The worldwide cloud systems management software market grew 84.4% in 2011 to $754 million in revenue. CA Technologies and VMware led the market with $137 million and $135 million in revenue respectively. Private cloud implementations represented 63.4% of revenue. The market is expected to continue growing rapidly as organizations expand their cloud management needs beyond basic provisioning to include monitoring, governance, and other capabilities.

1. COMPETITIVE ANALYSIS
Worldwide Cloud Systems Management Software 2011
Vendor Shares: Market Moves Beyond Self -Service
Mary Johnston Turner
IN THIS EXCERPT
The content for this excerpt was taken directly from Worldwide Cloud Systems
Management Software 2011 Vendor Shares: Market Moves Beyond Self-Service by
www.idc.com
Mary Johnston Turner (Doc # 236556). All or parts of the following sections are
included in this excerpt: IDC Opinion, In This Study, Situation Overview, Future
Outlook, Essential Guidance, Learn More and Synopsis. Also included are Figures 1,
2, and 3.
F.508.935.4015
IDC OPINION
The worldwide cloud systems management software market is a competitive market
representing portions of several IDC functional markets including change and
P.508.872.8200
configuration management, workload scheduling and automation, performance
management, event management, and problem management. IDC analysis of market
activity during 2011 indicates:
 The worldwide cloud systems management software market increased 84.4%
Global Headquarters: 5 Speen Street Framingham, MA 01701 USA
over 2010 for total estimated revenue in 2011 of $754 million.
 CA Technologies with $137 million and VMware with $135 million in revenue led
the market in 2011.
 The Americas, responsible for an estimated 65.0% of revenue, continue to
dominate the market.
 Private cloud implementations represented 63.4% of revenue.
Filing Information: August 2012, IDC #236556, Volume: 1
IT Cloud Decision Economics: Competitive Analysis

2. IN THIS STUDY
This IDC study examines leading vendor shares and market trends in the worldwide
cloud systems management software market during 2011. Vendor shares from 2010
are provided for historic context. An updated forecast for the 2012–2016 time frame
will be published separately.
Methodology
Please note the following:
 The information contained in this study was derived from IDC's Software Market
Forecaster database as of May 15, 2012.
 All numbers in this document may not be exact due to rounding.
 For more information on IDC's software definitions and methodology, see IDC's
Software Taxonomy, 2012 (IDC #235401, June 2012).
Worldwide Cloud Systems Management
Software Taxonomy
The worldwide cloud systems management software market is an IDC competitive
market that reflects portions of revenue reported in the following functional markets:
 Workload scheduling and automation
 Change and configuration management
 Performance management
 Event management
 Problem management
Revenue estimates for this competitive market include license, maintenance, and
subscription revenue for packaged software and SaaS solutions used to actively
manage enterprise and service provider cloud environments. It is important to note
that, in the case of cloud systems management functionality bundled as part of a
converged infrastructure hardware platform, software revenue is not recognized
unless it is tracked and reported using its own separate SKU(s). Related revenue
from professional services, training, and implementation support services is excluded.
#236556 ©2012 IDC

3. Because different vendors make different choices about product and SaaS service
packaging, bundling, and branding, revenue estimates for this market include not only
flagship cloud-specific solutions but associated systems management software
products, management packs, and SaaS services only to the extent they are
deployed to enable fully operational cloud management environments. As an
example, if a customer implements a private cloud using VMware's vCloud Director,
revenue for vCloud Director and any other vCenter licenses needed to enable the
operational cloud environment will be included in the revenue estimates for this
market, but other vCenter licenses used outside of the cloud will be excluded.
For an environment to qualify as a cloud, the following systems management
software capabilities must be actively in use:
 Self-service cloud infrastructure application provisioning automation, including a
service catalog and policy-based life-cycle management capabilities
 Automated infrastructure orchestration and virtualization management used to
enable dynamic infrastructure resource pooling and sharing across multiple
workloads and user groups
 The ability to track cloud resource consumption to support life-cycle
management, capacity planning, and (optionally) chargeback/showback
The aforementioned list of capabilities applies to both public and private clouds and
represents the minimum systems management software functionality required for an
environment to be considered a cloud for the purposes of this market sizing.
The estimates in this document also cover software products and SaaS offerings
used to enable a broad range of additional cloud systems management activities
including middleware and application provisioning, cloud service performance
monitoring and service-level management, analytics to optimize cloud capacity
planning, cloud governance software, and tools to manage cloud configuration
compliance and reporting. Packaged software and SaaS solutions used to manage
and monitor public cloud services and workloads running in hybrid public and private
cloud environments are also included.
Software products deployed to support operation of virtualized resources or used to
enable automated VM or bare metal provisioning or workload management, in the
absence of self-service and other core cloud capabilities, are not included in these
estimates.
Systems management software capabilities delivered via the SaaS model are only
included to the extent they are used to enable cloud management environments, as
described previously. The fact that systems management software is delivered via a
SaaS cloud service does not necessarily mean it is included in these estimates since
many systems management SaaS solutions are used to manage and monitor
resources that operate in noncloud environments and architectures.
Revenue estimates in this document are developed consistent with IDC's normal
calendar year revenue recognition and currency conversion methodologies.
©2012 IDC #236556 1

