Worldwide IT Operations Management Software Market Increased 13 Percent in 2005

Gartner: Worldwide IT operations management (ITOM) total software revenue totaled $9.9 billion in 2005, a 12.6 percent increase from 2004 revenue. A consistent level of consolidation continues to transform the IT operations management market. Mergers and acquisitions continued in 2005 as large vendors acquired smaller firms, and more-established vendors were acquired by market leaders. In addition to the large vendors that play across several enterprise management subcategories, many new vendors are entering the market with 'best of breed' point products targeted at specific subcategories within enterprise management. In 2005, the top five vendors accounted for 60 percent of the total worldwide ITOM market (see Table 1). U.S.-based vendors generated more than 95 percent of worldwide sales. IBM maintained the top position with 24.2 of the market. Computer Associates and BMC followed with 13.3 percent and 12 percent market share, respectively. Hewlett-Packard recorded the largest growth in 2005 with 25.7 percent. Table 1 Worldwide 2005 Vendor Revenue Estimates for ITOM Software, Based on Total Software Revenue (Millions of Dollars)

Company	2005	2005 Market Share (%)	2004	2004 Market Share (%)	2004-2005 Growth (%)
IBM	2,398.1	24.2	2,182.0	24.8	9.9
Computer Associates	1,318.4	13.3	1,194.5	13.6	10.4
BMC	1,188.4	12.0	1,164.4	13.2	2.1
Hewlett-Packard	724.9	7.3	576.8	6.6	25.7
Quest Software	384.1	3.9	323.6	3.7	18.7
Other Vendors	3,893.1	39.3	3,359.7	38.2	15.9
Total	9,907.1	100.0	8,801.0	100.0	12.6

Source: Gartner Dataquest (June 2006) Configuration management was the fastest growing segment in 2005, increasing 27 percent over 2004 revenue. This growth was driven primarily by regulatory compliance and IT change management requirements. Availability and performance was the largest market segment in 2005 with 24.9 percent market share. IT operations organizations are placing an investment priority on the types of availability and performance monitoring tools that can help them integrate end-to-end IT service quality results, such as event management, end-to-end application transaction measurement, service-level agreement (SLA) monitoring and reporting, and business service management. The worldwide ITOM market is poised for sustained growth through 2010. As IT departments struggle to cut costs and improve operational efficiencies, steady market growth will occur during the next five years as investments in IT operations management software arise from the need to reduce complexity and provide better management of IT infrastructure.

Worldwide IT Operations Management Software Market Publ 20060612