Worldwide Automated Software Quality Market Shares, 2014: Acquisitions Dominate Market Transition
This IDC study provides an analysis of the 2014 automated software quality (ASQ) vendor market share. It discusses IDC's ASQ assessment with specific vendor analysis for a market that continued with lower, single-digit growth of 1.4% to $2.44 billion in 2014 compared with growth of 2.3% to $2.41 billion in 2013. 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), most major-share ASQ solution providers experienced some revenue increases, though at lower levels typically compared with last year due to a volatile economy, evolving product releases, and some encroachment by open source tools, with the notable exception of two, including major revenue player HP at 30.9% share (and declines of 1.1%). Midsize innovative vendors in emerging technology areas like mobile, software quality analysis and measurement, and cloud testing contributed to enable some ASQ growth in 2014. We are beginning to observe the impact also of OSS usage (such as Selenium). We also saw acquisitions moving into 2014, indicating leverage of quality analysis vendor Coverity in the embedded space, with Coverity's acquisition by Synopsys. Consolidation in the ASQ arena also included the acquisition of Klocwork by Rogue Wave (1Q14) and that of Lucierna (4Q13) by SmartBear.Most recently, CA Technologies acquired Grid-Tools (2Q15) to augment the company's prior ITKO acquisition (2011). Longer term and moving into 2015–2017, the ASQ market is slated for an overall trajectory of growth. IDC expects ongoing acquisitions in the 2014–2015 time frame as enterprise providers seek to broaden their ASQ portfolios."In a global economy that remained volatile in 2014 but with ongoing, dramatically increased complexity for multimodal software development and deployment and service virtualization with constrained resources, we saw some ongoing investment and demand for ASQ solutions and some growth for vendors, typically. Market and product evolution will occur as larger vendors deliver more complete quality and life-cycle management solutions and consolidation continues," says Melinda Ballou, program director for Application Life-Cycle Management and Executive 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, and agile and mobile solutions; these areas are dominated by small and medium-sized companies. We expect additional acquisitions and solid ASQ growth in this space in the 2015–2016 time frame."