4. SITUATION OVERVIEW
In 2011, the worldwide cloud systems management software market grew
dramatically, totaling an estimated $754 million in 2011, an increase of 84.4% over
2010 (see Table 1). The top 2 vendors, CA Technologies and VMware, benefited
from market demand for a range of capabilities beyond self-service provisioning,
which anchored most vendor revenue in 2010.
TABLE 1
Worldwide Cloud Systems Management Software Revenue by Vendor,
2010 and 2011 ($M)
2010 2011 2011 Share (%) 2010–2011 Growth (%)
CA Technologies 60 137 18.2 128.3
VMware 62 135 17.9 117.7
BMC 35 92 12.2 162.9
HP 38 80 10.6 110.5
IBM 48 78 10.3 62.5
Subtotal 243 522 69.2 114.8
Other 166 232 30.8 39.8
Total 409 754 100.0 84.4
Source: IDC, August 2012
2 #236556 ©2012 IDC

5. In the case of top-ranked CA Technologies, IDC estimates cloud systems
management software revenue for 2011 was $137 million, which represents revenue
growth of 128.3% over 2010. This revenue was associated with several automation,
monitoring, and business service management products including the CA Automation
Suite for Clouds, AppLogic, Business Service Insight (formerly Oblicore), and
Nimsoft. CA Technologies has solid cloud go-to-market programs reaching both
enterprise and service provider customers and continues to invest aggressively in its
cloud management portfolio via acquisitions, partnerships, and organic development.
IDC estimates CA Technologies captured 18.2% of the market.
Private Cloud Demand Continues to
Drive Market
Similar to findings in 2010, IDC's 2011 research indicates that private clouds
dominate demand for cloud systems management software. While service providers
of many types and sizes are continuing to build out cloud service environments, they
also continue to resist extensive use of licensed systems management software to
support these services.
In some cases, service providers will partner with the systems management software
vendors using a pay-as-you-grow model that allows the service provider to deploy the
software without having to pay for it until it is actually being used to support a
revenue-producing service.
In other cases, service providers are relying on open source solutions including
OpenStack, CloudStack, and Eucalyptus and are creating their own value-add
software, portals, and analytics on top of open source cloud platforms. While this may
create some demand for professional and training services, it limits the growth of
revenue for commercial software and SaaS cloud systems management software
options.
As shown in Figure 1, IDC estimates 63.4% of revenue was associated with private
cloud implementations and 36.6% went to public cloud deployments.
©2012 IDC #236556 3

6. FIGURE 1
Worldwide Cloud Systems Management Software Revenue Share by
Type of Cloud, 2011
Source: IDC, August 2012
Performance by Region
Because of the extensive use of virtualization across North America and the
weakness of the eurozone economy, the Americas have continued to dominate the
market with 65.0% of revenue compared with an estimated 21.7% in EMEA and
13.3% in Asia/Pacific (including Japan) (see Figure 2).
FIGURE 2
Worldwide Cloud Systems Management Software Revenue Share
by Region, 2011
Source: IDC, August 2012
4 #236556 ©2012 IDC

7. Performance by Operating System
Windows continues to lead the market, followed by Unix- and Linux-based
solutions. Since many newly introduced cloud systems management solutions are
being deployed on Linux, Linux-based solutions showed the greatest level of
growth, increasing from an estimated $45 million in 2010 to $136.3 million in 2011
(see Figure 3).
FIGURE 3
Worldwide Cloud Systems Management Software Revenue Share by
Operating Environment, 2011
Source: IDC, August 2012
FUTURE OUTLOOK
IDC expects the worldwide cloud systems management software market will continue
to experience explosive growth for several more years as enterprise and service
provider customers move from pilots to production and expand the set of
management software products and SaaS services used to support these
environments.
IDC believes the most successful cloud systems management software and SaaS
vendors will offer customers a wide range of capabilities beyond self-service portals
and automation and will be architected to support heterogeneous hypervisor and hard
platforms as well as a range of hybrid cloud scenarios.
©2012 IDC #236556 5

8. ESSENTIAL GUIDANCE
IDC expects a number of major vendors and innovative start-ups to continue to jostle
for market leadership over the next two to three years as the worldwide cloud
systems management software market expands and matures. IDC has identified
more than a dozen cloud systems management start-ups and innovators that are
poised to introduce advanced capabilities to the market and are likely to offer leaders
a continued supply of acquisition candidates. Long-term winners in this market will
offer customers a broad set of capabilities that are integrated and packaged to enable
IT staff to improve operational efficiency while maintaining high-quality service levels.
LE ARN MORE
Related Research
 Red Hat Extends Cloud Service Management Options (IDC #lcUS23599712, July
2012)
 BMC Updates Cloud Management Software Portfolio to Make Stronger Business
Connections (IDC #lcUS23621212, July 2012)
 IDC's Software Taxonomy, 2012 (IDC #235401, June 2012)
 Worldwide Cloud Systems Management Software 2012–2016 Forecast (IDC
#234001, March 2012)
 Worldwide Cloud Systems Management Software 2011–2015 Forecast Update
and 2010 Vendor Shares (IDC #231493, November 2011)
 Worldwide Cloud Systems Management Software 2011 Vendor Strategies (IDC
#231140, November 2011)
 U.S. 2011 Private Cloud Management Survey: The Journey Continues (IDC
#230188, September 2011)
 IT Cloud Decision Economics: 10 Best Practices for Public IT Cloud Service
Selection and Management (IDC #229207, July 2011)
 Private Cloud: It's All About Operational Efficiency (IDC #227870, April 2011)
Synopsis
This IDC study examines worldwide cloud systems management software market
vendor shares for 2011, with historic information from 2010 included for comparison.
6 #236556 ©2012 IDC

9. IDC estimates the market increased 84.4% to a total of $754 million worldwide. "The
worldwide cloud systems management software market continues to expand rapidly
as customers move from pilots to production and expand management requirements
beyond simple self-service provisioning automation to include performance
monitoring, governance, reporting, capacity planning, and other capabilities in their
cloud management environments," explains Mary Johnston Turner, research vice
president, Enterprise Systems Management Software.
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