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Market Analysis

Enterprise IT Automation and Monitoring
According to CompTIA, global IT spending will top 4.8 trillion dollars in 2018 and they project growth rates of 5+%. U.S. spending represents 33% of the total market. Of that spending in the U.S. about 18% goes towards software sales and 31% on IT services.

Splunk Inc. (SPLK), a company that sells software for searching, monitoring, and analyzing data, generates about 1 billion dollars annually in revenue at an 80% gross profit margin. According to Glass Door, Chef Software, a company specializing in automation and configuration management software generates between 50 and 100 million dollars a year in revenue. Ansible, like Chef, another open source automation and configuration management tool was acquired by Red Hat in 2015 for more than 100 million dollars. Bloomberg reported in 2015 that Puppet Labs revenue was approaching 100 million dollars a year.

These companies represent a small number of the total involved in providing IT Service automation and monitoring tooling. There are many more companies such as above with similar revenue figures.

CompTIA also reports that most businesses rely upon external technology partners to help them address employee bandwidth constraints. They note that utilization rates are highest when customers are also highly satisfied with the technological service provider. The largest U.S. consulting firms have over 1.5 million consultants. There are many other small to mid-sized U.S. service providers and global providers consist of more than 2 million more consultants.

Arclogic Software’s flagship product, We are positioning Arcshell and related products to compete effectively against industry leaders, especially in particularly markets. Arcshell is a development platform that can be used to rapidly develop and deploy competing solutions. Arcshell is well suited to be used by service providers looking to increase the tooling provided to their employees and customers and increase rates of customer satisfaction.

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