Austin Remains a Hotbed for IT Management Companies

Located in Central Texas, Austin is the fourth-largest city in Texas, the 16th largest in the United States, and the 5th largest city in the South. Austin is the capital of Texas, located in Travis County, and is home to the University of Texas.
Austin has also proven itself as a hotbed for IT Management software companies over the last 20 years. Besides the 1000 reported tech companies that now call Austin Texas home, at least 7 of those companies specialized in some form of IT Management.
IT Operations Management is a 12+ billion dollar US market, according to Gartner, much of which has traditionally been dominated by the “Big 4”. There are numerous start-ups and small companies that compete for this lucrative market, many of which now call Austin home.

Hi-tech has been very good to Austin, leading to several successful ventures such as Tiviloi Systems, and NetQoS, both of which have since been gobbled-up by bigger acquiring companies.

  • Tivoli Systems (acquired by IBM in 1996)
  • NetQoS (acquired by CA 2009)
  • Phurnace (acquired by BMC 2010)
  • Anue Systems (acquired Ixia 2012)

Part of Austin’s success may be linked to IT software giant BMC. BMC is headquartered in Houston Texas, only a 3 hour drive south from Austin. Likewise, Austin based Dell (Fortune 500 #41) may also be indirectly contributing to the success of IT Management market in the capitol city. Dell’s Open Management group delivers solutions to enterprise customers allowing them to better manage their server infrastructure. In recent years Dell has made a number of acquisitions including KACE (2010) and Quest Software (planned to complete in 2013), however both acquisitions were California based businesses. As Dell expands into the enterprise software market, more acquisitions are expected to follow.
Austin remains a great place for hi-tech and IT Management. Hundreds of tech companies and startups descended on Austin in the hi-tech boom of the nineties, and although the city felt the burst of the bubble, Austin has proven itself more buoyant than other areas around the United States.

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