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| Gartner's Dataquest Says Worldwide Network and System Management Market to Top $21 Billion in 2004 | |
| San Jose, Calif., September 19, 2000 - The worldwide network and system management market is on pace to reach $10.2 billion in 2000, an increase of 19 percent over 1999 revenue of $8.58 billion, according to Dataquest Inc., a unit of Gartner Group, Inc. (NYSE: IT and ITB). The market is projected to grow at a compound growth rate of 19.7 percent through 2004 when revenue will surpass $21 billion. | |
| The overall growth rate of 19.5 percent from 1998 to 1999 was down from 23.9 percent 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 percent year-over-year growth, with desktop management coming in second at 33.3 percent 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 percent market share. IBM/Tivoli followed with 17.3 percent, and BMC Software captured 10.6 percent. After Hewlett-Packard's 4.8 percent share, no other vendor gained more than 2.5 percent 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 (MSPs)," Ms. DiCenzo said. "With the small-to-midrange market still underpenetrated, vendors need to support the technology requirements of new service-oriented delivery channels." | |
| Additional analysis is available in the Research Brief titled "Network and System Management Growth Slows in 1999." This brief addresses the size of the system and application management software market, the key players and graphs of the five-year forecast by subsegment and market share leaders. Detailed data and forecast on this market and its subsegments are available in the Dataquest Market Statistics report "1999 Management Software Market Share". | |
| This document is published by Dataquest's Network, System and Storage Management Software Worldwide program. This program provides in-depth market analysis of network, system and storage management software (NSSM) markets to help developers, business planners and investors understand the industry dynamics, movers and shakers, and competitive trends. More information on this program is available on Dataquest's Web site at http://www.dataquest.com. | |
| To subscribe to this program, please call 800-419-DATA, or 408-468-8009. More information about Dataquest's programs, descriptions of recent research reports, and full text of press releases can be found on the Internet at www.dataquest.com. | |
| Additional analysis on the outlook for the software industry will be provided during Gartner's Symposium/ITxpo 2000, October 16-20 in Lake Buena Vista, Florida. This event is the IT industry's largest and most strategic conference providing business leaders with a look at the future of IT. Some of the speakers at this year's event include Hewlett-Packard's chairman and CEO, Carly Fiorina; Sun Microsystems' chairman and CEO, Scott McNealy; and Microsoft's president and CEO, Steve Ballmer. To register for Gartner's Symposium/ITxpo 2000, please call 1-800-778-1997 or 1-203-316-6757, or go to www.gartner.com/symposium. Members of the media can register by contacting Lisette Kwong at 1-212-320-2330 or lkwong@tsicomm.com. | |
| Gartner's Dataquest is the recognized leader in providing the high-technology and financial communities with market intelligence for the semiconductor, computer systems and peripherals, communications, document management, software, and services sectors of the global information technology industry. Gartner provides unrivaled thought leadership for more than 10,000 organizations, helping clients to achieve their business objectives through the intelligent and efficient use of technology. Additionally, Gartner helps technology companies identify and maximize technology market opportunities. Gartner's technology content and strong brand reach IT professionals globally through Gartner Research, its research and advisory unit, Gartner Services, its custom consulting unit; Gartner Events, including Gartner's renowned Symposia; and, at www.gartner.com. Gartner subsidiary TechRepublic, Inc. (www.techrepublic.com) is the leading online destination developed exclusively for IT professionals by IT professionals. Gartner, founded in 1979 and headquartered in Stamford, Connecticut, achieved fiscal 1999 revenues of $734 million. Gartner's 4,000 associates, including 1,200 research analysts and consultants, are in more than 80 locations worldwide. For more information about Gartner's industry-leading products and services, please visit us on the Web at www.gartner.com. | |
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