Systems management market to boom

The worldwide system management software market should top $US11.3 billion in revenue terms by the end of this year, market research company IDC said yesterday.

Last year, global revenues for system management software were up 16 per cent from 1997's figures, reaching $9.7 billion and by 2003, revenues should be in excess of $18 billion, IDC officials said.

US vendors dominated the system management software arena last year, holding an 89 per cent share of the worldwide market, with their revenues dwarfing those of non-US vendors, IDC said. While US system management software vendors grew by close to 18 per cent to $8.7 billion, from 1997 to 1998, their rivals outside the US only raised their revenues by under 6 per cent to $1.1 billion.

The front runner in the worldwide system management software market last year was Computer Associates, with a 28 per cent share, having revenues of nearly $2.7 billion, according to IDC. In second position is CA's rival IBM with its Tivoli Systems subsidiary with a market share of 17 per cent.

CA considers its Unicenter TNG (the next generation) system management software to be its flagship product offering, making great play of the fact that the product was mostly home grown, it says.

Storage management made up the largest proportion of the system management software market worldwide in 1998 accounting for revenues of $2.67 billion, followed by performance management with revenues of $2.28 billion. Neither of these two technologies, however, will be the market segment to experience the fastest growth rate. That honour went to change and configuration management, which IDC estimates will experience a CAGR (compound annual growth rate) of 22.1 per cent between last year and 2003.

All the data mentioned above comes from a new IDC report entitled "System Management Software: 1999 Worldwide Markets and Trends."

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