
VAR500 2010: 25 Top Executives
4:00 PM EST Fri. May. 21, 2010
A venerable powerhouse once again leads our listing of the 500 top revenue-producing solution providers with a North American headquarters. But the runner-up is no stranger to the VAR500, securing the No. 2 slot by scooping up a large integrator in 2008.
Despite the economic recession, these companies, through the leadership of their management, persevered. In fact, the top 25 integrators had revenue of roughly $343 billion, down just 2 percent from last year.
Here are the 25 companies, along with their CEOs or top executives, that earned the highest revenue in 2009 compared with the year before.
Joseph Tucci
2009 Revenue: $5.2 billion
EMC has a number of consulting areas of expertise, including
collaboration, integration and migration, and Microsoft platforms. Its service arm focuses on streamlining customers’ business
processes, creating agile solutions and making a business’ information more accessible by its employees. Joseph Tucci has been CEO of EMC for 10 years, and led the company’s
diversification into services.
Michael Strianese
2009 Revenue: $5.5 billion
Michael Strianese has been president and CEO of L-3 since 2006 and two years ago became chairman. He joined L-3 at its inception in 1997; annual sales were then $700 million.
The military contractor
saw a small decline in
revenue in this first quarter,
to $3.62 billion from
$3.64 billion. Although
its communications and
intelligence segment
rose 11 percent, its
government services, aircraft
maintenance and electronic
systems segments declined.
Natarajan Chandrasekaran
2009 Revenue: $6 billion
TCS revenue grew 8 percent
in 2009 from the year prior.
TCS is a subsidiary of
one of India’s largest and
oldest conglomerates, the
Tata Group, and is also the
largest IT provider in India.
Leading the charge
is CEO Natarajan
Chandrasekaran—
who is also an M.D.
Chandrasekaran was
recently voted as the best
CEO in India, featured in
FinanceAsia magazine’s
annual poll of investors and
analysts.
Mike Wilson
2009 Revenue: $6.3 billion
ITT is a 60-year-old defense contractor that offers technology and services to military, government and commercial customers. It provides communications, sensing and surveillance, space and advanced engineering and integrated services for its clients. Mike Wilson, president of ITT Information Systems, joined ITT in 1986.
In January, ITT realigned its defense segment, including its IT business, by consolidating seven business units into three.
Lynn Blodgett
2009 Revenue: $6.6 billion
Lynn Blodgett, CEO of Affiliated Computer Services since 2006, became president and CEO of ACS Inc., A Xerox Co., when the VAR was bought by Xerox in February. He is also an executive vice president of Xerox Corp. (see No. 17, slide 10)
Blodgett is a pioneer
in the business process
outsourcing market. In
1985, he and his brother
co-founded Unibase, a data
entry company. Unibase was
acquired by ACS in 1996.
Reinhard Clemens
2009 Revenue: $6.8 billion
T-Systems CEO Reinhard Clemens began his career at IBM and later was president of EDS in Germany. T-Systems, a subsidiary of Deutsche Telecom, has roughly 25,000 employees; approximately 15,000 are involved in systems integration.
The integrator recently
said it would partner with
energy and automation
technology specialist ABB
to develop smart grid
solutions in Germany.
Thierry Breton
2009 Revenue: $6.92 billion
Atos Origin’s first-quarter
revenue dropped 4.9
percent, but the IT solution
provider said a recovery is
now under way as orders
improved sharply and it
confirmed its full-year
targets. The solution provider
recently launched the Atos
WorldGrid Subsidiary,
which focuses on solutions
for smart utilities and
energy. Thierry Breton,
CEO of Atos Origin, said he
predicts WorldGrid will be
a worldwide leader in smart
energy.
John Chambers
2009 Revenue: $6.98 billion
In addition to partnering
with VARs, Cisco, led by
Chairman and CEO John
Chambers, has its own
branch for integration. It
offers consultative planning,
solution development
and deployment to help
clients optimize IT services,
integrate new technologies
and enhance network
performance, availability
and security. In addition,
Cisco partners with VMware
to create an end-to-end
data center virtualization
strategy.
