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Magic Quadrant for Integrated IT Portfolio Analysis Applications

Published: 27 November 2017 ID: G00321039

Analyst(s):

Summary

IT leaders must connect business strategies, capabilities and outcomes with the IT investments they want to make to enable digitalization. The IIPA software market offers the technology to unlock myriad insights needed to achieve these connections, mapping and alignment.

Market Definition/Description

This document was revised on 28 November 2017. The document you are viewing is the corrected version. For more information, see the Corrections page on gartner.com.

The integrated IT portfolio analysis (IIPA) market supports the integration of individual portfolios — of IT investments, IT projects and programs, IT services, and IT assets and applications — to present a holistic view of the true state of the overall "IT portfolio."

IIPA solutions present the interrelated perspectives, views and considerations needed to make strategic decisions. IIPA vendors offer versatile and dynamic portfolio analysis and management, enabling users to create, connect and share portfolios. Additionally, IIPA can support the emergent shift from IT project thinking to IT product thinking and management.

Integrating these views enables IT managers to see the cost, effort, technical complexity, feasibility and interrelated effects of a proposed IT change or initiative before it is approved. Applying IIPA to real-world digitalization challenges can help CIOs prioritize the value of IT spending (see "How CIOs Build an Integrated Portfolio View to Prioritize the Value of IT Spending" ).

IIPA bridges the gap between the formulation of IT strategies and the management of changes made to the IT footprint in response to those strategies. Some changes include new and changed business services and functions, new roles and organizational structures, new and different IT procurement strategies, and changes to the application portfolio in response to changes in business and IT strategies.

IIPA was initially pursued as a type of sophisticated self-management of assets and applications. However, it is now being leveraged by CIOs and their delegates, as well as business executives, to transform businesses in response to the effects digitalization, the algorithmic economy and digital ecosystems will have on them. 1 These effects impose challenges on a business's ability to evolve the IT footprint for competitive advantage. In response, CIOs and IT leaders are increasingly showing interest in holistic IT portfolio management. IIPA can help IT navigate through such challenges and provide this management.

IIPA customers are generating integrated portfolio views of IT investments, IT projects and programs, IT assets and applications, and business capabilities. Identifying the points of intersection between elements in these portfolios and "desired state" models created from enterprise architecture (EA) helps IT align the decisions it makes in any IT portfolio with current IT strategy. Seeing the potential collisions or contradictions between future-state EA models and elements in different IT portfolios can help uncover areas of redundancy and waste. This is important because embracing change requires a smaller and smarter IT footprint, and IIPA can identify where the opportunities are to eliminate needless administration and support, while also leveraging the power of analytics, mobile, ecosystems and cloud.

Gartner is seeing a significant amount of interest among CIOs to directly participate in business intelligence and analytics in response to the call for digital transformation. 2 This interest is also driving marked increases in the number of businesses buying IIPA software. 3 Gartner inquiries also indicate application rationalization, EA and project portfolio management (PPM) maturity in IT. As this maturity occurs, the portfolio managers within these areas are seeing an opportunity in cross-communication, rationalization, and planning to improve their contributions to the business and to ensure IT strategy-to-execution alignment.

Application portfolio management (APM) is also an ever-increasing topic of discussion, because digital investments require IT to reduce technical debt while also investing in new technologies that drive new and enhanced business capabilities needed to reach strategic goals. CIOs are more aware now that APM cannot be accomplished without impacting other IT portfolios, and that projects impact the state of the application portfolio. These project investments can be leveraged to improve the health of the application portfolio instead of adding more applications needlessly to the existing inventory.

By design, IIPA technology drives better collaboration and communication for making the right IT investment decisions at the right time for the right outcomes, because IIPA practitioners can see across multiple technology portfolios. IT managers use this software to communicate more effectively, without requiring them to adopt and automate all the distinct tactical process automation needs of each identified IT silo or process domain within IT.

Additionally, IIPA functionality and its benefits are not realized from a "scheduled reporting service," but rather, from an independent set of IT portfolio management functions. Some existing IT software vendors supporting specific process needs within IT silos may offer extended reporting services as "application portfolios" or "IT portfolio management," but this is a far cry from true independent IIPA. Prospective buyers should make sure they understand the difference as detailed below.

