Magic Quadrant for integrated it portfolio analysis applications


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Magic Quadrant for integrated it portfolio analysis applications

  1. 1. 13/12/15 Magic Quadrant for Integrated IT Portfolio Analysis Applications Magic Quadrant for Integrated IT Portfolio Analysis Applications 19 November 2013 ID:G00247059 Analyst(s): Daniel B. Stang, Jim Duggan VIEW SUMMARY The IIPA software market helps IT leaders link, monitor, analyze and communicate their activities on a single portfolio-level software platform, providing CIOs and other executives with holistic views of the IT portfolio while IT plans and executes in response to business and IT strategies. Market Definition/Description This document was revised on 20 November 2013. The document you are viewing is the corrected version. For more information, see the Corrections page on Integrated IT portfolio analysis (IIPA) bridges the gap between the formulation of IT strategies and the actual management of the physical changes made to the IT footprint in response to these strategies. The resulting IIPA software market consists of vendors providing the integration of individual portfolios — for investments, projects, assets and IT services — to present a more holistic story regarding the true state of the IT portfolio. Integrating these views enables IT leaders to see the cost, effort, technical complexity, feasibility and interrelated effects of a proposed IT change or initiative. For the full IIPA market definition, see "Examine Alternative IT Portfolio Strategies With IIPA Practices and Products." For further details on putting the need for IIPA software in context, see the Context section near the end of this Magic Quadrant. Products in this market strive to serve up the correct, interrelated perspectives, views and considerations that are needed to make strategic execution decisions in IT, without forcing users into the depths of detailed management and process automation within any specific functional domain. IIPA vendors offer versatile portfolio analysis and management that enable users to create, connect and share portfolios of the IT department's investments, projects, assets and IT services. Integrated visibility across different IT silos or domains can bring their often unique perspectives to the table to enhance capital and strategic IT investment prioritization and decision making for a CIO, an IT steering committee, a governance board or council, an IT program or project management office (PMO), or others requiring this type of visibility. By design, IIPA is about using a portfolio management software system to enhance communication among different IT portfolio managers (for example, those responsible for the infrastructure portfolios, the application portfolios, the project portfolios and so on), and with the CIO after the business has set a strategic direction and an IT strategy has been defined. IIPA functionality should be implemented with a focus on the portfolio level, not at the deep tactical process level in specific IT silos, where other solutions would be a better fit. Return to Top Magic Quadrant Figure 1. Magic Quadrant for Integrated IT Portfolio Analysis Applications EVIDENCE Vendor-submitted forms detail all products and services for each vendor cited in this research. Multiple briefings were conducted with each vendor cited in this research. Interviews or written surveys were conducted with user references from each vendor cited in this research. This Magic Quadrant follows the methodology outlined in "How Gartner Evaluates Vendors and Markets in Magic Quadrants and MarketScopes." More than 1,000 client inquiries on PPM and IIPA software tools and applications were conducted from September 2012 through October 2013. EVALUATION CRITERIA DEFINITIONS Ability to Execute Product/Service: Core goods and services offered by the vendor for the defined market. This includes current product/service capabilities, quality, feature sets, skills and so on, whether offered natively or through OEM agreements/partnerships as defined in the market definition and detailed in the subcriteria. Overall Viability: Viability includes an assessment of the overall organization's financial health, the financial and practical success of the business unit, and the likelihood that the individual business unit will continue investing in the product, will continue offering the product and will advance the state of the art within the organization's portfolio of products. Sales Execution/Pricing: The vendor's capabilities in all presales activities and the structure that supports them. This includes deal management, pricing and negotiation, presales support, and the overall effectiveness of the sales channel. Market Responsiveness/Record: Ability to respond, change direction, be flexible and achieve competitive success as opportunities develop, competitors act, customer needs evolve and market dynamics change. This criterion also considers the vendor's history of responsiveness. Marketing Execution: The clarity, quality, creativity and efficacy of programs designed to deliver the organization's message to influence the market, promote the brand and business, increase awareness of the products, and establish a positive identification with the product/brand and organization in the minds of buyers. This "mind share" can be driven by a combination of publicity, promotional initiatives, thought leadership, word of mouth and sales activities. Customer Experience: Relationships, products and services/programs that enable clients to be successful with the products evaluated. Specifically, this includes the ways customers receive technical support or account support. This can also include ancillary tools, customer support programs (and the quality thereof), availability of user groups, service-level agreements and so on. Operations: The ability of the organization to meet its goals and commitments. Factors include the quality of the organizational 1/10
