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Gartner Says Worldwide Project and Portfolio Management Software Market Declined 1.5 Percent in 2009

 Worldwide project and portfolio management (PPM) software revenue totaled $1.16 billion in 2009, a 1.5 percent decrease from 2008 revenue of $1.18 billion, according to Gartner, Inc.

"After a five-year period of strong, mostly double-digit growth, the financial turmoil in late 2008 and subsequent spending uncertainties in early 2009 left a negative mark on the usually robust PPM market in 2009," said Laurie Wurster, research director at Gartner. "Falling growth rates provided flexible vendors and new entrants the opportunity to be creative with business subscription and delivery models, such as software as a service (SaaS), and drive revenue up by meeting client requirements."

Combined market share for the top 5 PPM vendors increased significantly in 2009, up to 58 percent of the market compared with 43 percent in 2008 (see Table 1). Oracle went from being the No. 4 vendor in 2008, with 7.7 percent market share, to the leading vendor, with 22.6 percent of the market in 2009. Ms. Wurster said that Oracle's strong growth in 2009 can be attributed to the December 2008 acquisition of Primavera Systems, the long-term PPM market leader.

CA's revenue increased 14.6 percent in 2009, largely owing to its subscription-based revenue recognition model, which results in revenue being recognized gradually, after the contract is signed, and ,thus, the vast majority of its revenue came from contracts signed up to five years prior to 2009.

Table 1
Worldwide Project and Portfolio Management Software Revenue Estimates for 2009 (Millions of U.S.Dollars)


Company

2009 Revenue

2009 Market Share (%)

2008 Revenue

2008 Market Share (%)

2009-2008 Growth (%)

Oracle

263.0

22.6

90.8

7.7

189.6

Microsoft

178.3

15.3

179.1

15.2

-0.4

CA

110.8

9.5

96.6

8.2

14.6

HP

62.0

5.3

67.3

5.7

-7.9

Planview

61.3

5.3

72.4

6.1

-15.3

Others

488.2

42.0

674.9

57.1

-27.7

Total

1,163.6

100.0

1,181.1

100.0

-1.5

Source: Gartner (April 2010)

Additional information is available in the Gartner report "Market Share: Project and Portfolio Management Software, Worldwide, 2009" The report is available on Gartner's website at http://www.gartner.com/resId=1353647.

Additional analysis on the PPM market will be provided during the Gartner PPM & IT Governance Summit taking place June 7-9 at the Hyatt Regency Grand Cypress in Orlando, Florida. This event focuses on how to justify PPM and IT governance, determine the tools best for PPM and IT governance efforts, streamline the project and applications portfolio, improve the value of PMOs and better manage business expectations, and evolve PPM practices and maturity. Members of the media can register for the summit by contacting Christy Pettey, Gartner PR, at christy.pettey@gartner.com. For further information on the PPM & IT Governance Summit please visit www.gartner.com/it/us/ppm.

Additional information from the event will be shared on Twitter at http://twitter.com/Gartner_inc and at #GartnerPPM.

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