systems integrator

A systems integrator is an individual or business that builds computing systems for clients by combining hardware, software, networking and storage products from multiple vendors. Using a systems integrator, a company can align cheaper, preconfigured components and commercial off-the-shelf software to meet key business goals, as opposed to more expensive, customized implementations that may require original programming or manufacturing unique components.

Hiring a systems integrator to combine various subsystems into an integrated offering can also simplify contracting and vendor management for the customer, who would otherwise need to purchase each subsystem separately and work with multiple vendors. Systems integration is, thus, both a procurement method and a technical activity.

What does a systems integrator do?

The task of systems integration often begins with a client meeting, or a series of meetings, in which the systems integrator assesses the client's business needs and defines the technical requirements for an IT system that meets those needs. The resulting integration plan sets the foundation for the integration process. That process may involve designing or building a customized architecture or application and integrating it with new or existing hardware, packaged or custom software, and networking infrastructure.

With the rise of cloud computing, the systems integrator may also play a role in integrating on-premises IT systems with cloud-based applications or computing infrastructure.

Examples of major systems integrators

Systems integrators emerged in the 1980s when large organizations began seeking integrated IT systems.

In 1982, the U.S. Army awarded its landmark $656 million Project Viable contract to Electronic Data Systems (EDS). That 10-year deal, which called for the creation of an integrated administrative data processing system, established EDS as a systems integrator.

Other notable systems integrators of that period included Andersen Consulting, Computer Sciences Corp. (CSC), IBM and SHL Systemhouse.

In the following decades, large systems integrators transformed into broader IT service providers and some were acquired or rebranded. Andersen Consulting, for example, became Accenture in 2001, following its breakup with accounting firm Arthur Andersen. SHL Systemhouse was acquired by MCI Communications and was subsequently sold to EDS in 1999. EDS was purchased by Hewlett Packard Enterprise in 2008 for $13.9 billion and became HP Enterprise Services. In 2017, CSC merged with HP Enterprise Services to create DXC Technology.

Systems integrator business model

Today, some IT services companies still identify themselves as systems integrators, but, for the most part, systems integration is one of many services an IT services company provides within a portfolio of offerings.

The advent of IT outsourcing in the late 1980s and 1990s, the emergence of managed services in the late 1990s and the arrival of cloud services in the 2000s led to the creation of hybridized business models. An IT services company often provides a mix of consulting services, systems integration, managed services and cloud services. Systems integration has become less of a business model and more of a business line.

Systems integrators vs. VARs

Value-added resellers (VARs) and systems integrators are company categories that overlap. A VAR resells networking, hardware and software products and often provides services to create unified IT solutions. In that capacity, a VAR acts as a systems integrator. Conversely, a systems integrator may act as a VAR, reselling products to customers as part of a systems integration project.

One point of differentiation is that VARs tend to focus on small and midsize business customers and small-scale IT systems, while systems integrators tend to engage with large enterprise customers and work on large-scale projects that can span multiple customer locations or, possibly, multiple countries.

Partner programs for systems integrators

A variety of technology vendors target systems integrators with partners programs. These programs can provide systems integrators with sales and technical support, as well as financial incentives such as discounts for reselling products and service delivery. Other integrator program benefits can include training and certification programs, free or discounted demo equipment, and marketing collateral.

Systems integrators must generally meet criteria set by the vendor before joining a partner program. Some vendors require systems integration partners to meet specific revenue thresholds. Citrix, for example, asks systems integrators to have annual revenue of at least $500 million in IT services. Vendors like Hortonworks have programs that require partners to achieve sales, certification and specialization goals. Other integrator programs, such as those from Dell EMC and Cisco, are open to partners only by invitation.

This was last updated in November 2018

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