📜 ⬆️ ⬇️

What happened to the manufacturers of ITSM solutions in 2017 (Gartner report)

Analytical company Gartner annually analyzes solution providers in various IT areas. They reduce their research into quadrants, placing the companies in order of their compliance with the requirements of Gartner. Today we will talk about the quadrant of ITSM solutions for 2017. Therefore, if suddenly you decide that the current automation tool (service desk or something else) does not suit you, - read the article to the end. We work with some of these suppliers, we know a little more about them than Gartner writes, but in general, the balance of the players is exactly that.
image



The report is posted on the Gartner website and is available to everyone.

image
')
In the article, you will learn about the development of market players over the past year and a description of the assessment methodology using the horizontal (completeness of vision) and vertical (ability to perform) scale of the quadrant. If you use one of the listed products, it is possible that certain changes within the company will be news for you. You will have food for thought about expanding cooperation with the manufacturer (expanding automated processes) or, conversely, about switching to another product.

Benefits and risks associated with manufacturers - quadrant participants


Axios Systems


Axios Systems offers one ITSM Assyst product, aimed at organizations with a high degree of maturity of ITSM processes. Product rated in a Gartner Critical Capabilities study .

Benefits


Axios Systems focuses exclusively on ITSM solutions, as well as IT asset management.

Axios Systems maintains customer relationships (especially in Europe) and provides a customer interaction program. The relationship program is successful in North America and includes regular meetings with company management. In addition, they hold focus groups, offline client meetings and webinars.

Most clients have upgraded to the latest versions of Assyst, which demonstrates the active interaction with them by the company.

Risks


Axios Systems has the smallest market share among the quadrant participants. The growth in customer numbers and revenue lags behind the industry during the study period.
Most Axios clients and marketing efforts are located primarily in Europe and North America. The company has a limited presence in other regions. Axios Systems has invested in the SaaS platform, however, few customers use it.

BMC


Moving on to the mastodon market for ITSM solutions. BMC offers 4 ITSM products: Remedy Service Management Suite (for companies with a high degree of maturity of processes), Remedyforce based on Salesforce platforms or Footprints (for companies with an average degree of maturity of processes) and Track-It (for companies with a basic degree of maturity of processes).

Benefits


The Smart IT interface of the Service Management Suite and Smart Recorder products is convenient and flexible (also available on mobile devices).

BMC has a large portfolio of ITOM products, which is an advantage for mature companies who need to expand the range of tools used. BMC has the largest client base of ITSM clients, open to expanding cooperation and new sales.

Risks


Despite BMC's recent innovations, the company has not been able to extend the functionality of Remedy (according to Gartner research over the past year, conducted among its customers). Gartner clients often associate their experiences using BMC products with legacy implementations.

The Salesforce sales team did not promote Remedyforce for most of 2016 and all of 2017.

Customers using FootPrints reported dissatisfaction with product usability and performance.

CA Technologies


CA Technologies offers one ITSM product called CA Service Management. It targets organizations with a high degree of maturity of IT processes. Product rated in a Gartner Critical Capabilities study .

Benefits


CA Technologies is a global company. Balanced deals with direct sales and sales through system integrators and resellers in the EMEA region and Latin America. CA Technologies remains a well-known brand, the manufacturer knows a lot about customer needs and this helps sell ITSM solutions to large customers.

The company offers a wide range of ITOM tools that are directly integrated with CA Service Management.

Risks


CA Technologies, unlike other participants in the quadrant, invests a smaller percentage of its income in the development of its ITSM product. However, CA in June 2016 provided a new user interface for support analysts.

The company abandoned CA Cloud Service Management. However, CA partners remained who continue to provide services based on this product. So, customers who are looking for an ITSM SaaS application will be able to find a suitable product in the CA line. After analyzing the market share, Gartner concluded that the CA Technologies revenue share in the ITSM market consistently declined every year from 2010 to 2016.

Cherwell Software


Cherwell Software offers one ITSM product, called Cherwell Service Management, aimed at companies with medium and high maturity. Product rated in a Gartner Critical Capabilities study .