  2. 2. 13/12/15 Magic Quadrant for Integrated IT Portfolio Analysis Applications structure, including skills, experiences, programs, systems and other vehicles that enable the organization to operate effectively and efficiently on an ongoing basis. Completeness of Vision Market Understanding: Ability of the vendor to understand buyers' wants and needs and to translate those into products and services. Vendors that show the highest degree of vision listen to and understand buyers' wants and needs, and can shape or enhance those with their added vision. Marketing Strategy: A clear, differentiated set of messages consistently communicated throughout the organization and externalized through the website, advertising, customer programs and positioning statements. Sales Strategy: The strategy for selling products that uses the appropriate network of direct and indirect sales, marketing, service, and communication affiliates that extend the scope and depth of market reach, skills, expertise, technologies, services and the customer base. Offering (Product) Strategy: The vendor's approach to product development and delivery that emphasizes differentiation, functionality, methodology and feature sets as they map to current and future requirements. Business Model: The soundness and logic of the vendor's underlying business proposition. Vertical/Industry Strategy: The vendor's strategy to direct resources, skills and offerings to meet the specific needs of individual market segments, including vertical markets. Source: Gartner (November 2013) Return to Top Vendor Strengths and Cautions BMC Software BMC Software's IIPA product is IT Business Management Suite. Strengths Innovation: Direct, related, complementary and synergistic layouts of resources, expertise or capital for investment, consolidation, defensive or pre-emptive purposes. Geographic Strategy: The vendor's strategy to direct resources, skills and offerings to meet the specific needs of geographies outside the "home" or native geography, either directly or through partners, channels and subsidiaries as appropriate for that geography and market. BMC Software's IT Business Management Suite offers an IT operations approach to IIPA, with support for integrating demand and resource management with IT service and IT project portfolio management. When evaluating and prioritizing IT investments, users can link IT projects to resulting operations costs in time, people and money; they can assess a project's level of complexity; or they can apply application or service dependencies. BMC Software provides a cloud-hosted deployment option for its customers. Cautions IT Business Management Suite's strength in IIPA is its foundation in IT operations. However, out of the box, the product does not provide strong support for application portfolio management (APM). IT Business Management Suite does not yet provide application road-mapping capabilities, including graphical views of an application's life cycle in relation to other application life cycles within an application portfolio. IT Business Management Suite is customizable, configurable and well-positioned to support IIPA. However, at this time, we found little evidence in the field of BMC customers using the suite for IIPA. Return to Top CA Technologies CA Technologies' IIPA product is CA Clarity PPM. Strengths CA Clarity PPM provides IT portfolio management and decision-making support. Version 13 introduced foundational APM support, and users can cross-reference applications and projects to track financials, resource allocations and support costs at the application level. CA Clarity PPM supports IT service portfolio management capabilities for tracking and managing IT service costs to rationalize IT decisions affecting IT operations. CA Technologies provides a cloud-hosted deployment option for customers. Cautions CA Clarity PPM does not yet provide out-of-the-box graphical application road-mapping that represents the application life cycle and its associated projects in one holistic view. CA Clarity PPM cannot yet call up a graphical enterprise architecture (EA) model for reference 2/10
  3. 3. 13/12/15 Magic Quadrant for Integrated IT Portfolio Analysis Applications and/or comparison with applications, services and projects that are stored within it. CA Technologies customers that are on releases prior to version 13 need to evaluate upgrade options to version 13 soon to ensure that they have access to the latest Clarity functionality, including any APM capabilities introduced as part of version 13. Return to Top Cardinis Solutions Cardinis Solutions' IIPA product is Cardinis Suite. Strengths Cardinis is increasing its global presence slowly over time, extending into France, Brazil, Germany, Spain, Switzerland, the U.S. and the U.K. The Cardinis Suite offers top-down portfolio management and IT decision-making support, including top-down budget and financial planning as well as fast function point analysis (FFPA). Italian companies that are interested in applying IIPA in their IT departments cite