Service-Level Management Market Nears $1.4B

Everybody talks a good game when it comes to service-level management. But how many enterprises and service providers perform true service-level management?

Here’s one answer: The market spent almost $1.4 billion on service-level management products in 2005, according to the first market sizing report on service-level management.

Enterprise Management Associates in early April released its new report and service-level management buyer’s guide, which projects that the market will grow 17 percent a year over the next five years.

According to the report, the top five companies in the SLM market have 58 percent of the total market. They include BMC Software, Hewlett Packard, Mercury Interactive, IBM/Tivoli and CA.

“Those five companies have over $100 million in annual revenue in service-level management,” said Rick Sturm, founder and president of the Boulder, Colo., consulting and research firm.

“BMC is over $200 million and HP would be [as well] if we included Peregrine with them. BMC and HP are the strongest leaders in this space with market share and mindshare,” he added.

To read more about service-level management software, click here.

Nine vendors in 2005 reached SLM revenues of between $20 million to $50 million, including InfoVista, Compuware and SLM services provider Keynote Systems. The second-tier vendors make up 18 percent of the market.

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