Percent CAGR

$ Millions $ Millions

Client/Server 341.3 74.0% 352.4 65.9% 0.6%

Networked 43.7 9.5% 45.2 8.5% 0.7%

Stand Alone 4.7 1.0% 3.1 0.6% -7.9%

Host w Terms, 33.4 7.2% 33.3 6.2% -0.1%

Internet 38.3 8.3% 100.4 18.8% 21.2%

Total 461.5 100.0% 534.3 100.0% 3.0%

4-38 • Copyright 2001 © ARC Advisory Group

 EAM/CMMS Software & Services • Market Analysis and Forecast

Figure 4-14
Shipments Of EAM/CMMS Software By Application Platform
(Percent Of Dollars)

2000 = $461.5 Million

11.9%
23.9%

L ow-End Windows
High-End Windows
UNIX / L inux
30.7% Ot her

33.5%

2005 = $534.3 Million

10.3%
25.3%

26.6% L ow-End Windows

High-End Windows
UNIX / L inux
Ot her

37.8%

Copyright 2001 © ARC Advisory Group • 4-39

Market Analysis and Forecast • EAM/CMMS Software & Services

Figure 4-15
Shipments Of EAM/CMMS Software By Application Platform
(Millions Of Dollars)

2000 2001 2002 2003 2004 2005 CAGR

Low-End Windows 110.5 114.9 119.6 124.9 130.0 135.3 4.1%

High-End Widows 154.4 161.4 170.5 182.2 193.5 201.8 5.5%

UNIX/Linux 141.7 142.4 143.2 143.2 142.8 142.2 0.1%

Other 55.0 55.4 55.5 55.8 55.7 55.0 0.0%

Total 461.5 474.0 488.8 506.1 522.0 534.3 3.0%

2000 Percent 2005 Percent CAGR

$ Millions $ Millions

Low-End Windows 110.5 23.9% 135.3 25.3% 4.1%

High-End Widows 154.4 33.5% 201.8 37.8% 5.5%

UNIX/Linux 141.7 30.7% 142.2 26.6% 0.1%

Other 55.0 11.9% 55.0 10.3% 0.0%

Total 461.5 100.0% 534.3 100.0% 3.0%

4-40 • Copyright 2001 © ARC Advisory Group

 EAM/CMMS Software & Services • Market Analysis and Forecast

Figure 4-16
Shipments Of EAM/CMMS Software By Industry Sector
(Percent Of Dollars)

2000 = $461.5 Million

8.3% 5.5% 5.5%

P rocess
3.3% Discret e
2.9% Gov't
Telecomm
FM
55.1%
Transport at ion
19.3%
Ot her

2005 = $543.3 Million

8.9% 5.3% 5.2%

P rocess
3.7% Discret e
2.7% Gov't
Telecomm
54.0% FM
Transport at ion
20.2% Ot her

Copyright 2001 © ARC Advisory Group • 4-41

Market Analysis and Forecast • EAM/CMMS Software & Services

Figure 4-17
Shipments Of EAM/CMMS Software By Industry Sector
(Millions Of Dollars)

2000 Percent 2005 Percent CAGR

$ Millions $ Millions

Process 254.4 55.1% 288.5 54.0% 2.5%

Discrete 89.2 19.3% 107.9 20.2% 3.9%

Government 13.3 2.9% 14.4 2.7% 1.6%

Telecomm 15.2 3.3% 19.8 3.7% 5.4%

Facilities Mgmt 38.4 8.3% 47.6 8.9% 4.4%

Transportation 25.6 5.5% 28.3 5.3% 2.0%

Other 25.2 5.5% 27.8 5.2% 1.7%

Total 461.5 100.0% 534.3 100.0% 3.0%

4-42 • Copyright 2001 © ARC Advisory Group

 EAM/CMMS Software & Services • Market Analysis and Forecast

Figure 4-18
Shipments Of EAM/CMMS Software By Process Industries
(Millions Of Dollars)

2000 Percent 2005 Percent CAGR

$ Millions $ Millions

Chemical 27.0 10.6% 30.5 10.6% 2.4%

CPG 22.1 8.7% 20.3 7.0% -1.7%

Textiles 13.2 5.2% 13.9 4.8% 1.0%

Food & Beverag 20.8 8.2% 24.6 8.5% 3.4%

Metals & Mining 29.0 11.4% 34.7 12.0% 3.7%

Oil & Gas 21.4 8.4% 26.2 9.1% 4.2%

Pharmaceutical 15.7 6.2% 18.2 6.3% 2.9%

Paper 31.2 12.3% 28.3 9.8% -1.9%

Electric Utilities 37.9 14.9% 55.6 19.3% 8.0%

Water/Waste Util 16.5 6.5% 19.8 6.9% 3.6%

Other Process 19.6 7.7% 16.6 5.7% -3.3%

Total 254.4 100.0% 288.5 100.0% 2.5%

Copyright 2001 © ARC Advisory Group • 4-43

Market Analysis and Forecast • EAM/CMMS Software & Services

Figure 4-19
Shipments Of EAM/CMMS Software By Discrete Industries
(Millions Of Dollars)

2000 Percent 2005 Percent CAGR

$ Millions $ Millions

Aerospace/Defense 18.6 20.9% 25.6 23.8% 6.6%

Automotive 19.7 22.1% 25.1 23.3% 5.0%

Electronics 15.7 17.6% 18.2 16.8% 2.9%

Electrical 6.9 7.8% 6.4 5.9% -1.5%

Fabricated Metals 8.7 9.8% 9.1 8.4% 0.8%

Machinery 12.9 14.4% 15.5 14.4% 3.8%

Other Discrete 6.6 7.4% 8.0 7.4% 3.9%

Total 89.2 100.0% 107.9 100.0% 3.9%

4-44 • Copyright 2001 © ARC Advisory Group

 EAM/CMMS Software & Services • Market Analysis and Forecast

Figure 4-20
Shipments Of EAM/CMMS Software By Other Industries
(Millions Of Dollars)

2000 Percent 2005 Percent CAGR

$ Millions $ Millions

Government 13.3 11.3% 14.4 10.5% 1.6%

Telecomm 15.2 12.8% 19.8 14.3% 5.4%

Facilities Mgmt 38.4 32.5% 47.6 34.5% 4.4%

Transportation 25.6 21.7% 28.3 20.5% 2.0%

Other 25.5 21.6% 27.8 20.2% 1.7%

Total 118.1 100.0% 137.9 100.0% 3.1%

Copyright 2001 © ARC Advisory Group • 4-45

Market Analysis and Forecast • EAM/CMMS Software & Services

Figure 4-21
Shipments Of EAM/CMMS Software By Sales Channel
(Percent Of Dollars)

2000 = $461.5 Million

1.6%
8.9% 0.6% 0.8%
3.0% Direct S ales
3.5% OEMs/ VAR s
S is
R eps
Dist riut ors
Int ernet
Ot her
81.8%

2005 = $534.3 Million

8.8% 11.0% 0.6%

Direct S ales
2.0%
OEMs/ VAR s
2.7% S is
R eps
Dist riut ors
2.9%
Int ernet
72.0% Ot her

4-46 • Copyright 2001 © ARC Advisory Group

 EAM/CMMS Software & Services • Market Analysis and Forecast

Figure 4-22
Shipments Of EAM/CMMS Software By Sales Channel
(Millions Of Dollars)

2000 Percent 2005 Percent CAGR

$ Millions $ Millions

Direct Sales 377.3 81.8% 384.7 72.0% 0.4%

OEMs/VARs 15.9 3.5% 15.5 2.9% -0.6%

SIs 13.7 3.0% 14.4 2.7% 1.0%

Reps 7.23 1.6% 10.7 2.0% 8.1%

Distributors 40.92 8.9% 47.0 8.8% 2.8%

Internet 2.6 0.6% 58.8 11.0% 87.2%

Other 3.8 0.8% 3.2 0.6% -3.5%

Total 461.5 100.0% 534.3 100.0% 3.0%

Copyright 2001 © ARC Advisory Group • 4-47

Market Analysis and Forecast • EAM/CMMS Software & Services

Figure 4-23
Shipments Of ASP Services
(Millions Of Dollars)

CAGR = 47.3 Percent

200.0

180.0 174.5

160.0

140.0

120.0
103.0
100.0

80.0
65.7
60.0
45.1
40.0 32.6
25.2
20.0

0.0
2000 2001 2002 2003 2004 2005

4-48 • Copyright 2001 © ARC Advisory Group

 EAM/CMMS Software & Services • Market Analysis and Forecast

Figure 4-24
Shipments Of ASP Services By Type
(Percent Of Dollars)

2000 = $25.2 Million

2.4%
7.3%
5.8% Host ing
10.1% L eases
45.6% Consult ing
Implement at ion
Training
11.1% Maint enance
Ot her
17.7%

2005 = $174.5 Million

3.1%
2.4%
2.6%
6.5% Host ing
5.2% L eases
41.7%
Consult ing
Implement at ion
Training
Maint enance
38.5% Ot her

Copyright 2001 © ARC Advisory Group • 4-49

Market Analysis and Forecast • EAM/CMMS Software & Services

Figure 4-25
Shipments Of ASP Services By Type
(Millions Of Dollars)

2000 2001 2002 2003 2004 2005 CAGR

Hosting 11.5 14.9 20.9 30.3 45.5 72.8 44.7%

Leases 4.4 6.7 10.7 18.2 33.6 67.2 72.1%

Consulting 2.8 3.4 4.2 5.3 6.9 9.1 26.5%

Implementation 2.6 3.0 3.6 4.7 7.0 11.3 34.6%

Training 1.5 1.8 2.2 2.8 3.9 5.4 29.7%

Maintenance 0.6 0.8 1.1 1.6 2.6 4.2 47.5%

Other 1.8 2.1 2.4 2.9 3.6 4.6 20.1%

Total 25.20 32.6 45.1 65.7 103.0 174.5 47.3%

2000 2005
Percent Percent CAGR
$ Millions $ Millions

Hosting 11.5 45.6% 72.8 41.7% 44.7%

Leases 4.4 17.7% 67.2 38.5% 72.1%

Consulting 2.8 11.1% 9.1 5.2% 26.5%

Implementation 2.6 10.1% 11.3 6.5% 34.6%

Training 1.5 5.8% 5.4 3.1% 29.7%

Maintenance 0.6 2.4% 4.2 2.4% 47.5%

Other 1.8 7.3% 4.6 2.6% 20.1%

Total 25.2 100.0% 174.5 100.0% 47.3%

4-50 • Copyright 2001 © ARC Advisory Group

 EAM/CMMS Software & Services • Market Analysis and Forecast

Figure 4-26
Shipments Of ASP Services By Region
(Percent Of Dollars)