Cardinis' local presence as a differentiator, along with the vendor's strong consulting services in the practice of IT portfolio management. Cautions Cardinis' native support for APM is very limited compared with other IIPA vendors evaluated in this Magic Quadrant. Cardinis Solutions has been acquired twice in the short span of two years. As part of solution selection, potential customers should fully evaluate how the Cardinis product will be maintained and supported under its new parent company, GFT Group. The Cardinis Suite cannot yet call up a graphical EA model for reference and/or comparison with applications, services and projects that are stored within it. Return to Top Compuware Compuware's IIPA product is Changepoint. Strengths Changepoint includes an APM Accelerator, which offers out-of-the-box APM metrics, reports and portal views. Users can catalog hundreds of individual application records, and then associate different types of IT work requests with these records within Changepoint. Portlets can be created in Changepoint to help users see what applications stored in the product have not been edited or enhanced for a specified period of time, thereby ensuring currency of the application data stored in Changepoint. Cautions Changepoint does not yet provide application road-mapping for graphically depicting and planning the life cycle of an application — and all its iterations, sprints or stages — in one holistic view. Although Compuware offers a cloud-hosted deployment option for Changepoint, cloud hosting is a smaller part of the overall business relative to other vendors in this research. Changepoint cannot yet call up a graphical EA model for reference and/or comparison with applications, services and projects that are stored within it. Return to Top EOS Software EOS Software's IIPA product is Integrated IT Portfolio Management. Strengths Integrated IT Portfolio Management offers independent top-down portfolio management, and can integrate different IT portfolios (such as IT project, application, technology, services, and IT asset portfolios). The product provides a deep and flexible data model that supports varying levels of discipline and maturity that have been observed in different silos within IT. EOS Software has a strong track record in the field; it can implement its IIPA product in three months or less on a significantly consistent basis. Cautions Although EOS Software displays significant IIPA vision, the company is small and will need to grow quickly to support a global IIPA market. EOS Software should enhance its product support beyond consultative interactions. Improvements should include additional out-of-the-box templates and workflow models, best practices, computer-based training, and other self-help assistance so customers can explore and apply the directions they wish to take to evolve and grow with the product. EOS Software's marketing is currently limited, which may inhibit its ability to build brand awareness in the IIPA market. Return to Top HP HP's IIPA product is HP Project and Portfolio Management (PPM) Center. 3/10
  4. 4. 13/12/15 Magic Quadrant for Integrated IT Portfolio Analysis Applications Strengths HP PPM Center includes top-down portfolio management and IT decision-making support. HP PPM Center offers on-premises and software as a service (SaaS) deployment of an APM module for application-portfolio-level governance. HP PPM Center supports portfolio-level tracking, analysis and decision making for IT service portfolio management, and can integrate with HP's IT service management (ITSM) products. Cautions Although HP PPM Center is well-positioned in IT for use as an IIPA system, Gartner was only able to verify limited use of the product as an IIPA system. The on-premises version of HP PPM Center requires the use of Oracle Database exclusively. HP's SaaS option, however, nullifies the need for customers to supply their own skilled Oracle Database administrators to use HP PPM Center. Customers asking HP to fulfill complex APM requirements as part of an IIPA implementation report longer-than-average implementation times involving a combined use of HP PPM Center and HP's APM module. Return to Top Innotas Innotas' IIPA product is Innotas. Strengths Innotas provides all its IIPA features and functions through a cloud-native IT portfolio management system. Innotas allows users to build application portfolios, create an application inventory inside the system and create links to assets. Innotas provides graphical representations of the application landscape, allowing users to see how specific applications relate to one another and/or support the business. Cautions Innotas continues to build its financial viability and customer count, and it is profitable, yet it may still choose to reach out for investor funding to increase its current growth capital. Innotas provides hierarchy charts and Gantt-style views, but does not currently provide an application road-mapping capability that allows users to graphically depict and plan the life cycle of an application. Innotas cannot call up a graphical EA model for reference and/or comparison with applications, services and projects that are stored within it. Return to Top Planview Planview 's IIPA product is Planview Enterprise. Strengths Planview provides a core set of top-down portfolio management features for connection and communication between the business and the IT PMO, application management, and IT operations management. Planview Enterprise includes independent APM