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System Infrastructure Software Stands Out in the Latest Worldwide Semiannual Software Tracker Release from IDC

International Data Corporation (IDC) today released the latest Worldwide System Infrastructure Software 2012-2016 forecast and 1H2012 vendor shares from the Worldwide Semiannual Software Tracker. The Worldwide Semiannual Software Tracker monitors competitive market data from more than 220 software vendors in 26 System Infrastructure Software (SIS) functional markets across 49 countries. Information provided includes semiannual market sizes, semiannual vendor shares, and annual market forecast data for each of the twenty-six functional markets that comprise System Infrastructure Software.

System Infrastructure Software and the virtualization effect

According to the latest release, the overall System Infrastructure Software revenues are expected to grow 2.7% year over year to $39.2 billion in 2012. One of the main components of the SIS market is the System Software segment, which represents more than 42% of the overall SIS market. More than 74% of System Software is comprised of Operating Systems and Subsystems Software, which is a mature market that typically experiences flat or slightly positive growth year over year. In comparison, the Virtualization Solutions market is expected to grow 12.3% year over year in 2013 and maintain this pace as it moves from 14% overall market share in 2011 to more than 20% in 2016. Within the Virtualization Solutions segment, the Virtual Machine and Cloud System Software sub-segment is expected to finish 2012 with a 16.7% growth rate and is forecast to grow 15.5% year over year in 2013. VMware continues as the leader in this market, gaining share year over year (1H2012 vs 1H2011) and capturing more than 80% market share.

Technology and business trends assure future adoption of Security Software

The second largest SIS market is Security Software. This market is comprised of 7 security functional markets where Identity and Access Management Software stands out year over year. It is expected to grow 7.6% year over year in 2012 and 9.4% in 2013 reaching almost 22% market share. The battle for leadership in this market is fierce as there are only 2.5 points of market share between the top 4 vendors (EMC, Oracle, IBM, and CA Technologies), and behind them is a large list of growing vendors in this area, including Symantec, SafeNet Inc., Quest Software, Attachmate, Hitachi, Gemalto, Fujitsu, and HP. On the other hand, the biggest Security market, Endpoint Security, is dominated by Symantec and Intel Corp. (McAfee), while Kaspersky, Sophos, and AVG grow at a double-digit rate to join Trend Micro among the top vendors in this market.

"Even with the current macroeconomic uncertainty, organizations continue to invest in solutions to prevent attacks and mitigate risks," said John Grady, research manager, Security Products. "As virtualization, cloud, and BYOD technologies continue to expand, the associated security concerns need to be addressed. IDC expects strong growth in the security market as organizations adopt these emerging technologies and move to secure their deployments."

System Management is driven by the cloud and virtualized environments

During the last two semiannual periods, the fastest growing segment in SIS has been the System and Network Management Software market, which grew 6.7% year over year in the first half of 2012. The recent high growth rates seen in this market rely on virtualization and system-predictability related management requirements, which is shown by the fact that the fastest growing sub-segments are Workload Scheduling and Automation (11.6%), Change and Configuration Management (8.7%), and Event Management (8.5%). From the competitive point of view IBM, CA and BMC are still the top vendors mainly because these vendors have a wide portfolio that covers both mainframe and distributed systems. This past advantage becomes a disadvantage in terms of growth as mainframes continue to show slow long-term growth. In terms of market share, pure distributed system vendors will benefit from this situation in the future. In that sense, vendors like HP, Microsoft, and VMware have gained share year over year. Other emerging vendors showing very high growth rates in recent periods are Egenera Inc., Rightscale, Flexera Software, Dell, ServiceNow, Splunk, and Netuitive, among others.

According to Tim Grieser, program vice president, Enterprise System Management Software, "The future outlook for the overall system infrastructure software market remains positive, although growth rates are impacted by ongoing economic weakness and uncertainty. Software that addresses key areas in security and system management will benefit from growth in complexity of distributed, virtualized, and cloud environments."

A graphic showing year-over-year growth and the 2011-2016 compound annual growth rate (CAGR) for the worldwide system infrastructure market and four secondary markets is available at IDC.com. Instructions on how to embed this graphic into online news articles and social media can be found by viewing this press release on IDC.com.

IDC's Worldwide Semiannual Software Tracker provides total market size and vendor share for the eighty-two segments of the global software market. Measurement for this tracker is total software revenue, which includes license plus maintenance plus SaaS and other subscription revenue. The Tracker covers more than 800 software vendors across a total of 49 countries globally. Annual five-year market forecasts for this Tracker are updated semiannually and include five-year annual market projections. Forecasts are available at worldwide, regional, and country levels.

For more information about IDC's Worldwide Semiannual Software Trackers, please contact Kathy Nagamine at 650-350-6423 or knagamine@idc.com.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community to make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. For more than 48 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events' company. You can learn more about IDC by visiting www.idc.com.

All product and company names may be trademarks or registered trademarks of their respective holders.

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