IT operations management software market grows 4.8% in 2012

However, "Big Four" vendors - IBM, CA Technologies, BMC Software and HP - lost market share, new vendors grew much rapidly

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Worldwide IT operations management (ITOM) software revenue has increased 4.8 per cent to $18 billion in 2012 from $17 billion in 2011, according to final results from Gartner, Inc.

However, the "Big Four" ITOM vendors — IBM, CA Technologies, BMC Software and HP — surrendered market share in 2012, while a new generation of ITOM vendors grew significantly faster than the market, Gartner said in a statement.
 
“Vendor revenue in the 2012 ITOM software market demonstrated moderate single-digit growth, after two consecutive years of nearly double-digit growth, due in part to slow economic growth, tight IT budgets, and merger and acquisition (M&A) activity,” said Laurie Wurster, research director at Gartner.

“Nevertheless, the ITOM market did manage to grow slightly above the average growth rate of the infrastructure software market, and by doing so it gained share of IT budgets”.
 
Pushing the growth of the ITOM market, although at a less-frantic pace, were continued investments in virtualization management tools and promising cloud computing technologies, which are the key drivers behind the growth in the configuration management and availability and performance segments, and also in the other ITOM category, in which CMP pure-play vendors are represented.

Continued strong growth in workload automation and IT process automation demonstrates that IT organizations are still investing heavily in technology that is more traditional and process improvement initiatives; there is also an increased effort to automate private cloud services, Gartner said.

The evolution of IT service desk tools into IT service support management tools contributed to growth in the market as vendors are supplementing foundational technologies with the addition of features such as mobility, collaboration, IT service visualization, and more advanced analytics and reporting.

Top 5 ITOM Software Vendors, Total Software Revenue Worldwide, 2012
Company	2012 Revenue	2012 Market share (%)	2011 Revenue	2011-2012 Growth (%)
IBM	3,282.9	18.2	3,256.4	0.8
CA Technologies	2,119.9	11.7	2,258.1	-0.6
BMC Software	1,921.7	10.6	1,903.3	0.9
Microsoft	1,477.7	8.2	1,271.9	16.1
HP	1,134.6	6.3	1,185.4	-4.3
Others	8,064.3	45.0	7,303.1	10.4
Total Market	18,001.1	100.0	17,178.2	4.8
Source: Gartner (May 2013); Revenues in million dollars

 

 The top five ITOM vendors, ranked by revenue, grew 0.6 per cent in 2012, compared with 7 per cent growth in 2011, and accounted for 55 per cent share, or $9.9 billion, of the overall ITOM software market in terms of revenue. The ranking of the top five vendors did not change from 2010 through 2012 (see Table). Among the top five vendors, Microsoft led the group in year-over-year growth at 16 per cent, while the rest of the top five remained flat or saw declining growth.