State of the ITSM Market has moved permanently. You can now find it here…
http://www.itsmuniversity.net/
02-27-2012
State of the IT Service Management Market, 2012, R4
There have been some major events in the market since Release 3 of the ITSM Market research released last August, such that we felt it was necessary to make an announcement. Let’s begin with the major events:
* Service-Now (Negative events for customers since last review) – Brings in new CEO Frank Slootman to transform Service-Now from an $130 M ITSM Application SaaS provider to a $1B PaaS powerhouse. We’re going to go down on the record as being skeptical about the possibility of SNDC competing with salesforce.com. Also, Service-Now won many of their early deals with heavy discounting in order to secure a customer base. Now that new policies and procedures are put into place that are necessary requisites for going public, customers are going to feel the sting in negotiations as SNDC needs to adhere to a more rigid pricing structure.
* BMC Acquires Numara (Positive and Negative) – and now owns roughly 40% of the ITSM Market. The current rumor is that BMC Service Desk Express will hit EOL in 2014. On-site SMBs will be encouraged to move to footprints. Smallest IT shops will be encouraged to go investigate Remedyforce, rather than Track.IT. The reality is that BMC can’t maintain Remedy On Demand, Remedy on-site, Service Desk Express, Numara Footprints, Track.IT and Remedyforce (and probably shouldn’t attempt to anyway). So, one of these technologies is going to be going away (if not multiple).
* HP (Positive) – Gets serious about SaaS for ITSM, gains flexibility in pricing model and establishes the most partner-friendly model on the market. HP has also addressed on-going interface issues and continues to have the most robust CMDB offering on the market.
* CA (Strong Negative) – Languishing in ITSM Market. Nimsoft Service Desk is comparable to Remedyforce functionality but without the power of the Force.com platform. Even though the most recent Gartner numbers show growth, the revenue numbers contained a massive outlier deal with the US Federal government that hides a major decline in ITSM.
BMC is #1 in the market with @40% market share, HP Service Manager is #2 at a little under 17%, Service-Now is #3 @10% CA is #4 at 8% and Frontrange is #5 at 5% (but most of this market share is heat and not Frontrange ITSM) In terms of ranking, we would rank the vendors using these criteria: Interface, Architecture, Functionality and Price (list pricing, because most vendors offer special discounts based on a wide range of criteria), Platform Integration, Innovation, Administration, Operations (for SaaS solutions only).
** One recommendation (and disclaimer) before we list the rankings. We highly recommend that as a customer you go into depth on each module (Incident, Change, CMDB, Release, etc…, because the devil is definitely in the details). For example, you could argue that Incident Management is a commodity application at this point, but CMDB definitely is not (in terms of functionality and architecture).
Ratings (1 is Lowest, 5 is Highest) – We’ve changed the rating system recently to account for similarities between the ITSM platforms.
– BMC Remedy ITSM 7.6.4 – Functionality 4, Architecture 4, Pricing (Blue/SaaS) 4, Interface 4, Sales Team 4, Implementation Community 4, Platform Integration 4, Innovation 3, Administration 4, Operations, 3
– Service-Now Aspen – Functionality 3, Architecture 3, Pricing 2, Interface 4, Sales Team 3, Implementation Community 2, Platform Integration 5, Innovation 4, Administration 3, Operations, 4
– HP Service Manager 9.3 – Functionality 5, Architecture 3, Pricing 4, Interface 3, Sales Team 5, Implementation Community 5, Platform Integration 2, Innovation 3, Administration, 2, Operations, 4
– CA Service Desk Manager 12.5 – Functionality 2, Architecture 1, Pricing 4, Interface 2, Sales Team 4, Implementation Community 2, Platform Integration 2, Innovation 2, Administration, 2 (No operations rating for Nimsoft Service Desk due to limited market presence).
– Frontrange ITSM 7 (not Heat) – Functionality 3, Architecture 3, Pricing 5, Interface 3, Sales Team 3, Implementation Community 2, Platform Integration 3, Innovation 3, Administration, 3
Additional remarks, thoughts and comments:
* We expect CA to move away for the Service Desk Manager platform towards the Nimsoft architecture. Service Desk Manager will probably remain supported in perpetuity, but continue to lag in on-going development as Nimsoft takes the top spot due to it’s native SaaS architecture.
* IBM TSRM remains largely a footnote in the ITSM market… in 6th place.
* Numara had annual revenues of about $75 Million before being acquired by BMC.
* HP has made some surprisingly positive moves of late after a very tough 2010… and a decent 2011.
* Caution: We believe Service-Now has hit it’s first growth obstacle (after posting remarkable 125% YoY growth in 2010) which will make it difficult to go public. Furthermore, we believe this increases the chance of an acquisition due to the investments made by Sequoia capital because VC firms need to make a substantial ROI.
* Remedyforce is built on Force.com, therefore it is built on arguably the best SaaS application architecture available. So, it is a native SaaS architecture, opposed to popular opinion. Many customers have confused this offering with BMC Remedy on Demand which still leverages the AR System architecture. Remedyforce is probably one of the most promising upcoming solutions in this market.
* ICCM is an ITSM platform that leverages a native Business Process Management engine (Metastorm). While ICCM’s presence is limited, BPM engines do give customers unprecedented flexibility in automating unique processes outside of IT.
* ITRP is a new ITSM SaaS offering that is positioned as serious and packaged ITSM. They have purposefully taken the opposite approach as ICCM as an application that isn’t designed to be customized, but leverages best practices. The interface is truly excellent. So, for those customers looking for a packaged ITSM application with robust functionality, a superb user interface and a simple SaaS licensing model, ITRP is worth considering.
For more information, or ITSM vendor consulting, please contact us at our website: https://www.northcraftanalytics.com