Nlyte Software stands out in the crowded and often confusing DCIM sector. The addition of FieldView has created a best-of-breed DCIM system, and Nlyte has more revenue and large clients than any other DCIM-only supplier. However, DCIM sales cycles continue to be long and demanding, and competition often comes from far larger datacenter equipment and services suppliers, such as Schneider Electric and Emerson Network Power – both formidable competitors that are investing heavily. Nlyte continues to innovate, invest and grow, but as a late-stage VC backed pure play, its reach and access are relatively limited (compared with its giant rivals). This, combined with emerging DCIM-based cloud offerings from rivals, may mean that Nlyte will need to work even harder in the coming months and years to retain its top billing. We view the company as a high-value acquisition target, potentially for a datacenter technologies or software supplier, or even one of its large customers.