NSM Middleprise Market to Become $2.6 Billion Industry This Year, According to GartnerGroup's Dataquest
Dataquest Defines Middleprise Segment as a New Opportunity for NSM Vendors
San Jose, Calif., August 9, 1999—The worldwide network and system management (NSM) market is on pace to reach $10.8 billion in 1999, and the NSM middleprise segment is projected to account for 24 percent of the total NSM market with revenue of $2.6 billion, according to Dataquest Inc., a unit of Gartner Group, Inc. (NYSE: IT). The NSM middleprise market will nearly double by 2002 when the market is forecast to be a $5 billion industry. The overall NSM market is expected to surpass $18 billion in 2002.
Dataquest defines the middle market for NSM as the middleprise market–companies with the number of employees ranging between 500 and 4,500 and revenue between $50 million and $1 billion. Dataquest estimates that there are currently between 75,000 and 100,000 U.S.-based companies that fall into this category. Because the NSM middleprise market has been relatively untapped, Dataquest believes that there are great opportunities for vendors to thrive in this marketplace.
"NSM vendors need to recognize that the middleprise market requires the same amount of attention that the enterprise space does, but in a slightly different manner," said Stephen Elliot, industry analyst for Dataquest's Network, System, and Storage Management Software Worldwide program. "The indirect channel will play an increasingly important role in NSM vendor success in the middleprise market. By understanding indirect channel dynamics and helping the indirect channel sell NSM solutions, vendors will increase revenue and create valuable business partnerships for future NSM growth."
Dataquest expects middleprise organizations to grow revenue and employee count quickly, and these organizations believe their technology infrastructure will give them a competitive advantage. With this belief accelerating purchasing decisions, there are plenty of selling opportunities for vendors selling to the NSM middleprise segment.
"NSM products addressing application availability, network performance, event management, problem resolution, and Internet management will be successful in the middleprise space," said Mr. Elliot. "Internet business models are dependent on 24-hour application availability and will drive new electronic management objectives and products, thus driving middleprise market growth."
Additional information on this market is available in the Dataquest Perspective "NSM Middleprise Market: Bloom, Boom, or Bust?" This report examines the current makeup of the market, and it provides an outlook of the middleprise segment through 2002.
This report is produced by Dataquest's Network, System, and Storage Management Software Worldwide program. This program offers in-depth analysis of the explosive market for network and system and storage management tools. Additional information on this program is available on Dataquest's Web site at http://www.dataquest.com/dq/static/offer/programs/nssmwwds19981130.html.
To purchase this report or 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 http://www.dataquest.com.
GartnerGroup'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.
As the world's leading authority on IT, GartnerGroup provides clients with a wide range of products and services in the areas of IT advisory services, measurement, research, decision support, analysis, and consulting. Founded in 1979, with headquarters in Stamford, Conn., GartnerGroup is at the center of a global community serving Fortune 1000 clients from 80 locations worldwide. Additional information about the company is available on the Internet at www.gartner.com.
CONTACT:
Tom McCall
(408) 468-8312
tom.mccall@gartner.com