Gartner analysts reported impressive growth in project and portfolio management software for the third consecutive year. This growth can be measured in terms of markets and revenues. Gartner Newsroom published a table that showed vendors’ PPM spending. It identified the top five companies and groupings the rest. The table included 2012 revenues in millions of US dollars, percent market share, 2011 revenues and the corresponding percent growth between 2011 and 2012. The comparative table shows that total revenues grew by 11%, from 1.48 billion to 1.65 billion in 2011.

The Top 5
This table also shows that Oracle occupies the first spot, followed by Microsoft and then CA Technologies. Planview and HP are in the fourth and fifth spots, respectively. It is interesting that 2012 revenue from only five vendors accounts for 57% of total 2012 PPM software revenues. HP had the highest revenue growth rate of 14%. Laurie Wurster, Gartner research director, stated however that the three highest-ranking companies will likely remain in their positions unless major acquisitions take place.
Key Movements and Winning Strategies
In 2012, acquisitions and company partnering seem to have been the dominant themes. With the purchase of Instantis in November 2012, a leader in cloud-based and on premise PPM solutions, Oracle was able retain the top spot. Vendors looked at new markets outside of North America and Western Europe. This was because the region’s growth was less than other regions like Latin America, Eastern Europe and Asia. It is a good strategy to expand into these areas by partnering with strategic business models and new partners. Moreover, vendors focused more on innovation such as new product releases and improving packaging and delivery options through software-as-a-service (SaaS). PPM vendors, on the other hand, were more focused on integrating their products in 2011.
Growth Factors
Ms. Wurster noted that the PPM market grew despite a slow economy and tightening of customers’ IT budgets. It is possible that such factors are why companies are looking for tools to help them manage their project resources and optimize them. The stagnant economies in North America and Western Europe are causing different user needs. Vendors respond by expanding their product lines, merging with other companies, or moving into new markets in different regions. These regions have more companies purchasing software for the first-time than the developed markets.
A Continuing Trend
Despite growing interest in emerging markets, 90 per cent of PPM software revenues still come from developed countries. The difference is that developed markets are not first-time buyers but are updating their software and changing what they use. Both mature and emerging economies have the same need for better tools and solutions in order to stay competitive and efficient. With a slowly improving economy, there is no doubt that PPM software and solutions will continue to be in demand.
About Gartner, Inc.
Gartner will present more information on PPM trends at the PPM & IT Governance Summit of 2013. For more information and to make a reservation, please visit the Gartner website. Gartner, Inc., is an information technology research advisory firm that delivers technology-related insights for its clients.
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