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Gartner at a Glance

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World's Analysts 215,000+
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Client
Community
Interactions
of CIOs
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74% of
Distinct Client
Fortune 1000
Organizations

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90 Countries Global 500

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in Nine per month
Industries

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500
Consulting
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Engagements
High-Tech Tuesday Webinar:
How Digital Changes the
Information Management and
Middleware Markets
Fabrizio Biscotti
Research Director
fabrizio.biscotti@gartner.com

Terilyn Palanca
Research Director
terilyn.palanca@gartner.com

This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other
authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied,
distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates.
2015 Gartner, Inc. and/or its affiliates. All rights reserved.
Digital Business Places New Demands on
Business Applications

Business moments
Physical Digital

The ability of executive teams to forecast the future of their markets and
value chains is diminishing, almost on a quarterly basis. They are under
pressure to mitigate stakeholder risks and exploit business opportunities.
Key Topics

1. What is the current state of the Information


Management and Application Infrastructure and
Middleware (AIM) Markets
2. What is the impact of digital business on these
software markets?
3. The rising importance and market impact of
cloud and in-memory technologies
Enterprise Software Markets Worldwide:
Growth Opportunities Align to Investment Priorities
Average Size ($15 Billion) Performance of Software Market
16 Segments Worldwide
Applications
CRM Infrastructure

12
CAGR 2014-2019 (%)

Collaboration Suites and Web


Conferencing

PPM ECM Vendors by Market Share


SCM
Data
8 ITOM DBMS
Data BI Integration /
Integration DBMS AIM DQ
/ DQ AIM
Virtual Infra.
Email and Security ERP Oracle IBM SAS Institute
Calendaring
4 AD
Microsoft Oracle SAP
Other Apps
DCC Storage
Mgmt. IBM Microsoft IBM

Other Infrastructure Office Suites SAP Salesforce Informatica


OS
0
0 10 20 30 40 Teradata Software AG Oracle
Total Software Spending (Billions of Dollars)
InterSystems Tibco Pitney Bowes
Source: "Forecast: Enterprise Software Markets, Worldwide, 2014-2019, 1Q15 Update"
AD = application development; AIM = application integration and middleware; BI = business intelligence; CAGR = compound annual growth rate; CRM =
customer relationship management; DBMS = database management systems; DCC = digital content creation; ECM = enterprise content management; ERP =
enterprise resource planning; ITOM = IT operations management; OS = operating systems; PPM = project and portfolio management; SCM = supply chain
management
Application Infrastructure and Middleware:
the foundation for faster business applications
Other AIM Case
(Adapters, Pure-Play BPM, BRE, etc.) Management* In-Memory
App. Servers
User Experience
Low-Latency Platforms*
Messaging
Segment Fragmentation

High Mobile
Platforms*
Application PaaS*
BPMS Service Event Stream
Governance Processing In-Memory
Data Grids
B2B Middleware
Software
Medium
Integration
Brokerage
New Wave
ESB
MFT
of Growth
Portal
Fragmentation
AIM (Market share of top 3 vendors)
App Appliances
Low MOM Servers High: less than 40%
Medium: around 50%
TPM
Low: more than 60%

<10% 10%-20% >20%


= Segment Revenue
Source: "Market Share: All Software 2014-2019 Segment CAGR
Markets, Worldwide, 2014
*hybrid segments which include elements from other software markets
Information Management:
Expanding For Digital Business Speeds and Feeds

Semistructured
DBMS
Segment Fragmentation

High
Data Quality
Tools New Wave
Data of Growth
Integration
Medium Tools In-Memory
DBMS

Fragmentation
(Market share of top 3 vendors)
RDBMS
Low High: less than 40%
Prerelational- Medium: around 50%
era DBMS Low: more than 60%

<10% 10%-20% >20%


= Segment Revenue
Source: "Market Share: All Software 2014-2019 Segment CAGR
Markets, Worldwide, 2014," G00273284
Key Topics

1. What is the current state of the Information


Management and Application Infrastructure and
Middleware (AIM) Markets
2. What is the impact of digital business on these
software markets?
3. The rising importance and market impact of
cloud and in-memory technologies
Digital Business Drives Real-Time
Decision Making
Real Time Not Real Time

Operational Decisions:
Approve this training course?
Structured Fulfill this order?
Best next action cross-sell offer?
Decision Structure

Source from which supplier?


Tactical Decisions:
Promote this person?
Semistructured Product pricing policy?
Which product features?
How to manage working
Business moments capital?
Strategic Decisions:
Acquire a company?
Invest in which products?
Ad Hoc Invest in new business?
Enter new territory?

Seconds Minutes Hours Days Weeks Months Years


Time to Decide and Act
Digital Business Drives Real-Time
Decision Making
Real Time Not Real Time

Operational Decisions:
Approve this training course?
Structured Fulfill this order?
Best next action cross-sell offer?
Decision Structure

Source from which supplier?