2000 = $25.3 Million

9.1% 3.6% 0.4%

N America
EMEA
Asia
L America

86.9%

2005 = $174.5 Million

5.5% 1.3%
14.5%

N America
EMEA
Asia
L America

78.6%

Copyright 2001 © ARC Advisory Group • 4-51

Market Analysis and Forecast • EAM/CMMS Software & Services

Figure 4-27
Shipments Of ASP Services By Region
(Millions Of Dollars)

2000 2001 2002 2003 2004 2005 CAGR

N America 22.0 27.7 38.2 54.7 83.7 137.2 44.2%

EMEA 2.3 3.0 4.3 6.9 12.7 25.4 61.6%

Asia 0.9 1.2 1.7 3.0 5.2 9.7 60.0%

L America 0.1 0.6 0.8 1.2 1.5 2.2 86.1%

Total 25.3 32.6 45.1 65.7 103.0 174.5 47.1%

2000 Percent 2005 Percent CAGR

$ Millions $ Millions

N America 22.0 86.9% 137.2 78.6% 44.2%

EMEA 2.3 9.1% 25.4 14.5% 61.6%

Asia 0.9 3.6% 9.7 5.5% 60.0%

L America 0.1 0.4% 2.2 1.3% 86.1%

Total 25.3 100.0% 174.5 100.0% 47.1%

4-52 • Copyright 2001 © ARC Advisory Group

 EAM/CMMS Software & Services • Market Analysis and Forecast

Figure 4-28
Shipments Of eMRO Software And Services
(Millions Of Dollars)

CAGR = 21.2 Percent

140.0

120.0 115.8

100.0
84.2
80.0
67.1

60.0 55.9
48.7
44.3
40.0

20.0

0.0
2000 2001 2002 2003 2004 2005

Copyright 2001 © ARC Advisory Group • 4-53

Market Analysis and Forecast • EAM/CMMS Software & Services

Figure 4-29
Shipments Of eMRO Software And Services
(Millions Of Dollars)

50.0
45.0
45.0
39.3
40.0 37.2

35.0 32.1 32.0 31.5

30.0 28.2
27.1
25.3
25.0 23.4 23.3
20.8
19.3
20.0
15.0
15.0

10.0 7.9
4.4
5.0 2.6
1.6
0.0
2000 2001 2002 2003 2004 2005

Software Services Marketplace

4-54 • Copyright 2001 © ARC Advisory Group

 EAM/CMMS Software & Services • Market Analysis and Forecast

Figure 4-30
Shipments Of eMRO Software And Services By Type
(Percent Of Dollars)

2000 = $44.3 Million

3.6%

S oft ware
S ervices
43.6% 52.8% Market place

2005 = $115.8 Million

27.2%
38.9%
S oft ware
S ervices
Market place

33.9%

Copyright 2001 © ARC Advisory Group • 4-55

Market Analysis and Forecast • EAM/CMMS Software & Services

Figure 4-31
Shipments Of eMRO Software And Services By Type
(Millions Of Dollars)

2000 2001 2002 2003 2004 2005 CAGR

Software 23.4 25.3 28.2 32.1 37.2 45.0 14.0%

Services 19.3 20.8 23.3 27.1 32.0 39.3 15.3%

Marketplace 1.6 2.6 4.4 7.9 15.0 31.5 81.2%

Total 44.3 48.7 55.9 67.1 84.2 115.8 21.2%

2000 2005
Percent Percent CAGR
$ Millions $ Millions

Software 23.4 52.8% 45.0 38.9% 14.0%

Services 19.3 43.6% 39.3 33.9% 15.3%

Marketplace 1.6 3.6% 31.5 27.2% 81.2%

Total 44.3 100.0% 115.8 100.0% 21.2%

4-56 • Copyright 2001 © ARC Advisory Group

 EAM/CMMS Software & Services • Supplier Profiles

Chapter 5
Supplier Profiles

The following pages provide brief profiles of suppliers of EAM (Enterprise

Asset Management) / CMMS (Computerized Maintenance Management Sys-
tem) solutions. This information was derived from company reports,
Internet searches, and interviews with company officials.

Copyright 2001 © ARC Advisory Group • 5-1

Supplier Profiles • EAM/CMMS Software & Services

Adasoft

www.adasystems.com

Founded 1984

Ownership Private

Acquisitions Not Applicable

Partnerships Lotus Development

Key Clients Abbot Laboratories, Firestone-Bridgestone, Yoplait

Product
Maint A-MES and @maint A-MES
Name(s)

Integrated with the company’s A-MES (Manufacturing

Strengths
Execution System)

Weaknesses Database based on Lotus Notes.

5-2 • Copyright 2001 © ARC Advisory Group

 EAM/CMMS Software & Services • Supplier Profiles

ADB Systems

www.adbsys.com

Founded 1988

Ownership Went public on April 24, 1997

Acquired Bonner & Moore’s Consulting Services, including

Acquisitions
its COMPASS EAM software in January 2000

Partnerships Oracle, Sybase, and MDM Services.

Key Clients British Petroleum, elf, IOKOC, Aker Maritime

Product
WorkMate, ProcureMate, and COMPASS
Name(s)

Focuses specifically on the energy and asset intensive in-

Strengths dustries, and the product, WorkMate, has Automated
Workflow Management and Tracking.

The company is headquartered in Norway but it has estab-

Weaknesses
lished North American operations out of Houston, Texas.

Copyright 2001 © ARC Advisory Group • 5-3

Supplier Profiles • EAM/CMMS Software & Services

Advanced Software Designs

www.asd-info.com

Founded 1989

Ownership Private

Acquisitions Not Applicable

Partnerships Not Applicable

Key Clients

Product
MaintScape Light and MaintScape Professional
Name(s)

Product is a Computerized Maintenance and Calibration

Strengths Management System that works well for Facilities and
Plant Maintenance Management.

Weaknesses A relatively small company and name recognition.

5-4 • Copyright 2001 © ARC Advisory Group

 EAM/CMMS Software & Services • Supplier Profiles

AXS-
AXS-One

www.computronsoftware.com

Founded 1978

Ownership Public on AMEX as AXO

Renamed AXS-One on November 1, 2000 from Computron Software

Partnerships Commerce One Marketsite Global Trading Portal

Key Clients Pfizer and Goodman Fielder.

Product
TransAXS and AXSPoint
Name(s)

More of a Financial Software provider and now reposi-

Strengths
tioned for Web-based e-business market.

Weaknesses Abandoned EAM/CMMS markets.

Copyright 2001 © ARC Advisory Group • 5-5

Supplier Profiles • EAM/CMMS Software & Services

BAE Systems/IFS (Paradigm)

www.paradigm.co.za

Paradigm Systems Technology was formed in the late

1970s. BAE SYSTEMS-IFS Ltd was launched on Monday
18th September 2000 by BAE SYSTEMS and IFS to target
the worldwide defence and civil aviation markets for logis-
Founded
tics information, fleet management and maintenance repair
and overhaul (MRO) systems. BAE Systems was formed in
November 1999 through the merger of British Aerospace
Plc and Marconi Electronic Systems.

Ownership Public

In November 1998, BAE Systems acquired 51% in Para-

Acquisitions
digm Systems and formed a Joint Venture.

Partnerships Many in aerospace and defense

Key Clients Everybody in aerospace and defense

Product
EPMS
Name(s)

Strengths Owned by BAE Systems and the joint venture with IFS

Weaknesses Paradigm’s EPMS is a small part of BAE Systems/IFS

5-6 • Copyright 2001 © ARC Advisory Group

 EAM/CMMS Software & Services • Supplier Profiles

Benchmate Systems

www.benchmate.com

Founded 1985

Ownership Private

Acquisitions Not Applicable.

Partnerships Not Applicable

Key Clients Boise Cacade, International paper, and Todd Shipyards.

Product Benchmate CMMS, Lockout Tagout, and Benchmate

Name(s) MULTI-SITE.

Strengths A complete, easy to learn CMMS solution.

A simple, but effective, CMMS for Tier 3, maybe low-end

Weaknesses
of Tier 3.

Copyright 2001 © ARC Advisory Group • 5-7

Supplier Profiles • EAM/CMMS Software & Services

Bender Engineering

www.maintstar.com

Founded 1984

Ownership Private

Acquisitions Not applicable

Partnerships Not Applicable

Key Clients General Electric, Corning, GTE, and Honeywell

Product
MaintStar and CalStar
Name(s)

Product operates on Oracle, Sybase, and Microsoft SQL

Strengths databases, and the company focuses on municipalities,
manufacturing, and fleets

A part of an engineering firm focused on engineering ser-

Weaknesses
vices

5-8 • Copyright 2001 © ARC Advisory Group

 EAM/CMMS Software & Services • Supplier Profiles

Cayenta EAM Solutions Group

www.mainsaver.com www.cayenta.com

Formed 1997 as a subsidiary of Titan Corporation

Titan Corporation is public, founded in 1983. Cayenta, a

Ownership
private subsidiary, filed for an IPO in December 1999.

Acquired JB Systems (founded in 1983), which was Main-

Acquisitions
saver, in November 1999.

SAP, Computer Associates, Oracle, IBM, and Aperture

Partnerships
Technologies

Ramsey County, Diamond Products, Puna Geothermal

Key Clients
Venture, and Waste management

Product
Mainsaver and MainsaverNOW (a hosted solution – ASP)
Name(s)

Advertises itself as a Total Service Provider with the ability

to provide EAI (Enterprise Application Integration prod-
Strengths
ucts and services, eBusiness Solutions, and a Network
Operation Center to complement the EAM solution.

