Computer Facilities Management Services

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 5,100 computer facilities management firms in the US provide management of clients’ computer systems and data processing. Services include computer systems management, network design and development, business process management, systems integration, and IT technical support. Firms work with businesses of all types and sizes, as well as governments, and may offer services tailored to an industry.

Hiring and Retaining Technical Staff

Loss of key personnel can disrupt operations and complicate relationships with clients.

Customers Bring IT In-house

Computer facilities management services firms lose contract renewals and opportunities when clients or prospects opt to hire IT staff and manage their own systems.

Industry size & Structure

A typical computer facilities management services firm operates out of a single location, employs 15 workers, and generates about $4 million annually.

    • The computer facilities management services industry consists of about 5,100 companies which employ about 77,700 workers and generate about $20 billion annually.
    • Customer industries include businesses of all types and governments.
    • The industry is concentrated with the 20 largest firms representing 40% of revenue.
    • Large companies include DXC Technology, Century Link, Summit Information Systems, Strata Information Technology, and Asante Alliance.
                              Industry Forecast
                              Computer Facilities Management Services Industry Growth
                              Source: Vertical IQ and Inforum

                              Recent Developments

                              Mar 1, 2023 - Alternative Cyberattack Techniques Become More Common
                              • Phishing, business email compromise, and ransomware still rank among the most popular cyberattack techniques, but a mix of alternative attacks is increasing, according to cybersecurity and compliance company Proofpoint. “... many threat actors have shifted to techniques such as telephone-oriented attack delivery and adversary in the middle phishing proxies that bypass multi-factor authentication,” said Ryan Kalember, executive vice president of cybersecurity strategy at Proofpoint. “These techniques have been used in targeted attacks for years, but 2020 saw them deployed at scale.” About 76% of organizations surveyed by Proofpoint were targeted by a ransomware attack in 2022. About 64% of those targeted were actually infected. Only 50% of these organizations managed to retrieve their data after paying the ransom. A little over 66% of respondents reported to have had multiple, isolated infections.
                              • Data center leaders, including computer facilities management services, are becoming much more creative about managing equipment density and improving airflow management, according to Lars Strong, Senior Engineer at Upsite Technologies. The moves may provide an opportunity, as just 46% of respondents to the latest AFCOM State of the Data Center survey said that their current cooling solution meets all of their requirements. More firms are looking at converged systems, improving airflow with unique containment solutions, and even turning to liquid cooling to help offset traditional cooling requirements, the survey found.
                              • Hackers are turning to traditional IT remote monitoring and management tools to execute cyberattacks on businesses and other organizations. Legitimate monitoring and management tools used by organizations including computer facilities management services are being used by hackers to discover client-side applications and to conduct exploitation/post-exploitation activities. “The problem of course, is their effectiveness for legitimate security professionals make them effective for cybercriminals who crack them to remove any licensing requirements to use for free,” according to Chris Clements, vice president of solutions architecture at cybersecurity firm Cerberus Sentinel. “There are numerous hacker malware packages that are great for controlling computers, but they run the risk of being detected and removed by endpoint protection tools like anti-virus software and endpoint detection and response software,” Clements said. “Remote monitoring and management tools by and large eliminate this possibility as they are very often deployed for legitimate IT administration purposes.”
                              • Government-approved cloud services have taken the lead over on-premises data centers for critical computing workloads at federal agencies, according to a survey of federal IT officials by government technology news site FedScoop. The volume of critical computing workloads operating on government-dedicated cloud services grew faster since mid-2020, according to nearly half (47%) of survey respondents, compared to workloads run in agency-owned/operated data centers (28%). And nearly twice as many respondents (56%) are looking at government-approved cloud platforms to increase hardware capacity over the next three years compared to agency-owned/operated data centers (33%). Agencies continue to view government-approved clouds as offering greater operational advantages. But advances in server performance, economy, and security control make upgrading agency data centers viable for certain computing workloads.
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