The ability to integrate IT project, application, asset and service portfolios, and map these to business capabilities and strategic outcomes, is emerging in a number of established software markets. But to do so, the software must be dynamic enough to support generic portfolio definition, creation, analysis and integration. It also must present findings and insights in simple, graphical ways for business users that likely will not have a technical IT background. Current customers and prospects of IIPA software continue to ask for more graphical, visual representations of findings and insights in IIPA software, rather than spreadsheets or spreadsheetlike views with tables, rows and columns.

Bridging the gap between technical change analysis in the silos of IT is a good practice for formulating an overall application strategy for IT. Translating any findings into resource consumption estimates and overall cost estimates is supported by IIPA tools. Financial investment decision support and planning capabilities are also functional hallmarks of IIPA software tools. The tools can also help IIPA practitioners translate investments in infrastructure, shared and external services into business value contributions.

Using software supporting IIPA, portfolio managers can expect to do many of the following within their portfolios:

  • Bridge the gap between IT and business investments by mapping documented business strategies to business capabilities and associating these with IT investments, projects services and the active application inventory.

  • Measure the performance of an IT strategy against desired business outcomes.

  • Model and manage the elements of their IT portfolios within a native portfolio structure (without repurposing project management features or customizing the same to support this IT modeling and planning).

  • Articulate and communicate to the CIO or other portfolio managers any potential impacts or effects (positive or negative) that a proposed IT change may have on the part of IT that they manage.

  • Design IT-based metrics and manage centralized data, providing value markers for the elements they manage.

  • Collect, maintain, aggregate and analyze information on the status, health and fitness of their IT portfolios.

  • Graphically depict the overall life cycle of each of their IT portfolio elements using roadmapping capabilities.

  • Create, inventory, assess, and rationalize application and shared IT service portfolios.

  • Prioritize and select the best plans, considering more than just cost/value analysis by including consideration of the impacts on interdependent IT portfolios or the architecture.

  • Model future views of their domain-specific IT portfolios, and compare them to current models or portfolio views, while highlighting and rationalizing the changes required to move from one view to the next to assist in planning.

  • Analyze the effects of proposed IT changes, whether those changes manifest as new projects, changes to the application inventory, or changes to IT operations or services.

Magic Quadrant

Figure 1. Magic Quadrant for Integrated IT Portfolio Analysis Applications
Research image courtesy of Gartner, Inc.

Source: Gartner (November 2017)

Vendor Strengths and Cautions

CA Technologies

CA Technologies' (CA's) IIPA product is CA Project Portfolio Management (CA PPM).

Strengths
  • CA PPM users can feed application information from third-party application systems of record to associate investment projects with an application inventory, allowing for the tracking of the capitalization costs of applications, production costs of applications and overall total cost of ownership (TCO) of applications.

  • By connecting CA PPM to a configuration management database (CMDB), customers can feed application records created in CA PPM to enhance and perform application rationalization. Leveraging CA PPM dashboards for application rationalization, users can find overlaps in features and functions, and eliminate redundancy and waste in the application inventory.

  • The current release of CA PPM, version 15.3, includes an improved user experience that simplifies navigation and consumption of information. It also provides extended APM support via added application templates within the APM Accelerator and graphical and interactive roadmap workspaces rendered using timeline or task board views.

Cautions
  • CA PPM provides a number of project-based financial capabilities to tie applicable cost rates to projects and resources. However, the product does not yet easily allow users to associate rates with organizations or teams of resources. This capability would allow customers to more easily track and facilitate cost recovery, especially as digital investments challenge the current financial reporting models of today's enterprises.

  • For current on-premises CA PPM customers using thousands of licenses of the product, making a transition from an on-premises implementation to a SaaS deployment may be cost-prohibitive for implementations involving thousands of users.

  • To help its customers mature toward better IT strategy-to-execution alignment using the CA PPM product, CA has teams dedicated to transformation consulting and are providing more PPM services year over year. However, customers and CA Technologies would both benefit from any improvements and additional IIPA strategy consulting services CA Technologies can directly offer its installed base.

Changepoint

Changepoint's IIPA product is barometerIT.

Strengths
  • When positioned for use as a business tool, barometerIT can model multiple IT strategies and tie them to defined business capabilities, as well as to any related IT systems, applications and other technologies for decision making. Projects can be tied to the technologies and teams they affect, and all these linked elements can be tiered back to documented strategic intent.

