MarketScope for IT Project and Portfolio Management Software Applications

14 May 2013 ID:G00247057
Analyst(s): Daniel B. Stang, Robert A. Handler

VIEW SUMMARY

Demand for IT PPM software deployed as dedicated instances, either on-premises or cloud-hosted, persists, because many enterprises want full control of their IT PPM investments. This MarketScope analyzes IT PPM applications primarily deployed as dedicated instances, either on-site or off-site.

What You Need to Know

The Pressure Is On

IT project and portfolio management (PPM) leaders are under extreme pressure to improve the speed, accuracy and agility of their project organizations, while also managing risks and costs. They are looking for software solutions supporting these seemingly conflicting objectives. For years, the IT PPM software market standardized on on-premises or traditional hosting for deployment of IT PPM software functionality, and it appears that there are a significant number of enterprises interested in fully controlling any IT PPM application instance they intend to acquire.

IT PPM software products included in this MarketScope are rising to meet the challenges of portfolio, program or project management office (PMO) leaders, or program/project managers and resource managers that continue to struggle with:

  • Selecting IT programs and IT projects, prioritizing them, and executing them at the "right" time
  • Matching and/or balancing IT supply (human resources, time or money) with IT demand (investments, programs, projects and unplanned work)
  • Monitoring and reporting IT project status and IT expenditures to date
  • Improving IT project execution efficiency
  • Proactively addressing emergencies on IT projects
  • Addressing changes to the existing and planned IT projects triggered by shifts in business direction

For many enterprises, using a cloud-optimized or cloud-native IT PPM application service from a provider featured in Gartner's "Magic Quadrant for Cloud-Based IT Project and Portfolio Management Services" presents way too much of a security risk, does not provide them with all the power and functionality they require, or does not allow them the flexibility and full control they want to customize and integrate the system as they wish and when they wish. Additionally, cloud-based IT PPM service providers do not typically provide enough flexibility to allow customers to physically move an IT PPM software instance in-house or out to a server farm when they deem it appropriate to do so.

This MarketScope includes IT PPM providers that primarily offer on-premises and/or traditional hosted deployments of their applications. Many of these providers have been operating in the IT PPM space for several years. To address mounting market needs for IT PPM software as a service (SaaS), they introduced "cloud-hosted" deployments — a derivative of the traditional application hosting model enterprise software vendors have been using across the software technology sector for more than a decade — as an additional option for their customers and prospects.1

Deployment of a cloud-hosted application set is one of many approaches to offering IT PPM SaaS and as an alternative to on-premises deployment. It is, therefore, not unusual to see providers covered in this research refer to their cloud-hosted option as "on demand" or "SaaS" for IT PPM (see Note 1).

By either introducing a cloud-hosted option for the first time, or by enhancing and innovating their traditional hosting model to support a more modern cloud-hosted deployment, these providers can offer a more robust instance of their IT PPM application set to customers at a seemingly more cost-effective price than on-premises deployment, without forcing the customer to sacrifice the full control they want to have over their instance.

Why Choose an IT PPM Software Provider in This MarketScope Over a Provider in the Cloud-Based IT PPM Magic Quadrant?

  • You want full control over your IT PPM instance, including the ability to outsource/insource your PPM system at will as you see fit, as well as the ability to highly customize it, configure it and integrate it with third-party in-house assets to fit your specific needs.
  • You are highly sensitive to data privacy/security issues, and there is no option for you other than on-premises or virtual private cloud implementation.
  • You want the most robust, functionally rich IT PPM capabilities, features and flexibility that only come primarily from this class of vendor — having the instance on-premises or hosted privately.
  • You are prepared to make a long-term financial commitment to IT PPM applications.
  • You can plan for and anticipate an initial implementation that will take 90 days or longer to complete.
  • You are at Level 3 maturity on Gartner's ITScore PPM Maturity Model and require a robust IT PPM system.
  • You have a large target end-user group numbering in the high hundreds or even thousands, and therefore, it would serve you better to have your own dedicated instance of an IT PPM system.
  • You have sufficient funding and strong management backing for a significant purchase and implementation.
  • You have an existing strategic relationship with one of the relevant providers.

MarketScope

The IT PPM products in this research are very mature and robust, in most cases, representing over a decade's worth of product evolution (see Note 2). When choosing a product covered in this MarketScope, if you decide to deploy it in the cloud using one of these providers, then you will have virtually the same high level of flexibility in customizing, configuring and extending (through integration) your own instance of the IT PPM product as you would if you installed the same product on-premises.2

One difference, though, in choosing cloud-hosted from one of these providers instead of on-premises is that, in many cases, the subscription-based pricing models allow you to lease, not own, that dedicated instance. As a result, the providers can pass on to the customers some upfront cost savings in choosing cloud-hosted over on-premises deployment of their applications without customers giving up full control of their IT PPM instances.

Because cloud-hosted is not far removed from traditional hosting of an on-premises instance of an IT PPM application, customers should expect deep levels of functionality with the flexibility to customize, configure and extend the IT PPM product as they see fit. Customers can even choose to physically move their instances in-house with some degree of ease, if they so desire.

As an example, a large engineering firm's IT department recently deployed an IT PPM software application from a vendor included in this MarketScope. The firm initially selected a cloud-hosted deployment option as a means for staging its deployment incrementally into an existing and complex IT environment. The firm was able to focus on configuration and customization of a dedicated instance in the cloud. Once the firm was comfortable with the system's level of stability, initial adoption and use by a core set of end users, it moved the same dedicated instance on-premises and completed the remainder of its full implementation by integrating the IT PPM system with other third-party enterprise systems once it physically moved the instance on-site.

As you review the providers and products in this research, you will see that there are small, midsize and large providers offering on-premises and/or cloud-hosted PPM applications. Pricing, therefore, will vary among these providers. Often, midsize and smaller providers in this research offer cost-competitive alternatives with standard, practical functionality. You can expect that large providers offer powerful and robust functionality at a premium price point.

This MarketScope for IT PPM software applications is part of Gartner's PPM Market Universe body of research (see "PPM Market Universe: Using Our PPM Magic Quadrants, MarketScopes and Roundups").

What Is an On-Premises/Cloud-Hosted IT PPM Provider?

On-premises and cloud-hosted IT PPM providers offer deployment options allowing their customers and prospects to deploy a dedicated instance of their IT PPM applications on-site at the customer's facility and/or in the cloud in a hosting environment offered by the provider as a "service." These providers almost always have a history of providing on-premises deployment of PPM software. However, at some point, as SaaS infiltrated the IT PPM market, the fastest and least-disruptive route for these on-premises and traditional hosting providers to address increasing demand for IT PPM SaaS was to retool their hosting services, resources and sales models to support cloud-hosted delivery of their applications for customers.

