Network and system management market to top $21b in 2004
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The worldwide network and system management market is on pace to reach $10.2 billion in 2000, an increase of 19% over 1999 revenue of $8.58 billion, according to the Dataquest unit of Gartner Group. The market is projected to grow at 19.7% through 2004 when revenue will surpass $21 billion.

The overall growth rate of 19.5% from 1998 to 1999 was down from 23.9% the previous period and while Year 2000 added some confusion and was blamed for slowdowns, especially near end of 1999, “megamergers” and management changes were probably a bigger factor.

Some subsegments ignored all obstacles and pushed strongly ahead. The network and service management products saw 45% year-over-year growth, with desktop management coming in second at 33.3% growth.

“While management often takes a back seat to the excitement of applications, the Internet and e-commerce applications are demanding levels of availability that are now driving new expenditures in the management space,” said Carolyn DiCenzo, chief analyst for Dataquest’s network, system and storage management software worldwide program. “Niche players still have opportunities to leverage leading-edge technology to wins against the big players.”

Computer Associates was the solid leader in 1999 with 23.3% market share. IBM/Tivoli followed with 17.3%, and BMC Software captured 10.6%. After Hewlett-Packard’s 4.8% share, no other vendor gained more than 2.5% of the overall management market.

“Vendors that win in this market will need not only good technology, but technology that leverages new delivery channels, such as those being promised by the managed service providers,” DiCenzo said. “With the small-to-midrange market still underpenetrated, vendors need to support the technology requirements of new service-oriented delivery channels.”

Detailed data and forecast on this market are available in ‘1999 Management Software Market Share’, published by Dataquest’s network, system and storage management software worldwide program.



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