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STAMFORD, Conn., April 22, 2015

Press Release TitleGartner Says Worldwide Application Infrastructure and Middleware Market Revenue Grew 8.8 Percent in 2014

Overall Enterprise Software Market Grew 5.7 Percent in 2014

Analysts Will Examine the State of the Industry at Gartner Application Architecture, Development & Integration Summits 2015, May 18-19 in London, UK and July 21-22 In Sydney, Australia

The worldwide application infrastructure and middleware (AIM) software market revenue totaled $23.8 billion in 2014, an 8.8 percent increase from 2013, according to Gartner, Inc. (see Table 1).

This performance helped the AIM market outperform — in revenue terms — the overall enterprise software market which grew 5.7 percent from $405.5 billion in 2013 to $428.6 billion in 2014.

"The largest AIM vendors are increasingly being challenged by providers like Salesforce and SAP," said Fabrizio Biscotti, research director at Gartner. "At the same time, and as the cloud value proposition becomes more clear, many platform as a service (PaaS) providers like Google, Engine Yard, Informatica and Dell Boomi are a threat to established players."

Open source software (OSS) and open core providers like MuleSoft, Talend and Liferay added further pressure to incumbent vendors in the marketplace. Specific point solution vendors that specialize in niche but fast-growing technology areas (in-memory data grids and low-latency messaging, for example) also had a similar impact on the market.

Table 1
Worldwide Vendor Revenue for Total AIM Software, 2014 (Millions of Dollars)

Company

2014 Revenue

2014 Market

Share (%)

2013 Revenue

2013 Market

Share (%)

2013-2014

Growth (%)

IBM

6,926

29.1

6,529

29.8

6.1

Oracle

3,291

13.8

3,244

14.8

1.5

Microsoft

1,166

4.9

1,123

5.1

3.8

Salesforce

740

3.1

477

2.2

55.2

Software AG

545

2.3

581

2.7

-6.3

Others

11,136

46.8

9,922

45.4

12.2

Total

23,804

100.0

21,876

100.0

8.8

Source: Gartner (April 2015)

In terms of vendor dynamics, the rankings of the top five vendors have changed after a decade of stability. In 2014, Salesforce moved up to the fourth spot and exhibited the strongest revenue growth with a 55 percent increase in 2014.

"Throughout 2014, the top five vendors showed mixed performance due to the pressure from specialized vendors, in particular PaaS providers and open source software suppliers," said Mr. Biscotti.

"The role of AIM as an enabler of service-oriented architecture is well established, and it is increasingly emerging as a foundational technology for mobile, big data and analytics, in-memory computing, and cloud computing initiatives," he added. "It is also becoming a foundational element for businesses when adopting the Internet of Things, with the goal of universal integration in mind."

Rather than replacing existing AIM technology, organizations are focusing new spending on extending integration capabilities, through the use of PaaS offerings. Legacy and foundational AIM will be replaced at a normal end-of-life pace. Furthermore, specialized vendors have introduced cloud-based alternatives to mobile middleware.

"As organizations grow, they will need to add capacity to their existing AIM software, and the average organization will need to add licenses to run the software on additional servers and add additional cores to handle the load. This trend is a natural reflection of the increasing demands being placed on an organization's IT infrastructure," said Mr. Biscotti.

"A growing number of organizations want to become digital businesses, but this puts pressure on their established application infrastructure middleware strategies," said Massimo Pezzini, vice president and Gartner Fellow. "They are realizing that their application infrastructures, which was designed — in some cases — over 10 years ago, cannot support the demand for the real-time analytics, development agility, deployment flexibility and fast reconfiguration of business networks required to successfully compete in the digital era."

To support these requirements, IT departments need to refresh their application infrastructures. This could be the addition of capabilities needed to rapidly scale their systems, inject real-time operational intelligence into business processes, support advanced analytics and target do-it-yourself approaches to integration.

Note to editors:

The AIM market includes several segments that comprise general-purpose portal products, technologies that enable business-process management, integration and platform middleware, business-to-business middleware products, managed file transfer, application services governance, mobile application development platforms and AIM appliances.

Additional information is available in the Gartner report "Market Share: All Software Markets, Worldwide, 2014."

Gartner analysts will present additional findings on the future of the AIM industry at the Gartner Application Architecture, Development & Integration Summits 2015, May 18-19 in London, U.K and July 21-22 in Sydney, Australia. Members of the media can register for the Summits by contacting Rob van der Meulen, (Gartner PR) on + 44 (0) 1784 267 738.

Additional information from the events will be shared on Twitter using #GartnerAADI.

About Gartner

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