Lynn Blodgett
2009 Revenue: $7.8 billion
In February, Xerox acquired Affiliated Computer Services, melding the integrator into its Xerox Services arm. In April, Xerox reported revenue from services grew 3 percent. “Annuity revenue is also significantly strengthened by our growing services portfolio with business process outsourcing up 8 percent on a pro forma basis in the first quarter,” said Xerox CEO Ursula Burns in a statement.
Lynn Blodgett, CEO of
ACS since 2006, is president
and CEO of ACS Inc., A
Xerox Corp. (see No. 21, slide 6)
Gregory Brown
2009 Revenue: $7.96 billion
Gregory Brown, co-CEO of
Motorola and CEO of Motorola
Solutions, joined Motorola in
2003 and was elected to the
company’s board of directors
in 2007. Motorola recently said
it would split into two separate
publicly traded companies in
the first quarter of 2011. Each
of the two companies will retain
the Motorola name: one will
focus on its mobile device and
set-top box businesses, while
the other company will focus
on its enterprise networking
segment.
John Edwardson
2009 Revenue: $8 billion
John Edwardson has been
CEO since 2001. The privately
held provider of technology
products and services was
recently named VMware’s
Americas SMB Partner of the
Year. CDW has also partnered
with TKC Integration Services,
a subsidiary of Qivliq, a
disadvantaged small business
providing IT enterprise
technology products and
services to the government,
on a five-year agreement
to deliver Microsoft server,
desktop and collaboration
software to the Department
of Energy.
Peter Altabef
2009 Revenue: $9.2 billion
The goal of Dell’s purchase and subsequent integration of Perot Systems into a broader Dell Services organization is to make it easier for customers to access and manage IT solutions. Dell acquired Perot Systems in November 2009.
“Dell now has a
comprehensive and growing
set of leading solutions that
meet customer needs so they
can manage their IT most
efficiently,” said Dell Services
President Peter Altabef in a
statement a month after the
acquisition.
Joseph Doody
2009 Revenue: $9.6 billion
As president of Staples
Advantage, part of Joseph
Doody’s responsibilities
includes overseeing the
business that serves midsize
to Fortune 1000 business.
Computer sales grew by
double digits in the fourth
quarter of 2009. IT products
including wireless networking
devices and all-in-one printers
also saw a boost in sales. Its
EasyTech business, which
offers tech services, doubled
vs. the same period in 2008.
Walt Havenstein
2009 Revenue: $10.1 billion
In its last fiscal year, SAIC
reached the $10 billion
milestone, with revenue
growth of 13 percent vs.
2009. SAIC is a technology
applications company with
45,000 employees that has
customers in national security,
energy and the environment,
critical infrastructure and
health sectors. SAIC forges
relationships with small
businesses, particularly those
that are veteran-owned.
CEO Walt Havenstein, fresh
from his tenure at BAE, took
the reins in September 2009.
Punit Renjen
2009 Revenue: $10.7 billion
One of the world’s largest
management consulting
firms, Deloitte teams
help clients achieve their
goals. “Human capital”
professionals specialize in
integrating business, HR
and talent strategies, while
strategy and operations
teams offer industry
experience and analytical
capabilities. Technology
teams work with business
leaders to apply innovative
solutions. Punit Renjen took
over last fall as CEO.
Paul Hermelin
2009 Revenue: $11.6 billion
The provider of consulting,
technology and outsourcing
services, led by CEO Paul
Hermelin, recently launched a
new suite called Infostructure
Transformation Services that
will help its clients realize the
business benefits of cloud
computing and services.
Four offerings within
Infostructure Transformation
Services will help customers
move toward the cloud:
data center optimization and
consolidation, virtualization,
unified communications, and
cloud-based solutions.
Linda Gooden
2009 Revenue: $12.2 billion
IS&GS’ 45,000 professionals
provide integrated information
technology solutions, systems
and services to support
worldwide missions of civil,
defense, intelligence and
other government customers.