  • barometerIT can be used as a software governance tool, in which requests for new applications or packaged software can be captured and fed into barometerIT for software vetting against an active application inventory maintained by the product.

  • Customers can use a combination of barometerIT's crowdsourcing features with integrations to key systems of record, including CMDBs, IT financial management, and governance, risk and compliance (GRC) systems. This approach can help customers drive deep value and TCO impact analysis of many elements of the IT footprint when pursuing digital business transformation.

Cautions
  • barometerIT offers a variety of native analytics and visualization capabilities, including scorecards that illustrate the size and health of systems tracked. However, users seeking advanced business intelligence capabilities would benefit from additional integration with other purpose-built business intelligence products, such as Tableau.

  • Although barometerIT provides role-based data field security options, barometerIT users would benefit from additional organization-level security features, allowing more control over the information viewers and users can see.

  • Because there are many different approaches and use cases for adopting IIPA as a technology for the first time, barometerIT could use some additional improvements and enhancements to its product documentation. These enhancements could allow users to follow specific approaches to using the tool to solve define business problems, or to customize such materials without having to build their own to fit their organization.

EOS Software

EOS Software's IIPA product is Integrated IT Portfolio Management.

Strengths
  • EOS Software's Integrated IT Portfolio Management product can offer advanced IIPA functionality for customers, providing a significant amount of flexibility and functionality compared to existing EA tools, at a fraction of the cost.

  • EOS Software's Integrated IT Portfolio Management product allows users to tie their existing business architecture to applications, servers and IT services, showing the relationships among these elements while also creating one consolidated portfolio representing an institutionalized IT architecture.

  • EOS Software maintains a solid, consistent relationship with its customers. This relationship results in very high marks for customer satisfaction due to direct, regular hands-on interactions between the vendor's product experts and the customers learning to use and mature their IIPA capability using Integrated IT Portfolio Management.

Cautions
  • EOS Software could use some additional improvement to its UI, in that the product allows users to sort, filter and search on columns of information, but still lacks more advanced search capabilities.

  • Improvements to Integrated IT Portfolio Management's architectural diagram capabilities would be beneficial to customers, allowing them to visually depict elements within the IT footprint based on the information users enter into the product.

  • Improvements to EOS Software's documentation of its Integrated IT Portfolio Management product would more easily allow customers to speed up adoption and make determinations as to how to effectively use the product, by leveraging additional tactical collateral, best practices and playbooks.

Micro Focus

Micro Focus' IIPA product is Micro Focus Project & Portfolio Management.

Strengths
  • For existing Micro Focus customers, adopting additional Project & Portfolio Management and APM capabilities from the provider allows users to enable application and project portfolio rationalization as part of their overall investment in Micro Focus products and services.

  • The established, worldwide adoption and use of Micro Focus software products, including Project & Portfolio Management, gives the provider an advantage over other IIPA providers still trying to expand their global reach.

  • In response to customer demand and product improvement requests, Micro Focus offers a "fast start" APM capability on its cloud-hosted platform for easier application cataloging, surveying of application owners and reporting on various application measures, such as costs, utilization and cloud feasibility.

Cautions
  • Much of the APM module adoption among customers is predicated on a consultative service Micro Focus calls Application Rationalization, which does not really appear to be an out-of-the-box offering.

  • The pace of product innovation for Micro Focus Project & Portfolio Management has slowed a bit over the past few years. Micro Focus customers should request a clean product roadmap from the vendor and check on the progress against this roadmap on a regular basis.

  • Given its existing customers make comprehensive investments in Micro Focus software beyond IIPA, Micro Focus is not always able to provide a cost-effective IIPA solution for small or midsize businesses (SMBs).

Planview

Planview's two IIPA products are Planview Enterprise and Innotas.

Strengths
  • Planview provides the ability to integrate Planview Enterprise with its Troux EA product, as well as with EA products from competing EA providers, such as Mega, to support APM within Planview Enterprise.

  • Planview Enterprise can support business portfolio managers interested in using it to manage applications and their connections to projects tracked in the same product. This offers true cross-rationalization of the project portfolio against the application inventory and alignment to the accompanying application strategy.