Tactical Decisions:
Promote this person?
Semistructured Product pricing policy?
Which product features?
How to manage working
capital?
Business moments
Strategic Decisions:
Acquire a company?
Invest in which products?
Ad Hoc Invest in new business?
Enter new territory?

Seconds Minutes Hours Days Weeks Months Years


Time to Decide and Act
"The Integrated Business"*
Nexus of Desired outcome: Seamless
Forces interaction across all IT assets of
your business stakeholders.

label

Application
Strategy
Information
Management
The
& Integrated
Application and Business
Infrastructure
Software

Evolving
Role of IT

*See "Agenda Overview for Application Infrastructure, 2015" (G00270740).


Infrastructure Software Technologies Aligned to
Business Needs: Sell to Outcomes and Results
Technologies Solutions Business Needs
Key Infrastructure Software Technologies Leading Business Needs and Requirements
AD: Construction Tools; ADLM, Testing Multichannel AD; user experience design and HTML5 support.
AIM: Integration and Platform Middleware, B2B Low latency, in-memory data grids and event processing
Middleware, Business Process Management capabilities; data velocity analysis.
(BPM) Suites, Portal Software
Information Management: DBMS, Data Leveraging data and implementing data analyses; understanding
Integration and Data Quality the value and liability of ungoverned and underused information.
ITOM: Availability and Performance, Automation Quality of service and performance; simultaneous management
tools; IT Asset & Financial Management; ITSSM; of multiple environments; managing and configuring bring your
DevOps Tools own device (BYOD); performance analytics and dashboards.
Software to support DevOps tool chain to facilitate change.
Security: Security Information and Event Provisioning BYOD initiatives; pervasive access for multichannel
Management, User Provisioning networking; mobile device management.
Storage: Backup and Recovery Software, Archiving Prioritizing data; optimizing backup technology investments;
Software, Core Storage Management tiered data valuation, provisioning and protection strategies;
information governance strategies.
Virtualization: Server Virtualization Infrastructure Coordinating server virtualization with cloud deployments; virtual
desktop initiatives.

Source: "Market Trends: Monetizing Gartner's Nexus of Forces in the Enterprise Software Markets" (G00256405)
Information Management:
More Dynamic and Aggressive

Demand for real-time analytics


with operational data
Dark data
Existing unused data
Managing the growing
amount of data flexibly with
acceptable latency
Flexible infrastructure
LDW, Hadoop, new and
existing DBMSs (Logical Data Warehouse)
Cloud refactoring has just
begun
Application Infrastructure and Middleware
Marketplace: Integrate Everything, Faster
Traditional Emerging
Everyone's IT,
Integrated in
Business Moments

Dozens

Your IT,
Integrated Over
Several Years
Hundreds
How can you design for
interoperability between things
Thousands
you can't even predict?
CIOs Do Not Feel That Innovation Will Come
From the Usual VendorsAre You Ready?
Which technology company has been most 32%
influential over the past 10 years?
37%
Which will be in the next 10 years?

Others
Last 10 years
28%
Next 10 years

23%

20% 14%

15% 15%
5% 5% 5% 5% 3%

3% 4% 2% 2% 1%

Gartner annual CIO Survey; percent of respondents mentioning each brand;


1,305 respondents (last 10 years) /1,255 respondents (next 10 years)
22
Key Topics

1. What is the current state of the Information


Management and Application Infrastructure and
Middleware (AIM) Markets
2. What is the impact of digital business on these
software markets?
3. The rising importance and market impact of
cloud and in-memory technologies
Synergy Between Application and Data
Integration Intensifies in Digital Business

Cloud
label IoT

Mobile Partners
Drivers: Advancement:
Analytics moving from iPaaS merging capabilities
static data to real-time to accommodate
insights in business LOB/SMB developers who
moments have no integration skills
Amassing data from and don't segregate
applications, repositories application and
label
and other solutions for data integration
innovation/differentiation
User
Brokerage Experience
Data integration activities increasingly involve interoperating
with application integration technology (of own or another
vendor) in a single solution architecture
Data Integration Capability as a Cloud Service
in iPaaS Begins to Gain Interest
Data, application, services, process integration platform
A2A, B2B, data and cloud integration
Governance/API management

Hybrid combination of:


ESB As a service (no IT operations)
B2B gateway software Model-driven development tools
MFT Packaged integrations
Governance/API management Marketplace/self-service
Data integration Collaborative tools
Subscription-based pricing

As a set of colocated services


On a multitenant, elastic cloud infrastructure
By 2018 iPaaS will be the Second Largest PaaS
Offering
Worldwide Revenues - Millions of U.S. Dollars
2,500 40%
35%
2,000
30%