Although some minor coding changes to the products may have been required by the providers to shift from on-premises to cloud-hosted offerings, most of the product improvements these providers made to embrace SaaS were to their existing traditional hosting environments and server farms. This often involved mainly improving elasticity on the hardware and networking side. Pricing models were then adjusted so that these providers could offer subscription-based or SaaS pricing, in addition to the perpetual and other types of on-premises licensing already provided. Subsequently, these providers marketed these new offerings as "SaaS" or "on demand."

In applying this SaaS strategy and executing on a SaaS-based business transformation, these IT PPM providers were able to make "ownership" of a dedicated instance of the applications optional for customers, compared to the historical practice of ownership of an IT PPM instance tied to on-site licensing. The contract and licensing durations of these cloud-hosted offerings, however, remain relatively the same as on-premises and typically span multiple years per contract period. Although there are almost always some limited exceptions to this fact, offering and securing multiyear contracts is the standard business practice by providers in this MarketScope.

SaaS configuration times, effort and cost of the products in this MarketScope are often comparable to those of on-premises deployment of the same. Just as rich, robust functionality and flexibility, coupled with high levels of control reserved for the customer, are hallmarks of on-premises and cloud-hosted IT PPM products, setup, training, and ongoing maintenance and support can carry with them the risks of heightened levels of complexity, increased duration, and additional costs in professional services and consulting before, during and after implementation compared to IT PPM application services offered by cloud-based PPM service providers (see "Magic Quadrant for Cloud-Based Project and Portfolio Management Services").

On-Premises/Cloud-Hosted IT PPM Providers Target Two Types of IT PPM Customers

There are two main types of IT PPM software buyers looking at products in the market:

  • Execution-level IT PPM customer — Project managers, resource managers and team members interested in a project and resource management product to manage the tactical details of project execution and, using reporting services, to communicate progress and expenditures back to business sponsors and management
  • Project portfolio-level IT PPM customer — Portfolio managers, business sponsors, steering committees and/or PMOs interested in creating project-related decision frameworks, selecting specific projects based on those frameworks, planning the delivery of those projects or investments, tracking those investments at a high level and reporting on these activities

IT PPM for the Execution-Level Customer

Execution-level IT PPM customers are mainly interested in enhancing the data sharing, collaboration and communication between project managers and team members in a project environment. All the providers featured in this MarketScope offer some level of centralized request, demand, project, resource and time management capabilities. Reporting services can provide consolidated visibility into the current state of projects, resources and spending.

These applications support detailed project or work record creation, scheduling and leveling, resource management and allocation, time reporting, and project cost management, among other IT PPM processes. Reporting services, including portfolio-style reporting, can aggregate the data the system collects from users performing these activities within the IT PPM system.

Integration with other adjacent systems, including IT management systems (such as the help desk), enables users to funnel different types of work items, other than formally defined projects, into the PPM system to do one or more of the following:

  • Capture nonproject resource demand
  • Source and allocate nonproject work
  • Track the use of resources on nonproject and other work items
  • Track the cost of managing nonproject and other work items

Some execution-level IT PPM configurations can be flexible enough to provide lighter versions of providers' project and resource management features as an alternative to using third-party service desk and trouble-ticket management systems to manage operational IT service requests. Most IT PPM products often stop short, however, of readily embedded and full support for ITIL standards often found in IT service management (ITSM) products.

Application value for the execution-level IT PPM customer is often highly dependent on the rate of adoption by end users (such as project managers and team members) of multiple IT PPM features at the lowest levels of work management detail. Stronger adoption rates lead to better communication between project managers and team members, greater visibility into what is happening at the execution level, and better reporting to management and stakeholders interested in the progress of investments, programs and projects.

Applying social networking and collaboration features and functions in an IT PPM context within an execution-level deployment can aid or accelerate daily end-user adoption, because it can curb the tendencies of project team members to go outside the IT PPM system (for example, email, spreadsheets and third-party time reporting systems) to handle communication and data sharing during project execution activities.

For the execution-level IT PPM customer, project portfolio reporting services can be the "shiny objects" that convince management of the value in automating execution-level processes. However, execution-level IT PPM customers should assume business managers will not actively participate in the use of the PPM system beyond accessing reports and personal dashboards.

IT PPM for the Project Portfolio-Level Customer

Project portfolio-level IT PPM customers are mainly interested in enhancing the data sharing, collaboration and communication between project managers, business sponsors and any roles in between these roles. Consequently, project portfolio-level IT PPM customers will often look for a top-down, stand-alone system where the "portfolio management" features and capabilities are not centered on or dependent on task- and assignment-level time reporting and detailed project schedule management, as is often the case with execution-level IT PPM configurations.

IT project portfolio-level customers want a common platform for planning, prioritizing and approving demand prior to such work items being passed on to an execution-level IT PPM system. They want this platform to replace existing spreadsheet-based planning and selection exercises, while also integrating this platform with different data sources that can include one or more execution-level IT PPM and ITSM systems, and financial data sources.

Choosing IT project portfolio-level PPM allows customers of the IT department, program managers, project managers and resource managers to communicate and collaborate during high-level project and resource planning and decision making. Summarized, aggregate, execution-level information can also be fed into the common platform without severely disrupting the way a project manager works on a daily basis.

IT Project Portfolio-Level Management Supports the PPM "Sweet Spot"

When the general operating assumption regarding actuals is that project progress will be fed back into the portfolio-level platform at a summary level, this is considered a sweet spot approach to IT PPM technology deployment. Sweet spot IT PPM implementations are designed first to support high levels of investment, program and project planning; resource capacity planning; and financial planning and tracking. Periodic collection of aggregate project execution and progress data is in scope in this type of configuration and approach, but detailed automation of communication between project managers and team members is excluded.

In the sweet spot, project managers are free to use whatever tools and methods they choose to manage their daily project activities (such as Microsoft Project, Open Workbench and Microsoft Excel). They are, however, required to report aggregate information about their projects at a certain level of frequency and detail directly into records kept in the IT project-portfolio level system. Project managers are expected to keep good records locally and also are expected to share status at an aggregate level. The configuration, though, stops short of forcing them to manage their project schedules at detailed levels in the system every day. Likewise, project portfolio-level IT PPM allows a PMO to exclude team members as active participants and, in turn, the automation of task- and assignment-level time reporting as part of the IT PPM system scope.

Consequently, project portfolio-level IT PPM does not depend on the mass adoption of time reporting across all team members working on projects to get portfolio-level visibility. It is an independent platform for planning and decision making that can employ what-if scenario generation and comparison, and receive direct feeds from reliable third-party systems of record and data sources.

For customers who chose a stand-alone IT project portfolio management system, project managers can report at summary levels into this system, rather than becoming a slave to it at the work breakdown structure level and lower. Project-portfolio-level IT PPM can be purchased as a stand-alone solution disassociated from whatever IT PPM software systems or applications are being used for project execution. In fact, having both a top-down portfolio management IT PPM configuration and a bottom-up, execution-level IT PPM configuration, using separate instances of the same or different PPM products, is increasingly becoming a reality.