  • The Planview Enterprise product may not be a good fit for SMBs and MSBs, depending on the organization's size and maturity. Planview offers Innotas, with attractive price points and predictive portfolio analysis and APM capabilities that are independent from, but can work in conjunction with, the product's cloud-based PPM architecture and capabilities.

Cautions
  • Although Planview has made progress in recent releases, Planview Enterprise customers would benefit from additional improvements to the product's UI. These additions would include a more consistent user experience across multiple Planview products, as well as additional and intuitive mobile access using devices such as the iPhone and iPad.

  • Although Planview Enterprise provides an outcome structure users can leverage by connecting projects to business outcomes, the connections and structures could be improved and modernized. This would allow users to more easily see the business outcomes driven by the connections between applications and the project portfolio.

  • Innotas does not yet support advanced application rationalization in its Predictive Portfolio Analysis module. Doing so would allow users to further automate portfolio decision making beyond projects to include the same for application portfolio decision making for SMBs.

Software AG

Software AG's IIPA product is Alfabet.

Strengths
  • Software AG is a visionary software provider with solutions addressing modern application concepts like the Internet of Things, cloud computing, APIs, bimodal IT, agile development, DevOps and scaled agile frameworks. All of these concepts are related to IIPA and are supported effectively by the Alfabet product.

  • Alfabet allows users to provide central control of all of their IT assets using a single repository. This can help customers replace the use of varied spreadsheets for the same purpose and significantly improve the master data quality for the IT assets managed and tracked in the product.

  • Customers can integrate Alfabet with various IT systems of record, including CMDBs, ERP systems and IT financial management systems, to drive deeper application, IT service and project valuation when making holistic IT portfolio decisions in alignment with business objectives.

Cautions
  • Although Software AG can position the Alfabet product for SMBs, the vendor and the product are mainly focused on larger enterprises with complex IIPA challenges. As such, Alfabet may be cost-prohibitive for SMBs and too powerful for their needs.

  • Alfabet customers would benefit from additional support in the UI for casual users to build graphical heat maps that include financial perspectives, and answer questions, through advanced visualization capabilities, on applications and project cost drivers.

  • The process of upgrading Alfabet could be further improved and optimized in ways that would reduce the effort involved.

UMT360

UMT360's IIPA product is UMT360.

Strengths
  • UMT360 allows users to create an enterprise view of the holistic business investment portfolio in one centralized place, supporting portfolio, program, project and application managers, while removing inaccurate and manual spreadsheet-based processes to achieve the same result.

  • UMT360 can integrate with IT systems of record, bringing in elements and views of the IT infrastructure and linking them to applications, services, programs, and projects maintained in the UMT360 product. This gives customers wider, more holistic views that go beyond just programs and projects.

  • UMT360 is not only an IIPA product. It also supports portfolio performance and measurement of outcomes. A strategic driver module connects strategic goals to strategic drivers, and allows users to map those goals and drivers to projects for better project prioritization and alignment between IT project execution and business strategy realization.

Cautions
  • UMT360 users would benefit from simplified ways of collecting demand in UMT360. These simplified ways could make it easier for project managers and others to enter, update, and maintain their data more efficiently in the product via better interfaces and more automated data entry.

  • IIPA customers do not always know all the ways they can approach IIPA to solve different business problems. Improvements to UMT360 product documentation and support, such as enhanced and targeted consulting services, wrapped around the UMT360 technology, would help drive further customer adoption and use of the UMT360 product.

  • UMT360 does not include its own data analysis and reporting tools. However, it does provide access to its data repository through standard interfaces (such as OData), that can be consumed through third-party tools, such as Microsoft Power BI, Tableau and QlikView.

Vendors Added and Dropped

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

Added

No vendors were added to this year's Magic Quadrant. However, Micro Focus now represents and manages what was formerly known as Hewlett Packard Enterprise (HPE) PPM.

Dropped

Forsythe was removed from the Magic Quadrant, as it no longer fit the criteria for active engagement in this market.

Inclusion and Exclusion Criteria

Vendors must provide a top-down, stand-alone and dynamic IT portfolio analysis system.