1,500 25%
20%
1,000 15%
10%
500
5%
0 0%

2014 2019 CAGR 2014-19


Source: Market Trends: Platform as a Service, Worldwide, 2013-2018, 2Q14 Update, G00263643
In-Memory Computing
Traditional Architecture In-Memory Computing
Architecture
Database of Record

Database of
Record

Persistency
Application Recovery Application
Post Processing
Backup
Main Memory (DRAM) Main Memory (DRAM)

In-memory computing (IMC) is an architecture-style


where applications assume all the data required
for processing are located in the main memory of
their computing environment.
(DRAM - Dynamic Random Access Memory - volatile memory)
IMC Changes the Game for Business
Applications

Intelligent Business Operations


Potential Impacts
Analytics Greater efficiency (speed!):
Transactions
- Overall gains
- Long running processes
(e.g., MRP, profitability analysis,
complex reports)
50
45
40
35
30
25
20
15
10
5
0
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
- Faster queries
Advanced real-time analytics:
Opportunities Opps Serviced

- Forecasting, simulation, what-if


ERP/CRM/SCM - Zero-latency drill downs
Application Process innovation:
In-Memory - Business goal-driven decision
Data Store making (e.g., profitability,
customer satisfaction)
(CPM - Corporate Performance Management - Dashboards)

Look for short-term opportunities in CPM, SCM and ERP!


IMC-Enabled Business Application
Innovation: Big and Fast Data
Real-Time Environment IMC
Interactive Real-Time Decisions Technologies
Analysis and Filtering
"Things" Alerts

Social CEP
Networks Complex Event
Processing
Web
Business IMDG
Business In-Memory Processes
Applications Store In Memory Data
Interactive Grid
Analysis
Databases
Log Files
IMDBMS
In Memory Database
Management System
Data Visualization
and Analytics High
DW NoSQL Data Visualization
Performing
Store and Analytics Messaging
Instant Messaging
IM
Analytical Data Marts Analytical Data Marts Analytics

Historical Analytical Environment


The In-Memory Computing Technology
Market Is Big And Getting Bigger
Standalone IMC-enabling application infrastructure ($M)

12,000
$10 billion by year-end 2019 with a In-memory Application
CAGR of over 22%. Servers
10,000
High Performance
Message
8,000 Infrastructure
Event Stream
Processing
6,000
In-memory Data grids
(standalone)
4,000
In-memory Analytics
2,000
In-memory DBMS
0
2013 2014 2015 2016 2017 2018 2019
23
Recommendations

Develop or
Support clients' acquire PaaS
Strategically
desire to source capability to
endorse IMC
different kinds of compete more
technologies as
integration aggressively, or
critical enablers
solutions to be prepared to
for a wide range
address different lose share on
of digital
kinds of products in
business use
integration traditional
cases.
problems. markets.
Gartner Recommended Reading
Introductory Research Coverage and Market Overviews
- Market Share: All Software Markets, Worldwide, 2014
- "Agenda Overview for Software Market Applications, 2015" (G00270739)
- "Agenda Overview for Infrastructure Software Market, 2015" (G00270740)
- "The Gartner Scenario for Application Providers: From Buy to Make" (G00263378)
- "Market Definitions and Methodology: Software" (G00271624)

Forecasts and Market Data


- "Big Data Drives Rapid Changes in Infrastructure and $232 Billion in IT Spending Through 2016" (G00245237)
- "Forecast: Enterprise Software Markets, Worldwide, 2011-2018, 4Q14 Update" (G00260915)
- "Forecast: Public Cloud Services, Worldwide, 2012-2018, 4Q14 Update" (G00263156)
- "Forecast Overview: Enterprise Application Software, Worldwide, 2014" (G00264650)
- "Forecast Overview: Enterprise Infrastructure Software, Worldwide, 2014" (G00265177)
- "Market Share: All Software Markets, Worldwide" (G00260918)
- Survey Analysis: Buyers Reveal Cloud Application Adoption Plans Through 2017 (G00269424)

Market Trends and Business Strategy Planning


- How In-Memory Computing Technologies Enable Digital Business (G00268442)
- Hype Cycle for In-Memory Computing, 2014 (G00264165)
- Market Guide for In-Memory Computing Technologies (G00263056)
- The Spectrum of IMC Styles Meets the Spectrum of Business Needs (G00261294)
- In-Memory Data Grids Enable Global-Class Web and Mobile Applications (G00224596)
- Hybrid Transaction/Analytical Processing Will Foster Opportunities for Dramatic Business Innovation (G00259033)
- In-Memory Computing Will Unlock New ERP and CPM Business Value (G00263820)
- Impact of In-Memory Computing on CRM (G00268911)
- The Impact of In-Memory Computing on Supply Chain Management (G00270202)
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