IT PPM and Agile Development Support

Without adding any new, specific functions, IT PPM systems have some of the administrative workflow "plumbing" to be configured to support parts of agile development, but by no means are they a good replacement for dedicated application development tools that readily support agile development methods and work management. Successful use of an IT PPM system to support agile development teams at more detailed levels is mainly dependent on how well that system complements and integrates with a developer's typical development processes and environment. Developers do not want to be forced to jump from their development workspaces to an external IT PPM system to record time on agile development activities.

Although most IT PPM providers do not have fully supported integration of PPM processes with agile development processes to allow a developer to "stay put" when working on agile activities (those with PPM reporting implications), there is a growing trend to provide preconfigured IT PPM applications supporting collaboration, communication and project portfolio-level reporting for agile development. Providers with existing footholds in application development process software markets are already planning to provide transparent IT PPM functionality in integrated development environments.

In addition, some of the IT PPM providers covered in this MarketScope are emphasizing the importance of providing aggregate application development activity reporting out of the box in their products. To do so, IT PPM providers are forging partnerships and/or building integration points between their IT PPM cloud-based services and products, Atlassian's issue and bug-tracking Jira product, as well as Rally's products for agile development.

IT PPM, Social Networking and Collaboration

Social networking and collaboration platforms, capabilities and integration points are beginning to find their way into IT PPM applications. Gartner is seeing a few different approaches to applying social networking and collaboration in an IT PPM context. Some providers in this MarketScope are relying on classic and basic communication tools and functions, including issue tracking, threaded discussions, calendar synchronization, integration to and from email systems and applications, and other mechanisms that have been staples of IT PPM software products for years. Other providers are partnering with social networking and collaboration providers, such as salesforce.com's Chatter and Jive. Still others are planning to or fully engaged in developing native social networking and collaboration as part of their core products, or are taking the buy-versus-build route, like Microsoft did when it acquired Yammer in 2012.

Social networking and collaboration in PPM applications seem more like fads that could fade away someday, rather than becoming a legitimate mainstay PPM capability. At the lowest levels of process automation, however, the added features and capabilities can trigger viral adoption among end users. At the highest (portfolio) levels, they could provide a way to support point-in-time and emergent needs among portfolio managers and business leaders to communicate.

At the moment, PPM-to-social-networking application integration does not feel much different than leaving a PPM application and going into an email system to discuss a project with team members or other constituents. If PPM providers begin to build PPM to social networking into their applications, however, PPM end users will more likely stay in that PPM system for longer periods of a workday. End users that value the social networking and collaboration capabilities of a PPM system will want to log in to their PPM system when they first get to work for the day and stay inside the PPM software system to collaborate and communicate all day long, rather than leaving the PPM system to use outside personal productivity tools and services, such as email, to hold PPM discussions.

IT PPM and Mobile Device Support

Many cloud-based IT PPM providers continue to use HTML5 to connect an IT PPM system to a number of mobile devices, including tablets and smartphones. There seems to be a strong consensus among many of the IT PPM providers in this MarketScope that building dedicated applications for a series of known wireless and mobile devices available in the field would only create too much overhead and complexity for them. Instead, these providers are mostly leveraging HTML5 development to push out specific features and capabilities to mobile users of their product. In some cases, IT PPM vendors are rewriting their entire application code base to support HTML5.

IT PPM providers are focused on delivering three main mobile capabilities to their customers early:

  • Time reporting, allowing end users to report their time from mobile devices
  • The ability to approve items within a process flow of an IT PPM system, which enables managers to approve time sheets or project ideas or requests, from mobile devices, for example
  • Executive reporting to mobile devices, so end users (for example, business managers or project managers) can access and view reports and dashboard information from their tablets or smartphones

Consumers should expect slow, but continued and incremental, mobile support to appear in their respective IT PPM products of choice over time, with HTML5 being the main vehicle for delivering it. Providers will be challenged to bring more and more features and functions to mobile devices, because the nature and characteristics of mobile devices can limit an end-user's ability to perform certain functions easily in an IT PPM system from his or her tablets or smartphones. For instance, many IT PPM systems have been designed to be accessible via browsers. Historically, the working assumption was that the browser was being launched from a PC or notebook. Tablets and other mobile devices, however, may not always include things such as keyboards or a mouse/cursor. Therefore, performing certain functions within an IT PPM system can be difficult or even impossible if attempting to do so through certain mobile devices.

Market/Market Segment Description

This portion of the estimated $1 billion PPM market involves some very large providers and some midtier and smaller providers operating in the PPM space for as long as 14 or more years.1 They offer robust (and, at times, complex) PPM application software products supporting internal IT PPM, and may also support other types of project environments. In a majority of cases, 60% or more of the installed bases for each of the providers in this camp are using on-premises instances of the provider's PPM product, although these PPM providers also have embraced cloud-hosted as a deployment option they refer to as "on demand" or "SaaS."

These providers predominantly sell multiyear contracts for their software and services. Most of them have also added subscription-based SaaS pricing models. Their traditional hosting models have also, in many cases, been adjusted to support cloud-hosted as a deployment option. Implementation times take anywhere from three months to a full year and involve the setup and configuration of a dedicated instance of the software.

Average deal sizes for these providers range from 250 through 350 users per deal, but can easily scale up to as high as thousands of users.

Market Dynamics: Strong Positive Providers and Products

Providers receiving a Strong Positive rating in this MarketScope demonstrate a strong global market presence, depth and breadth in IT PPM functionality and integration to complementary IT software systems, and a strong commitment to cloud hosting that required these providers to make significant internal changes to accommodate a new business model without disrupting current operations. The development of a cloud-hosted deployment option for internal IT customers, a subscription-based pricing model, and key internal organizational and financial reporting changes made within the provider's company to enable this are all hallmarks of IT PPM providers rated Strong Positive.

For these providers, a larger percentage of all new sales are now cloud-hosted sales, although they are equally dedicated to deploying and supporting on-premises installations for customers interested in that option. These providers began developing a SaaS strategy as far back as 2007. The IT PPM functionality provided by these providers is comprehensive. In addition, these providers also offer extensions, bolt-on applications and enhancements, and other complementary products and services to support additional needs of internal IT departments, different types of IT project and work management practices, different types of IT portfolio management practices and styles, and several integration points to bring in third-party data. Prospects should expect to engage in long-term investments with these providers because their products are robust, but, at times, can also be complex.

Strong Positive IT PPM software products are priced at a premium, although users can save some money upfront by choosing a cloud-hosted deployment over an on-premises deployment of the product they choose.

