Worldwide Automated Software Quality Market Shares, 2016: Setting Path to Quality for Digital Transformation from Legacy to Web to Mobile to IoT Leveraging Cloud
This IDC study provides an analysis of the 2016 automated software quality (ASQ) vendor market share. It discusses IDC's ASQ assessment with specific vendor analysis for a market that continued with single-digit growth of 2.2% to $2.6 billion in 2016 compared with growth of 2.4% to $2.5 billion in 2015. As organizations continued to reinvest in ASQ solutions to address increased complexity across a variety of vectors (including business, technology, software sourcing, and diverse platform deployment with mobile, social business, and cloud), with three exceptions, most major-share ASQ solution providers experienced some revenue increases, though at lower levels typically compared with last year due to a volatile economy. Others experienced losses largely due to evolving product releases, shifts to cloud delivery models, and some encroachment by open source tools, including major revenue player HPE at 24% share (down from 26.4% share in 2015) and IBM at 7.9% share (down from 9.8% in 2015). Midsize innovative vendors in emerging technology areas like mobile, software quality analysis and measurement, and cloud testing contributed to enable improved ASQ growth in 2016. We are also observing the impact of OSS usage and integration by vendors (such as Selenium and Cucumber). We also saw acquisitions moving into 2017, indicating shifting resources for HPE to Micro Focus for its ASQ and other assets, shifting to HCL developers for IBM Rational's Quality and other assets, and leverage of quality analysis vendor Coverity in the embedded space, with Synopsys augmenting its 2014 Coverity acquisition with follow-on acquisitions of security-related and other products (e.g., Cigital, Protecode) (see Synopsys Expands Software Security Portfolio with Acquisition of Cigital Coordinating Services with Automation, IDC #US42300617, February 2017). Consolidation in the ASQ arena also included the acquisition of Klocwork by Rogue Wave (1Q14), the acquisition of Keynote by Dynatrace (3Q15), and CA Technologies' acquisition of Grid-Tools (2Q15), to augment the company's prior ITKO acquisition (2011), BlazeMeter (2016), and most recently, Veracode (2Q17) (with primary revenue in IDC's security vulnerability management [SVM] market, though it uses static dynamic analysis functionality which sits across both ASQ and SVM). Longer term and moving into 2H17–2018, the ASQ market is slated for an overall trajectory of growth. IDC expects ongoing acquisitions in the 2017–2018 time frame as enterprise providers seek to broaden their ASQ portfolios. "In a global economy that remained somewhat volatile in 2016 and with ongoing, dramatically increased complexity for multimodal software development and deployment and service virtualization with constrained resources, we saw ongoing investment and demand for ASQ solutions and some growth along with acquisitions and shifting of major vendor allocations for enterprise ASQ. Market and product evolution will occur as larger vendors deliver more complete quality and life-cycle management solutions and consolidation continues," says Melinda Ballou, research director for Agile , Quality and Portfolio Strategies at IDC. "As a result of the earlier disruption and ongoing software quality challenges, we saw some continuing ASQ investment. Smaller vendors continue to play a crucial role for market innovation as we see from cloud testing, quality measurement with static and dynamic analyses and security leverage, agile, embedded and mobile solutions; these areas are dominated by small and medium-sized companies. We expect additional acquisitions beyond very significant acquisition announcements last year and solid ASQ growth in this space in the 2017–2019 time frame."
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