Infotech Lead India: IBM is leading the IT operations management (ITOM) software revenue market with 18.2 percent share in 2012, ahead of CA Technologies, BMC, Microsoft and HP.
The #2 IT operations management software vendor is CA Technologies with 11.7 percent market share last year.
In the third place, BMC Software has 10.6 percent share.
Microsoft is the fourth place with 8.2 percent market share, while HP has 6.3 percent market share in 2012.
The big four vendors including 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 says the worldwide IT operations management software revenue rose 4.8 percent to $18 billion.
Investments in virtualization management tools and promising cloud computing technologies were 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.
Table 1
Top 5 ITOM Software Vendors, Total Software Revenue Worldwide, 2012 (Millions of Dollars)
| Company | 2012
Revenue |
2012 Market
Share ( percent) |
2011 Revenue | 2011-2012
Growth ( percent) |
| 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)
The most interesting vendors to watch in terms of dynamics will be those with revenue ranging from $100 million to $500 million. Strategies on business models (software as a service [SaaS], subscription and cloud-based), as well as partnering programs to obtain reach into regions outside North America, Western Europe and mature Asia/Pacific, will be key to growth.
At the regional level, North America, Western Europe and mature Asia/Pacific were the prime consumers of ITOM software in 2012. Nearly 90 percent of this market is concentrated in these developed markets, suggesting that the older and more complex the infrastructure is, the more organizations need tools to manage it.
Though emerging Asia/Pacific and Latin America remained growth leaders in 2012, neither was able to sustain the strong growth they experienced in 2011. The biggest laggards were Eastern Europe, Eurasia and Sub-Saharan Africa, with decreases of more than 1.5 percent each. All other areas saw low- to mid-single-digit growth.
Across the ITOM segments, workload automation and IT process automation (distributed) was the only product segment able to maintain the strong double-digit growth experienced in 2011.
Most other segments experienced a 2 percent to 3 percent year-over-year decline in growth rates compared with 2011.
Many ITOM subcategories are commoditizing, as end users replace high-cost tools from the Big Four vendors with lower-cost tools at a 10th of the cost overall, thereby contracting the market and providing high growth for many low-cost providers.