Market Dynamics: Positive Providers and Products

Providers receiving a Positive rating in this MarketScope demonstrate a strong global market presence, depth or breadth in IT PPM functionality, and a solid product integration capability. These providers have launched a cloud-hosted deployment option, or they are on the verge of doing so. For many of these providers, a large percentage of all new sales are mainly on-premises or traditional hosting arrangements, as opposed to cloud-hosted sales and deployments.

Positive vendors provide comprehensive IT PPM functionality, and also offer extensions, bolt-on applications and enhancements, and other complementary products and services to support additional needs of internal IT departments, different types of IT project and work management practices, different types of IT portfolio management practices and styles, and several integration points to bring in third-party data. Prospects should expect to engage in long-term investments with these providers because their products are robust, but, at times, can also be complex.

Pricing varies among Positive-rated providers. Some of the providers offer a cost-effective on-premises or traditional hosted installation, whereas others might be premium-priced similar to the pricing of Strong Positive providers included in this MarketScope. Pricing is typically relative to the size and strength of the provider overall as a software vendor.

Market Dynamics: Promising Providers and Products

Providers receiving a Promising rating in this MarketScope demonstrate an emerging or established IT PPM market presence, and their products are quite mature, with a core set of comprehensive IT PPM features and integration with third-party IT software systems. The future development of (or continued nurturing of) a cloud-hosted deployment option for customers may be part of their vision, but in some cases, the cloud-based IT PPM strategy and resulting product innovations might be relatively thin, with either little or no current offering available to the general public. For these providers, a large percentage of new sales continue to be of on-premises deployments.

Some Promising-rated providers included in this research may also only currently support customers in specific regions of the world. Others might be missing key features and functions supporting certain internal IT PPM processes or are missing key integration points used in the field to connect third-party IT software systems to their products. In the IT PPM process areas where they do focus, however, functionality can be deep, vertical-industry-focused or even specific to nuances of different IT PPM environments. These providers can offer a practical set of features and functions supporting an acute need, at a cost-effective price, while also allowing users to have full control over their own dedicated instance of the software.

Inclusion and Exclusion Criteria

The providers and products in this IT PPM application software MarketScope meet and/or exceed the following inclusion criteria:

  • Product must be an IT PPM product supporting internal IT PPM.
  • Product must be generally available and actively marketed for the last six consecutive years without any significant company, product or service disruptions occurring in that time frame.
  • Product deployment is on-premises or cloud-hosted.
  • Product deployment is of a dedicated instance for each customer.
  • Providers mainly offer long-term contracts of three or more years on a consistent basis.
  • Deployment times average three to 12 months for complete implementations.
  • Most of the provider's IT PPM installed base are on dedicated instances and multiyear contracts.
  • Providers must have acquired at least 10 new IT PPM customers (not repeat business or renewals) on average, per year, from 2009 through 2013.
  • Providers must have at least $10 million in annual revenue or significant financial backing.

Rating for Overall Market/Market Segment

Overall Market Rating: Strong Positive

Demonstrating marked resilience over several years, the IT PPM software application space offers mature products for today's internal IT departments. Demand for IT PPM applications has not wavered in more than 13 years, but, rather, increased exponentially over the past 10 years.3,4 Deep maturity is making it increasingly difficult to distinguish among competing products on features/functions alone. For buyers, this means that many of the typical IT PPM features and functions you would require when selecting an IT PPM system for the first time are likely to be in many of the products you evaluate.

There are, however, still many other points of differentiation, such as the approach and scope of the product being developed, the rearchitecture of the products to support the latest advances in Web development, the speed of deployment, the cost of the system in relation to number of end users, the amount of complexity within the system, the integration bridges available to third-party systems and products, and the deployment options and corresponding pricing models available from the provider. Many of the providers in this MarketScope address SaaS by offering, in addition to on-premises deployment, a cloud-hosted option wrapped around a subscription-based pricing model. This allows them to provide the same robust functionality they have built up in their product over the past decade "as a service."5,6,7

Evaluation Criteria

Table 1. Evaluation Criteria

Evaluation Criteria

Comment

Weighting

Customer Experience

High marks for an excellent track record of successful implementations. Relationships, products and services/programs, including hand-holding PPM process consulting services that enable clients to be successful with the products evaluated. Specifically, this includes the ways customers receive technical support, account support and process consulting support, and at what cost. Responsiveness of provider to customer issues with product and service. Additionally, ancillary tools, customer support programs (and the quality thereof), availability of user groups, service-level agreements and so on. Handling of migration and design of any migration paths for existing customers when support for older versions is discontinued.

High

Offering (Product) Strategy

Heavy emphasis on time to value as it relates to deployment and ease of use/accessibility/adoption. The provider's approach to product development and delivery that emphasizes differentiation, functionality, methodology and feature sets as they map to current and future requirements. Balancing the influence of the existing installed base against the influence of the broader market's trends. Strategy and resulting track record for migrating customers off older releases and onto more recent, up-to-date versions of the product will also be measured. Dedication to the PPM software market and its consumers therein. Strategy should also consider and be based on the needs and woes of the existing installed base, as well as those of prospects.

Standard

Product/Service

Amount and value of PPM functionality against total cost to obtain or access. Functions include demand, time, resource, project, program and portfolio management, as well as reporting services, resource capacity planning and what-if scenario capabilities. Support for bottom-up and top-down PPM implementations. Scalability. Provisions to help customers control their PPM application total cost of ownership over time. Depth and breadth of the product. Process consulting options, including remote process consulting. Services and road maps for migrating customers from older versions. Integration with requirements management, agile development, ITSM, ERP and other adjacent third-party systems. Ability of provider to support a global installed base.

High

Business Model

The soundness and logic of the provider's underlying business proposition. The completeness of the provider's model in supporting customers in different deployment modes. Dedication to the overall installed base as indicated by the evolution of the company's business model. This includes, but is not limited to, changes and adaptation of the company's business model to support customers on different versions of the product, older and newer releases of the product, and a proactive set of practices for helping customers with migration to newer releases as needed.

Standard

Innovation

Seasonal product releases. Iterative, agile development of product. Functions demonstrating a strong product vision that pushes the market in new directions, not just the provider. Innovations in process consulting delivery that move away from traditional consulting practices. Level of social networking in the PPM software. Partnerships with social networking providers will be recognized and acknowledged, but native functionality will carry higher weight. Mobile device support. Amount of shift, based on existing installed base, from traditional on-premises to cloud-hosted SaaS deployments. Balancing complexity and capability of the PPM software product with ease of use. Enhancement of reporting services and user experience by leveraging new technologies and methods, such as HTML5 and/or Silverlight.

High

Market Understanding

Ability of the provider to understand buyers' wants and needs and to translate those into products and services. Providers that show the highest degree of vision and market understanding often listen and understand buyers' wants and needs, and can shape or further enhance their PPM vision with deep market understanding.

