C O M P E T I T I V E A N A L Y S I S
W o r l d w i d e C l o u d S y s t e m s M a n a g e m e n t S o f t w a r e 2 0 1 1
V e n d o r S h a r e s : M a r k e t M o v e s B e y o n d S e l f - S e r v i c eMary Johnston Turner
I N T H I S E X C E R P T
The content for this excerpt was taken directly from Worldwide Cloud Systems Management Software 2011 Vendor Shares: Market Moves Beyond Self-Service by Mary Johnston Turner (Doc # 236556). All or parts of the following sections are included in this excerpt: IDC Opinion, In This Study, Situation Overview, Future Outlook, Essential Guidance, Learn More and Synopsis. Also included are Figures 1, 2, and 3.
I D C O P I N I O N
The worldwide cloud systems management software market is a competitive market representing portions of several IDC functional markets including change and configuration management, workload scheduling and automation, performance management, event management, and problem management. IDC analysis of market activity during 2011 indicates:
The worldwide cloud systems management software market increased 84.4% over 2010 for total estimated revenue in 2011 of $754 million.
CA Technologies with $137 million and VMware with $135 million in revenue led the market in 2011.
The Americas, responsible for an estimated 65.0% of revenue, continue to dominate the market.
Private cloud implementations represented 63.4% of revenue.
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I N T H I S S T U D Y
This IDC study examines leading vendor shares and market trends in the worldwide cloud systems management software market during 2011. Vendor shares from 2010 are provided for historic context. An updated forecast for the 2012–2016 time frame will be published separately.
M e t h o d o l o g y Please note the following:
The information contained in this study was derived from IDC's Software Market Forecaster database as of May 15, 2012.
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, 2012 (IDC #235401, June 2012).
W o r l d w i d e C l o u d S y s t e m s M a n a g e m e n t S o f t w a r e T a x o n o m y
The worldwide cloud systems management software market is an IDC competitive market that reflects portions of revenue reported in the following functional markets: Workload scheduling and automation
Change and configuration management Performance management
Event management Problem management
Revenue estimates for this competitive market include license, maintenance, and subscription revenue for packaged software and SaaS solutions used to actively manage enterprise and service provider cloud environments. It is important to note that, in the case of cloud systems management functionality bundled as part of a converged infrastructure hardware platform, software revenue is not recognized unless it is tracked and reported using its own separate SKU(s). Related revenue from professional services, training, and implementation support services is excluded.
Because different vendors make different choices about product and SaaS service packaging, bundling, and branding, revenue estimates for this market include not only flagship cloud-specific solutions but associated systems management software products, management packs, and SaaS services only to the extent they are deployed to enable fully operational cloud management environments. As an example, if a customer implements a private cloud using VMware's vCloud Director, revenue for vCloud Director and any other vCenter licenses needed to enable the operational cloud environment will be included in the revenue estimates for this market, but other vCenter licenses used outside of the cloud will be excluded. For an environment to qualify as a cloud, the following systems management software capabilities must be actively in use:
Self-service cloud infrastructure application provisioning automation, including a service catalog and policy-based life-cycle management capabilities
Automated infrastructure orchestration and virtualization management used to enable dynamic infrastructure resource pooling and sharing across multiple workloads and user groups
The ability to track cloud resource consumption to support life-cycle management, capacity planning, and (optionally) chargeback/showback
The aforementioned list of capabilities applies to both public and private clouds and represents the minimum systems management software functionality required for an environment to be considered a cloud for the purposes of this market sizing.
The estimates in this document also cover software products and SaaS offerings used to enable a broad range of additional cloud systems management activities including middleware and application provisioning, cloud service performance monitoring and service-level management, analytics to optimize cloud capacity planning, cloud governance software, and tools to manage cloud configuration compliance and reporting. Packaged software and SaaS solutions used to manage and monitor public cloud services and workloads running in hybrid public and private cloud environments are also included.
Software products deployed to support operation of virtualized resources or used to enable automated VM or bare metal provisioning or workload management, in the absence of self-service and other core cloud capabilities, are not included in these estimates.
Systems management software capabilities delivered via the SaaS model are only included to the extent they are used to enable cloud management environments, as described previously. The fact that systems management software is delivered via a
S I T U A T I O N O V E R V I E W
In 2011, the worldwide cloud systems management software market grew dramatically, totaling an estimated $754 million in 2011, an increase of 84.4% over 2010 (see Table 1). The top 2 vendors, CA Technologies and VMware, benefited from market demand for a range of capabilities beyond self-service provisioning, which anchored most vendor revenue in 2010.
T A B L E 1
W o r l d w i d e C l o u d S y s t e m s M a n a g e m e n t S o f t w a r e R e v e n u e b y V e n d o r , 2 0 1 0 a n d 2 0 1 1 ( $ M )
2010 2011 2011 Share (%) 2010–2011 Growth (%)
CA Technologies 60 137 18.2 128.3
VMware 62 135 17.9 117.7
BMC 35 92 12.2 162.9
HP 38 80 10.6 110.5
IBM 48 78 10.3 62.5
Subtotal 243 522 69.2 114.8
Other 166 232 30.8 39.8
Total 409 754 100.0 84.4
In the case of top-ranked CA Technologies, IDC estimates cloud systems management software revenue for 2011 was $137 million, which represents revenue growth of 128.3% over 2010. This revenue was associated with several automation, monitoring, and business service management products including the CA Automation Suite for Clouds, AppLogic, Business Service Insight (formerly Oblicore), and Nimsoft. CA Technologies has solid cloud go-to-market programs reaching both enterprise and service provider customers and continues to invest aggressively in its cloud management portfolio via acquisitions, partnerships, and organic development. IDC estimates CA Technologies captured 18.2% of the market.