Lack of name recognition in EAM/CMMS community, and

Weaknesses the Mainsaver product focus may get lost within the larger
Cayenta and Titan organizations.

Copyright 2001 © ARC Advisory Group • 5-9

Supplier Profiles • EAM/CMMS Software & Services

Ceecom

www.ceecom.com

Founded TXbase was founded in 1988

Ownership Private

TXbase split into two companies in Q1CY00 –Ceecom for

Name Change ERP and CMMS (Plantware), and Fleetware Inc for fleet
CMMS

Partnerships Microsoft, Sybase, IBM, Ernst & Young, Grant Thornton

Key Clients Nedstaal

Product
Plantware
Name(s)

Fastrack implementation process can have a company go

Strengths
live in 3 to 4 months.

CMMS is secondary to the company’s main business. It

develops, markets and supports web enabled order fulfill-
Weaknesses ment, ERP, supply chain, and CRM software solutions for
manufacturers and distributors in a variety of niche indus-
tries..

5-10 • Copyright 2001 © ARC Advisory Group

 EAM/CMMS Software & Services • Supplier Profiles

CHAMPS Software

www.champsinc.com

Founded 1976

Ownership Private

Acquisitions Not Applicable

Partnerships Interface Consultants

Tokyo Electric Power Company, Disneyland Paris, and The

Key Clients
Port Authority of Jamaica

Product
CHAMPS CMMS
Name(s)

CHAMPS AIM – Accelerated Implementation Methodol-

Strengths
ogy.

The company has been around for 25 years, but it continues

Weaknesses
to remain private and small.

Copyright 2001 © ARC Advisory Group • 5-11

Supplier Profiles • EAM/CMMS Software & Services

CK Systems

www.cksystems.com

Founded Early 1980’s

Ownership Private

Acquisitions Not Applicable.

Seagate Software, Pervasive Software, Videx Online, and

Partnerships
THAWTE

AKZO Chemicals, Atlas Foundry, and National Food

Key Clients
Chemical Company

Product
MaintiMizer 2000
Name(s)

An older established CMMS company with a stable prod-

Strengths
uct

Weaknesses Continues to remain small and private

5-12 • Copyright 2001 © ARC Advisory Group

 EAM/CMMS Software & Services • Supplier Profiles

COGZ Systems, LLC

www.cogz.com

Founded 1989

Ownership Private

Acquisitions Not Applicable.

Partnerships

American Bottling Company, Nestle USA, Papa John’s, and

Key Clients
Penzoil-Quaker State

Product
COGZ Maintenance Management System
Name(s)

COGZ takes very little time to use and implement, there-

Strengths fore reducing the costs often associated with operating a
maintenance system

Weaknesses Continues to remain small and private

Copyright 2001 © ARC Advisory Group • 5-13

Supplier Profiles • EAM/CMMS Software & Services

Comac Systems Ltd.

http://website.lineone.net/~comacinternational/

: [email protected] for contact

Founded 1979

Ownership Private.

Acquisitions Not Applicable.

Partnerships

Key Clients

Product
Comac MK10
Name(s)

Strengths

Weaknesses

5-14 • Copyright 2001 © ARC Advisory Group

 EAM/CMMS Software & Services • Supplier Profiles

Datastream

www.dstm.com

Founded 1986

Ownership Public since March 1997, on NASDAQ as DSTM

In 1997, acquired Netherlands-based SQL Systems which

becomes MP5. Acquired Computec Sistemas in Argentina
Acquisitions
and Datastream Systems de Mexico in September 1998. The
company acquired SIS Pte Ltd in Singapore in June 1998

Epicor Software, FIS, Life Cycle Engineering, and Sedge-

Partnerships
field Associates

Coast Mountain BusLink, Energizer Battery, Rand Refinery

Key Clients
Limited, and France’s Aeronautical Testing Center

Product
MP5i, MP2 Enterprise, iProcure, and MPXconnect
Name(s)

A very strong competitor with products that cover the tra-

ditional EAM space, as well as an ASP model and an
Strengths
eMRO Marketplace – well rounded and very global, focus-
ing on solutions.

In 2000, the company rebuilt the business in terms of stra-

tegic positioning, products and management in order to
capture more business and market share through e-
Weaknesses commerce transactions with iProcure, and company's mi-
gration to its Internet-based product offering MP5i. This
resulted in a pro forma net loss of $10.8 million for the
year.

Copyright 2001 © ARC Advisory Group • 5-15

Supplier Profiles • EAM/CMMS Software & Services

Desktop Innovations

www.mainboss.com

Founded 1989

Ownership Private

Acquisition Not Applicable

Partnerships Not Applicable

Key Clients INDSPEC Chemical

Product
MainBoss CMMS
Name(s)

Strengths

Weaknesses

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 EAM/CMMS Software & Services • Supplier Profiles

DP Solutions

www.dpsi-cmms.com

Founded 1986

Ownership Private

Acquisitions Not Applicable

Visual Consulting, Soluciones de Software y Consultoria,

Partnerships
and SkyTech

B.F. Goodrich, Ford Motor Company, Proctor & Gamble,

Key Clients
and Ralston Purina

Product
iMaint EAM, iMaintASP, PMC2000, and FleetMaint2000
Name(s)

Good suite of applications for the company’s markets, es-

pecially fleet maintenance management (FleetMaint 2000),
Strengths
and with iMaint 2000 and iMaintASP the company is seri-
ous about Internet solutions and e-commerce.

The company remains relatively small and private with

Weaknesses many family members on staff – however the opportunities
are there.

Copyright 2001 © ARC Advisory Group • 5-17

Supplier Profiles • EAM/CMMS Software & Services

Eagle Technology

www.eaglecmms.com

Founded 1986

Ownership Private

Acquisition Not Applicable

Microsoft, Oracle, and Johnson Controls’ Metasys Facility

Partnerships
Management System

Key Clients Johnson Controls, John Deere, Pennzoil, and Leviton

Product eProTeus, ProTeus Enterprise, ProTeus Expert, ProTeus

Name(s) Pro, and ProTeus SP

ProTeus product line has offerings for a wide range of

Strengths multi-site plants and facilities down to the single user, and
the eProTeus allows for Web hosting.

Elects to remain a relatively small and private CMMS sup-

Weaknesses
plier.

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 EAM/CMMS Software & Services • Supplier Profiles

EDS

www.eds.com

Founded 1962

Ownership Public

Acquisitions Not Applicable

Partnerships Many

Key Clients General Motors

Product
EMPRV
Name(s)

Has the service capabilities to implement and support its

Strengths own solution, and is not averse to supporting other EAM
products.

Weaknesses Very large and better known for its outsourcing services

Copyright 2001 © ARC Advisory Group • 5-19

Supplier Profiles • EAM/CMMS Software & Services

Engica Technology

www.engica.com

Founded 1981

Ownership Private

Acquisitions Not Applicable

BMT Reliability Consultants, ALSTOM Industry, and En-

Partnerships
gineering Technology

Edison Mission Energy, Southern Energy Philippines, and

Key Clients
Amata EGCO

Product 4
Q
Name(s)

Strengths

Weaknesses Web site is not very informative

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 EAM/CMMS Software & Services • Supplier Profiles

EPAC Software Technologies

www.epacst.com

Founded EQUIPAC founded in 1989

Ownership Private

Acquisitions Acquired EQUIPAC in 1999

Partnerships Has Business Partner Program (BPP)

Superior Metal products, MPW Filtration Systems, and

Key Clients
Mission Foods

Product
EQUIPAC
Name(s)

Strengths

Weaknesses

Copyright 2001 © ARC Advisory Group • 5-21

Supplier Profiles • EAM/CMMS Software & Services

ESBI Computing

www.esbic.ie

Founded 1989

Ownership Private

Member of ESB International Group (ESBI), which is a sub-

Association
sidiary of the Electricity Supply Board of Ireland (ESB)

Oracle, mapInfo, Bentley Systems, and Computer Systems

Partnerships
Advisers

its current target vertical markets of power generation and

Key Clients
oil/gas production

Product
Maintenance Controller
Name(s)

Successful and well respected engineering, contracting and

Strengths
consulting organization in the utility sector

Weaknesses A small company based in Dublin, Ireland

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 EAM/CMMS Software & Services • Supplier Profiles

eXegeSys

www.exegesys.com

Founded 1994

Ownership Private

In 1997, eXegeSys purchased Manufacturing Management

II (MMII) software Manufacturing Management II (MMII)
software from HP, and the name of the software was
Acquisitions
changed to eXegetic Resource Planning (eRP) In February
2000, eXegeSys acquired Riva Business Solutions Group of
Bolton, England.

Hewlett Packard, Azurri, Toltech. TechForm, Cognos,

Partnerships
Crystal, Adager, Microsoft, Delta Consulting, and APPIC

Boeing, DAF Trucks, Eli Lilly, International Paper, Lucent,

Key Clients
Optek, TRW, and Westinghouse

Product
eXegetic Asset Management (eAM)
Name(s)

Strengths Supports and encourages customization of solution

Weaknesses Identified as an ERP company

Copyright 2001 © ARC Advisory Group • 5-23

Supplier Profiles • EAM/CMMS Software & Services

FBO Systems

www.fbos.com

Founded 1989

Ownership Private

Acquisition Not Applicable

Partnerships Progress Software, QAD, Aspen, and Servidata S.A de C.V.

U.S. Sugar, Comar, Quaker Oats, and Westinghouse Sa-

Key Clients
vannah River

Product
MLS
Name(s)

MLS is integrated with the ERP system MFG/PRO® from

Strengths
QAD

Weaknesses Not recognized as an EAM provider

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 EAM/CMMS Software & Services • Supplier Profiles

Fleetware

www.fleetwareinc.com

Founded TXbase was founded in 1988

Ownership Private

TXbase split into two companies in Q1CY00 –Ceecom for

Name Change ERP and CMMS (Plantware), and Fleetware Inc for fleet
CMMS

Microsoft, Sybase, Seagate Software, Sterling Commerce,

Partnerships
and Sun Microsystems

Key Clients Metro Transit, Canarail, and Palm Tran

Product
Fleetware and Plantware
Name(s)

The company split now allows Fleetware to concentrate

Strengths more on the EAM/CMMS markets for fleet management
and maintenance with the Fleetware product.