Standard

Market Responsiveness and Track Record

Ability to respond, change direction, be flexible and achieve competitive success as opportunities develop, as competitors act, as customer needs evolve and as market dynamics change. This criterion also considers the provider's history of responsiveness to the market and to its existing installed base, as well as the provider's ability to push out new functionality quickly. In addition to a number of resources at our disposal, customer testimony from a variety of sources — including but not limited to daily inquiry and customer reference calls — as well as interviews and conversations at events, such as Symposium and PPM Summits, will be used to determine track record and level of responsiveness of the provider.

Standard

Source: Gartner (May 2013)

Figure 1. MarketScope for IT Project and Portfolio Management Software Applications, 2013
Figure 1.MarketScope for IT Project and Portfolio Management Software Applications, 2013

Source: Gartner (May 2013)

Vendor Product/Service Analysis

Augeo Software

Product Name: Augeo6

Rating: Promising

Augeo Software provides an execution-level PPM system called Augeo6, which includes portfolios and dashboard reports for project monitoring, capacity planning and risk management, with drill-down and navigation into project details. The system is Java-based, and supports number of Web servers, as well as Microsoft and Oracle databases. Augeo6 now includes SaaS deployment as an option for customers and prospects. The company separated its SaaS-based project collaboration platform, Planzone, and manages it as a separate business. Customers can connect Augeo6 to Planzone at their discretion and when they are ready to do so, allowing optional use of Augeo6 as a data repository for Planzone users. The 6.1 version introduces what-if and baseline usability improvements, what-if scenario comparison, and impact analysis. Business intelligence features are provided through a QlikView reports library. A hosted project lab and testing ground for customers and prospects is also available, as well as training and services to support customers with adoption challenges.

BMC Software

Product Name: BMC IT Business Management Suite

Rating: Positive

BMC's IT Business Management (ITBM) Suite offers IT PPM features and functions via BMC Demand and Resource Management and BMC ITBM Foundation. BMC Demand and Resource Management provides the ability to inventory IT demand, analyze IT project portfolios to identify business value and budget and high-level staff availability, prioritize and select IT projects, budget and track financial costs of IT projects, plan and staff resources to IT projects, and collect time against the effort spent on IT projects. A common data store in BMC ITBM Foundation allows users to share data between BMC's IT PPM capabilities and data from IT operations or other parts of IT that consume services, time, people and money.

BMC released ITBM version 8.0 in 2Q12, followed by an 8.1 release in 1Q13. IT PPM-related enhancements include the ability to compare resource demand for projects against staff availability, estimate resource requirements, and plan and forecast staff availability. Other improvements include the ability to create and compare multiple staff allocation scenarios with varying allocations to identify desirable resource allocation models. Additionally, an IT project hierarchy capability was added, as well as enhanced incorporation of project budgets into departmental financial planning and improved approval workflow within the Demand and Resource Management piece.

BMC is now an established cloud-based applications provider, in addition to offering on-premises deployment. Although BMC product innovations continue to bridge the gap between IT PPM-specific and ITSM-specific capabilities, the vendor remains much stronger in the latter than it does in the former. Some other IT PPM providers can offer more depth and breadth in their IT PPM capability. However, the integration between IT PPM-specific functions and ITSM-specific functions can be native and provided out of the box in BMC's ITBM Suite — a differentiator when comparing BMC to other IT PPM providers.

Cardinis Solutions

Product Name: Cardinis Suite

Rating: Promising

Cardinis Solutions is an Italian, top-down project-portfolio-level IT PPM provider placing a strong emphasis on portfolio-level features supporting program and project management. Cardinis Solutions is a small provider compared with a number of others in this research, and most of its business is done in Italy with Italian companies. It currently has a limited global reach and does not yet offer SaaS as a deployment option.

The Cardinis Suite provides customers with an underlying framework to build out work breakdown structure (WBS)-level details of IT programs and projects at a cost-effective price. It includes an application life cycle management (ALM) integration module, executive dashboards, a key performance indicator (KPI) data mart of tables with customizable quality planning indicators, a dynamic forms designer module, offline project progress views, SAP Content Management Service integration modules, a client management module and a function point module for calculating function points based on WBS, including performance indicators. Recent improvements include an added company budget management module, as well as ways to link "needs," with "projects," "initiatives" and WBS elements defined in the product.

The Cardinis Suite version 5.3.1 is the latest version of the product. Version 6, coming later this year or early next year, will be focused increasingly on support for agile development work environments.

CA Technologies

Product Name: CA Clarity PPM

Rating: Strong Positive

CA Technologies is on an aggressive development and innovation path for CA Clarity PPM, and continues to migrate its rather large installed base (well over 1,000 customers) from older versions of the product (for example, CA Clarity PPM 8 and 12 series) as it ends support for older versions. The evolution of CA Clarity PPM over the years yields a robust, functionally rich product covering many of the requirements of large enterprise IT departments interested in IT PPM process automation. Version 13 is CA's answer to a much-improved product and underlying architecture. It can support a number of different IT work types, including formally defined IT projects, application enhancements and change requests, and IT service requests.

Connection to CA's Service Desk Manager ITSM product allows users to bridge the communication gap between the PMO and IT operations. In this way, the combined use and integration between CA Clarity PPM and CA Service Desk Manager can be the single source of truth for staffing most IT resource requests, as well as reflecting current resource utilization and estimates of remaining resource capacity during ongoing project and other work execution in an IT department. CA Clarity PPM can be deployed on-premises or through a cloud-hosted option. It can be configured and sold to support both execution-level IT PPM customers and IT project portfolio-level PPM customers.

When choosing CA Clarity PPM, customers should be ready to commit to a long-term approach toward IT PPM adoption and maturity. To balance the product's capability with varying levels of customer maturity, CA Technologies invested heavily to simplify how its clients purchase, implement and adopt CA Clarity PPM, including internal consulting services, built-in end-user training, and through partnerships with boutique and major consulting firms offering IT PPM process consulting as a practice area.

Compuware

Product Name: Changepoint

Rating: Strong Positive

Compuware's Changepoint represents more than a decade's worth of PPM innovation and development, providing a strong and comprehensive set of PPM features and functions covering portfolio, demand, project, resource, time and cost management with multiple variations and configurations designed to support specific PPM use cases and scenarios. Changepoint's support for resource-intensive service delivery organizations is perhaps its most significant strength, in addition to a long-standing, proven time-tracking system. Changepoint can be deployed on-premises or as a service, and customers can move between the two delivery options.

Changepoint 2012 was released in July 2012, and a Service Pack 1 for 2012 was introduced in March 2013. Key improvements to the product from July 2012 to date include a full update of the user interface; the ability for different groups using the product to classify and view demand data in the unit of their choice (for example, hours, days or full-time equivalents); additional browser support (such as Mozilla Firefox, Google Chrome and Safari for Mac); enhanced e-learning and context-sensitive help features; an OEM partnership with IBM for IBM Analytics integration with Changepoint; improvements to its mobile capability (tablet support for dashboards and reporting, and expense management); added project management features, such as an interactive Gantt chart via their project worksheet; expense management additions, such as expense attachments and an offline Excel based template; and a partnership with Intelledox for dynamic form and document generation within Changepoint.

