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Software and Information Technology

Lexington, Kentucky has a unique business mix of software and information technology industry leaders such as IBM and Lexmark, world class small business such as Software Information Systems and DMD Data Systems, and social networking and interactive media start-ups like Frogdice and Pheeva. With such a diverse cast of business in the industry Lexington is an ideal location for IT and software businesses.

Industry Leaders in Lexington

HP Exstream, a division of Hewlett Packard, offers services from fully customized statements to self-service web applications for account enrollment to personalized correspondence and proposals. Industry leading companies in twenty-two countries around the world use HP Exstream to reduce complexity, streamline business processes, and increase effectiveness of their customer communications.

Also located in Lexington are branch offices of IBM, the industry leader in not only IT services, but also a host of personal and business products. They have been a staple in Lexington ever since their days as a typewriter manufacturer, and still continue to maintain a foothold here. The company operates a data center that services clients that outsource their information technology to them. In 1991 IBM spun off a section of the company into what is now Lexmark, which is headquartered in Lexington.

Lexmark International, Inc. provides businesses of all sizes with a broad range of printing and imaging products, software, solutions and services. In 2010 Lexmark sold products in more than 170 countries and reported more than $4 billion in revenue. Lexmark is not only on the cutting edge of printing and imaging, but is an innovative force in software and IT (Lexmark International Inc.).

Lexington is also home to several locations of the Xerox subsidiary ACS. ACS is a leader in business process outsourcing and IT outsourcing across a variety of industries and the public sector. ACS specializes in IT solutions for governments. ACS is part of Xerox's $22 billion global enterprise, and represents yet another industry leader anchoring the Lexington IT and software industry.

World Class Small Businesses

 While Lexington has several international players in the software and IT industry there are a host of local companies that have made a name for themselves. One prime example is Software Information Systems (SIS), which was founded 20 years ago by Lexington natives and has since grown with offices in six cities doing business worldwide.

Another world class small business based in Lexington is DMD Data Systems. DMD Data Systems is in the business of consolidating technology and ensuring business continuity to help medium and large organizations in education, state and local government, healthcare, and the private sector perform better. They have an exceptional record of growth with revenues from $245,000 in 1996 to $10.4 million in 2009 with $14.3 million estimated for 2010.

Growing Social Networking and Interactive Media Businesses

 Lexington is home to several local start-ups that are making a name for themselves in the world of social networking. iHigh Inc. is an online platform for high schools and youth organizations with free web tools and video streaming for students, coaches, boosters, and other supporters to follow local sports programs. uHAPS is an entrepreneurial marketing group that has perfected a series of independent online social networking platforms that appeal to very targeted, otherwise difficult-to-reach demographic segments.

Frogdice Inc. is an independent game developer of online role playing games and virtual worlds. Since 1996, Frogdice has been a market leader in providing an immersive, in-character experience unparalleled throughout the industry. Another Lexington based gaming company, Pheeva, develops games that can be played across platforms against friends. Players buy tokens, play against friends, and win real prizes. These two creative start-ups represent a software niche that promises high growth in the years to come.

CIick here to go behind the scenes as Lexington's gaming group, RunJumpDev, attends the Penny Arcade Expo (PAX East) in Boston, MA.

Read Commerce Lexington's Software & Information Technology white paper here.


Select Software & IT Companies in Lexington

Company               Services Number of Employees
Xerox Business Services Outsourcing 3,000
Lexmark Printer R & D 2,500
IBM Business Services Outsourcing 500
Hewlett Packard IT Development 140
Galmont Consulting Software Quality Assurance 25
Tenmast Software Software Development 45
Cypress Semiconductor Software Development 35
Dell Information Technology 20
Triton Container IT Support 18

Source: Commerce Lexington, March 2012