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Worldwide Agile Application Life-Cycle Management Software Forecast, 2015–2019: Driving Dynamic, Adaptive Business Execution

Worldwide Agile Application Life-Cycle Management Software Forecast, 2015–2019: Driving Dynamic, Adaptive Business Execution

This IDC study provides a 2014–2019 forecast analysis for the worldwide agile application life-cycle management (ALM) market. IDC's analysis of this market resulted in worldwide agile application life-cycle management software 2014 revenue of $450.3 million, up 30.5% from the 2013 revenue of $345 million. IDC expects very strong growth for agile ALM software for the 2014–2019 time frame, with growth to $1.8 billion by 2019 and a high CAGR of 32% (on small initial numbers). Software execution in brittle financial environments demands adaptive prioritization, and we saw strong revenue growth from all major and key innovative agile ALM vendors in 2014 as well as in our early analysis for 2015 so far. The complexity of multimodal deployment/DevOps environments with mobile, social, cloud, and big data and analytics is a business necessity. And the complex sourcing needed for IT projects also demands agile ALM automation as an adoption enabler to execute effectively. SaaS offerings for agile ALM by major providers such as Microsoft and IBM augment existing offerings from Rally Software, VersionOne, and Atlassian, and smaller and other providers will significantly contribute to market growth for agile ALM during the 2014–2017 forecast period. These are not "nice to have" capabilities but are core to business execution. As companies reinvest in software development projects, programs, and portfolios, we see commensurate agile ALM investment at a time of fierce global competitive pressures and ongoing economic volatility. More generally, the increasing role and complexity of IT in the enterprise and the need to better align IT with business needs, corporate governance, and a plethora of regulatory requirements have combined to support ongoing growth for agile ALM. Agile vendors have been evolving their offerings across the three core functional markets that feed this competitive market — software change, configuration, and process management (SCCPM); project and portfolio management (PPM); and automated software quality (ASQ) with agile testing. We see increasing crossover for these markets and a role for agile across industries — including embedded software and smarter project creation as well as obvious demand for agile mobile application creation. This began to have an impact in 2014–2015 — with best-of-breed agile providers such as Rally Software, VersionOne, and Atlassian offering solutions and PPM vendors coordinating partnerships (including the acquisition of Rally Software by CA Technologies) and building out offerings — and will continue to play a role for market growth through 2019. "Agile ALM is key to innovation and is becoming a norm to drive dynamic, modern software delivery as larger vendors provide options and existing agile providers evolve," said Melinda Ballou, program director for IDC's Application Life-Cycle Management and Executive Strategies service. "We expect the use of agile ALM to increase dramatically throughout the 2014–2019 forecast period as cultural barriers are surmounted by effective process adoption, quick access to core capabilities via SaaS solutions, and use for DevOps with continuous release. Agile already has begun and will also play a significant role in ideation, embedded systems software development, and successful strategies for the Internet of Things, which will drive growth especially toward the middle of the forecast period."

IDC Market Forecast Figure
Executive Summary
Advice for Technology Suppliers
Advice for Those Engaging with Agile ALM Technology
Market Forecast
Worldwide Agile Application Life-Cycle Management Software Forecast, 2014–2019
Market Context
Drivers and Inhibitors
Global Competitive Pressures and Velocity
Complex Sourcing
Agile ALM Demand and Need for Governance
Global Compliance and Competitive Demands for Multimodal Deployment and IoT
Cultural and Process Barriers on Adoption
Significant Market Developments
Changes from Prior Forecast
Market Definition
Agile Application Life-Cycle Management Software Market Definition
Historical Market Values and Exchange Rates
Forecast Market Values and Exchange Rates
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