Genius Inside

Product Name: Genius Project

Rating: Promising

Genius Project provides multiple iterations of an execution-level PPM software system, including Genius Project for Domino, Genius Project Enterprise PPM and Genius Project On-Demand PPM, and can provide core PPM functionality for different types of work environments, including internal IT departments. Genius Inside has been in the PPM software business for nearly 16 years and operates mainly in Western Europe, with an additional focus on North American markets that is currently yielding growth in accounts and revenue. Genius Inside offers both an on-premises and cloud-hosted deployment option for customers. The product includes a KPI module, Gantt charting, support for project requests and help desk/trouble tickets as work items, support for scrum, configurable views, meeting management, project output tracking, and the Genius Live social collaboration platform. Genius Inside uses Dojo for mobile application development, allowing users to connect to Genius Project using tablets and smartphones.

Genius Inside is one of a few rare providers also supporting IBM Domino and DB2 as the back-end database for PPM, while offering customers a good set of core functions at cost-competitive prices. The 7.1 release includes a Microsoft Outlook integration plug-in, API and software development kit enhancements for integration to third-party systems, improvements to the planning and scheduling features (for example, calendar views and multiproject dependencies), customizable fields throughout the product, and mobile support. Genius Live V2 will leverage the OpenSocial protocol, allowing the product to connect to third-party social networking and collaboration platforms, like Google+ and IBM Connections.

HP

Product Name: HP Project and Portfolio Management (PPM) Center

Rating: Positive

HP PPM Center delivers IT PPM using a strong, foundational workflow engine, allowing the system to provide out-of-the-box process mapping, workflow and business rules for managing a project life cycle from idea capture to project execution and completion. Strong ties to and support for application development, management and quality best practices in other HP software products continue to be differentiators for HP PPM Center in the market. HP released version 9.2 in February 2013. User interface improvements include an optimized user interface and navigation, updates to Web 2.0 standards, asynchronous page loading for better performance, and the ability to lock down the toolbar. Demand management improvements include redesigns of the screen layout, display tips and navigation on the request page for ease of use. HP also added integration enhancements, including embedding of PPM-application life cycle management (ALM)/Quality Center (QC) integrations and dashboards directly into HP PPM, data synchronization from PPM to ALM/QC, the ability to include quality metrics data into HP PPM, and integration of HP Agile Manager into PPM project planning, as well as dashboards for project manager and executive management review. HP PPM Center is priced at a premium and comes with a level of capability that also allows the product to scale up to meet differing customer needs and processes.

HP and its partners offer several fast implementation and usage alternatives. The power and capability of HP PPM Center, however, comes with a heightened level of inherent complexity. Internal consulting services, SaaS services, Web-based training modules, and local and global partnerships with small and large consultancies are all designed to offset the complexity of the implementing, administering, and using the product. Integration with Service Manager and other HP software products is provided by HP, but customers report that customization is required to make integration work well. Additional integration capabilities provided in version 9.2 are designed to address this issue. While customers have access to dashboards and BusinessObjects-based reports embedded within HP PPM Center, they still want improved and native reporting that would make it easier to author customized reports on their own.

Microsoft

Product Name: Microsoft Project Server 2010

Rating: Positive

Microsoft Project Server uses a combination of Microsoft products to support IT PPM, including Microsoft SharePoint, Microsoft Office and other Microsoft software components. Microsoft Project Server 2010 is tightly coupled with SharePoint, adding enhanced workflow, document management and collaboration to the product. Project Web App (PWA) no longer requires the use of Project Professional to create a project record in Project Server, and Service Pack 1 (SP1) from the 2010 release introduced multiple browser support for Web-based time entry, enhanced synchronization between task lists managed in Project and task lists managed in SharePoint, time-phased support for manually scheduled tasks, and improvements to project scheduling in PWA.

In July 2012, Microsoft announced Project Server 2013 technical preview, and in December 2012, Project Server became generally available. In February 2013, Microsoft made yet another announcement: general availability of Microsoft Project Online and Microsoft Project Pro for Office 365. Collectively, these releases signal Microsoft's improved, direct support for cloud-hosted IT PPM. Microsoft Project Server has the potential to be a cost-effective IT PPM product deployable on-premises. Microsoft relies heavily on its partner network to manage implementations and consulting services for Project Server when the customer chooses on-premises deployment.

Oracle

Product Name: Oracle Primavera Enterprise Project Portfolio Management

Rating: Positive

Oracle's Primavera Enterprise Project Portfolio Management (EPPM), along with companion product, Primavera P6 Analytics, continues to demonstrate its longevity in the overall PPM software market, providing detailed control and management of large, complex projects. Although its IT PPM track record pales when compared to its dominance in architecture, engineering and construction environments, this solution's reputation in the field as a de facto standard in project management environments worldwide cannot be denied. Version 8.3 of EPPM was released in March 2013, and Primavera P6 Analytics version 3.1 was released in January 2013.

P6 Analytics is based on the Oracle Business Intelligence Applications and Data Warehouse, and Oracle Business Intelligence Enterprise Edition Platform. Customers on P6 EPPM version 8 are using a completely redesigned and redeveloped Primavera P6, compared to earlier versions. P6 EPPM version 8.3 is more Web-friendly, and can be more easily positioned as a cloud-hosted solution. Oracle's Primavera Enterprise Project Portfolio Management is very robust and best-suited for managing challenging, complex internal IT projects. To use it for internal IT PPM on a regular basis, customers will need to first determine whether the activity tracking required between the start and end dates of their internal IT projects warrants the use of P6 EPPM. If most of the IT department's projects are typically managed using task lists in a spreadsheet, or if project managers often stop short of using an established, desktop scheduling tool to manage their projects, P6 EPPM will likely be too overwhelming for the IT department to use. Nonetheless, Oracle continues to alleviate the learning curve of P6 EPPM through mobility and role-specific interfaces, including interfaces for casual users.

Planisware

Product Name: Planisware

Rating: Promising

Planisware has been selling PPM software for more than 15 years, offering a top-down project-portfolio-level PPM system, as well as an execution-level PPM system providing core detailed project and resource management capabilities. Planisware can support a variety of project environments and vertical industries, including bio and life sciences, energy, automotive, and others. Although IT PPM is not the vendor's primary focus, Planisware offers enough functionality to support specific use cases for internal IT project and resource management. Planisware mainly offers its product on-premises, but leverages a SaaS deployment option to stage new or inexperienced customers to eventual on-premises deployment. The product has a variety of features for managing project, application and/or product life cycles, with road-mapping capabilities matching each respective life cycle. Planisware's strength and ability to leverage top-down portfolio management to support the distinct management needs of different classes of portfolio-level elements, as well as innovations within its product, such as competitive analysis capabilities for new product planning and development, are reflected in its premium pricing.