The product or products they offer must:

  • Allow users to natively create and manage at least three IT domain-specific portfolios (e.g., investment, application, service or project portfolios)

  • Combine and cross-reference many types of objects and portfolios

  • Include the ability to incorporate unstructured data such as survey results; support the identification, cataloging and analysis of risk factors; and support the ability to graphically depict, value and analyze an application inventory

  • Support the creation and management of role-specific views for both IT and non-IT management and domain experts, with material to support portfolio analysis and management (e.g., views for financial management and financial analysts, as well as views for their IT counterparts)

  • Provide native (not provided as third-party add-on or outside of core product, nor through third-party OEM or other integration partnership) portfolio management features and functions, such as demand management, investment and budget planning, portfolio fitness and value assessments, initiative prioritization and selection, resource planning and allocation, financial and project and application roadmap simulation, and reporting

  • Import or otherwise include the potential operational costs and service impacts related to decision making affecting any IT portfolio, as well as import, manage and correlate data (e.g., objects and attributes) from other systems

  • Support IIPA without requiring the use of outside bolt-on software or ancillary, general-purpose development environments

  • Be generally available and have multiple customers using the product in production

Evaluation Criteria

Ability to Execute

Product or Service: Providers scoring well display:

  • Above-average R&D commitment

  • Strong, independent, and dynamic portfolio creation and management features

  • Strong, independent, portfolio-level workflow supporting the intersection and integration of multiple IT portfolios and perspectives

  • Support for automated portfolio prioritization

  • Application portfolio management and rationalization capabilities

  • Strong resourcing features (beyond skills searches — for example, loading/leveling, named-resource use and performance management)

  • Configurable resource planning/scheduling features

  • Independent IT strategy formulation features or configurations, resulting in IT strategy formulation

  • Graphical roadmapping of different types of portfolio objects (e.g., assets and applications)

Overall Viability: A vendor rated "above average" in viability typically has a balanced revenue stream that includes:

  • Substantial new license revenue (not necessarily a majority of revenue) that drives services and future maintenance

  • Healthy profits (or strong investor support with a positive profitability outlook)

  • A sizable, loyal installed base

Sales Execution/Pricing: Providers with higher scores demonstrate a motivated direct sales force with a strong, incentive-based plan and training for the product. Experienced and sufficient technical sales support is needed, and ratings improve with a well-trained secondary partner channel. The capability to sell and market globally (especially in North America and the EU, but also in Asia/Pacific and Latin America) improves ratings. However, ratings are reduced by significant turnover in the sales force or marketing team, or if providers are unable to give support outside their immediate regions.

Market Responsiveness/Record: Market-responsive vendors demonstrate business agility as the IIPA market and practitioners grow and mature. Innovation occurs in a timely manner and in ways that complement their existing target markets and traditional development patterns. Releases of new versions and features should be as announced. Lower scores will result from slow or inaccurate responses to demands or technology changes.

Marketing Execution: Design of specific marketing plans include multiple portfolio managers and execution of those plans in the form of marketing messaging that is consistent with integrated portfolio analysis supporting the interdependent domains within IT.

Customer Experience: Vendors scoring higher in this category offer direct IIPA services as part of doing business and can produce customer references confirming the use of their portfolio management product specifically for IIPA. Consulting isn't restricted to implementation services, because process change is often key to success. These vendors' service partners supplement (but don't replace) their own capacity. Support staff members consistently provide quality service with good response times. Lower ratings result from lack of evidence in the field of customers using the product for IIPA.

Operations: Higher operations scores are supported by:

  • A senior management team whose members have an average of at least 15 years of industry experience among them, including several years in senior management roles

  • A strong IT and business background

  • An understanding of market evolution in integrating the different portfolios and rationale behind decision making occurring in the PMO, application management and IT operations, including support for the fusion of strategic prioritization based on more than just cost-benefit analysis

  • Long-term consistency between expressed plans or views and execution

Table 1.   Ability to Execute Evaluation Criteria

Evaluation Criteria

Weighting

Product or Service

High

Overall Viability

Medium

Sales Execution/Pricing

Medium

Market Responsiveness/Record

Medium

Marketing Execution

Low

Customer Experience

High

Operations

Low

Source: Gartner (November 2017)

Completeness of Vision

Market Understanding: The vendors targeting CIOs and their portfolio managers should have a strong, clear understanding of the market opportunity, exemplified by direct support for an integrated platform across the IT domains through product innovations, marketing campaigns and portfolio integration. All of these value-added capabilities should be clear and apparent in the vendor's marketing campaigns. Market understanding should drive the innovation of products and the development of functions outside the vendor's normal "comfort zone." Partnering indicates some marketing understanding, but the optimal understanding is indicated by direct dedication to IIPA market opportunities. Vendors scoring high marks in this area anticipate the new or changing challenges that CIOs and their portfolio managers face.