Weaknesses Name recognition and association .

Copyright 2001 © ARC Advisory Group • 5-25

Supplier Profiles • EAM/CMMS Software & Services

Fluor TabWare

www.tabware.com

Flour Corporation founded in 1911, and the TabWare

Founded
group is in existence for 20 years

Ownership Public

Acquisitions Not applicable

Partnerships Microsoft, Sun Microsystems, UUNET, and Oracle

Key Clients IBM, Aristech Chemical, Logan Aluminum, and Corning,

Product TabWare OnSite, TabWare OnLine (ASP), and TabWare

Name(s) OnLine/OnSite (ASP on customer’s site)

A very strong understanding of the ASP model and a good

Strengths
product and environment to support the model.

Marketing focus has been exclusively on the ASP model

Weaknesses
with TabWare OnLine

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 EAM/CMMS Software & Services • Supplier Profiles

Four Rivers Software Systems

www.frsoft.com

First products introduced in 1984. Company incorporated

Founded
in 1990

Ownership Private

Acquisitions Not Applicable

Partnerships DNI Nevada, ATG, and MSDSBank.com

Hospitals, healthcare systems, manufacturing sites, utility

Key Clients companies, colleges and universities, school districts,
commercial buildings, and government organizations

Product
The TMS (Total Maintenance System) Family of products
Name(s)

Strengths Develops products to Microsoft standards

Weaknesses Focuses more on facilities in healthcare industry

Copyright 2001 © ARC Advisory Group • 5-27

Supplier Profiles • EAM/CMMS Software & Services

Frontek Maintenance Systems

www.frontec.co.uk

Founded

Ownership Public

Acquired Idhammer Systems in 1994 for Idhammer 400,

Acquisitions and then acquired SKF Maintenance Systems in 1995 for its
API PRO

Partnerships Not Applicable

Key Clients

Product
API PRO and Idhammer
Name(s)

Standard integration to ERP solutions from SAP, JD Ed-

Strengths wards, Baan, Intentia, QAD, and System Software
Associates

Weaknesses

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fsc limited

www.flemingsystems.com

Founded 1976

Ownership Private

Renamed fsc limited in November 2000, from Fleming Sys-

Acquisitions
tems

Partnerships Microsoft

Addresses the diverse needs of major processors and

Key Clients manufacturers, bulk handling terminals, institutions,
school boards, and government agencies.

Product
4Site
Name(s)

4Site is an integrated maintenance, inventory control, pur-

chasing and accounts payable system offering good depth
Strengths
of functionality, including activity based costing and start-
to-finish workflow management.

The company has been in the CMMS business for a quarter

Weaknesses
of a century, and it continues to remain small and private

Copyright 2001 © ARC Advisory Group • 5-29

Supplier Profiles • EAM/CMMS Software & Services

GEAC Computer Corporation Limited

www.geac.com

Founded 1972

Ownership Public and trades on TSE as GAC

In 1996 acquired Dun & Bradstreet. In 1999 acquired JBA.

Acquisitions
Acquired Cruickshank Software (Mainpac) in Australia

Microsoft, Sun Microsystems, Kronos, IBM and Commerce

Partnerships
One

Key Clients

Product
Geac MainPac
Name(s)

A large ERP company with a suite of integrated applica-

Strengths
tions

MainPac was only marketed in Australia, and the company

Weaknesses
sold the MainPac business on 01/03/2001.

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Gores Technology Group (Revere)

www.gore.com www.immpower.com

Founded Revere founded in 1981

Ownership Public

Walker Interactive Systems acquired Revere in December

Acquisitions 1997, and Gores Technology acquired Revere from Walker
in April 2000

Partnerships Not Applicable

Key Clients

Product
IMMPOWER
Name(s)

Strengths

Weaknesses

Copyright 2001 © ARC Advisory Group • 5-31

Supplier Profiles • EAM/CMMS Software & Services

GP Solutions

www.gpsonline.com

Founded 1979

Ownership Private

Acquisitions Not Applicable

Partnerships Sanderson Computers Asia and Sinfotek in Taiwan

General Electric Power Systems, Ashland Chemical, Valeo

Key Clients
Engine Cooling, and TotalFina

Product
GP MaTe and PEMex
Name(s)

GP MaTe is positioned as a higher-end EAM solution (from

a functional standpoint) that is designed for ease of use and
Strengths to support rapid implementation. And, GP MaTe 4.0 can
support double byte character sets for international lan-
guage requirements.

A small, private, well-established CMMS company that

Weaknesses
does not mind remaining so.

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 EAM/CMMS Software & Services • Supplier Profiles

IFS Industrial and Financial Systems

www.ifsab.se www.ifsna.com

Founded 1983

Ownership Public as of June 1998

Acquisition Not Applicable

Partnerships Not Applicable

Key Clients

Product
IFS Maintenance and IFS Vehicle Information Management
Name(s)

IFS is a global ERP supplier, and the maintenance applica-

Strengths
tions are an integral part of the component architecture.

IFS is more readily identified as an ERP vendor than EAM

Weaknesses
solution provider.

Copyright 2001 © ARC Advisory Group • 5-33

Supplier Profiles • EAM/CMMS Software & Services

Indus International

www.iint.com

Indus International was founded in late 1997 The Indus

Group was founded in 1988, was incorporated in June
Originated 1990, and went public in late 1995. TSW International was
founded in 1976 and remained private until the 1997
merger.

Ownership Public

Indus International is the result of the late 1997 merger be-

Merger
tween The Indus Group and TSW International.

Oracle, Smallworld, Commerce One, and Deloitte Concult-

Partnerships
ing

British Energy, Transocean Sedco Forex, Idaho Power, and

Key Clients
the University of Regina

Product PassPort and Enterprise MPAC as part of the Indus Solu-

Name(s) tions Series, and there’s IndusASP

The company has two very strong, high-end EAM solu-

tions that focus on various segments of the capital intensive
Strengths
industries, and it is now bringing these solutions to Tier 2
and 3 via its IndusASP offerings.

The company has struggled with the integration of the two

Weaknesses
products into its Indus Solutions Series.

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Integrated Software

www.ismimics.com

Originated 1984

Ownership Private

Acquisition Not Applicable

Partnerships IBM

Breeze Industrial products, Fairfield Manufacturing, Frantz

Key Clients
Manufacturing, and International Home Foods

Product
isMIMICS
Name(s)

Contains modules for Maintenance Management, Inven-

Strengths
tory Management, and System Management

Weaknesses Runs on IBM AS/400.

Copyright 2001 © ARC Advisory Group • 5-35

Supplier Profiles • EAM/CMMS Software & Services

Intentia

www.intentia.com

Founded 1964

Ownership Public as of 1990. On the OM Stockholm Exchange as INTB

Acquisitions Not Applicable

Partnerships Sapa AB

Key Clients

Product
Movex Maintenance
Name(s)

EAM product, with RCM functions, is an integrated appli-

Strengths
cation within the Movex ERP solution

Movex Maintenance is a subset of the Movex ERP suite,

Weaknesses
and the company is better known as an ERP supplier.

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Invata International - Corrigo

www.invata.com www.corrigo.com

Invata founded in 1992 and Corrigo founded in February

Founded
1999

Ownership Private, owned by the holding company, CMGI

Acquisitions Corrigo acquired/merged Invata International in late 2000

Partnerships Not Applicable

Key Clients Concentrates on retail facilities

Product
SamTrak
Name(s)

Corrigo to integrate SamTrak's functionality into a conven-

Strengths ient wireless/web solution that enhances SamTrak's
capabilities and provides added value to customers

Was focused on property operations and retail, and now

Weaknesses
focusing on wireless service delivery.

Copyright 2001 © ARC Advisory Group • 5-37

Supplier Profiles • EAM/CMMS Software & Services

Ivara

www.ivara.com

Founded 1997

Ownership Private

Acquisitions Not Applicable

Partnerships Dofosco and Siemens

Key Clients Dofosco

Product
Ivara EAM and Ivara.EXP
Name(s)

The Ivara.EXP was developed at Dofosco includes rules-

Strengths based technologies and RCM2 methodologies. Siemens
markets, sells, and supports both products worldwide

Weaknesses A relatively “new” EAM company

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 EAM/CMMS Software & Services • Supplier Profiles

JD Edwards

www.jdedwards.com

Founded 1977

Ownership Public in September 1997

Acquisitions Acquired Numetrix in May 1999

Microsoft, Oracle, IBM, Lotus Development, and Seagate

Partnerships
Software

Key Clients Many Tier 2 companies

Product OneWorld Asset Management application within the ERP

Name(s) offering, and Plant & Equipment Maintenance

While acknowledged to be an ERP company, it has an ag-

gressive development schedule for the EAM product,
Strengths including Failure Mode Analysis for maintaining both
cause and solutions to equipment failures using a knowl-
edge tree approach

Weaknesses Still quite dependent on OS/400

Copyright 2001 © ARC Advisory Group • 5-39

Supplier Profiles • EAM/CMMS Software & Services

Juan J. Rigau & Associates

www.argos2000.com

Founded 1980

Ownership Private

Acquisitions Not Applicable

Partnerships Not Applicable

Key Clients

Product
Argos2000
Name(s)

Company offers a substantial amount of consulting ser-

Strengths
vices to complement its software solution

Weaknesses Relatively small company based in Puerto Rico

5-40 • Copyright 2001 © ARC Advisory Group

 EAM/CMMS Software & Services • Supplier Profiles

Mainpac Pty Ltd

www.mainpac.com.au

Founded February 22, 2001

Ownership Private

Acquisitions Not Applicable

Partnerships Ci Technologies Pty Limited

P&O Ports, James Hardie Building Products, Australian

Key Clients Sports Commission, Energy Australia, and Ashanti Gold-
fields

Product
Mainpac Asset Management Systems
Name(s)

Mainpac is designed to maximize the return on assets and

Strengths optimize the performance and reliability of plant and
equipment.

