Report: Sustainability Software Set For Sharp Rise

Green-ITInnovationSoftwareWorkspace

A study from Verdantix has found that the demand for carbon- and energy-management software is about to pick up steam

The market for carbon- and energy-management software is set to boom in 2011, as companies are increasingly able to draw on hard data provided by the practical experiences of well-known customers, according to a report released on Wednesday by analyst firm Verdantix.

Verdantix said that in 2010 large companies such as Arch Coal, Marsh Supermarkets and Reed Elsevier bought into software platforms to collect, analyse and act on sustainability data.

Big-name customers

Software providers such as CarbonSystems, IHS and TRIRIGA are set to begin showing hard return-on-investment data from these and other large brand-name customers, according to Verdantix’s study, “Green Quadrant Carbon And Energy Management Software”.

This will trigger a “big increase in demand”, the company said in a statement.

The study, based on 28 product demonstrations involving 99 assessment criteria, identified the ten providers that are set to benefit most from this rapid growth – CA Technologies, CarbonSystems, Enablon, Enviance, Hara, IHS, ProcessMAP, SAP, TRIRIGA and Verisae.

The biggest shift Verdantix found in interviews with corporate buyers was a shift from tactical carbon accounting to strategic energy and carbon management, according to analysts.

“Buyers also want advanced carbon management tools for target setting, forecasts and audits. This explains why some carbon management software deals exceeded $10 million in 2010,” said Verdantix analyst Peter Charville-Mort (left), author of the report, in a statement.

While many buyers only need basic energy data collection and carbon reporting features, others have more sophisticated requirements reflecting complex usage scenarios and the interests of senior staff such as Chief Sustainability Officers and CFOs, Verdantix said.

Over-crowded market

The report concluded that the market is over-crowded and as a result no new entrants, aside from C3 and Oracle, are likely to make much headway.

The report compares 28 carbon and energy management applications offered by suppliers with at least five named customers with $1 billion (£630m) in revenues. It uses 99 assessment criteria to generate a product benchmark with 2,772 data points, covering elements such as data capture, supply chain emissions and project and portfolio management.

The study scores each supplier on market vision, product strategy, financial resources and other criteria.

Earlier this month a carbon bond was formed between Siemens IT Solutions and CA Technologies with a strategic alliance they hope will lead customers to carbon-emission legislation compliance. The partnership was announced at the Green IT Expo in London this week and the companies said that the collaboration is a response to UK and European regulations.

The conclusion of the UK government’s initial registration period for its Carbon Reduction Commitment (CRC) Energy Efficiency Scheme this year has increased the importance of carbon management issues in the eyes of senior managers, the companies said.

Read also :
Click to read the authors bio  Click to hide the authors bio