According to IDC's European Semi-Annual Software Tracker as of November 2017, the European public cloud system and service management software market achieved total revenue of $330.7 million in 2016, representing constant currency growth of 36.9% from 1H16. The growth in the first half of 2017 was weaker than the growth in 2016 at 44.4%. ServiceNow retained the top market share ranking with 42.9% share, growing at 36.5% year on year (YoY). Its revenues for the region in 1H17 were $141.9 million. New Relic and BMC — ranked second and third with market shares of 7.4% and 7.1%, respectively — were a far cry from the share market leader ServiceNow, which accounts for almost half of the market. IBM (3.5% share) and VMware (3.1% share) complete the top 5 cloud system software vendors for 1H17.
Vendors HPE and Microsoft recorded the fastest growth of 128.2% and 94.3%, respectively. Although both vendors grew much faster than total market growth, their market shares were less than 3% each in the period.
This IDC study provides 1H17 revenue and market shares of key vendors in the Western European public cloud system and service management software market as well as gives an overview of their positioning. It also offers guidance to help vendors leverage key market opportunities and advice for end-user organizations. The data presented in this study represents IDC's best estimates of vendor-specific revenue and market shares based on IDC's Semi-Annual European Software Tracker data and research as of November 2017.
"With cloud adoption becoming fundamental to business transformation, SaaS-based systems management solutions continue to grow in popularity," said Archana Venkatraman, research manager, IDC Europe. "Beyond the number 1 spot, the market is fragmented — vendors that can give customers flexibility, innovative features, and attractive prices, as well as make systems management solutions a key part of their multicloud strategies will be able to grow their market shares in a more sustainable manner."
IDC describes the function of system and service management software as being used to manage all the computing resources for the end user, small business, workgroup, or enterprise including systems, applications, desktop and client devices, and the network infrastructure. System and service management software is further segmented into the categories discussed in the following sections as defined in the IDC Software Taxonomy, 2015 (IDC #256767, June 2015).