Marketing Strategy: The vendors targeting portfolio managers should have a strong, clearly defined strategy for marketing to these target customers as individual domain leaders and as part of the CIO's leadership team.

Sales Strategy: The vendors targeting CIOs and their portfolio managers should have a strong, clearly defined strategy for selling solutions, especially those who are not customers of the vendor's legacy products.

Offering (Product) Strategy: Our evaluation of product strategy is wide-ranging, but includes assessments in a number of areas. The offering (product) strategy should include the development of the following features and functions continuously over time:

  • IT portfolio strategy definition (supporting several types of portfolios)

  • IT portfolio strategy metrics and measurement

  • Investment management and portfolio analytics on performance

  • Business strategy to business capability documentation and alignment with mapped, underlying IT investments, programs, projects, applications, assets and services.

  • IT portfolio creation, management and integration (projects, assets, investments and services)

  • Application portfolio generation (out-of-the-box application portfolio capabilities that are not dependent on, or associated with, project records creation)

  • Graphical roadmapping of portfolio elements

  • IT project portfolio management (standard project portfolio support)

  • IT program management (managing programs as entities and associating projects defined with an overarching program or programs)

  • Visibility into costs and other impacts on the IT service portfolio

  • IT portfolio-level visibility into the interrelationships and impacts shared among the various domains

Business Model: We are looking for evidence that the business identified the emergent IIPA market opportunity by adjusting its business model to support it. This also requires a capable sales force that is accustomed to high-level sales and longer sales cycles. In addition, we assess the provider's commitment to customer success, as reflected in offering a modular solution with "phaseable" implementation, as well as a full range of fairly priced services. Multiple modes of deployment should be supported, although supporting all possible options is not required. This criterion measures the level of reliance on partners for service and sales, favoring a commitment to maintain significant, direct system integration and other services.

Vertical/Industry Strategy: Technology providers often provide industry- or discipline-specific features. In this report, we have standard weighting on this criterion, because we tend to expect horizontal use within IT for many solutions. For clients in IT and AD organizations, we continue to credit the special strength of solutions in supporting IT/AD projects, processes, roles and interfaces. Vendors scoring high marks in this area will provide features and functions that can support both of these IT scenarios (e.g., IT-based "product" management).

Innovation: Vendors that exhibit business and technology innovation rate higher on the vision axis. Higher marks are earned for IIPA products not tied to other system objects and activities. Products demonstrating true independent capabilities for high-level analysis and planning are innovative. Vendors receiving high marks in innovation also address integration of the portfolios, strategies and rationale of the subdomains in IT (for example, tying and linking interdependencies among application management and application portfolios, the IT project portfolio, and IT operations).

Geographic Strategy: In this emerging market, vendors scoring high in this area will have a strong global presence. They will also have detailed plans for leveraging this presence to target different customers interested in integrated portfolio analysis in different parts of the world.

Table 2.   Completeness of Vision Evaluation Criteria

Evaluation Criteria

Weighting

Market Understanding

High

Marketing Strategy

Medium

Sales Strategy

Medium

Offering (Product) Strategy

High

Business Model

Medium

Vertical/Industry Strategy

Low

Innovation

High

Geographic Strategy

Low

Source: Gartner (November 2017)

Quadrant Descriptions

Leaders

Leaders in this Magic Quadrant include a mix of different types of software vendors. Some of the Leaders entered the IIPA market because of an already-strong, established presence in the IT department (e.g., Planview, CA Technologies and Software AG). They have extended their products' ability to support the creation of multiple types of IT portfolios, and in some cases, also acquired additional products to support a broader IIPA market.

Other Leaders — such as EOS Software — emerged and continue to innovate purely as stand-alone, portfolio-level, IT planning software providers targeting IIPA. Most of these had no foothold with an IT customer base prior to the introduction of their IIPA products to the market. We consider these vendors pure-play vendors.