Planview

Product Name: Planview Enterprise

Rating: Strong Positive

Planview is a Texas-based software provider that has dedicated the past 23 years to developing PPM software systems with strong and comprehensive features and functions covering portfolio, demand, project, resource, time and cost management with multiple variations and configurations designed to support specific PPM use cases and scenarios. The Planview Enterprise product lineup is made up of components supporting PPM, including Enterprise Portfolio Management, Insight Analytics, Service Portfolio Management, Product Portfolio Management and Ideation Management. Planview offers Planview Enterprise on-premises and as a SaaS deployment option for internal IT and new product development PPM environments. The provider offers a multitude of integration bridges and APIs for connecting to financial systems, application management systems and ITSM systems. User assistance is provided by Planview Prisms, the company's enablement and training offerings, and Planview Prisms.com, which brings its PPM process best practices, online training and Planview configuration guidelines to the Web for its customer base. Planview also improved its integration with Microsoft Project, enhancing the ability to access projects within Planview using Microsoft Project, as well as extending the business rules of portfolio planning in Planview Enterprise to Microsoft Project. Planview has enjoyed longevity in the marketplace as an independent PPM provider operating in the space and has a favorable track record. It's product, Planview Enterprise, is one of the most robust PPM products in the market.

Project InVision

Product Name: Project InVision

Rating: Promising

Project InVision may be smaller compared to many others included in this research. However, the vendor has also been in the PPM business for 20 years as a provider of SaaS and on-premises execution-level PPM software, supporting the automation of processes and activities occurring mainly among project managers, resource managers and team members in a variety of project environments. Project InVision includes functionality supporting project and resource management, while also leveraging reporting services to create project, project portfolio and resource utilization views.

Project InVision made some noticeable improvements to its user interface, and added an integration with Microsoft Project that includes Schedule Sentry, an alerting and flagging feature for identifying and highlighting changes to schedule information that may cause problems when importing Microsoft Project files back into Project InVision. Project InVision, although smaller than other providers and limited in global reach, can provide a core set of project and resource management capabilities at a cost-effective price.

Project.net

Product Name: Project.net

Rating: Promising

Project.net is one of a scant few vendors offering its product as an open-source alternative in the IT PPM space. A small, yet resilient PPM software provider, Project.net continues to maintain the availability and further development of Project.net as a PPM system, and has done so for more than 10 years. Project.net initially built some fundamental project management capabilities as the core of its PPM offering, but now focuses mainly on enabling project-based collaboration and communication using recent developments in online and software technology. Project.net provides access to its PPM functionality for free, as an open-source solution.

Using blogs and wikis, Project.net enhances its system by enabling and encouraging the use of social networking and communication tools as a part of daily project status reporting and updating. As viral adoption occurs within the user base, customers can procure a service-level agreement with Project.net to support their use of the product. Additionally, Project.net is known to work in tandem with the development teams of its customers to further improve the product, as well as ramp up the addition of new features when high-profile customers want to further leverage the product.

Project.net is open-source, cost-effective, and designed for viral adoption. Additions and enhancements include wikis and blogs, a resource management component, time sheeting and third-party accounting system integration. Project.net now also has business intelligence integration and a Web services API. Project.net is smaller than other providers included in this research and has a limited global reach, but it continues to provide a core set of IT PPM functions at a very low cost of entry.

SAP

Product Name: SAP Portfolio and Project Management

Rating: Promising

SAP Portfolio and Project Management represents over a decade's worth of development and enhancement of an ERP platform to support internal IT PPM. Existing SAP customers can automate many IT PPM processes related to shepherding capital and operational IT project costs into back-office financial management applications and, ultimately, to a general ledger. Integrating SAP PPM with SAP Project System extends the reach of SAP PPM to support capital project management. SAP also provides its own native scheduler in SAP PPM for project managers who do not want to incorporate Microsoft Project into their SAP PPM environments.

SAP's embedded portfolio analysis features in SAP PPM provide visibility into the health of a portfolio or items within a portfolio, as well as status indicators designed to alert managers when projects experience cost or budget overruns. As an ERP vendor, SAP can fold an investment of SAP PPM into an existing SAP customer's enterprise agreement — a differentiator when comparing the licensing models of other providers included in this research. Additionally, SAP PPM is designed to bridge the gap between project-level activities and enterprise financial reporting.

SAP improved its deployment model to reduce upstart time and configuration of SAP PPM, including a set of PPM features and functions that are commonly needed by PPM customers and prospects for planning and resource management, as well as financial management and reporting. Recent improvements include the ability to connect SAP PPM to SAP's Hana business intelligence and portfolio reporting platform, as well as mobile enablement. Other enhancements include SAP PPM integration to SAP Solution Manager, extension of integration from SAP PPM to SAP's base ERP platform, added analytical dashboards, milestone trend analysis, and usability improvements.

As an ERP vendor, SAP bridges the gap between IT PPM-related activities and back-office financial management. It is for this reason that SAP ERP is often integrated with an IT PPM system, leaving personnel in IT the choice to either track and manage IT project work on a daily basis in SAP's PPM system or use third-party tools to do so. Internal IT departments choose SAP PPM regularly to manage higher levels of planning and execution, rather than the lower levels of work activity occurring day in and day out.

Sciforma

Product Name: Sciforma 5.0

Rating: Positive

Sciforma offers Sciforma 5.0, (formerly known as PSNext) for automating work-related processes and activities occurring mainly among portfolio managers, project managers, resource managers and team members in IT and other project environments. Currently, Sciforma 5.0 is a Java-based environment and provides a strong core of demand, portfolio, project, resource, time-and-cost management features, coupled with reporting services supporting IT project portfolio management, resource utilization, and project costing and analysis.

The company has made a pivotal decision to rewrite its entire code base for HTML5. Sciforma 5.0's time reporting is already HTML5-based, but it appears Sciforma will be departing from client-side Java in future product development. This is a bold and interesting move.

Sciforma 5.0 supports extensions for Agile, and integration points to Google Calendar, Jira, salesforce.com, SharePoint and Yammer. A download center at its website gives customers a number of options for extending or configuring Sciforma. The current version includes improved usability and workflow, and customization for presentation. Other improvements include a redesigned interface for cost data entry, tracking of project record changes and user logins and logouts, "workspaces" that are user- and role-defined, drag-and-drop assignment of resources and resulting utilization views to show overallocation, a project tree to help users navigate to specific projects, in-line filtering, and improved user interface and design.

Sciforma's pricing model is a bit unique in the marketplace, because it is based on the purchase and consumption of tokens for the varied number and roles of end users interacting with the system over time. Read-only access is offered for free to any user. If your project environment does not fit well into the typical per-named-user pricing model found in the PPM market, then Sciforma's token-based pricing model offers an alternative licensing arrangement that may support your needs.

