Worldwide Development Life-Cycle Management Market Will Climb Steadily Toward $8 Billion Through 2003, IDC Says

FRAMINGHAM, Mass., August 2, 1999 – Revenues in the worldwide development life-cycle management (DLM) market are steadily escalating. From $4.5 billion in 1998, they will expand to $7.9 billion by 2003, representing a compound annual growth rate of 12.1%. This data comes from a new International Data Corporation (IDC) report, Development Life-Cycle Management: 1999 Worldwide Markets and Trends.

"The rapid emergence of ecommerce is a primary driver for DLM tools," said Dick Heiman, an application development tools research manager at IDC. "Demand for high-quality software applications delivered at 'Web speed' are having a very positive impact on several DLM market segments, namely testing tools, configuration management, and legacy renewal."

According to IDC, U.S. vendors are best positioned to capitalize on the market's growth. In 1998, they captured an overwhelming 84% of the market with revenues of $3.8 billion. The United States also spends more than any other region on DLM tools. It spent $2.5 billion on these tools in 1998, accounting for 56% of worldwide consumption. By 2003, it will account for more than 58% and will be the only region to have increased share.

DLM tools on the mainframe environment accounted for the largest share of revenues in 1998 with $1.8 billion, or 40.3% of the market. However, by 2003, DLM tools running with 32-bit Windows will knock mainframe DLM tools out of the market-leading position. IDC expects 32-bit Windows' share to increase from 29.6% in 1998 to 55% by 2003.

"Y2K projects accounted for much of the mainframe strength in DLM. Y2K will provide a maintenance revenue stream for the next several years, and legacy renewal projects will also bolster mainframe DLM revenues," Heiman said. "However, the growth of 32-bit Windows revenues reflects the very rapid adoption of that platform for all types of application development."

The DLM tools market consists of six segments. Although each segment includes tools that support the process of software application development, IDC warns viewing the entire market as a single entity is an oversimplification. Each submarket has unique properties, trends, and dynamics.

IDC's report Development Life-Cycle Management: 1999 Worldwide Markets and Trends (IDC #B19124) looks at the major factors shaping this market. It splits the overall market into the following six segments: the analysis, modeling, and design tools market; the object-oriented analysis modeling, design, and construction tools market; the automated software quality tools market; the software configuration management tools market; the software reengineering and transformation tools market; and the other programmer development tools and utilities market.

For each segment, a forecast through 2003 is included, segmented by region and operating environment. Additionally, vendors 1996-1998 revenues are shown. The report also discusses key trends in each market segment. To view the complete table of contents for this report, please visit http://www.idc.com and search for 19124. To order a copy of the report, contact Cheryl Toffel at 1-800-343-4952, ext. 4389 or at ctoffel@idc.com.

About IDC

International Data Corporation delivers accurate, relevant, and high-impact data and insight on information technology to help organizations make sound business and technology decisions. IDC forecasts worldwide IT markets and adoption and technology trends, and analyzes IT products and vendors, using a combination of rigorous primary research and in-depth competitive analysis. IDC is committed to providing global research with local content through more than 500 analysts in more than 40 countries worldwide. IDC's customers comprise the world's leading IT suppliers, IT organizations, and the financial community. Additional information on IDC can be found on its Web site at http://www.idc.com.

IDC is a division of International Data Group, the world's leading IT media, research, and exposition company.

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