capabilities, which allow users to associate applications with projects and projects with applications. Planview Enterprise's application road-mapping allows application portfolio managers to plan the life cycle of an application, and to graphically map iterations, sprints or stages within the application's life cycle. Cautions Planview must continue to evolve its product's ability to filter, view, cross-reference and analyze — from different perspectives — the state and health of the application inventory, such as, in relation to end of life, the level of compliance with IT strategy, or the criticality to key business processes. Planview Enterprise cannot call up a graphical EA model for reference and/or comparison with applications, services and projects that are stored within it. Planview will need to increasingly improve its APM consulting services to help customers use Planview Enterprise as an IIPA solution. Return to Top Software AG Software AG's IIPA product is alfabet. Strengths Alfabet includes native project and portfolio management (PPM) and APM functionality in one product. The Portfolios Live product brings IIPA capabilities to the cloud, and is slim enough to perform well over the Internet. Alfabet can recalculate and amortize project costs over time, deriving amortization from the project cost values that were originally captured in alfabet. Cautions 4/10
  5. 5. 13/12/15 Magic Quadrant for Integrated IT Portfolio Analysis Applications The user interface and general usability need improvement to counter the inherent complexity of the product. In August 2013, Software AG announced plans to deliver a new alfabet graphical user interface (GUI) in 2014. It will be based on HTML5 to improve usability. Better mapping is needed between the vendor's proprietary alfabet query language (AQL) and SQL. Using workflows and wizards included in the product improves its overall usability. Enhancements to consulting services are needed, including additional core best practices and additional consulting. In response to customers' need for more out-of-the-box workflows and configuration starting points, Software AG has deployed a catalog of best-practice solutions for alfabet users. Return to Top UMT UMT's IIPA product is UMT360 for IT. Strengths UMT360 for IT provides IIPA using the Microsoft SharePoint Server platform. UMT360 for IT includes graphical road-mapping of application life cycles in one holistic view. UMT360 for IT can decompose a business and IT strategy into a tactical or strategic execution plan involving financials, projects, applications and IT services. Cautions UMT360 for IT does not provide graphical representations of the application landscape, which would allow users to see how specific applications relate to one another and/or support the business. UMT360 for IT cannot call up a graphical EA model for reference and/or comparison with applications, services and projects that are stored within it. However, linkages to dedicated EA tools would offer a work-around for customers that wish to do this. UMT should improve its deployment model to reduce the overall time it takes to implement UMT360 for IT. Return to Top Upland Upland's IIPA product is PowerSteering. Strengths PowerSteering provides cloud-based IT portfolio management and decision-making support. Users can decompose a business initiative into programs, projects and services using a hierarchical structure within PowerSteering. Recent additions in version 10 include an enhanced GUI and improved usability, as well as editable dashboards that allow users to make changes directly in the dashboards. Cautions PowerSteering does not provide graphical representations of the application landscape, which would allow users to see how specific applications relate to one another and/or support the business. PowerSteering does not provide an application road-mapping capability that allows users to graphically depict and plan the life cycle of an application. PowerSteering cannot yet call up a graphical EA model for reference and/or comparison with applications, services and projects that are stored within it. Return to Top Vendors Added and Dropped We review and adjust our inclusion criteria for Magic Quadrants and MarketScopes as markets change. As a result of these adjustments, the mix of vendors in any Magic Quadrant or MarketScope may change over time. A vendor's appearance in a Magic Quadrant or MarketScope one year and not the next does not necessarily indicate that we have changed our opinion of that vendor. It may be a reflection of a change in the market and, therefore, changed evaluation criteria, or of a change of focus by that vendor. Return to Top Added EOS Software Return to Top Dropped Oracle Instantis Return to Top Inclusion and Exclusion Criteria Vendors must provide a top-down, stand-alone and dynamic IT portfolio analysis system. Products in this Magic Quadrant must: Allow users to natively create and manage at least two IT-domain-specific portfolios (for 5/10
