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Software market consolidation set to surge

Tash Shifrin

The trend towards consolidation of the enterprise system management software market is continuing with new mergers and acquisitions, industry analysts say.

In a report on the Western European enterprise system management software market, analyst firm IDC found consolidation activity continuing from 2005 into 2006 and predicted the trend would be sustained for “some years to come”.

IDC highlighted recent activity, such as IBM’s February acquisition of network management software firm Micromuse. Tonny Rasmussen, programme manager with IDC's European software group, said: “IBM clearly stands out as the leading IT vendor in the market during 2005, and also made significant acquisitions, most notably of Micromuse.

"However, all solution suite vendors made significant acquisitions, consolidating their positions in this rather mature market.

“All the signs in 2006 so far indicate a continuation in the surge of consolidation activities, although this is no guarantee of market domination as solution standards potentially change the system management environment."

The IDC analysis places IBM, Hewlett-Packard, CA, and BMC as the market leaders in the enterprise system management software market.

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