Economic Outlook: It Systems Management (Market Focus)

Publication Date	September 2007
Publisher	Datamonitor
Product Type	Brief
Pages	20
ISBN Number	not applicable
Product Code	DAT07279

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Summary

Introduction

The sustained growth in the complexity of IT infrastructure is driving the demand for organized governance, monitoring and management of IT assets and processes. In this brief, Datamonitor provides an analysis of the main trends affecting the market for IT systems management applications and advises vendors on how to respond to the changing market conditions.

Scope

Discusses the key trends impacting the current state of the IT systems management market.
Analyzes current penetration rates and investment plans across market segments.
Discusses the dominant supply and demand drivers and vendor go-to-market strategies.
Provides a market forecast of expenditure over the coming four years.

Highlights

IT systems management plays an important part in maintaining mission-critical IT infrastructure. Despite a high penetration rate, the volume of enterprises investing in IT systems management solutions is still considerable. Although the growth of investment is flat, the sheer volume of opportunities will ensure a positive outlook for vendors.

The demand for IT systems management will be sustained through the continuing complexity IT infrastructure and increasingly strategic approach to IT systems management. Issues such as compliance, infrastructure efficiency and standards-based formal management frameworks will gain in importance.

The market can be segmented by enterprise size bands. Most of the spending is still concentrated within larger enterprises, but the demand within small and medium enterprises will grow. Vendors need to consider the optimal way to meet this demand, perhaps by adopting a bolder approach to SME channel and vertical strategies.

Reasons to Purchase

Understand the primary market trends behind the IT systems management market.
Identify optimal sales opportunities which are driving growth in order to position your solutions adequately.
Explore the dominant trends in demand in order to formulate fresh go-to-market strategies for the IT systems management market.

Companies Mentioned:

FPIC Insurance Group, Inc

Content

Catalyst
Summary
Analysis
- Market definition
- IT systems management is a framework that enables organizations to manage IT assets and processes
- IT systems management is closely related to adjacent technology areas
- Market development
- IT systems management has the third highest penetration out of Datamonitor's technology coverage
- Despite high penetration there are plenty of up-sell and cross-sell opportunities
- The number of enterprises investing in IT systems management is decreasing slightly
- Enterprises with fewer than 1,000 employees plan to increase their investment in the medium term
- Market trends
- Enterprises demand more compliant, agile and efficient IT infrastructures
- Enterprises are seeking better alignment between IT and business
- Operational Dynamics are requiring more agile IT systems
- Compliance frameworks are impinging directly on IT systems management
- The emphasis on energy efficiency leads to increased demand
- The demand for IT systems management is growing among enterprises with fewer than 1,000 employees
- The continuous increase in IT infrastructure complexity contributes to demand
- Supply-side: New deployment models, best practice frameworks and changing competitive dynamics
- Best practice frameworks are rendering IT systems management more strategic
- Server virtualization creates demand for a new type of IT systems management
- New models of licensing and delivering IT systems applications are appearing
- The competitive landscape is shaped by ongoing M&A activity and recent market entrants
- Go-to-market strategies
- Vertical strategies need to extend beyond the core industries
- SME sector strategies should be articulated more boldly
- Market size
- Despite a faster growth rate among SMEs, most revenues can be attributed to larger enterprises
Summary
- The IT systems management market is mature but is buoyed by an increasingly strategic approach
Appendix
- Definitions
- Methodology
- Further reading
- Ask the analyst
- Datamonitor consulting
- Disclaimer
List of Tables
- Table 1: Penetration by technology area - Technology Trends surveys 2006 and H1 2007
- Table 2: The number of IT systems management solutions deployed
- Table 3: Which of the following technologies do you currently have or use, and which would you have in six months to 24 months time?
- Table 4: Which of the following technologies do you currently have or use, and which would you have in six months and 24 months time? - by enterprise size
- Table 5: IT systems management revenue model ($ millions, license and maintenance revenues)
- Table 6: IT systems management revenue model ($ millions, product license only) - by enterprise size
List of Figures Figure 1: IT systems management covers IT infrastructure, management processes and services
- Figure 2: IT systems management is among the best-penetrated technology areas
- Figure 3: Over a third of enterprises have deployed no more than two IT systems management solution areas
- Figure 4: The number of enterprises investing is high, but decreasing slightly
- Figure 5: Investment outlook is much brighter among enterprises with fewer than 1,000 employees
- Figure 6: The strategic evolution of IT systems management is towards IT operating as a profit center
- Figure 7: The Sarbanes-Oxley Act Section 404 directly recommends IT systems management control
- Figure 8: The IT systems management market is set for further growth over the next three years
- Figure 9: Enterprises with fewer than 250 employees will significantly increase their spending