  6. 6. 13/12/15 Magic Quadrant for Integrated IT Portfolio Analysis Applications example, investment, asset, service or project). Combine and cross-reference many types of objects and portfolios. Include the ability to incorporate unstructured data, such as survey results; support the identification, cataloging and analysis of risk factors; and support the ability to graphically depict, value and analyze an application inventory. Support the creation and management of role-specific views for IT and non-IT management and domain experts, with material to support portfolio analysis and management (for example, views for financial management and financial analysts, as well as views for their IT counterparts). Provide native (that is, not as a third-party add-on or outside of the core product, nor through third-party OEM or other integration partnership) portfolio management features and functions, such as demand management, investment and budget planning, initiative prioritization and selection, resource planning and allocation, financial and project and application road map simulation, and reporting. Import or otherwise include the potential operational costs and service impacts related to the decision making that affects any IT portfolio. Support IIPA without requiring the use of outside bolt-on software or ancillary, generalpurpose development environments. Be generally available, and vendors must have three reference customers in production. Return to Top Evaluation Criteria Ability to Execute Product or Service: Providers scoring well display: Above-average R&D commitment Strong, independent, and dynamic portfolio creation and management features A strong, independent, portfolio-level workflow that supports the intersection and integration of multiple IT portfolios and perspectives Support for automated portfolio prioritization Strong resourcing features (beyond skill searches — for example, loading/leveling, named-resource use and performance management) Configurable planning/scheduling features An ability to reflect IT strategy and/or EA reference models derived from third-party tools An ability to formulate a strategic execution model or plan involving applications, projects or both Graphical road-mapping of different types of portfolio objects (for example, assets and applications) Overall Viability: A vendor rated favorably in viability typically has a balanced revenue stream that includes: Substantial new license revenue (not necessarily a majority of revenue) that drives services and future maintenance. Healthy profits (or strong investor support with a positive profitability outlook). A sizable, loyal installed base. Strong innovation and attractiveness to potential large acquirers, which can contribute to the assessment of a solution's (as opposed to a company's) viability. This subcriterion measures company viability. Those companies that score relatively low may have had to cut staff, close offices or undergo investor-driven restructuring. Sales Execution/Pricing: Providers with higher scores demonstrate a motivated direct sales force with a strong, incentive-based plan and training for the product. Experienced and sufficient technical sales support is needed, and ratings improve with a well-trained secondary partner channel. The ability to sell and market globally (especially in North America and the EU, but also in Asia/Pacific and Latin America) improves ratings. However, ratings are reduced by significant turnover in the sales force or marketing team, or if providers are unable to give support outside their immediate regions. Market Responsiveness/Record: Market-responsive vendors have innovated in a timely manner, and in ways that complement their existing target markets and traditional development patterns (for example, by adding independent functionality that supports one or more IT subdomains, such as PMO, investment management, application management or IT operations). Releases of new versions and features should be as announced. Lower scores will result from slow or inaccurate responses to demands or technology changes. Marketing Execution: This criterion involves the design of specific marketing plans that include multiple portfolio managers, as well as the execution of those plans in the form of marketing messaging that is consistent with integrated portfolio analysis supporting the interdependent domains within IT. Customer Experience: Vendors scoring higher in this category offer direct IIPA services as part of doing business, and they can produce customer references confirming the use of their portfolio management products specifically for IIPA. Consulting isn't restricted to implementation services because process change is often key to success. These vendors' service partners supplement (but don't replace) their own capacity. Support staff members consistently provide quality service with good response times. Lower ratings result from lack of evidence in the field of customers using the product for IIPA. Operations: Higher operations scores are supported by: A senior management team whose members have an average of at least 15 years of industry experience among them, including several years in senior management roles A strong IT and business educational background 6/10