Leading IIPA products can interweave IT portfolios and IT scenarios by identifying the interrelationships and interdependencies among the elements within and across them. Leaders' product features often include detailed organization, modeling, what-if planning and other scenario planning to map IT's planned physical response to directives that are handed down as part of the overall business strategy and the proceeding IT strategy.

Leading products aggressively strive to integrate the planned execution of change to the IT footprint in response to the needs of the business, using portfolio management as a foundation. These products can analyze the cost and progress of the IT response to the business and IT strategy, and deliver the right perspectives, analysis, and impact views required by CIOs, IT portfolio managers and other business leaders.

Many identified Leaders not only provide strong capabilities to support IIPA, but also can furnish convincing evidence that their customers are using their products specifically in an IIPA context.

Challengers

This year's Magic Quadrant contains one vendor in the Challengers quadrant, Micro Focus, a company that inherited the former HPE PPM product as well as its application portfolio and management technology and other modules and components. As other adjacent market players begin to react more readily to this market, we expect the Challengers quadrant to include more IIPA providers over time. Gartner is continuously highlighting a need among businesses to recognize, adapt and respond to the changes necessary in effectively leveraging digitalization. Field data more than suggests that IIPA will become a common and necessary practice in the future, and will also be conceptualized in other established software markets such as ERP, among others. Future challengers will likely be well-established providers of enterprise software or application services specifically targeting the needs of IT departments, or targeting indirectly, in terms of the roles ERP and other providers may play in digital transformation. Some vendors may appear as a result of acquiring a company that is competing in IIPA. Others may have an established installed base of IT departments as customers, and are trying to extend an adjacent technology to support IIPA. Still, others may be attempting to bridge the communication gap between business strategy and IT.

Visionaries

The Visionaries quadrant includes two pure-play IIPA providers, Changepoint, for its barometerIT product, and UMT360, for its top-down, portfolio management system.

Visionaries demonstrate a strong vision of innovative thinking around holistic, configurable IT portfolio management. Their products often provide the ability to reflect an IT strategy definition for reference when planning, measuring and tracking IT's response to the business strategy and the resulting IT strategy. This often can be done without the need to construct and define a program or project hierarchy in their products, although if the customer wishes, each of the vendors in this area of the Magic Quadrant can do so.

Visionaries may or may not be as financially sound as the Leaders in this new market, or they may not have the global reach of some of the Leaders. Do not discount these providers, however, because some of them can truly bridge the gap between business strategy and IT response. We expect that they will drive further innovation, challenging the Leaders to either be nimble or lose ground. Visionary influence has led to larger IT vendors in this space buying companies to fill the gaps in a broader, visionary product lines, both addressing and expanding beyond IIPA.

Visionaries and other vendors in this Magic Quadrant that scored well on the Completeness of Vision axis (in relation to others) often can provide significant evidence of dynamic IIPA functionality in their products. They can also produce strong customer references for IIPA.

Niche Players

There are no Niche Players in this year's Magic Quadrant. If or when vendors eventually begin to populate this portion of the quadrant, they are likely to be new, fresh, startup companies focused on pure-play IIPA technology with a modest amount of initial funding. They might also support a niche execution foundation that has IT strategy implications. As the need for better visualization tooling to enhance the consumption of IT portfolio and roadmap analysis increases, we may see specialty vendors debut in this quadrant in the future.

Context

The road to IIPA begins with the creation and management of two or more IT-specific portfolios, in addition to a revelation that such portfolios are interdependent. Connecting the two or more portfolios can lead to better decision making and intelligence, and that is where the IIPA vision takes hold.

IIPA revelations can also occur when an IT department creates an application "book of record" or application portfolio. Then, they design an application governance model. Eventually, they can rationalize an inventory of applications against the application governance model and the corresponding IT strategy. It is not too long before these organizations begin to realize there are decisions to be made in IT that require collaborative communication and teamwork.

IIPA helps the IT department map its technical plan and response to the defined business strategy and the resulting IT strategy. IT can ensure alignment among business goals, business capabilities, and IT's response to those goals through the support, innovation, and expansion of an enterprise's key business capabilities. Digital business investment planning is a significant driver for this IIPA scenario.

