By Christina Zarrello Topping the list of the largest technology companies are HP, IBM and Microsoft, which
have a major impact on businesses not only because of their cutting-edge innovations but because of their massive size. These giant companies lead the way for technology development in all facets of business and play a major role in shaping the tech landscape in retailing. Find out this year’s Top 10 companies.
1. HP: $118.4 billion
HP tops the list as the number one technology company for the second consecutive year leaping far ahead of IBM in second place. Last year, the delta between the two companies was $5.5 billion, but this year ballooned to $15 billion. In 2008, HP acquired Electronic Data Systems (EDS). A year after the acquisition, HP is clearing benefiting from the addition to its portfolio. HP reported a $15 billion jump in sales year-over-year.
2. IBM: $103.6 billion
IBM continues to pursue an acquisition strategy. The tech giant announced 15 purchases in 2008 (up from 12 the previous year). The biggest purchase made in 2009 was business analytics provider SPSS which dovetails its acquisitions of business intelligence solution specialist Cognos in 2008. IBM reported a $5 billion jump in sales year-over-year.
3. Microsoft: $58.4 billion
The world’s largest software company announced a string of major product announcements in 2009 including bing.com and Windows 7, its recently announced operating system. The company also recently debuted its first-ever retail store in Scottsdale, Arizona and a second store in Mission Viejo, California. Despite these bold moves, it was a disappointing year for the Redmond, WA-based company which reported a revenue decrease of about $2 billion for the first time in its history.
4. Intel: $37.6 billion
The world’s largest semiconductor manufacturer has been humbled by a series of events, including slumping demand for PCs, increased competition in its core chip business, and temporary shortages of chipsets. Intel reported a sales decrease of about $1 billion year-over-year and as a result has announced plant closures across the world. Significant developments include the release of the Core i7 and the acquisition of Wind River Systems which Intel hopes will bolster the company’s software portfolio.
5. Cisco: $36.1 billion
Cisco dominates the market for Internet protocol-based networking equipment and continues to use acquisitions to broaden its product lines and move into new markets. This year, the company acquired WebEx Communications, a major provider of Internet conferencing systems. Also in 2009, Cisco unveiled a new line of hardware called the Unified Computing System designed to simplify the computing and networking resources in data centers. The company’s investments have paid off over the past year with the company reporting year-over-year increases of more than $1 billion.
6. Ingram Micro: $34.4 billion
Ingram Micro is the world’s largest wholesale distributor of computer products and has an impressive list of customers including Walmart.com, Staples, and Office Depot. In 2009 Ingram Micro bought assets of Computacenter Distribution (CCD), a wholesale distributor of server, storage, and networking equipment in the UK in order to bolster its business in Europe. Though it remains primarily focused on computer-related products, Ingram Micro has recently expanded into new markets including automatic identification and data capture (AIDC), POS systems and consumer electronics.
7. Motorola: $30.1 billion
Increased competition from Apple, Nokia, Samsung and RIM has negatively impacted Motorola which produced a nearly $6 billion drop in revenue year-over-year. Motorola has responded by announcing a series of restructuring moves including job cuts to eliminate about 8,000 positions, a plan to limit executive compensation and a freeze on pension plans. The company hopes that a new smartphone based on the Google Android operating system will help bolster its handset sales.
8. Oracle: $23.3 billion
Oracle has aggressively used an acquisition strategy to expand its software product line. In April 2009, the company announced plans to acquire Sun Microsystems which would be one of the largest deals Oracle has undertaken. Oracle has also aggressively invested in internal product development, spending $2.8 billion in fiscal 2009 on internal R&D efforts. Year-over-year Oracle reported $1 billion in revenue gains.
9. SAP: $16.3 billion
SAP has leveraged its dominant position in the ERP market to expand into other fields. Last year’s acquisition of business intelligence software provider Business Objects was the company’s largest acquisition to date and had not been matched by anything approaching the size of this merger in 2009. SAP continues to focus on expanding its products for small and midsized businesses and has also moved to enhance its service offerings.
10. Sun Microsystems $11.4 billion
Sun found a white knight at Oracle which decided to purchase the Silicon Valley innovator for about $7.4 billion in 2009. In addition to merger issues, Sun was hit hard by the global financial crisis, with sales falling more than 17 percent in fiscal 2009. The company went into the red for the first time in three years.
Companies such as Dell, Apple, Samsung, Hitachi, Nokia, Sony, Google, Sharp and Yahoo were not included on this list because a major part of their product lines are directed toward consumers as opposed to business users. All revenue figures are for the most recently reported 12 month period.