  7. 7. 13/12/15 Magic Quadrant for Integrated IT Portfolio Analysis Applications An understanding of market evolution in integrating the different portfolios, and an understanding of the rationale behind the decision making occurring in the PMO, in application management and in IT operations, including support for the fusion of strategic prioritization based on more than just cost-benefit analysis Those providers scoring poorly may have shown inconsistency between expressed plans or views and execution. Table 1. Ability to Execute Evaluation Criteria Evaluation Criteria Weighting Product or Service High Overall Viability Medium Sales Execution/Pricing Medium Market Responsiveness/Record Medium Marketing Execution Low Customer Experience High Operations Low Source: Gartner (November 2013) Return to Top Completeness of Vision Market Understanding: The vendors that are targeting CIOs and their portfolio managers should have a strong, clear understanding of the market opportunity, which is exemplified by direct support for an integrated platform across the IT domains through product innovations, marketing campaigns and portfolio integration. All these value-added capabilities should be clear and apparent in vendors' marketing campaigns. Market understanding should drive the innovation of products and the development of functions outside vendors' normal "comfort zones." Partnering indicates some market understanding, but the optimal understanding is indicated by direct dedication to the new opportunity. Marketing Strategy: The vendors that are targeting CIOs' portfolio managers should have a strong, clearly defined strategy for marketing to these target customers as individual domain leaders and as part of CIOs' leadership teams. Sales Strategy: The vendors that are targeting CIOs and their portfolio managers should have a strong, clearly defined strategy for selling solutions to these target customers, especially those who are not customers of the vendors' legacy products as they move into this integrated space. Offering (Product) Strategy: Our evaluation of product strategy is wide-ranging, but includes assessments in a number of areas. The offering (product) strategy should include the development of the following features and functions continuously over time: IT strategic execution definition (supporting several types of portfolios) IT strategic execution and portfolio metrics and measurement IT portfolio creation, management and integration (projects, assets, investments and services) Application portfolio generation (out-of-the-box application portfolio capabilities that are not dependent on or associated with project records creation) Graphical road-mapping of portfolio elements IT project portfolio management (standard project portfolio support) IT program management (managing programs as entities and associating projects defined with an overarching program or programs) Visibility into costs and other impacts on the IT service portfolio IT-portfolio-level visibility into the interrelationships and impacts shared among the various domains Business Model: Because this is a newer market, we are looking for evidence that the vendor identified the new market opportunity by adjusting its business model to support it. This also requires a capable sales force that is accustomed to high-level sales and longer sales cycles. In addition, we assess the provider's commitment to customer success by offering a modular solution with "phaseable" implementation, as well as a full range of fairly priced services. Multiple modes of deployment should be supported, although supporting all possible options is not required. This criterion measures the level of reliance on partners for service and sales, and favors a commitment to maintain significant, direct system integration and other services. Vertical/Industry Strategy: Technology providers often provide industry- or discipline-specific features. In this Magic Quadrant, we have a low weighting for this criterion because we tend to expect horizontal use within IT for many solutions. For clients in IT and application development (AD) organizations, we continue to credit the special strength of solutions in supporting IT/AD projects, processes, roles and interfaces. Because IT can manifest as different "flavors" — that is, IT runs the business versus IT is the business — vendors scoring high marks in this area will provide features and functions that can support both of these IT scenarios (for example, IT-based "product" management). Innovation: Vendors that exhibit business and technology innovation rate higher on the Completeness of Vision axis — for example, via architectural evolution, including "thinking outside the traditional sandbox," or, in other words, developing independent features and functions that are not part of an existing business or product offering (for example, PPM vendors adding independent APM features and functions, rather than partnering for it). Other innovations include independent strategic execution design and measurement, which are not tied to other system objects and activities, but are true independent functionalities that 7/10
  8. 8. 13/12/15 Magic Quadrant for Integrated IT Portfolio Analysis Applications enable high-level analysis and planning. Vendors receiving high marks in innovation also address integration of the portfolios, strategies and rationale of the subdomains in IT (for example, tying and linking interdependencies among application management and application portfolios, the IT project portfolio, and IT operations). For example, their products can often call up, reference and map strategic execution to the overall IT strategy, as derived and defined from third-party tools and planning. Geographic Strategy: In this emerging market, vendors that score "high" will have a strong global presence, as well as detailed plans for leveraging that presence to target different customers in many parts of the world that are interested in integrated portfolio analysis. Table 2. Completeness of Vision Evaluation Criteria Evaluation Criteria Weighting Market Understanding High Marketing Strategy Medium Sales Strategy Medium Offering (Product) Strategy High Business Model Medium Vertical/Industry Strategy Low Innovation High Geographic Strategy Low Source: Gartner (November 2013) Return to