IBM Has Top Share in All Application Integration, Middleware Markets
A slow economy allowed IBM to grow market share in 2002 at the expense of pure-play application integration and middleware vendors. But IBM hasn't locked up the market. Other vendors may offer products that will serve you best.
Event: On 5 May 2003, Gartner Dataquest announced the results of its market share study of the application integration, middleware and portal market in 2002. IBM holds the most market share in application servers, integration brokers and portal products.
First Take: The slow economy improved IBM's market share by extending sales cycles and challenging the revenue growth of many software vendors. This climate favored IBM's strong financial stability, proven commitment to products and brand awareness. IBM's other strengths include a large sales and services staff (more than 30,000), numerous partners, and a large installed base of hardware and infrastructure software customers. These factors, as well as being positioned in a growth market, allowed IBM to grow by taking market share in all application integration and middleware markets while the shares of the other, smaller vendors sank.
Table 1
Worldwide IBM Market Share Position Based on New License Revenue
| |
2000 |
2001 |
2002 |
| Application Servers |
2 |
2 |
1 |
| Integration Broker Suites |
1 |
1 |
1 |
| Portals |
N/A |
3 |
1 |
| Message-Oriented Middleware |
1 |
1 |
1 |
Application Platform Suites
Composite Market |
2 |
2 |
1 |
| Transaction Processing Monitors |
1 |
1 |
1 |
| Total Market |
1 |
1 |
1 |
Source: Gartner Dataquest (May 2003)
Some IBM strengths could become weaknesses. Having a large installed base and a massive product transition to execute by 2006 will cause IBM many headaches as it migrates customers to significantly different versions of its integration broker, message-oriented middleware and application platform suite.
Also, the higher total cost of ownership of IBM products may be a problem. If IT spending stays weak through 2004, competitors will offer lower-priced products. In short, IBM has not won a permanent victory in the market share battle. Many smaller players provide competitive, viable alternatives.
Recommendations: IBM holds the largest revenue market share in many sectors; it does not dominate middleware. Other powerful players are growing in various segments. Don't measure a vendor's strength only by revenue and market share. In addition to these criteria, evaluate prospective vendors on their installed base, innovation, engineering and execution, the number of new partners and customers, and supporting customers across geographies.
Analytical Sources: Joanne Correia, Massimo Pezzini, Roy Schulte and Yefim Natis, Gartner Research
Recommended Reading and Related Research
- "Magic Quadrant for Application Integration Vendors, 2Q03" – Use this Magic Quadrant as part of a larger, more detailed assessment that respects the particular business requirements of the enterprise. By Jess Thompson and others
- "Enterprise Application Server Magic Quadrant, 2Q03" – Use our enterprise application server Magic Quadrant in context. Consider the match of the vendor's offering as well as the specific requirements, practices and limitations of the enterprise, its industry and its geography. By Yefim Natis and Massimo Pezzini
Gartner FirstTake FT-20-0227, J. Correia, Y. Natis, M. Pezzini, R. Schulte, 7 May 2003.
To talk to someone about how this can help your business please contact us.
sales@erebor.co.uk
Tel. 44 (0)845 2411536
