Worldwide Application Performance Management Software 2012 Vendor Shares

Transcription

1 COMPETITIVE ANALYSIS Worldwide Application Performance Management Software 2012 Vendor Shares Mary Johnston Turner Tim Grieser Melinda-Carol Ballou Rohit Mehra IDC OPINION Global Headquarters: 5 Speen Street Framingham, MA USA P F The worldwide application performance management (APM) software market is a competitive market representing portions of several IDC functional markets including performance management, event management, network management, and automated software quality. IDC analysis of market activity during 2012 indicates: The worldwide APM software market increased 14.5% over 2011 for total estimated revenue in 2012 of $2.2 billion. IBM held 16.1% market share, with estimated revenue of $357.1 million, followed by CA Technologies with 14.9% share on estimated revenue of $330 million. The Americas generated 61.0% of worldwide revenue. New entrants New Relic and AppDynamics grew at triple-digit rates. Filing Information: September 2013, IDC #242949, Volume: 1 Enterprise System Management Software: Competitive Analysis

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3 IN THIS STUDY This IDC study examines leading vendor shares and market trends in the worldwide APM software market during Vendor shares from 2010 are provided for historic context. The most recent worldwide forecast for this market will be published in Worldwide Application Performance Management Software Forecast: Cloud and Mobile Fuel Rising Demand (IDC #242875, forthcoming). Methodology See the Methodology in the Learn More section for a description of the data collection and analysis employed in this study. In addition, please note the following: The information contained in this study was derived from IDC's Software Market Forecaster database as of May 10, All numbers in this document may not be exact due to rounding. For more information on IDC's software definitions and methodology, see IDC's Software Taxonomy, 2013 (IDC #241527, June 2013). Worldwide APM Software Taxonomy The term application performance management (APM) is being adopted by a wide range of application development, test, quality, and systems and network management packaged software and SaaS vendors. In general, vendors are embracing the term in an attempt to signal to customers that their monitoring, testing, and analytic solutions can provide value to the business and can enable visibility into application health and end-user experience. It is in effect an effort to distance their offerings from more traditional systems and network management tools that focused on monitoring the health and status of specific hardware or software components but did not provide an end-to-end user perspective or business context. In developing this document, IDC defines APM as a competitive software market representing segments of several functional markets as defined by the IDC taxonomy. Specifically, these are: Performance management Event management Network management Automated software quality APM software focuses on monitoring, maintaining, and optimizing the performance and health of business applications across development, test, datacenter, and 2013 IDC #

4 network environments. Packaged software and SaaS solutions marketed as end-user experience monitoring (EUEM), real user monitoring (RUM), and business transaction monitoring (BTM) are generally included in the APM market. Many APM solutions include some level of IT analytics and correlation as part of the feature set. To the extent, these analytics are core elements of the APM offering that are included in this market assessment. However, standalone or general-purpose IT operations analytics solutions are excluded. APM solutions are distinct from more traditional component or system-level monitoring and testing tools in that they are able to look across complex operational environments, discover hardware and software dependencies and topologies, and track transactions, packets, and code traces on an end-to-end basis that provides business application impact assessments and context. Increasingly, APM solutions are incorporating advanced visualization and executive dashboards as well as predictive analytics and modeling capabilities to enable rapid and proactive detection, diagnosis, and remediation of application performance problems and incidents, whether the source is linked to code, systems, or network issues. Both agent-based and agentless approaches, including synthetic transaction monitoring, are included. Network management products included in this market must specifically report on application performance. Products that provide generic grouping's information based on protocols (i.e., HTTP, CIFS, IP) are excluded. Console-based event correlation engines and event filters as well as system infrastructure level event analytics, modeling, and reporting products are also excluded. Solutions that monitor cloud IaaS exclusively are excluded, although cloud-based APM services that monitor and report on application health, quality, and availability are included. Performance, stress, and load testing products and some static and dynamic code analytics products and code analysis capabilities leveraged in conjunction with relevant APM portfolios (and tracked in IDC's automated software quality market) are also included as they provide key capabilities for gaining visibility into how well applications are performing. They also provide the ability to discover and then remediate software problems. Functional and regression testing as well as typical test management do not play a role in APM. Performance and event management software products, application management, and network management products that focus exclusively on system- or code-level event monitoring, log management, system- or network-specific performance monitoring, reporting and analytics, and related management packs and plug-ins are excluded. Consistent with IDC's software taxonomy, this competitive market covers both packaged software license and maintenance revenue as well as SaaS-delivered solutions. Software elements of appliance-based solutions are also included. Examples include: Compuware APM (formerly Gomez and dynatrace) CA APM (formerly Wily) 2 # IDC

5 IBM ITCAM (Composite Application Manager) HP SiteScope, HP Real User Monitor, and HP Business Process Monitor (in conjunction with related HP LoadRunner capabilities and analytics with HP Diagnostics and Real User Monitoring) BMC ProactiveNet and BMC End User Experience Monitor Keynote Perspective New Relic AppDynamics Examples of excluded products include: IBM Netcool and NetView HP Network Node Manager HP Operations Manager Based on IDC's analysis, the worldwide APM software market in 2012 totaled $2.2 billion. This represents 14.5% growth from 2011 to This market assessment includes software deployed on mainframe and distributed platforms as well as SaaSdelivered APM services. Revenue estimates in this document are developed consistent with IDC's normal calendar year revenue recognition and currency conversion methodologies. SITUATION OVERVIEW Worldwide APM Software Market in 2012 In 2012, the worldwide APM software market increased an estimated 14.5% to a total of $2.2 billion (see Table 1). The top 4 vendors were IBM, CA Technologies, Compuware, and HP. They collectively controlled 53.8% of the market IDC #