Top Quadrant Descriptions Leaders Leaders in this Magic Quadrant meet many portfolio management needs of multiple domains within IT; they can also support many different IT portfolio scenarios, as well as multiple IT domain roles for IIPA. Leading IIPA products can interweave these IT portfolios and IT scenarios by identifying the interrelationships and interdependencies among the elements within and across them. Product features of Leaders often include detailed organization, modeling, and what-if planning and other scenario planning to map IT's planned physical response to directives that are handed down as part of the overall business strategy and the proceeding IT strategy. Leading products aggressively strive to integrate the planned execution of change to the IT footprint, in response to the needs of the business, using portfolio management as a foundation. These products can analyze the cost and progress of the IT response to the business and IT strategy, and serve up the right perspectives, analysis and impact views required by CIOs, IT portfolio managers, and other business leaders. Many identified Leaders not only provide strong capabilities to support IIPA, but also they can furnish evidence of customers' use of their products in the field specifically for IIPA purposes. Return to Top Challengers Challengers in this Magic Quadrant are similar to Leaders in their ability to execute a go-to-market strategy targeting the complex environment of integrated portfolios within IT. Challengers can often demonstrate product functional depth for some specific IT domains, and leverage sales experience to target IT departments as IIPA customers. Challengers often have the financial viability, existing IT installed base and market understanding to compete in this market more effectively over time, and respond to new requirements through product development and innovation. However, they might not yet provide enough support for one or more IT domains or roles identified in this research; they may rely on partnerships to deliver certain functions; or they may not yet easily integrate courses of action or policies of multiple IT domains efficiently or intuitively. Challengers provide IIPA capabilities in their products, but may not be actively pursuing the market as aggressively as other vendors. They may lack a well-defined IIPA strategy and value proposition in their marketing and sales strategies. Challengers often cannot provide strong evidence of customers' use of their products specifically for IIPA purposes, and/or their deployment of IIPA could be lengthy or costly or both. Return to Top Visionaries Visionaries resemble Leaders in many ways, especially when comparing them on the basis of specific criteria, such as product vision and innovation. Although they may lack functionality in some areas of IIPA, Visionaries alternatively demonstrate a strong vision for innovative thinking around holistic, configurable IT portfolio management. For example, products from Visionaries often provide the ability to reflect the IT strategy definition for reference when planning, measuring, and tracking IT's response to the business strategy and the resulting IT strategy. This can often be done without the need to construct and define a program or project hierarchy in the product. Other vendors, however, may have a more restrictive 8/10
  9. 9. 13/12/15 Magic Quadrant for Integrated IT Portfolio Analysis Applications data model forcing them to be more "creative" as it relates to helping customers manage different types of elements and portfolios in their products. "Creative," in this context, refers to cosmetic changes to the product, and not always to the underlying structures that could improve the product's ability to support IIPA more dynamically. Visionaries may or may not be as financially sound as Challengers or Leaders in this new market, or they might not have the global reach of IIPA Leaders. Some of the vendors populating the Visionaries quadrant are SaaS vendors. Thus, they can provide strong IT portfolio management capabilities, while offering customers a low-risk investment option in technology via 12-month, subscription-based software agreements. Some of the Visionaries in this Magic Quadrant, and other vendors in this Magic Quadrant that scored quite high on the Completeness of Vision axis in relation to others, can often provide significant evidence of dynamic IIPA functionality in their products, and can also produce strong customer references for IIPA. Return to Top Niche Players From a technical perspective, Niche Players have underlying components or "plumbing" in their products to support the generation and modeling of different IT perspectives using their core, independent IT portfolio management features and functionality, workflow, and reporting capabilities. These vendors may also target other portfolio management scenarios outside IT. Niche Players may be limited in global reach, focusing on certain areas of the world. Niche Players' products focus strongly and almost exclusively on cost-value analysis, and many of their current customers are focused on cost-value as the prevailing driver for IT portfolio management. Niche Players typically cannot provide strong evidence of customers' use of their products for IIPA in the field. Niche Players have the potential to make further inroads into IIPA as their customers begin asking for it, but they have not responded to IIPA as quickly as other vendors have via product development. Return to Top Context