| Gartner's Dataquest Says Worldwide Desktop Management and Software Distribution Market to Top $1.8 Billion in 2004
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San Jose, Calif., September 6, 2000 — The worldwide desktop management and software distribution market is on pace to reach $1.06 billion in 2000, an increase of 18 percent over 1999 revenue of $899 million, according to Dataquest Inc., a unit of Gartner Group, Inc. (NYSE: IT and ITB). The market is projected to maintain double-digit growth through 2004 when revenue will top $1.8 billion. |
| As the market moves toward 2004, the lines between workgroup and enterprise products will increasingly blur, and the focus will turn to those vendors that can support robust software distribution that includes not only intranet, but Internet and extranet support. Market leadership reflects this mixed focus today with enterprise vendors IBM, Computer Associates, and HP, and desktop platform vendors Microsoft, Intel, and Novell starting to share the limelight with focused software distribution vendors Novadigm and Marimba. |
| "To succeed in this space, vendors must deploy a combination of good technology, supporting services, and strong direct and indirect sales channels," said Carolyn DiCenzo, chief analyst for Dataquest's Network, System and Storage Management Software Worldwide program. |
| "Directory-based distribution that ties distribution to users, not machines, will become increasingly important, as will the emergence of managed service providers, which could provide a strong, new delivery channel that provides the process and implementation support that many customers need." |
| The desktop management and software distribution segment grew 33 percent 1999 as much of this increase was attributed to year 2000-driven desktop upgrades that raised the overall market. Growth rates are expected to settle down to the teens as the year 2000 spike is no longer a factor and as some of the software distribution vendors look to Internet and extranet distribution (e-distribution) and mobile as new growth opportunities. |
| "While many segments in the overall management market are limited primarily by vendor ability to execute, and that is certainly a factor in this space as well, the desktop management segment has also faced resistance from potential customers who are overwhelmed and unable to lock down desktops into a set of manageable configurations," Ms. DiCenzo said. "Customers that bound their desktop environments to leverage existing tools can see a high return on investment for their efforts." |
| Additional analysis is available in the Research Brief titled "New Products and Y2K Spur Desktop Management and Software Distribution Market Growth." This report addresses the size of the system and application management software market, the key players and how they differentiate themselves. |
| 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/public/static/home/ourservices/scopes/n04nssmww.html. 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. |
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