P r i v a t e C l o u d D e m a n d C o n t i n u e s t o D r i v e M a r k e t
Similar to findings in 2010, IDC's 2011 research indicates that private clouds dominate demand for cloud systems management software. While service providers of many types and sizes are continuing to build out cloud service environments, they also continue to resist extensive use of licensed systems management software to support these services.
In some cases, service providers will partner with the systems management software vendors using a pay-as-you-grow model that allows the service provider to deploy the software without having to pay for it until it is actually being used to support a revenue-producing service.
In other cases, service providers are relying on open source solutions including OpenStack, CloudStack, and Eucalyptus and are creating their own value-add software, portals, and analytics on top of open source cloud platforms. While this may create some demand for professional and training services, it limits the growth of revenue for commercial software and SaaS cloud systems management software options.
As shown in Figure 1, IDC estimates 63.4% of revenue was associated with private cloud implementations and 36.6% went to public cloud deployments.
F I G U R E 1
W o r l d w i d e C l o u d S y s t e m s M a n a g e m e n t S o f t w a r e R e v e n u e S h a r e b y T y p e o f C l o u d , 2 0 1 1
Source: IDC, August 2012
P e r f o r m a n c e b y R e g i o n
Because of the extensive use of virtualization across North America and the weakness of the eurozone economy, the Americas have continued to dominate the market with 65.0% of revenue compared with an estimated 21.7% in EMEA and 13.3% in Asia/Pacific (including Japan) (see Figure 2).
F I G U R E 2
W o r l d w i d e C l o u d S y s t e m s M a n a g e m e n t S o f t w a r e R e v e n u e S h a r e b y R e g i o n , 2 0 1 1
P e r f o r m a n c e b y O p e r a t i n g S y s t e m
Windows continues to lead the market, followed by Unix- and Linux-based solutions. Since many newly introduced cloud systems management solutions are being deployed on Linux, Linux-based solutions showed the greatest level of growth, increasing from an estimated $45 million in 2010 to $136.3 million in 2011 (see Figure 3).
F I G U R E 3
W o r l d w i d e C l o u d S y s t e m s M a n a g e m e n t S o f t w a r e R e v e n u e S h a r e b y O p e r a t i n g E n v i r o n m e n t , 2 0 1 1
Source: IDC, August 2012
F U T U R E O U T L O O K
IDC expects the worldwide cloud systems management software market will continue to experience explosive growth for several more years as enterprise and service provider customers move from pilots to production and expand the set of management software products and SaaS services used to support these environments.
E S S E N T I A L G U I D A N C E
IDC expects a number of major vendors and innovative start-ups to continue to jostle for market leadership over the next two to three years as the worldwide cloud systems management software market expands and matures. IDC has identified more than a dozen cloud systems management start-ups and innovators that are poised to introduce advanced capabilities to the market and are likely to offer leaders a continued supply of acquisition candidates. Long-term winners in this market will offer customers a broad set of capabilities that are integrated and packaged to enable IT staff to improve operational efficiency while maintaining high-quality service levels.
L E A R N M O R ER e l a t e d R e s e a r c h
Red Hat Extends Cloud Service Management Options (IDC #lcUS23599712, July 2012)
BMC Updates Cloud Management Software Portfolio to Make Stronger Business Connections (IDC #lcUS23621212, July 2012)
IDC's Software Taxonomy, 2012 (IDC #235401, June 2012)
Worldwide Cloud Systems Management Software 2012–2016 Forecast (IDC #234001, March 2012)
Worldwide Cloud Systems Management Software 2011–2015 Forecast Update and 2010 Vendor Shares (IDC #231493, November 2011)
Worldwide Cloud Systems Management Software 2011 Vendor Strategies (IDC #231140, November 2011)
U.S. 2011 Private Cloud Management Survey: The Journey Continues (IDC #230188, September 2011)
IT Cloud Decision Economics: 10 Best Practices for Public IT Cloud Service Selection and Management (IDC #229207, July 2011)
Private Cloud: It's All About Operational Efficiency (IDC #227870, April 2011) S y n o p s i s
This IDC study examines worldwide cloud systems management software market vendor shares for 2011, with historic information from 2010 included for comparison.
IDC estimates the market increased 84.4% to a total of $754 million worldwide. "The worldwide cloud systems management software market continues to expand rapidly as customers move from pilots to production and expand management requirements beyond simple self-service provisioning automation to include performance monitoring, governance, reporting, capacity planning, and other capabilities in their cloud management environments," explains Mary Johnston Turner, research vice president, Enterprise Systems Management Software.
C o p y r i g h t N o t i c e
This IDC research document was published as part of an IDC continuous intelligence service, providing written research, analyst interactions, telebriefings, and conferences. Visit www.idc.com to learn more about IDC subscription and consulting services. To view a list of IDC offices worldwide, visit www.idc.com/offices. Please contact the IDC Hotline at 800.343.4952, ext. 7988 (or +1.508.988.7988) or firstname.lastname@example.org 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 2012 IDC. Reproduction is forbidden unless authorized. All rights reserved.