The gains came as market conditions stabilized in the wake of component shortages that contributed to fallout reported in the first half of 2000. All told, the total population of solution provider organizations selling white box systems in North America declined 12 percent from an estimated 35,900 in 1999. Reality s June 2000 report pegged the bottom of the market at 28,800 white box solution provider companies as new opportunities in services, the Internet space and other emerging-technology sectors took hold in the channel. More than one-fourth identifies themselves as systems and network integrators.
Small businesses remain the primary market for white box solution provider companies.
5 percent margin of error at a confidence level of 95 percent, allowing statistically valid uplifting of survey findings to the overall population of white box solution providers. As of May, Reality will begin to update its sizing of the North American white box market for 2001. The findings are based on a December 2000 survey of 315 solution provider organizations that derive more than half of their revenues from billable services. Reality Research estimates that the average solution provider organization derives 50 percent of its annual revenue from services on a billable basis or bundled with products as a total solution. The solution provider respondents in the survey represent executives and principals of system integrator, network integrator, value-add solution provider, software developer and consultant organizations.