SemanticSpace Technologies

Product Name: PPM Studio

Rating: Promising

SemanticSpace is a software provider dedicated to supporting the pressing project management and other IT PPM needs of software and/or application development groups and teams using its larger suite of software products to support application development processes and management mainly centered in IT. The provider offers IT PPM functionality mainly in on-premises deployment mode.

Recent improvements and additions include functions supporting agile software development and project management, integration between PPM Studio and Microsoft SharePoint, support for custom fields at the project level, custom dashboarding capabilities, and a capitalization view for capitalized projects. The company recognizes that PPM concepts, automated processes and best practices should be applied to application development and management environments, and it offers a PPM Lite product as a stand-alone IT PPM product, and PPM Studio, which connects directly to the provider's application development and ALM tools.

Evidence

Additional research contributions: Audrey Apfel, James Duggan, Donna Fitzgerald, Michael Hanford, Matt Light, Elise Olding and Lars Mieritz.

1 "Market Share Analysis: Project and Portfolio Management Software, Worldwide, 2011."

2 This MarketScope follows the methodology outlined in "Magic Quadrants and MarketScopes: How Gartner Evaluates Providers Within a Market."

3 Gartner's PPM analyst team conducted more than 1,400 client interactions around PPM software and tools from April 2011 through March 2013, reflecting the importance clients attach to making the right decisions in this area.

4 In a 2011 Gartner Primary Research Organization (PRO) survey of 158 PMO leaders in North America and Europe, 9% of respondents were currently testing PPM tools, 8% planned to test these tools within 12 months and 5% planned to test outside of a 12-month horizon.

5 Provider-submitted forms detail all their products and services for each provider cited in this research.

6 Multiple analyst briefings were conducted with each provider cited in this research.

7 Interviews or written surveys were conducted with user references from each provider cited in this research.

Note 1
PPM SaaS Classification

There are three main types of PPM SaaS deployment options at play in the marketplace, including cloud-hosted, cloud-optimized and cloud-native. Cloud-hosted SaaS is the main type of PPM SaaS offered by providers covered in this MarketScope. The cloud-hosted variety of SaaS in PPM is not far removed from traditional hosting of enterprise software, allowing customers to retain full control, extensibility and customization of a dedicated instance. The providers of cloud-hosted PPM SaaS, however, do not typically require customers to own or purchase the application software itself.

Note 2
Product-Related Evaluation Criteria

  • Core IT PPM functionality (time, project and resource management at the execution level)
  • What-if scenario planning (execution level and portfolio level)
  • Bottom-up configuration (execution-level IT PPM)
  • Top-down configuration (portfolio-level IT PPM)
  • Capacity planning (execution level and portfolio level)
  • Investment planning (portfolio level)
  • Reporting services
  • Program management (execution level and portfolio level)
  • Social networking (execution level and portfolio level)
  • Mobile device support
  • Agile development support
  • Depth and breadth of collective IT PPM features and functions
  • Process consulting options
  • Overall architecture
  • Pricing model

Note 3
"The Innovator's Dilemma" 101

The "Innovator's Dilemma: The Revolutionary Book That Will Change the Way You Do Business" is a book by Harvard Business School professor Clayton M. Christensen (HarperBusiness, 2003). In this book, Christensen notes that well-run market leaders, tending to only invest in new technologies when these technologies meet their existing customers' needs, are frequently unseated by market entrants leveraging "disruptive technologies" and creating "disruptive innovations." These disruptive innovations are game-changing and eventually unseat the market leaders. The term "innovator's dilemma" was used to define the dilemma created when established companies identify the disruptive innovation and are faced with the dilemma of either adopting it, potentially alienating existing customers and eroding revenue, or waiting for a competitor to do it.

In the case of PPM, a market has long existed for technology enablement. A well-established set of providers exists, providing conventional software to address this market need. The software is highly configurable and feature-rich, but it's expensive and often difficult to implement. The positive characteristics are desired by larger organizations, while the negative characteristics are tolerated.

SaaS, coupled with cloud computing, appears to be a disruptive technology, enabling disruptive innovations. In recent years, several less-established solution providers entered into the PPM market with technology enablement solutions that cost less and are easier to deploy. This is made possible by leveraging SaaS and cloud computing with an underlying architecture that deploys quickly and adapts easily — generally referred to as "cloud-native" or "cloud-optimized." Initially marketed toward small or midsize business units or divisions, these SaaS offerings are now being adopted by larger customers and are entering mainstream.

Traditional PPM technology providers have responded by making their existing offerings available as SaaS, often with cloud computing as the underlying infrastructure (that is, cloud-hosted architecture). However, the time to value is still much greater, and the adaptability is much lower than the competitive offerings leveraging cloud-native or cloud-optimized architectures.

Vendors Added or Dropped

We review and adjust our inclusion criteria for Magic Quadrants and MarketScopes as markets change. As a result of these adjustments, the mix of vendors in any Magic Quadrant or MarketScope may change over time. A vendor appearing in a Magic Quadrant or MarketScope one year and not the next does not necessarily indicate that we have changed our opinion of that vendor. This may be a reflection of a change in the market and, therefore, changed evaluation criteria or a change of focus by a vendor.

Gartner MarketScope Defined

Gartner's MarketScope provides specific guidance for users who are deploying, or have deployed, products or services. A Gartner MarketScope rating does not imply that the vendor meets all, few or none of the evaluation criteria. The Gartner MarketScope evaluation is based on a weighted evaluation of a vendor's products in comparison with the evaluation criteria. Consider Gartner's criteria as they apply to your specific requirements. Contact Gartner to discuss how this evaluation may affect your specific needs.

MarketScope Rating Framework

Strong Positive
Is viewed as a provider of strategic products, services or solutions:

  • Customers: Continue with planned investments.
  • Potential customers: Consider this vendor a strong choice for strategic investments.

Positive
Demonstrates strength in specific areas, but execution in one or more areas may still be developing or inconsistent with other areas of performance:

  • Customers: Continue planned investments.
  • Potential customers: Consider this vendor a viable choice for strategic or tactical investments, while planning for known limitations.

Promising
Shows potential in specific areas; however, execution is inconsistent:

  • Customers: Consider the short- and long-term impact of possible changes in status.
  • Potential customers: Plan for and be aware of issues and opportunities related to the evolution and maturity of this vendor.

Caution
Faces challenges in one or more areas:

  • Customers: Understand challenges in relevant areas, and develop contingency plans based on risk tolerance and possible business impact.
  • Potential customers: Account for the vendor's challenges as part of due diligence.

Strong Negative
Has difficulty responding to problems in multiple areas:

  • Customers: Execute risk mitigation plans and contingency options.
  • Potential customers: Consider this vendor only for tactical investment with short-term, rapid payback.