Benefits


Cherwell actively attracts customers and forms a pool of loyal and satisfied customers.

The company has expanded its ITOM capabilities and supports a wide range of third-party integrations and extensions. Cherwell supports the Exchange Mergeable Application (mApp) platform, where third-party developers can host their applications ...

Unlike competitors in the magic quadrant, Cherwell spends most of his income on research and development of his own ITSM product.

Risks


In search of additional ITSM features (beyond Cherwell’s arsenal), the company's customers will have to purchase additional products from other solution providers.

Cherwell's desire to sell to large customers forces Cherwell to focus on medium-sized companies that were once their main focus.

Customers in some regions report difficulties finding partners for projects with Cherwell ITSM products.

Easyvista


EasyVista offers one ITSM product, EasyVista Service Manager, which targets companies with any degree of maturity. Product rated in a Gartner Critical Capabilities study .

Benefits


EasyVista clients talk about success in customizing workflows and user forms within a solution without having to write additional code, although this sometimes requires knowledge of SQL.

EasyVista IT Service Manager can work on-premise and in the cloud, while its functionality is the same for both modes.

The company attracted funding in the amount of $ 8.4 million, which it now uses to take over and expand its global presence.

Risks


Despite growing revenue, EasyVista has one of the smallest market shares among the participants in the magic quadrant, ranking 11th worldwide among ITSM products in 2016.

EasyVista targets organizations with any degree of maturity, but the Gartner Critical Capabilities study found that its ITSM solution still does not cover all the requirements of companies with a high degree of maturity.

EasyVista has a limited worldwide presence. The company focuses on Europe and North America, with few partners and customers in Asia.

HPE


Hewlett Packard Enterprise (HPE) offers HPE IT Service Management Automation (ITSMA), which is a range of products. It includes HPE Service Manager, which targets companies with a high degree of maturity of IT processes. Product rated in a Gartner Critical Capabilities study . In the third quarter of 2017, HPE allocated ITSM and other ITOM products in a separate direction for merging with MicroFocus.

Benefits


HPE is a recognized brand with global reach, and its services are available in all major regions.

HPE offers a wide range of ITOM tools that can directly integrate with ITSMA.

HPD BigData solutions improve search and analytics for incident management, change management and knowledge management.

Risks


In Q3 2017, HPE sold ITOM software, including ITSMA, to the British company Microfocus. However, as you know, MicroFocus usually maintains the status quo of purchased products and does not develop them.

At the end of 2016, shortly after the announcement of the sale of ITOM products to MicroFocus, HPE stopped selling cloud services. Consequently, the company now does not offer the ITSM toolkit, supplied as SaaS.

Despite the migration programs and attempts by HPE to encourage its customers to update the software, many users of the company's ITSM products work with older versions of HPE Service Manager.

Ibm


IBM offers a product called Control Desk, which is focused on companies with a high degree of maturity of IT processes. Product rated in a Gartner Critical Capabilities study .

Benefits


IBM offers a wide range of ITOM tools that can directly integrate with the Control Desk product.

The company has extensive global partnerships and resources in Europe and Asia, where many other members of the magic quadrant do not have a significant presence. IBM has the ability to use Watson technologies in future releases of its products to develop a strategy for managing cognitive services for the automation of artificial intelligence and Service Desk services.

Risks


IBM is not trying to promote Control Desk, so Gartner customers rarely consider it in their shortlists when choosing a new ITSM tool.

Most Control Desk users work with older versions of the product. From February 2016 to March 1, 2017 (evaluation date for this study). There were no updates.

IBM is not interested in selling Control Desk beyond its existing customer base. The company relies on the Control Desk being sold as part of a larger ITOM solution.

Ivanti


The company was formed by the merger of Landesk and Heat Software. Ivanti offers a single product, called Ivanti Service Manager, that targets companies with an average and high degree of maturity of IT processes. Product rated in a Gartner Critical Capabilities study .