The road to IIPA begins with the creation and management of two or more IT-specific portfolios. In some cases, Gartner observes IT departments engaging in IIPA by first creating, as an example, an IT project portfolio and a corresponding organizational and management structure supporting IT investment management and PPM. In other cases, the IT department may engage in IIPA by first creating an application "book of record" or application portfolio, designing an application governance model, and rationalizing an inventory of applications against the application governance model and the corresponding IT strategy. In both cases, the IT department comes to the realization that both projects and applications are linked and interdependent, and that understanding both portfolios and these links helps to justify the IT changes needed in either practice area. As they mature, IT departments engaging in IIPA begin cross-referencing different IT portfolios. These early IIPA practitioners are now able to see and understand the costs, risks and business value associated with managing work that results in physical changes in IT, as well as for the existing inventory of assets that IT leverages to support the business's strategic and operational needs. IIPA also helps the IT department map its technical plan and response to the defined business and the resulting IT strategy. IIPA bridges the gaps between the formulated IT strategy and IT's tactical response as it changes the IT footprint in accordance with the IT strategy. IT departments should evaluate any existing software providers that are identified as IIPA vendors, and seek to understand their ability to provide portfolio analysis capabilities that support the integration of multiple IT views. Return to Top Market Overview The ability to integrate IT project, application, asset and service portfolios is emerging in PPM, application life cycle management, ITSM and other types of software applications. To do so, the software must be versatile enough to support portfolio definition, creation, analysis and integration across these native portfolio types. One functional hallmark of IIPA software tools involves bridging the gap between technical change analysis in the silos by translating those findings into resource consumption estimates and overall cost estimates; another hallmark involves financial investment decision support and planning capabilities. Using software that supports IIPA, individual portfolio managers can expect to do many of the following within their portfolios: Model and manage the elements of their IT portfolios within a native portfolio structure (without repurposing project management features or customizing the same to support this IT modeling and planning). Design IT-based metrics and manage centralized data, providing value markers for the elements they manage. Graphically depict the overall life cycle of each of their IT portfolio elements using road- 9/10
  10. 10. 13/12/15 Magic Quadrant for Integrated IT Portfolio Analysis Applications mapping capabilities. Prioritize and select the best plans, allowing for more than just cost-value analysis by including consideration of the impacts on interdependent IT portfolios or the architecture. Model future views of their domain-specific IT portfolios and compare them with current models or portfolio views, while highlighting and rationalizing the changes required to move from one view to the next to assist in planning. Analyze the effects of proposed IT changes, whether those changes manifest as new projects, changes to the application inventory, or changes to IT operations or services. Articulate and communicate to the CIO or other portfolio managers any potential impacts or effects (positive or negative) that a proposed IT change may have on the part of IT that they manage. Additional research contribution and review: Audrey Apfel, Donna Fitzgerald, Robert Handler, Mike Hanford, Matt Light, Lars Mieritz, Elise Olding, Julie Short Return to Top © 2013 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. This publication may not be reproduced or distributed in any form without Gartner’s prior written permission. If you are authorized to access this publication, your use of it is subject to the Usage Guidelines for Gartner Services posted on The information contained in this publication has been obtained from sources believed to be reliable. Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information and shall have no liability for errors, omissions or inadequacies in such information. This publication consists of the opinions of Gartner’s research organization and should not be construed as statements of fact. The opinions expressed herein are subject to change without notice. Although Gartner research may include a discussion of related legal issues, Gartner does not provide legal advice or services and its research should not be construed or used as such. Gartner is a public company, and its shareholders may include firms and funds that have financial interests in entities covered in Gartner research. Gartner’s Board of Directors may include senior managers of these firms or funds. Gartner research is produced independently by its research organization without input or influence from these firms, funds or their managers. For further information on the independence and integrity of Gartner research, see “Guiding Principles on Independence and Objectivity.” About Gartner | Careers | Newsroom | Policies | Site Index | IT Glossary | Contact Gartner 10/10