This IDC study provides the 2014 vendor share analysis for the worldwide project and portfolio management software-as-a-service market, which experienced 35.1% growth in 2014 to reach total revenue of $402 million, up from 2013 revenue of $298 million and growth of 28.8%. We expect a significant 2014–2019 CAGR of 32% (down slightly from last year's CAGR of 38.6%) to result in PPM SaaS revenue of $1.7 billion by 2019. Decision making in brittle financial environments demands effective prioritization, and we saw strong revenue growth from all major and key innovative PPM SaaS vendors in 2014 moving into 2015. The complexity of multimodal deployment environments with mobile, social, cloud, and Big Data analytics is a business necessity. And the complex sourcing needed for projects and programs also increasingly demands PPM SaaS automation as an adoption enabler to execute effectively. New SaaS offerings for PPM by major providers such as Microsoft and Oracle augment existing offerings from CA Technologies, HP, Planview, and smaller providers and will contribute to market growth in the SaaS sector for PPM significantly during the 2015–2019 forecast period. These are not "nice to have" capabilities but are core to business execution. As companies have reinvested in software development projects, programs, and portfolios, we see a commensurate PPM SaaS investment at a time of economic volatility and fierce, global competitive pressures.
More generally, the increasing role and complexity of both non-IT and IT PPM 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 PPM SaaS as the economy shifts. Agile and service management vendors have been leveraging PPM through alliances, integration, and/or acquisitions, facilitated by cloud PPM and SaaS offerings. This had an impact in 2013–2014, with best-of-breed (BoB) agile providers such as Rally Software, VersionOne, and even Atlassian offering solutions and PPM vendors coordinating partnerships and building out offerings, and will continue to play a role for market growth through 2019.
"SaaS delivery models for PPM have become the norm to drive adoption, as larger vendors provide options and as not merely new business but overall PPM SaaS increasingly becomes standard," said Melinda Ballou, program director for IDC's Application Life-Cycle Management and Executive Strategies service. "We expect the focus on PPM SaaS to increase and to deepen where cultural and political barriers stymie successful adoption, and quick access to core capabilities via SaaS solutions is hugely beneficial. Decapitalization remains an additional PPM SaaS advantage for organizations continuing to struggle with a volatile economy and resource constraints, along with business dependence on speedy, agile software delivery."
Agile Application Life-Cycle, Quality and Portfolio Strategies , Project and Portfolio Management Solutions