Linda Gooden, executive
vice president of IS&GS, is
a proponent of using cloud
technology within government
solutions, noting its promise
for reducing infrastructure and
application development costs
while giving users access to
data and services.
Wes Bush
2009 Revenue: $12.8 billion
Wes Bush took the CEO reins
in January and made waves
his first day by saying he’d be
moving headquarters from Los
Angeles to Washington, D.C.,
to better serve its No. 1 customer,
the U.S. government.
The company had been based
in California since 1939. During
a conference call in April
in which he announced better-than-
expected profits, Bush
told stock analysts that recent
changes in the firm’s deal with
the Virginia Information Technologies
Agency mean there is
“better alignment between the
customer and ourselves.”
Jean-Paul Herteman
2009 Revenue: $14.8 billion
Safran intimated during last
year’s earnings call that 2010
would be challenging. For the
first quarter of 2010, revenue
totaled 2.4 billion euros
($3.2 billion), down 2.5
percent vs. a year ago. The
company is in the aerospace
industry, based in France
with U.S. headquarters
in Albuquerque, N.M. “As
expected, the aerospace
market remained volatile in
the first three months of the
year. However, we believe
that improvements are
definitely on the horizon,”
said CEO Jean-Paul
Herteman.
Mike Laphen
2009 Revenue: $16.7 billion
Fifty-year-old CSC provides
technology services through
its 92,00 employees to
customers in health care,
public sector, financial
services and manufacturing.
President and CEO Mike
Laphen has led CSC as
president since 2003 and
was elected CEO in 2007.
He joined the company
in 1977 and has held a
number of senior positions
involving technical, financial
and general management
experiences in diverse
commercial, public-sector
and international markets.
William Green
2009 Revenue: $21.6 billion
Accenture is a global management consultant, providing technology and outsourcing services and helping customers achieve higher-performance goals.
“We are seeing
increasing momentum in
many areas of our business,
as clients are starting to look
to the future and to focus
on growth and revenue
enhancement along with
continued improvements in
operating efficiency,” said
Chairman and CEO William
Green in a statement on the
company’s 2010 second-quarter
results.
Virginia Ruesterholz
2009 Revenue: $24 billion
Verizon continues to fare well, with revenue increasing. Its wireless segment saw subscribers increase by 4.4 percent. Verizon’s other business segment, Wireline, provides customers with communication services. It also provides next-generation IP network services and communications solutions to midsize and large businesses and government customers.
Virginia Ruesterholz
is president of Verizon
Telecom.
Daniel Hesse
2009 Revenue: $25.3 billion
The company best known for its mobile phones and carrier services is also a player in mobile solutions. For example, in collaboration with GE Healthcare, Sprint deploys custom network solutions that are transforming hospitals across the country into a fully converged infrastructure.
Sprint is continuing its
customer service drive and
is seeing a positive return,
said President and CEO
Daniel Hesse. Customer
satisfaction has improved
for the ninth consecutive
quarter, he said.
Ann Livermore
2009 Revenue: $34.7 billion
Ann Livermore has been
part of HP for more than 20
years. She currently leads
the Technology Solutions
Group, which encompasses
enterprise storage and
servers, software and
services and which absorbed
EDS in 2008. Its products
and services serve business
and public-sector customers
in more than 170 countries.
Overall, HP’s revenue grew
in the first quarter, although
services revenue fell 1
percent to $8.7 billion. HP
restated figures in March
due to a lawsuit involving its
EDS unit.
Sam Palmisano
2009 Revenue: $55 billion
IBM Global Services is the professional services arm of IBM, including management consulting, systems integration and application management services.
At IBM’s CIO Leadership Exchange in Barcelona, Spain, CEO Sam
Palmisano offered these remarks: “As our planet becomes instrumented,
interconnected and intelligent, the computing model is evolving
to support it. Think of it as the industrialization of IT. Over the past
generation, our digital infrastructures have become very complex and
inefficient, so now we’re optimizing them through automation, creating
systems that are highly tuned to the specific workloads they run.”