Benefits


The merger of Landesk and Heat Software gives Ivanti a solid base to challenge market leaders, helped by good automation of enterprise device management. Ivanti effectively sells its products through channels that serve companies with low and medium degree of maturity of IT processes. Heat Software (now part of Ivanti) has improved customer satisfaction through annual advisory boards that allow customers to influence future product development.

Risks


Despite investing in a multi-level SaaS platform, few of Ivanti's old customers use products in the cloud. The majority of Landesk and Heat Software revenues in 2016 came from other products — for asset management, end device management, and security. The merger at Ivanti resulted in product uncertainty and licensing policies for existing Heat and Landesk customers.

ServiceNow


Technoserv provides cloud services Service Desk and ITSM based on ServiceNow. The manufacturer promotes two ITSM-products - ServiceNow Service Management Suite and ServiceNow Express, which are focused on organizations with high and low degree of maturity of IT processes, respectively. ServiceNow Service Management Suite is rated in a Gartner Critical Capabilities study .

Benefits


ServiceNow dominates the Gartner customer shortlist, and its market share is twice as large as that of its closest competitor, which gives the company significant advantages in cooperation with technology and implementation partners.

Over the past few years, ServiceNow has improved the ITOM capabilities by developing products that have been acquired that complement its ITSM solution (for example, the configuration management product CMDB).

ServiceNow's global reach is expanding as the company actively develops relationships with local sales and sales partners.

Risks


The approach to licensing by the number of named users and the addition of additional non-core functions in the product makes potential customers to think hard about the advisability of purchasing ServiceNow.

Customers report that the implementation and operation of ServiceNow products requires more time and resources than they expected.

ServiceNow's strategy to promote its products to solve problems outside of ITSM creates uncertainty regarding ServiceNow’s focus on introducing innovations in the field of ITSM.

Quadrant inclusion criteria


To be included in the quadrant, manufacturers must:


Criteria for evaluation


Ability to Execute


Product or service. The main software offered by the supplier for the target market. Includes software capabilities, quality, feature set, manufacturer experience, etc., regardless of whether the software is offered directly or through OEM agreements / partnerships.
Below are 11 evaluation criteria:

  1. Incident and problem management. Incident and problem management is necessary for all IT organizations that use ITSM products. This allows companies to manage the life cycles of IT incidents and problems from their inception to closure. These are the main features that all ITSM products should have.
  2. Management of changes and releases. The built-in change and release management functionality is important for organizations with a medium or high level of maturity and is used to manage risks associated with changes.
  3. Configuration management. Configuration management is important for organizations with a medium or high degree of maturity to keep IT assets up to date. This is relevant for supporting change and incident management processes.
  4. Self-service portal / execution of requests. Query execution is important for IT organizations that are focused on providing business users with a convenient way to interact with IT services in an organized catalog.
  5. Knowledge management. Knowledge management is a key area of ​​differentiation of all use cases. The knowledge portal should allow end users to solve simple incidents themselves. Tools must create knowledge bases for relevant, updated content that is useful for IT and business users.
  6. Teamwork. Collaboration capabilities are designed to help IT professionals work together to solve IT incidents and problems to help business users solve IT problems. It will also be useful for those business users who help colleagues.
  7. Reporting and SLA management. Reporting and information dashboards are key IT support tools. They support and expand the decision-making process (strategic and tactical) and the connection of IT with the business.
  8. Design processes. IT organizations in ITSM systems need preconfigured forms, ready-made fields, workflows and reports for managing IT services.
  9. Integration with ITOM-systems. The ability to integrate with performance management tools is becoming increasingly important, especially for organizations that use software from other ITOM mini sites.
  10. Total Cost of Ownership (TCO). The cost of standing licenses and subscriptions for ITSM tools is very different. Many organizations overpay when choosing the ITSM tool.
  11. User experience and flexibility. Product configuration flexibility is an important factor that distinguishes various ITSM tools for different levels of maturity. Users of IT services prefer a simplified and intuitive interface.

