This IDC study provides a 2014 vendor share analysis for the worldwide agile ALM market. IDC's analysis of this market shows worldwide agile application life-cycle management software 2014 revenue of $450 million, up 30.5% from that of $345 million in 2013. IDC expects very strong growth for agile ALM software for the 2014–2019 time frame, with growth to around $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 2015–2019 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 CA Technologies' acquisition of Rally) 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 and emerging 'smarter products' and emerging IoT 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 focus on agile ALM to increase as cultural and political barriers are surmounted with effective process adoption and as quick access to core capabilities via SaaS solutions in conjunction with IDEs and for continuous release with DevOps becomes hugely beneficial 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 , Software Life-Cycle Process and Configuration Management