Weaknesses A brand new, small company based in Sydney, Australia

Copyright 2001 © ARC Advisory Group • 5-41

Supplier Profiles • EAM/CMMS Software & Services

Maintenance Experts (MEX)

www.mex.com.au

Founded 1995

Ownership Private

Acquisitions Not Applicable

Partnerships Caltex

BHP, Tip Top, Bonlac Foods, APT Fleet Services, and

Key Clients
Youngs Buses

Product
MEX, FleetMEX, MEX OPS, and Palm MEX
Name(s)

Very strong in South East Asia with supported languages

Strengths
including Chinese, Thai, and Indonesian (Bahasa)

Weaknesses Small company from Australia

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 EAM/CMMS Software & Services • Supplier Profiles

Mapcon Technologies Inc. (MTI)

www.mapcon.com

Founded 1980

Ownership Private – 100% employee owned

Purchased the rights to DFM Systems’ MAPCON product

Acquisitions
line on April 1, 2000 and became 100% employee owned

Partnerships Revelation Technologies and Borland

United Airlines, Boeing Aircraft, NASA White Sands Test

Key Clients
Facility, and WCI Steel

Product MAPCON (MAintenance Planning and CONtrol), iMAP-

Name(s) CON, and MAPCON Lite

100% employee owned with very low turn-over, and

Strengths
MAPCON allows for any degree of customization

Weaknesses A small private CMMS company that wants to remain so.

Copyright 2001 © ARC Advisory Group • 5-43

Supplier Profiles • EAM/CMMS Software & Services

Mapics

www.mapics.com www.sofwave.com

A Spin-off from Marcam in 1997. Sofwave incorporated in

Founded
1993

Ownership Public on NASDAQ as MPX

Pivitpoint acquired Sofwave in October 1999, and Mapics

Acquisitions
acquired Pivitpoint and Sofwave in December 1999

Partnerships Oracle, CSI, and Thru-Put Manufacturing 5

Key Clients

Product
Maincor
Name(s)

Seamless integration with Mapics XA and Pivotpoint’s

Strengths
PointMan

A small CMMS company and application attempting to

Weaknesses
play as part in the parent’s multiple ERP solutions

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 EAM/CMMS Software & Services • Supplier Profiles

Masterlink

www.MasterlinkCorp.com

Founded 2000

Ownership Private

Acquisitions Not Applicable

Partnerships Compaq and Philip Crosby Associates

Key Clients Seminole Community College

Product
Intelligent Work Management
Name(s)

It’s a web-enabled, mobile-computing software application

that maximizes efficient use of management and worker
Strengths resources while simultaneously improving customer ser-
vice levels, decreasing maintenance operating costs, and
extending physical asset life and value.

A young new company with an innovative concept in the

Weaknesses
EAM/CMMS space

Copyright 2001 © ARC Advisory Group • 5-45

Supplier Profiles • EAM/CMMS Software & Services

Mat-
Mat-Man Systems

www.mat-man.com.au

Founded Incorporated in 1985

Ownership Private

Acquisitions Not Applicable

Partnerships Oracle and Sun Microsystems

Airservices Australia, Australia Cement, and Bureau of

Key Clients
Meteorology

Product
Aladdin and CardSmart
Name(s)

Product suite is focused on Assets/Works and Supply

Strengths
Management

Weaknesses Small supplier based in Queensland, Australia

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 EAM/CMMS Software & Services • Supplier Profiles

MicroMain

www.micromain.com

Founded 1989

Ownership Private

Acquisitions Not Applicable

Partnerships Microsoft and Oracle

Key Clients State of California Department of Development Services

Product
MS2000 and MS2000 Enterprise
Name(s)

Excellent reviews and rankings by the industry press In-

Strengths dustry Week and ZD Net), Deloitte & Touche, and
Microsoft.

A small CMMS company selling to all industries across all

Weaknesses
three Tiers in North America.

Copyright 2001 © ARC Advisory Group • 5-47

Supplier Profiles • EAM/CMMS Software & Services

MicroTex

[email protected].

Founded 1995

Ownership Private

Acquisitions Not Applicable

Partnerships Not Applicable

Compaq Computers, Sonoco Flexible Packaging, Motions

Key Clients
Controls Industries, and ValTimet

Product
MachineTrak
Name(s)

Listens to users and designs and implements enhance-

Strengths
ments to MachineTrak based on their needs

Weaknesses A relatively small, young player in the CMMS space

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Microwest Software Systems

www.microwst.com

Founded 1981

Ownership Private

Acquisitions Not Applicable

Partnerships Not Applicable

Key Clients

Product
Advanced Maintenance Management System (AMMS)
Name(s)

Strengths

Weaknesses

Copyright 2001 © ARC Advisory Group • 5-49

Supplier Profiles • EAM/CMMS Software & Services

Mincom

www.mincom.com

Founded 1979

Ownership Private

Acquisitions Not Applicable

Caterpillar, CES International, bea, Mecury Interactive,

Partnerships
Oracle, IBM and PriceWaterhouseCoopers, among others

Hong Kong Mass Transit Railway (MTR), ScottishPower,

Key Clients
Westrail, Argyle Diamonds, and The Chilean Navy

Product
Ellipse, Minescape, Minestar, and LinkOne
Name(s)

Established EAM market leader in mining. Focused on

Strengths four verticals, Mining, Utilities, Transport, and Defense &
Government.

A large private company headquartered in Australia with a

Weaknesses
typically less than adequate job of marketing its solutions

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Miquest

www.miquest.co.uk

Founded 1995

Ownership Private

Acquisitions Not Applicable

Partnerships Ampsol – Whole Life Cost (WLC)

Marconi Communications, D.C. Thompson, Special Metal

Key Clients
Wiggins, Williams Grand Prix, and Alstom Traincare

Product
Miquest
Name(s)

Flexibility allows Miquest to be configured and structured

Strengths to address any maintenance, facility or asset management
application on any scale.

Weaknesses A relatively small UK-based CMMS provider

Copyright 2001 © ARC Advisory Group • 5-51

Supplier Profiles • EAM/CMMS Software & Services

MRO Software

www.mrosoftware.com

Founded 1968

Ownership Public

Name Change Q1CY01 changed name from PSDI

Partnerships Ariba, Commerce One, IBM, and Rockwell Automation

POSCO (Pohang Iron and Steel Company), Newark Elec-

Key Clients
tronics, Cargill, and NSTAR Services Company

Product
MAXIMO
Name(s)

A market innovator and technology adapter in the EAM

Strengths space with an excellent, functionally rich application as
well as and ASP offering and an eMRO line of business

Real name recognition. In the recent survey done by the

author, this company is referred to by at least four different
names, PSDI, MAXIMO, MRO, and MRO Software (very,
Weaknesses
very infrequently). The company is also moving away
from “EAM” and towards hosted solutions for end-to-end
supply chain offerings.

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MTAS Limited

www.mtas.com.uk

Founded 1983

Ownership Private

Acquisitions Not Applicable

Partnerships Not Applicable

Building and Property Ltd, Land Rover Ltd, British Alu-

Key Clients
minium Ltd, Coalite Ltd, and Parcelforce

Product UltraSys Asset Care and Maintenance Management Solu-

Name(s) tion

Strengths Solution owned and developed by MTAS

Weaknesses A relatively small CMMS vendor based in the UK

Copyright 2001 © ARC Advisory Group • 5-53

Supplier Profiles • EAM/CMMS Software & Services

NTech

www.emaint.com

Founded 1997

Ownership Private

Acquired/Merged Pearl Computer Systems and its ulti-

Acquisitions
MAINT in early 2000

Partnerships Microsoft

Hitchiner Manufacturing and Unionville-Chads Ford

Key Clients
School District

Product
eMAINT LAN. eMAINT Online, and eMAINT Web
Name(s)

Strengths Products are Web-enabled

Weaknesses Very small company

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Ounce of Prevention

www.oops-web.com

Founded OOPS was founded in 1984. Aviar was founded in 1984.

Ownership Private

Acquisitions Acquired by Aviar, Inc.

Partnerships Not Applicable

Key Clients

Product
OOPS and Oz
Name(s)

Oz is the only CMMS that was designed to be controlled

Strengths
one hundred percent by human speech.

Weaknesses Oz. is a OS/2-based CMMS and OOPS is DOS

Copyright 2001 © ARC Advisory Group • 5-55

Supplier Profiles • EAM/CMMS Software & Services

Perceptron

www.perceptron.com www.ddynamics.com

Founded

Ownership Public

Acquisition Perception acquired Decision Dynamics in late 2000

Partners Microsoft, Seaworthy, TIP, and ILOG

Key Clients Roseburg Forest Products, BMW, Jaguar, Porsche,

Product
DynaStar 2000
Name(s)

Perceptron focuses on the Forestry industry, where DynaS-

Strengths
tar 2000 was also focused

The company only works in the Automotive and Forestry

Weaknesses
industries.

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Phoenix Data Systems

www.goaims.com www.aims-cmms.com

Founded 1980

Ownership Private

Acquisitions Not applicable

Partnerships Microsoft and Oracle

Key Clients

Product
AIMS
Name(s)

Strengths Easy to understand Contracts Management

Weaknesses

Copyright 2001 © ARC Advisory Group • 5-57

Supplier Profiles • EAM/CMMS Software & Services

Plannsoft Management Solutions

www.plann.com

Founded 1992

Ownership Private

Acquisitions Not Applicable

Partnerships Not Applicable

Key Clients

Product
PlannExpert, API PRO, and Fleet Expert
Name(s)

PlannExpert® is a simple and intuitive Computerized

Strengths Maintenance Management Solution (CMMS) for industrial,
fleet, and facilities management applications.

Headquarters and regional offices in Canada and depends

Weaknesses
very heavily on distributors outside Canada.

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PMI Software

www.pmisoftware.com

Founded 1986

Private. It’s a wholly owned subsidiary of the Project

Ownership
Management (PM) Group

Acquisitions Not Applicable

Partnerships

Key Clients

Product
PEMAC, PEMAC FM, and PEMAC 5
Name(s)

A strong industry presence in manufacturing, food, elec-

Strengths
tronics, government, healthcare and pharmaceuticals.

