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 Back to 2005 Press Releases
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Gartner Says EMEA Application Integration and Middleware Market is Set to Grow Seven Percent in 2005 but the Industry Outlook Remains Challenging |
Barcelona, Spain, June 13, 2005 — Gartner, Inc. said today that revenues for application
integration, middleware (AIM) and portal new licenses will grow 7.4 percent in
Europe, the Middle East and Africa (EMEA) in 2005, progressing at similar rate
to 2004. AIM and portal new license
revenues totalled $2.0 billion in EMEA during 2004, a 7.4 percent revenue increase
over the 2003 total of $1.9 billion, according to Gartner. The outlook remains
challenging amidst intense competition and Gartner counselled organisations to
plan for more consolidation and transition of products, markets and companies.
Gartner analysts examined the state of the AIM industry today at the IT
research and advisory firm's Application
Integration & Web Services Summit in Barcelona.
Gartner's currency adjusted figures, which reflect the fact that most
of the software purchased in EMEA is bought in Euros, paint a bleaker picture.
Taking into account actual currency, Gartner predicts that the EMEA AIM market
will decline 0.5 percent in 2005, following a decline of 3.5 percent in 2004 —
from €1.69 billion in 2003 to €1.63 billion in 2004. Nevertheless, these
results represent an improvement from the 9.5 percent decline (in actual
currency) recorded in the region in 2003 over 2002.
According to Fabrizio Biscotti, principal analyst at
Gartner, "Application integration is at the core of the new wave of innovation
in business applications and their enabling infrastructure and, accordingly,
the market will continue to improve at a slow but steady pace. "However, Mr Biscotti warned that the high levels of market growth experienced in the late nineties are unlikely to return
for the foreseeable future. "Although the concept of integration and the usage
of modern application platforms have become mainstream, the market is not
getting any easier for software providers. Competition has intensified, software
mega-vendors have strengthened their offerings and new players, focused on web
services and Enterprise Service Bus technology, have entered the market."
Despite continuing merger and acquisition activity and ongoing
consolidation in some market segments — such as application servers and
message-oriented middleware (MOM) — the AIM market remains fragmented. "A myriad of vendors are struggling to
diversify and defend their margins," said Massimo Pezzini, vice president and
distinguished analyst at Gartner. "Technology providers are increasingly looking at new opportunities —
such as the growing adoption of Service-Oriented Architecture (SOA) — in
unexplored territories that include niche vertical industries and the
mid-market. Consequently, they have to face up to marketing and product
development challenges above and beyond their current expertise."
A further challenge comes from business application technology
providers who are paying increasing attention to integration and encouraging
their existing customer base to adopt their own solutions, thus reducing the
opportunities available for the traditional market players. As Mr Biscotti
pointed out, "Such challenges are compounded by uncertain economic conditions
in Europe. There is definitely no easy ride
for technology providers in the integration space and in most software markets
in the region."
Gartner said that leading vendors in the AIM industry throughout EMEA
had mixed fortunes in 2004. IBM maintained a clear lead with 43.7 percent
market share in 2004, although this leadership varies significantly according
to individual market segment*. While IBM
is the clear market share leader in message-oriented middleware (MOM),
application servers and in transaction processing middleware (TPM), it faces
fierce competition in integration suites and horizontal portals. Microsoft's
positive performance in the portal and integration suite segments enabled the
company to move into the top five ranking for the first time in 2004. The
company's new license revenues in that segment increased by 116.7 percent.
EMEA Application Integration and Middleware New License Revenue for 2004
(Millions
of Dollars)
| Company |
2003 |
2004 |
Share 2003 |
Share 2004 |
AGR 2004 |
| IBM |
833.1 |
936.8 |
43.7% |
45.8% |
12.5% |
| BEA Systems |
173.5 |
180.9 |
9.1% |
8.8% |
4.2% |
| Oracle |
98.9 |
116.9 |
5.2% |
5.7% |
18.1% |
| Tibco |
54.2 |
69.7 |
2.8% |
3.4% |
28.5% |
| Microsoft |
30.9 |
67.0 |
1.6% |
3.3% |
116.7% |
| Others |
714.4 |
674.6 |
37.5% |
33.0% |
-5.6% |
| Total |
1,905.0 |
2,045.9 |
100.0% |
100.0% |
7.4% |
Source: Gartner Dataquest (May 2005)
*Gartner tracks individually several sub-segments of the AIM and Portal
market. Amongst these, the biggest in EMEA are Integration Suites, Transaction
Processing Monitors (TPMs) and Application Servers all with new license
revenues above $400million. The fastest growing are Message Oriented Middleware
(MOM), Integration Suites and Portal Products.
Mr Biscotti acknowledged that after many years of
trial and error, businesses are finally approaching application integration
strategically."It has become a key
success factor for high profile business initiatives such as regulatory
compliance as well as business-to-business and multi-channel programmes," he
said.
However, Mr Biscotti cautioned that the
ever-changing landscape of middleware technology necessitates the adoption of integration best
practices. He outlined five key
recommendations for organisations to follow to maximise their investments:
- Plan for more consolidation and transition of products, markets and companies
- Consider moving to new product lines only when they provide justifiable business
and technology benefits
- Investigate migration tools and the services required for transition carefully as part
of total project costs
- Choose partners carefully
- Negotiate the best terms — clauses for mergers and acquisitions are critical.
Gartner analysts will provide more detailed analysis on the future
of the AIM industry during the Gartner Application Integration and Web Services
Summit, June 13-14 at the Palau De Congressos de Catalunya in Barcelona. For more information, please
visit: www.europe.gartner.com/ai
To set up an interview with a Gartner analyst, please contact:
Chiaralba Bollini, Gartner Public Relations
chiaralba.bollini@gartner.com
Tel: +39 02 48289305
Karen Hardinge, Bite Communications
karen.hardinge@bitepr.com
Tel: +44 208 834 3508
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About Gartner:
Gartner, Inc. is the leading provider of research and analysis on the global information technology industry. Gartner serves more than 10,000 clients, including chief information officers and other senior IT executives in corporations and government agencies, as well as technology companies and the investment community. The Company focuses on delivering objective, in-depth analysis and actionable advice to enable clients to make more informed business and technology decisions. The Company's businesses consist of Research and Events for IT professionals; Gartner Executive Programs, membership programs and peer networking services; and Gartner Consulting, customized engagements with a specific emphasis on outsourcing and IT management. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, and has over 3,900 associates, including more than 1,100 research analysts and consultants, in more than 75 locations worldwide. For more information,
visit www.gartner.com.
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