Rise of DSP Consolidators

As a result of the growing number, size and importance of DSP Consolidators, Fellowes Research will begin covering DSP consolidators with Parts and/or Service solutions (in addition to covering their individual business units serving dealer Service or Parts Departments) – for example, Section II of the “Service-Parts: Digital Solutions Guide” is being expanded to cover DSP Consolidators delivering solutions serving dealership parts operations. The new coverage will aid clients in considering alliances and collaboration – as well as in acquisition planning and implementation.

 

Fellowes Research identifies and describes fixed-operations solutions (systems and services) used by dealers including information flows, enabling data and its sources, integration (to DMS, other DSP solutions or OEM systems), distinct implementation approaches and significant functionality. We also research and document solution vendors – Parts DSPs, Service DSPs, DMS vendors and data providers – in terms of parts and service solution types developed and/or distributed, ownership, business size, relevant alliances, OEM programs and core competencies. The new coverage of DSP Consolidators by Fellowes Research will identify core subsidiaries and divisions plus provide a chart of all with parts and/or service solution-types with the appropriate SBUs, JV’s and investments filling those cells.

 

The surge in acquisitions and mergers in the automotive dealer system providers (DSPs) sector may be changing the game in terms of possible alliances, integration and forms of collaboration between solutions vendors. DSPs may be obligated to integrate, co-market and share resources with affiliates – to a degree that would not have happened without common ownership. DSPs may also be discouraged from integration or other forms of cooperation with DSPs that are affiliated with consolidators seen as competitive to their parent – even without a policy or directive.

 

Leading DSP Consolidators with solutions used in dealer fixed operations:

Cox Automotive (now including DealerTrack)

Dominion Enterprises

Solera (purchased by Vista Equity which owns 50% of Dealer Socket; also pursued by IHS)

Hearst

CDK Global

PTC

Clifford Thames

Pentana

Infomedia

IHS

Epicor

eBay

 

 

 

 

 

 

October 2015