Weaknesses Small company with headquarters in Dublin, Ireland

Copyright 2001 © ARC Advisory Group • 5-59

Supplier Profiles • EAM/CMMS Software & Services

PsiSoft (Project Services International)

www.ps-intl.com

Founded 1983

Ownership Private

Subsidiary Subsidiary of PSi

Partnerships Not Applicable

Key Clients Ashland Chemical and Trico Steel

Product
T.I.M.M. (Totally Integrated Maintenance Management)
Name(s)

Strengths Part of a services oriented company

Too much focus on services versus the maintenance soft-

Weaknesses
ware

5-60 • Copyright 2001 © ARC Advisory Group

 EAM/CMMS Software & Services • Supplier Profiles

Ramco Systems

www.ramco.com

Started out in 1989 as a division of Ramco Industries Ltd,

part of the 60 year old Ramco Group – one of India’s
Founded
strongest and most respected business groups. Ramco Sys-
tems was spun off an independent company in April 1999

Ownership Public. It is part of the Ramco Group

Acquisitions Not Applicable

Partnerships Sun Microsystems and PriceWaterhouseCoopers

Key Clients Sunkist Growers, Intel, ICICI, and Columbia Helicopters

Product
Ramco Enterprise Asset Management
Name(s)

Part of the Ramco e.ApplicationsTM family of enterprise

Strengths
solutions

Weaknesses Headquarters are in India

Copyright 2001 © ARC Advisory Group • 5-61

Supplier Profiles • EAM/CMMS Software & Services

SAP

www.sap.com

Founded 1972

Public since 1988 and is listed on several stock exchanges,

including the Frankfurt stock exchange - where it is listed
Ownership on the DAX, the German index of blue-chip companies -
and the New York Stock Exchange under the symbol
"SAP."

Acquisitions Top Tier Software in early 2001

SAP probably has more “partners” than any other enter-

prise software application vendor. A February 13, 2001
Partnerships
announcement was with Network Appliances as a global
technology partner.

BASF, Bayer, BP Oil/Mobil, Shell, Ontario Hydro, Wiener

Key Clients
Stadtwerk, and Canadian Pacific Railway

Product
R/3 Plant Maintenance (PM)
Name(s)

A world leader in business systems, and PM is an integral

Strengths application within R/3’s Logistics. The company has an
extensive set of Solution Maps for all the major industries.

Weaknesses A strong shift to eCommerce and mySAP, away from R/3

5-62 • Copyright 2001 © ARC Advisory Group

 EAM/CMMS Software & Services • Supplier Profiles

Servidyne

www.servidyne.com

Founded 1974

Ownership Private

Acquisitions Not applicable

Partnerships Not Applicable

Key Clients AOL, Great Lakes REIT, and Kimpton Group

Product
WinSCORE
Name(s)

Strengths Has a suite of engineering services for facilities

Provides only HVAC Engineering and Facility Mainte-

Weaknesses
nance Management expertise to the world's buildings

Copyright 2001 © ARC Advisory Group • 5-63

Supplier Profiles • EAM/CMMS Software & Services

Shire Systems

www.shiresystems.co.uk

Founded 1982

Ownership Private

Acquisitions Not Applicable

Partnerships Real Software and Microsoft

British Aerospace Defence Systems, Contract Chemicals,

Key Clients
Ideal Standard, and HM Prison Sudbury

Product
FrontLine, RIMSES, and Safety 1st
Name(s)

Strengths over 17,000 installations of products throughout the UK

Relatively small UK-based company selling across all in-

Weaknesses
dustries in Tier 3

5-64 • Copyright 2001 © ARC Advisory Group

 EAM/CMMS Software & Services • Supplier Profiles

SIVECO GROUP

www.siveco.com

Founded 1986

Ownership Public

Acquisitions Not Applicable

Partnerships Microsoft and Oracle

TCC Group Empire Tower, Le Bibliotheque nationale de

Key Clients
France, Campbell Grocery Products, and Pepsi Cola

Product COSWIN, COSWIN Analyzer, SIVECO ASP, and REP-

Name(s) STAR

Architecturally focused on Microsoft, Oracle, and a cli-

Strengths
ent/server framework

Weaknesses Works only with Tier 3 clients in EMEA

Copyright 2001 © ARC Advisory Group • 5-65

Supplier Profiles • EAM/CMMS Software & Services

Small Maintenance Software

www.smallmaint.com

Founded 1982

Ownership Private

Acquisitions Not Applicable

Partnerships Not Applicable

Key Clients small to medium sized business

Product Maintenance and Inspection System for Windows and

Name(s) Maintenance & Inspection System for DOS

Strengths Affordable solution for the small business

It is a single user maintenance management system for the

Weaknesses
small facilities maintenance operation.

5-66 • Copyright 2001 © ARC Advisory Group

 EAM/CMMS Software & Services • Supplier Profiles

Soft Solutions

www.impactxp.com

Founded 1983

Ownership Private

Acquisitions Not Applicable

Partnerships Not Applicable

British Paper Board,Ormskirk Hospital, MEL Chemicals,

Key Clients
Crystal Polymers, Elf Atochem, and Perkins Engines

Product
IMPACTxp
Name(s)

IMPACTxp has a Condition Monitoring module and a Run

Strengths
Time Scheduling module

Weaknesses A relatively small UK-based focused mostly on EMEA

Copyright 2001 © ARC Advisory Group • 5-67

Supplier Profiles • EAM/CMMS Software & Services

Somax

www.somax.com

Founded 1988

Ownership Private

Acquisitions Not Applicable

Partnerships Not Applicable

Key Clients

Product
SOMAX Information Management System
Name(s)

Strengths

Weaknesses

5-68 • Copyright 2001 © ARC Advisory Group

 EAM/CMMS Software & Services • Supplier Profiles

Spear Technologies

www.speartechnologies.com

Founded 1998

Ownership Private

Acquisitions Not Applicable

Partnerships KPMG, Oracle, PeopleSoft, Lawson Software, IBM, and ICL

Amtrak, Dallas Area Rapid Transit, New York MTA, Ro-

Key Clients
manian State Railway, and New Jersey Transit

Product
Spear 2000 Maintenance Suite
Name(s)

Fully integrated, best-of-class eMaintenance software de-

Strengths
signed exclusively for the transportation

Weaknesses 100 percent focused on Transportation

Copyright 2001 © ARC Advisory Group • 5-69

Supplier Profiles • EAM/CMMS Software & Services

SpecTech Inc.

www.mpulsecmms.com

SpecTech LLC founded in December 1995 and converted to

Founded
SpecTech Inc in July 2000

Ownership Private

SpecTech acquired MPulse Computerized Maintenance

Acquisitions Management System software from Plus Delta Perform-
ance in March 1999

Partnerships Not applicable

Crown Equipment, Allegheny College, Great Western

Key Clients
Malting, and Metal Improvement Co.

Product MPulse Maintenance Software with MPulse Gold, MPulse

Name(s) Pro, and MPulse Ltd

Mpulse Gold offers condition based predictive mainte-

Strengths
nance for organization wide solutions

Weaknesses

5-70 • Copyright 2001 © ARC Advisory Group

 EAM/CMMS Software & Services • Supplier Profiles

Strategic Maintenance Planning

www.smpltd.co.uk

Founded ?

Ownership Private

Acquisitions Not Applicable

Partnerships Not Applicable

B&W Loudspeakers, Bottle Green Drinks, and Eaton Hy-

Key Clients
draulics

Product
HolisTech
Name(s)

The company has a structured approach to planned pre-

Strengths
ventive maintenance projects

Weaknesses Only has stand-alone and LAN systems

Copyright 2001 © ARC Advisory Group • 5-71

Supplier Profiles • EAM/CMMS Software & Services

Synergen

www.synergen.com

Founded 1986

Ownership Private

Acquisitions Not Applicable

Oracle, EDS, AMS, Primavera, Intermec, Loftware, and

Partnerships
ScanSource

Passaic Valley Sewerage Commissioners, South Texas Nu-

Key Clients
clear Operating Company, and Western Resources

Product
Synergen Series, Synergen iSeries, and Synapse
Name(s)

Synergen Series has a comprehensive set of Subsystems

and industry configurations, and the company has solu-
Strengths
tions for the ASP environment and the eMRO space as well
as the traditional EAM/CMMS

Weaknesses Sells only to Tier 2 companies, predominately in the US

5-72 • Copyright 2001 © ARC Advisory Group

 EAM/CMMS Software & Services • Supplier Profiles

Tecnica Aplicada Internacional

www.mpsoftware.com.mx

Founded February 1974

Ownership Private

Acquisitions Not Applicable

TECNICA APLICADA INTERNACIONAL, S.A. DE C.V.,

Partnerships
and PRECISION DATA, C.A.

Aeroquip Mexicana, Agua Caribe, Avon Cosmetics, and

Key Clients
Bridgestone/Firestone Mexico

Product
Maintenimiento Preventivo MP
Name(s)

Strengths Total Microsoft environment

Very small Mexican CMMS company that sells exclusively

Weaknesses
to Latin America

Copyright 2001 © ARC Advisory Group • 5-73

Supplier Profiles • EAM/CMMS Software & Services

TMA Systems

www.tmasystems.com

Founded Late 80’s

Ownership Private

Acquisitions Not Applicable

BSW International, Capstone, Carter Burgess, Oracle, and

Partnerships
Microsoft

Fort Worth Water Department, American Airlines, and Tu-

Key Clients
lane University Medical Center

Product TMA for (tailored for individual facility needs) and Web-
Name(s) TMA

Technology innovator and provider of expert solutions for

Strengths
facility management

Weaknesses Only does facility management

5-74 • Copyright 2001 © ARC Advisory Group

 EAM/CMMS Software & Services • Supplier Profiles

Wintercress

www.wintercress.com

Founded

Ownership Private

Acquisitions

Partnerships

Key Clients

Product
Maintenance Director
Name(s)

Strengths

Weaknesses Have gotten out of CMMS business

Copyright 2001 © ARC Advisory Group • 5-75

Supplier Profiles • EAM/CMMS Software & Services

Wolfson Maintenance

www.wmeng.co.uk

Founded 1980

Ownership Private

Acquisitions Not applicable

Partnerships Not Applicable

Key Clients Guy’s Hospital

Product
MIMIC 2001
Name(s)

Condition Based Maintenance (CBM) involves non-

Strengths intrusive measurement to determine the current condition
of the equipment; also has RCM.