Market Overview

The ability to integrate IT project, application, asset and service portfolios is emerging in PPM, application life cycle management, IT service management (ITSM), and other types of IT-specific software applications and the vendors that provide them. To do so, the software must be versatile enough to support portfolio definition, creation, analysis and integration across these native portfolio types.

Technical change analysis, such as a new IT project in the PMO, an application iteration in the application group or the provisioning of a server in operations, often creates silos of data. IIPA software tools help to bridge those gaps by translating those findings into resource consumption estimates, overall cost estimates, risk impacts or strategy contributions.

Additional research contribution and review: Audrey Apfel, Robert Handler, Matt Light, Mbula Schoen, Lars Mieritz, Joanne Kopcho and Michelle Coelho.

Evidence

1 CIO questions to Gartner analysts about portfolios have increased by 11% to 21% against the same month in the previous year, unlike project portfolio management questions from IT leaders.

2 See Figure 20 in "The 2018 CIO Agenda: Mastering the New Job of the CIO."

3 From 2011 and through 2017, Gartner IIPA Magic Quadrant research activities include the documentation of the number of net new IIPA customers each vendor in this Magic Quadrant report gains year over year. Analysis of this data over seven iterations of this Magic Quadrant indicates a gradual, yet steady, growth of new IIPA customers across the market, year over year.

Evaluation Criteria Definitions

Ability to Execute

Product/Service: Core goods and services offered by the vendor for the defined market. This includes current product/service capabilities, quality, feature sets, skills and so on, whether offered natively or through OEM agreements/partnerships as defined in the market definition and detailed in the subcriteria.

Overall Viability: Viability includes an assessment of the overall organization's financial health, the financial and practical success of the business unit, and the likelihood that the individual business unit will continue investing in the product, will continue offering the product and will advance the state of the art within the organization's portfolio of products.

Sales Execution/Pricing: The vendor's capabilities in all presales activities and the structure that supports them. This includes deal management, pricing and negotiation, presales support, and the overall effectiveness of the sales channel.

Market Responsiveness/Record: Ability to respond, change direction, be flexible and achieve competitive success as opportunities develop, competitors act, customer needs evolve and market dynamics change. This criterion also considers the vendor's history of responsiveness.

Marketing Execution: The clarity, quality, creativity and efficacy of programs designed to deliver the organization's message to influence the market, promote the brand and business, increase awareness of the products, and establish a positive identification with the product/brand and organization in the minds of buyers. This "mind share" can be driven by a combination of publicity, promotional initiatives, thought leadership, word of mouth and sales activities.

Customer Experience: Relationships, products and services/programs that enable clients to be successful with the products evaluated. Specifically, this includes the ways customers receive technical support or account support. This can also include ancillary tools, customer support programs (and the quality thereof), availability of user groups, service-level agreements and so on.

Operations: The ability of the organization to meet its goals and commitments. Factors include the quality of the organizational structure, including skills, experiences, programs, systems and other vehicles that enable the organization to operate effectively and efficiently on an ongoing basis.

Completeness of Vision

Market Understanding: Ability of the vendor to understand buyers' wants and needs and to translate those into products and services. Vendors that show the highest degree of vision listen to and understand buyers' wants and needs, and can shape or enhance those with their added vision.

Marketing Strategy: A clear, differentiated set of messages consistently communicated throughout the organization and externalized through the website, advertising, customer programs and positioning statements.

Sales Strategy: The strategy for selling products that uses the appropriate network of direct and indirect sales, marketing, service, and communication affiliates that extend the scope and depth of market reach, skills, expertise, technologies, services and the customer base.

Offering (Product) Strategy: The vendor's approach to product development and delivery that emphasizes differentiation, functionality, methodology and feature sets as they map to current and future requirements.

Business Model: The soundness and logic of the vendor's underlying business proposition.

Vertical/Industry Strategy: The vendor's strategy to direct resources, skills and offerings to meet the specific needs of individual market segments, including vertical markets.

Innovation: Direct, related, complementary and synergistic layouts of resources, expertise or capital for investment, consolidation, defensive or pre-emptive purposes.

Geographic Strategy: The vendor's strategy to direct resources, skills and offerings to meet the specific needs of geographies outside the "home" or native geography, either directly or through partners, channels and subsidiaries as appropriate for that geography and market.