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Could a management titan topple in 2009?

Economic factors, ambitious competitors and evolving IT management needs could unseat one of the big four
By Denise Dubie , Network World , 12/17/2008
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The management market could be in for a shakeup in 2009, analysts say, when one of the big four market-leading management-software makers succumbs to acquisition by a high-tech heavyweight looking to buy its way in.

As enterprise IT executives turn to management and automation products to improve services on their tight 2009 budgets, leading network vendors also will be looking to bring those technologies into their portfolios fast -- potentially by acquiring one of the established market leaders. It's never been lonely at the top for BMC Software, CA, HP and IBM, but industry watchers argue competition is heating up like never before.

"The future of IT is going to rely on a broad-based approach to management and automation, and software vendors such as Microsoft, Oracle and SAP realize they need to be a part of this overall vision of IT and not supply piece parts," says Glenn O'Donnell, a senior analyst at Forrester Research. "The change in the economy has not only made the technology they have more attractive, but it has also taken the companies' valuations down so they could be easier to absorb."

The reigning quartet has spent more than a decade jockeying back and forth among the top market spots, with HP excelling in network management more so than application management, and BMC creating new approaches to existing pain points with its business service management (BSM) strategy. CA survived accounting scandals and came out stronger under a new management team, and IBM continues to sell its management technology successfully as part of vertical industry solutions. With enterprise IT managers in 2009 looking to cut costs and reduce manual labor, however, incumbent management vendors are becoming more attractive to other industry heavyweights, such as ASG Software, EMC, Microsoft, Oracle, SAP and Symantec.

"Virtualization has driven up interest in systems management and data center automation," says Andi Mann, research director at Enterprise Management Associates (EMA). "As companies look to cut costs in the first half of 2009, as ugly as it is, headcount in IT will be among those cuts, and automation for better or for worse is a tool that will help companies continue to deliver services to the business without adding headcount."

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BMC is the most likely systems management vendor to be acquiredBy Anonymous on December 18, 2008, 6:15 pmThe BMC market cap is manageable for a deal from any of Cisco, VMware, EMC, Microsoft or others. BMC is just the right size to be swallowed. My bet is on Cisco to...

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Software figureBy Anonymous on December 17, 2008, 5:22 pmThe $855 million is a Q4 FY08 figure.

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It is a quarterly numberBy Anon on December 17, 2008, 4:53 pmIf you click through the link for HP Software in the story you find this quote: The company reported $2 billion in software revenue in the past, and today, industry...

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check the HP SW revenueBy Anonymous on December 17, 2008, 2:45 pmI'd bet it's a quarterly number

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Crystal balls...By Anonymous on December 17, 2008, 12:17 pmReally, nothing is predictable in the IT space, especially with the central banking ponzi scheme starting to unravel.

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Partner Content

NetScout and analyst Jim Metzler have teamed to deliver a series of IT Briefs on Network and Application Performance Management leveraging research from NetScout's nGenius & Sniffer users.

www.netscout.com

Metzler on Service Delivery Management

Delivering IT business value by evolving our thinking from managing application performance to focusing on services.

Learn More

2009 Handbook of Application Delivery

Successful IT organizations must know how to make the right application delivery decisions in these tough economic times.

Download the Handbook

Metzler on the Modern IP Network

Discusses the growing emphasis on network management and the need to implement a holistic view of the end-to-end experience of the user.

Read the Brief