Overall vitality. Viability includes an assessment of the financial condition of the entire organization, financial and practical success, the likelihood that the manufacturer will continue to invest in the product and promote it within the organization’s product portfolio.

Sales and pricing. Support by the manufacturer of all pre-sales activities and the organization of internal units that support this process. Includes transaction management, pricing and negotiation, presale support, and overall sales channel effectiveness.

Responsiveness of the market. The ability to respond, change direction, be flexible in organization, achieve competitive success, take into account the evolution of customer needs and changes in market dynamics. This criterion also takes into account the manufacturer’s past reactions to changes in the market situation.

Marketing promotion. Clarity, quality, creativity and effectiveness of programs designed to promote solutions. Influencing the market, brand and business promotion, increasing product awareness and establishing positive product / company identification. This may be due to a combination of advertising, advertising initiatives, ideological leadership and direct sales.

Experience working with clients. Relationships with customers, loyalty programs that help customers to appreciate the decisions of the manufacturer. In particular, it includes obtaining technical support, customer support programs (and their quality), the existence of user groups (communities), service level agreements, etc.

Performance Criteria
Evaluation criterion
Criticality
Product or service
High
Overall vitality
Average
Sales and pricing
High
Market responsiveness
Average
Marketing promotion
Average
Experience working with clients
Average

Completeness of Vision


Understanding the market. This is the ability of the manufacturer to understand the needs of customers and translate them into products and services. Producers who, more than others, listen to customer needs, are valued, understand them and improve their products with their vision of the market.

Marketing strategy. Clear, differentiated promotion consistently through the website, advertising and customer programs.

Sales strategy. A product sales strategy that uses a network of direct and indirect sales and marketing to expand the scope and depth of the market and customer base.

Product strategy. The manufacturer's approach to development, which provides differentiation, functionality, methodology that meets current and future customer requirements.

Business model. The soundness and logic of the business proposal of the manufacturer.
Innovation. Direct, indirect and complementary.

Geographical strategy. Evaluate the manufacturer’s strategy to address the specific needs of geographic regions outside or in this country, directly, through partners or subsidiaries.

Criteria for assessing the completeness of vision
Evaluation criterion
Criticality
Understanding the market
High
Marketing strategy
High
Sales strategy
Average
Product strategy
High
Business model
Average
Innovation
High
Geographic strategy
High

Quadrant Fields Description


Leaders


BMC and ServiceNow are in the leader quadrant. Both manufacturers have proven themselves and are the two largest suppliers in the ITSM market by revenue in 2016 (they account for more than 60%). BMC and ServiceNow demonstrate a high level of solutions, marketing and sales opportunities necessary to play in the market.

Challengers


Cherwell and Ivanti are in the Challengers quadrant. These manufacturers have also proven themselves by increasing their market share, improving their ITSM solutions, and have proven their viability sufficient to play with competitive products in the market with other suppliers. After the merger of Heat Software and Landesk in Ivanti in January 2017 (and in 2016 they were in the quadrant of niche players), it turned out that Ivanti had a stronger base that allows them to challenge the market leaders.

Strategies (Visionaries)


The manufacturers of this quadrant offer innovative products that affect important organizational problems of customers, but have not yet reached a significant market share or competence. Nobody fits this description this year, since everyone is focused on innovations that go beyond ITSM tools.

Niche Players


Axios Systems, CA Technologies, EasyVista, HPE and IBM are located in the quadrant of niche players. These manufacturers have strengths in certain areas of ITSM, but, as a rule, have not invested in satisfying all customer requirements in order to demonstrate a complete vision and ability to fulfill. Manufacturers in this quadrant are focused on a small segment, are in the process of increasing market share or, on the contrary, have stopped developing their own solutions.

I invite you to participate in the survey at the end of the post and tell in the comments what you like / dislike in your current decision. Maybe not enough of some functionality, and so the rules?

The author of the article is Anton Kasimov , architect of monitoring systems, Tekhnoserv company.

Source: https://habr.com/ru/post/348604/


All Articles