History 2000: Revenues in WW Enterprise System Management Software Market Jumped 23% in 1999

Revenues in the WW enterprise system management software market jumped 23% in 1999, landing just short of the $12 billion mark.

Furthermore, IDC estimates the market will increase another 117% by 2004, approaching $26 billion, according to its latest report, Enterprise System Management Software Market Forecast and Analysis, 2000-2004.

“Several factors will conspire to drive growth in the system management software market,” said Paul Mason, group VP of system infrastructure software, IDC. “These factors include e-commerce growth, the IT skills shortage, the deployment of SANs, and the increasing popularity of non traditional IT devices. Additionally, if vendors can show the middle market that system management software is cost effective, these firms will give the market a big boost.”

IDC defines enterprise system management software as software that is used to manage all computing resources – except the network infrastructure – for the end user, small business, workgroup, and enterprise. The overall market contains the following segments: change and configuration management, event automation, job scheduling, output management, performance management, problem management, and storage management.

Storage management presents the largest opportunity and will do so through at least 2004.

In 1999, it accounted for $3.2 billion, and the segment will more than double to $7.6 billion in 2004.

“E-commerce applications are triggering an explosive need for storage capacity, and enterprises will continually look to storage management solutions to help manage this growing capacity,” said Stephen Widen, director for IDC’s storage software research.

Performance management is the second largest segment. Its 1999 revenues exceeded $2.7 billion, and they will double to $5.4 billion in 2004.

Change and configuration management is the fastest-growing segment of the market. US vendors are profiting the most from opportunities in the overall market.

In 1999, they dominated the market with an overwhelming 90% of revenues.

The North American market uses more system management software than any other region. In 1999, it accounted for 57% of revenues. Western Europe represented the next biggest opportunity, with 27% of the market’s wealth.

This article is an abstract of news published on issue 152 on September 2000 from the former paper version of Computer Data Storage Newsletter.