Weaknesses A relatively small CMMS provider in Manchester, England

5-76 • Copyright 2001 © ARC Advisory Group

 EAM/CMMS Software & Services • Supplier Profiles

Wonderware

www.wonderware.com

Founded April 1997

Ownership Public

Invensys, previously called Siebe, acquired Wonderware in

April 1998 and then acquired Marcam in July 1999 - the
Acquisitions Avantis EAM group went to the software division under
Wonderware. Acquired the manufacturing product line
from SPSS in May 2000.

Canopy International, ESA Applications, FileNET, Pop-

Partnerships
Ware, and PricewaterhouseCoopers Canada

Agrico Chemical, Behr Process Corp., Celanese, American

Key Clients
Food group, and BHP Copper Company

Product
Avantis pro, Avantis AM, and Avantis XA
Name(s)

MaintenanceSuite’s Avantis AM can be integrated with

Strengths FactorySuite to integrate into real-time plant floor informa-
tion system

The EAM product line could lose its focus, because the
parent company, Invensys, is better known for plant floor
Weaknesses
control systems, and the Wonderware business unit is
know more for its man-machine interface software

Copyright 2001 © ARC Advisory Group • 5-77

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Over the past decade, ARC Advisory Group has become the leader in
providing in-depth and accurate market intelligence. From the beginning,
our corporate goal has been total client satisfaction. We have continuously
strived to refine and improve our products and services. To meet the grow-
ing need for global market intelligence, we have expanded our services to
cover the international marketplace.

ARC’s research database is based on thousands of user surveys, telephone

interviews, client visits, and in-depth profiles of hundreds of suppliers and
users. Our extensive network of industry contacts has been an invaluable
asset in filtering out long-term trends from fads. Our consultants are skilled
in analyzing and forecasting the impact of new technology and products of
enterprise applications and E-business solutions. We systematically study
market segments before developing specific recommendations for our clients.

ARC consultants follow technology and industry events on a daily basis, and
have a broad range of expertise in all areas of E-commerce/E-business, en-
terprise applications, manufacturing, industrial automation including:
sensors, control systems, networks, computers, software and services. We
are experienced in working with all types of manufacturing processes includ-
ing continuous, batch, discrete repetitive and job shop.

Each year, ARC consultants visit all major trade shows in the US and in
many foreign countries. In addition, ARC consultants attend press confer-
ences held by most major suppliers and review hundreds of news releases
each year. ARC consultants then sort out real and long lasting trends in the
marketplace.

ARC uses a five step approach to conduct global market research for the ar-
eas we serve. This approach provides our staff with a solid framework to
formulate meaningful strategies for our clients. You can be assured that we
gave all areas of the study a considerable amount of time and thought before
moving on to the next step. The following contains a brief description of
how we conduct each of these five steps.

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ARC started this project by inviting inputs from our primary clients and re-
searching all secondary sources of information. Key secondary sources
researched are:

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ARC maintains a proprietary database. This database provides our staff with
a solid base to start their research project. The database includes the follow-
ing information on several thousand companies:

• Annual Reports
• 10K and other Financial Reports
• Client Lists
• Price Lists
• Published Secondary Data on Companies and Products
• Market Size and Forecast Data
• Market and Technology Trend Data

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ARC subscribes to over 150 magazines and newspapers covering a wide
range of topics relevant to the area we serve, as well as an extensive library of
directories and books. We are on the news and product release mailing lists
of every key user and supplier in the marketplace today. We sort and file
important news and articles for future use. We research and analyze our in-
house database and the prominent publications relevant to a study to iden-
tify:

• Issues of interest pertaining to the study

• Product and technology trends in the industry
• Changing user needs
• Products and key individuals within the study’s scope

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ARC requests capability brochures, catalogs, data sheets, application notes
and price lists from all known or potential manufacturers and suppliers of
products pertinent to a study. We also request the following financial re-
ports when needed:

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• Annual reports
• 10K statements
• Prospectus and investment analyses

Our studies evolve rather than being forced. This assures you that the results
are accurate, up-to-date, and meaningful.

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After discussions with clients and a careful review of all secondary informa-
tion, ARC developes a list of key issues concerning both users and suppliers.
ARC spends several weeks discussing issues pertinent to a study with the
leading suppliers while obtaining feedback from end users when applicable.
We also capitalize on information contained in our previous market research
reports and seminars.

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First, we conduct a top down analysis of the the leading suppliers’ products
and various businesses in order to get a better understanding of the global
business environment. Then we conduct telephone interviews with key in-
dividuals at all major suppliers. Where possible or necessary, we interview
more than one person at each company to verify the accuracy of the informa-
tion. We interview individuals typically engaged in one of the following
functions at these companies:

• Product management
• Marketing management
• Product planning
• Sales management

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ARC has compiled Profiles of the leading edge companies. Some highlights
of the information that is included in these profiles are:

• Budget of the company and how it is likely to change over the next five
years.
• Product implementation plans and preferences of the company.

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• What the top priorities are for the company and what portion of the
budget is likely to be spent on software R& D, product improvements,
enterprise integration considerations, partnerships.
• Product plans and strategies of the company by geographic region.
• E-Business implementation plans and strategies of the company. The
company’s view of E-business and its impact on B2B, B2C, Retailers,
Manufactures, etc.
• Company preferences for application focus, technology roadmap plans,
key relationships, etc.

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We organize and enter all gathered data into a computer database. The data
is verified, sorted and cross-tabulated in numerous ways to filter out indus-
try trends and answers to the key issues identified earlier.

After analyzing all market data, we prepare preliminary market forecasts. At

this time, we consider many alternative scenarios and test them against some
key criteria. Finally, we chose the most accurate scenario.

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After finalizing market shares and forecasts, we develop charts and graphs to
get further insight into user needs and desires. We spend a considerable
amount of time and effort to draw conclusions and sort out long-term trends
from fads. Finally, after we consider many different strategic alternatives, we
develop recommendations for the industry participants.

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Key benefits of ARC's methodology in conducting market research are:

• This is a proven approach and is designed specifically to conduct global

market research for the marketplace we research.
• Our staff members do all our research work. The ARC staff has first-
hand industry knowledge and experience. Our staff's average level of
industry experience is over 12 years.
• ARC actively solicits inputs from suppliers and users throughout the du-
ration of a project.

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• Our experienced staff conducts all interviews - not someone with abso-
lutely no knowledge of the industry.
• We encourage independent thinking by our staff members.
• We can identify key individuals for interviews quickly and accurately
through our extensive network of industry contacts and data base.
• We can complete each task very efficiently through our use of automated
resources.

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4GL Fourth Generation Language

µP Microprocessor
3PL Third Party Logistics
A/D Analog-to-Digital
ABC Activity Based Costing
AC Alternating Current
ActiveX Object-Oriented programming language for Internet
Ada Programming Language (named after Ada Lovelace)
AEC Architect, Engineer & Constructor Firm
AEGIS Abnormal Event Guidance Information System
AGC Automatic Guidance Control
AGV Automated Guided Vehicle
AI Artificial Intelligence
ALARP As Low as Reasonably Practicable
ANSI American National Standards Institute
APC Advanced Process Control
API Application Program Interface
Applet Small Software Application or Component
APS Advanced Planning & Scheduling
ARPANET Predecessor to Internet
AS/RS Automatic Storage & Retrieval Systems
ASIC Application Specific Integrated Circuit
ASM Abnormal Situation Management
ASN Advanced Shipment Notice
ASP Application Service Provider
ASP Average Selling Price
ATM Asynchronous Transfer Mode
ATP Available-To-Promise
B2B Business-to-Business
B2C Business-to-Consumer
BIOS Basic Input/Output System
BISYNCH Binary Synchronous Communication
BOL Bill of Lading
BOM Bill of Material
BOOT Build, Own, Operate, and Transfer
BPA Business Process Automation

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BPE Business Process Engineering

BPO Business Process Outsourcing
BPR Business Process Reengineering
C++ Object Oriented Programming Language
CAD Computer Aided Design
CAE Common Application Environment or Computer Aided Engineering
CAGR Compound Annual Growth Rate
CAM Computer Aided Manufacturing
CAN Controller Area Network
CapEx Capital Expenditure
CASE Computer Aided Software Engineering
CBT Computer-based Training
CD Computer Disc
CDDI Copper Distributed Data Interchange
CDE Common Desktop Environment
CD-ROM Compact Disk, Read Only Memory
CDV Committee Draft Vote
CEMS Continuous Emissions Monitoring System
CENELEC Committée de European de Normalization Electrotechnique
CEO Chief Executive Officer
CFM Continuous Flow Manufacturing
CFR Code of Federal Regulations
CIM Computer Integrated Manufacturing
CISC Complex Instruction Set Computing
CM&C Cell Monitoring & Control
CMMS Computerized Maintenance Management Systems
CMOS Complementary Metal Oxide Semiconductor
CNC Computer Numerical Control
COM Component Object Model
Component Software Object containing Data and Method
CORBA Common Object Request Broker Architecture
COSE Common Open Software Environment
COTS Commercial Off-The-Shelf
CPFR Collaborative Planning, Forecasting, & Replenishment
CPG Consumer Packaged Goods
CPI Chemical Process Industry
CPM Collaborative Production Management
CPN Collaborative Partner Network
CPU Central Processing Unit
CRAR Collaborative Forecasting & Replenishment

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CRM Customer Relationship Management

