eBusiness Will Drive Revenue Growth in the Application Life-Cycle Management Market, IDC Says

FRAMINGHAM, MA – JULY 25, 2000 – In 1999, the worldwide market for application life-cycle management (ALM) tools became a $5 billion market. It will add another $4 billion to its coffers during the next few years, and by 2004 ALM tools will generate $9 billion worldwide. This information comes from a new IDC report titled Application Life-Cycle Management Forecast and Analysis, 2000-2004.

 

"Without a doubt, the Web – especially ebusiness conducted over the Web – is the major driver in the application life-cycle management market," said Dick Heiman, director for IDC's Application Life-Cycle Management research and author of IDC's report. "eBusiness demands will be the positive and negative driving forces for the market and its vendors for the foreseeable future." IDC defines application life-cycle management products as tools that support the process of software application development and deployment and divides the market into the following segments: automated software quality (ASQ) tools, software configuration management tools, software reengineering and transformation tools, database administration tools and utilities, and other programmer development tools and utilities.

Nearly all ALM markets are receiving big boosts from ecommerce. The market for ASQ tools is especially benefiting. In fact, throughout IDC's forecast, ASQ tools will represent the fastest-growing segment of the market. IDC expects these revenues to increase at a compound annual growth rate of 23% from 1999 to 2004, when they will surpass $2.6 billion.

"eBusiness is driving dramatic changes in the automated software quality market. Unlike traditional enterprise applications that support the business, ebusiness applications are the business so testing of these applications is even more important," Heiman said. "Testing services, as well as tools, will become increasingly popular in the next few years."

Software configuration management and database administration tool vendors will also receive a big boost from ebusiness as they provide tools to ensure quality, scalability, and changeability of ebusiness applications throughout their entire life cycle.

"It is an interesting paradox that the wild and woolly Web may actually drive the software industry to previously unattainable levels of engineering discipline and quality," Heiman said. "When businesses absolutely depend on reliable applications for their very existence, a very bright light will shine on the IT organizations responsible for those applications. This bodes well for the ALM vendors that can help 21st-century IT organizations meet these challenges."

IDC recently published Application Life-Cycle Management Forecast and Analysis, 2000-2004 (IDC #B22311). This report analyzes the market for software products that support the process of software development and deployment. It examines the following segments of the market: automated software quality tools, software configuration management tools, software reengineering and transformation tools, database administration tools and utilities, and other programmer development tools and utilities. For each market, the report forecasts revenues through 2004 by 4 regions and 11 operating environments. The report also compares vendors' 1999 revenue shares. Trends affecting each market segment are also discussed. To purchase the report, contact Cheryl Toffel at 1-800-343-4952, extension 4389 or ctoffel@idc.com.

About IDC

IDC delivers dependable, high-impact insights and advice on the future of ebusiness, the Internet, and technology to help organizations make sound business decisions. IDC forecasts worldwide markets and trends and analyzes business strategies, technologies, and vendors, using a combination of rigorous primary research and in-depth competitive analysis. IDC provides global research with local content through more than 500 analysts in 43 countries worldwide. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at http://www.idc.com.

IDC is a division of IDG, the world's leading IT media, research and exposition company. All product and company names may be trademarks or registered trademarks of their respective holders.