6 TABLE 1 Worldwide Application Performance Management Software Revenue by Vendor, ($M) Share (%) Growth (%) IBM CA Technologies Compuware HP Microsoft BMC Keynote Systems Inc Dell Riverbed Attachmate Group New Relic Oracle OpTier AppDynamics Splunk Other Total 1, , , Source: IDC, August 2013 Share by Geographic Region The Americas drive the majority of APM software spending. This is due in part to rising use of mobile applications and smart devices as well as long-standing use of APM among very large Fortune 500 organizations including financial services companies based in North America. IDC estimates the Americas accounted for 61% of APM software spending in 2012 (see Figure 1). 4 # IDC

7 FIGURE 1 Worldwide Application Performance Management Software Revenue Share by Region, 2012 Source: IDC, August 2013 Share by Operating System APM solutions are deployed across a wide range of operating systems. IDC estimates in 2012 that 44.2% were deployed on windows and 20.9% deployed on mainframes (see Figure 2) IDC #

8 FIGURE 2 Worldwide Application Performance Management Software Revenue Share by Operating Environment, 2012 Source: IDC, August 2013 FUTURE OUTLOOK The worldwide APM market is a growing and dynamic market fueled by an increasing need for application, end-user experience, and business transaction visibility across complex virtual, cloud, and mobile environments. The increasing availability of easy to deploy SaaS options is helping to extend the addressable market by providing affordable rapid time to value to a broad range of emerging service provides and midsize organizations than might have found first-generation APM solutions to be too costly and cumbersome to deploy effectively. Buyers of APM solutions have demonstrated a willingness to purchase these types of capabilities via SaaS and cloud models as well as via traditional packaged software and software appliance solution. The breadth of APM solutions being made available across the areas of performance and event management, automated software quality, and network management software provides means that users must evaluate combined alternatives to effectively evolve their APM software strategies and deployment strategies. ESSENTIAL GUIDANCE IDC expects the worldwide APM market will continue to see customer interest in a variety of delivery options, with strong growth for SaaS options and an emphasis on ease of integration and strong reporting and analytics. IDC expects APM packaged software and SaaS providers will continue to benefit from ongoing demand for these 6 # IDC

9 solutions among a broad cross section of midmarket, enterprise, service provider, and ISV customers in the coming years. LEARN MORE Related Research Worldwide Application Performance Management Software Forecast: Cloud and Mobile Fuel Rising Demand (IDC #242875, forthcoming) Worldwide Automated Software Quality Forecast and 2012 Vendor Shares: Lower But Ongoing Growth Driven by Mobile, Cloud, and Complex Deployments (IDC #241927, June 2013) Worldwide System Management Software as a Service Forecast and 2012 Vendor Shares (IDC #241420, June 2013) Worldwide Network Management Software and Appliance Forecast and 2012 Vendor Shares (IDC #241923, June 2013) IDC's Software Taxonomy, 2013 (IDC #241527, June 2013) Worldwide Distributed Performance and Availability Management Software 2012 Vendor Shares (IDC #241082, May 2013) Worldwide Performance and Availability Management Software 2012 Vendor Shares (IDC #241059, May 2013) Methodology The IDC software market sizing and forecasts are presented in terms of commercial software revenue. IDC uses the term commercial software to distinguish commercially available software from custom software. Commercial software is programs or codesets of any type commercially available through sale, lease, rental, or as a service. Commercial software revenue typically includes fees for initial and continued right-to-use commercial software licenses. These fees may include, as part of the license contract, access to product support and/or other services that are inseparable from the right-to-use license fee structure, or this support may be priced separately. Upgrades may be included in the continuing right of use or may be priced separately. All of these are counted by IDC as commercial software revenue. Commercial software revenue excludes service revenue derived from training, consulting, and systems integration that is separate (or unbundled) from the right-touse license but does include the implicit value of software included in a service that offers software functionality by a different pricing scheme. It is the total commercial software revenue that is further allocated to markets, geographic areas, and operating environments. The worldwide software market includes all commercial software revenue across all functional markets or market aggregations. For further details, see IDC's Software Taxonomy, 2013 (IDC #241527, June 2013) IDC #

10 The software revenue forecasts presented in IDC studies represent our best estimates and projections based on the following: Top-down forecast growth rates by IDC worldwide market analysts Current U.S. dollar exchange rates as of 4Q12 Bottom-up/company-level data collection for calendar year 2012 began in January 2013, with in-depth vendor surveys and analysis to develop detailed 2012 company models by market, geographic region, and operating environment. This activity forms the basis of vendor share, updated forecast, and competitive analysis studies that will be published later in the year. Synopsis This IDC study examines the worldwide APM software market for Revenue and market share of the leading vendors are provided for "Worldwide APM software revenue grew by 14.5% in 2012 to reach a total of $2.2 billion," according to Mary Johnston Turner, research VP, Enterprise System Management Software. She explains, "IBM, CA Technologies, Compuware, and HP have a combined worldwide market share of 53.8%, but their market leadership is under pressure from fast-growing new entrants such as New Relic and AppDynamics as well as increase Microsoft capabilities in this area." Copyright Notice This IDC research document was published as part of an IDC continuous intelligence service, providing written research, analyst interactions, telebriefings, and conferences. Visit to learn more about IDC subscription and consulting services. To view a list of IDC offices worldwide, visit Please contact the IDC Hotline at , ext (or ) or sales@idc.com for information on applying the price of this document toward the purchase of an IDC service or for information on additional copies or Web rights. Copyright 2013 IDC. Reproduction is forbidden unless authorized. All rights reserved. 8 # IDC