CRP Capacity Requirements Planning
CRT Cathode Ray Tube
CSA Canadian Standards Association
CSI Current Source Inverter
CSR Customer Service Representative
CTP Capable-to-Promise
D/A Digital-to-Analog
DAS Data Acquisition System
DC Direct Current
DC Distribution Center
DCE Distributed Computing Environment
DCOM Distributed Component Object Model
DCS Distributed Control System
DD Device Description
DDE Dynamic Data Exchange
DDL Device Description Language
DE Digitally Enhanced
DIN Deutsches Institut für Normung
DLL Dynamic Link Library
DMZ De-militarized Zone
DNA Microsoft's Distributed iNternet Architecture
DP Differential Pressure
DRAM Dynamic Random Access Memory
DRP Distribution Resource Planning
DSD Direct Store Delivery
DSP Digital Signal Processor or Digital Signal Processing
DTD Document Type Definition
DVD Digital Versatile Disc
E-Business Electronic On-line Business
E-Commerce Electronic On-line Commerce
EAI Enterprise Application Integration
EAM Enterprise Asset Management
EAS Electronic Article Surveillance
EC Electronic Commerce
ECR Efficient Consumer Response
eCRM Electronic Customer Relationship Management
EDI Electronic Data Interchange
EDM Electronic Data Management or Electrical Discharge Machine
eFPM E-Fulfillment Process Management

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eFS E-Fulfillment Solutions

eIS E-Integration Solutions
EL Electroluminescence
EMI Electro Magnetic Interference
EMS Energy Management System
EOS Economy of Scale
EPA Environmental Protection Agency
EPM Enterprise Production Management
ePS E-Procurement Solutions
EPS Enterprise Production System
ERP Enterprise Resource Planning
ESD Emergency Shut Down System
EU European Union
FA Factory Automation
FCS Field Control System
FDA Food & Drug Administration
FDC Factory Data Collection
FDDI Fiber Distributed Data Interchange
FF Fieldbus Foundation
FIP Factory Instrumentation Protocol
FMP Flexible Manufacturing Plant
FMS Factory Management System or Factory Message Specification
FORTRAN Programming Language
FT-IR Fourier Transform Infrared
FTC Federal Trade Commission
FTP File Transfer Protocol
GC Gas Chromatography
GEMS Global Enterprisewide Management System
GIS Geographic Information Services
GLS Global Logistics System
FSK Frequency Shift Key
GMC General Motion Control
GMP Good Manufacturing Practice
GOSIP Government Systems Interconnect Protocol
GPS Global Positioning Satellite
GP Gauge Pressure
GPS Global Positioning System
GTO Gate Turn Off Thyristor
GUI Graphical User Interface
HAL Hardware Abstraction Layer

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HART Highway Addressable Remote Transducer

HAZOP Hazard & Operability
HDLC High Level Data Link Control
HDTV High Definition Television
HMI Human Machine Interface
HP Horsepower
HPI Hydrocarbon Processing Industry
HTTP HyperText Transport Protocol (Internet)
HVAC Heating, Ventilating, Air Conditioning
H/W Hardware
I/O Input/Output
IA Industrial Automation
IC Integrated Circuit
IEC International Electrotechnical Commission
IEEE Institute for Electrical & Electronic Engineers
IFP Intelligent Front Panel
IGBT Insulated Gate Bipolar Transistor
Internet Worldwide network of loosely connected and diverse computers
Intranet Internet implementation within an enterprise
IP Internet Protocol
IPO Initial Public Offer
IR Infrared
ISA International Society for Measurement & Control
IR Independent Representative
ISA Instrument Society of America
ISFET Ion Sensitive Field Effect Transistor
ISO International Standards Organization
ISP InterOperable Systems Project
ISV Independent Software Vendor
IT Information Technology
JAVA Object-Oriented programming language for Internet
JCAF Java Control & Automation Framework
JEIDA Japan Electric Industry Development Association
JEIF Japan Electrical Industrial Federation
JEMA Japan Electrical Manufacturers’ Association
JEMIMA Japan Electrical Measuring Instruments Manufacturers’ Association
JISC Japanese Industrial Standards Committee
JIT Just-In-Time
JVM Java Virtual Machine
kHz Kilo Hertz

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KVA Kilo Volt Ampere

KW Kilowatt
LAN Local Area Network
LCD Liquid Crystal Display
LED Light Emitting Diode
LES Logistics Execution System
LCI Load Commutated Inverter
LIFO Last In, First Out
LIMS Laboratory Information Management System
LSI Large Scale Integration
LTL Less Than Truckload
mA Milliamp
MAS Main Automation Supplier
MES Manufacturing Execution System
MIS Management Information System
MIPS Millions of Instructions Per Second
MLC Multi-Loop Controller
MMS Manufacturing Message Specification
MOSFET Metal Oxide Semiconductor Field Effect Transistor
MOC Management of Change
MPS Master Production Schedule
MPU Microprocessor Unit
MRO Maintenance, Repair & Operations
MRP Materials Resource Planning
MRP Manufacturing Resource Planning
MSDS Material Safety Data Sheets
MTBF Mean Time Between Failure
MTO Make to Order
MVC Multivariable Predictive Control
MVP Multivariable Control
MVS Machine Vision System
NAMUR Normal Ausschultz Fur Messung Und Regelung
NAFTA North American Free Trade Association
NAICS North American Industry Classification System
NC Network Computer (Internet) or Numerical Control
NEMA National Electrical Manufacturers’ Association
NIST National Institute of Standards and Technology (USA)
NN Neural Networks
NTE Microsoft’s Windows NT Embedded Operating System
NTE National Transportation Exchange

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NURBS Non-Uniform Rational B Splines

OA Office Automation
OCX OLE Custom Control
ODBC Open Database Connectivity
OEM Original Equipment Manufacturer
OI Operator Interface
OLE Object Linking and Embedding
OMAC Open Modular Architecture Control
OMG Object Management Group
OMS On-line Management System
OO Object-oriented (Analysis, Design or Programming)
OPC OLE for Process Control
OS Operating System
OSF Open Software Foundation
OSHA Occupational Safety & Health Administration
OCS Open Control Systems
ORP Oxygen Reduction Potential
OSF Open Software Foundation
OSI Open Systems Interconnect
PAS Process Automation System
PC Personal Computer
PCS Process Control System
PD Positive Displacement
PDM Project Data Management
P&ID Process and Instrumentation Diagram
PES Process Electrochemical Systems
PID Proportional Integral Derivative
PIM Plant Information Management
PIMS Process Information Management System
PIP Partner Interface Process
PLC Programmable Logic Controller
PM&C Process Monitoring & Control
PMD Programmable Message Display
POSIX Portable Operating System Interface
PPP Point-to-Point Protocol
Profibus Process Fieldbus
PSI Pounds per Square Inch
PSM Process Safety Management
PTP Profitable-to-Promise
PWM Pulse Width Modulation

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QC Quality Control
QR Quick Response
R&D Research & Development
RDBMS Relational Database Management System
Rep Independent Representative
RFDC Radio Frequency Data Communications/Collection
RF/ID Radio Frequency Identification
RFI Radio Frequency Interference
RFP Request for Proposal
RFQ Request for Quote
RISC Reduced Instruction Set Computing
RLL Relay Ladder Logic
ROA Return on Assets
ROI Return On Investment
ROM Read Only Memory
RPC Remote Procedure Call
RPM Revolutions Per Minute
RT Real-time
RTD Resistance Temperature Detector
RTOS Real-time Operating System
RTU Remote Terminal Unit
RTX Real-time Extension
SAMA Scientific Apparatus Makers Association
SCADA Supervisory Control and Data Acquisition
SCE Supply Chain Execution
SCM Supply Chain Management
SCP Supply Chain Planning
SCR Silicon Controlled Rectifier
SDLC Synchronous Data Link Control
Sercos Serial Real-time Communication System
SFA Sales Force Automation
SFC Shop Floor Control or Sequential Function Chart
SI Systems Integrator or Systems Integration
SIC Standard Industrial Classification
SIL Safety Integrity Level
SIS Safety Instrumented System
SIS Short-Interval-Scheduling
SKU Stock Keeping Units
SLA Service Level Agreement
SLC Single Loop Controller

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SLDC Single Loop Digital Control

SLIP Serial Line IP
SmallTalk Object Oriented Programming Language
SMP Symmetrical Multiprocessing
SMT Surface Mount Technology
SoftLogic PC-based Logic Control
SOP Standard Operation Procedure
SP50 Standards & Practice Committee No. 50 (ISA)
SPC Statistical Process Control
SQC Statistical Quality Control
SQL Structured Query Language
SSH Secure Shell
SSL Secure Socket Layer
S/W Software
TBP Transaction Based Payments
T/C Thermocouple
TCO Total Cost of Ownership
TCP/IP Transmission Control Protocol / Intenet Protocol
TCT Total Cycle Time
TIE Technical Information Exchange
TL Truckload
TM Transportation Management
TMS Transportation Management System
TOP Technical and Office Protocol
TQC Total Quality Control
TQM Total Quality Management
TUV Technischer Uberwackungs Verin (Technical Inspection Association)
TVO Total Value of Ownership
UEM Unified Enterprise Management
UL Underwriters Laboratories
UML Unified Modeling Language
UPC Uniform Product Code
URL Uniform Resource Locator (Internet)
USB Universal Serial Bus
UV Ultraviolet
VAN Value Added Network
USP United States Pharmacopeia
VAR Value Added Reseller
VAS Value Added Services
VBX Visual Basic custom control

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VCI Value Chain Initiative

VDU Visual Display Unit
VF Vacuum Fluorescent
VFD Variable Frequency Drive
VICS Voluntary Inter-Industry Commerce Standard Committee
VLSI Very Large Scale Integration
VMI Vendor Managed Inventory
VoIP Voice Over Internet Protocol
VPN Virtual Private Network
VSD Variable Speed Drive
VVI Variable Voltage Inverter
VVVF Variable Voltage, Variable Frequency
WAH Web Application Hosting
WABI Windows Application Binary Interface
WAN Wide Area Network
WIP Work In Process
WM Warehouse Management
WMS Warehouse Management System
WOSA Windows Open Systems Architecture
WWW World Wide Web (Internet)
XML Extensible Markup Language
Y2K Year 2000

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