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IT investments to focus on IT operation management tools through 2020

Gartner research highlighted digital transformation and IoT is driving demand for enhanced management tools

IT investments to focus on IT operation management tools through 2020
Laurie Wurster, research director at Gartner.

In its latest report Market Trends: Deliver Competitive ITOM by Integrating Open Source and Cloud Services, Gartner noted that the substantial growth of digital business and the Internet of Things (IoT) is driving investments in IT operations management (ITOM).

In addition to projecting that investments in ITOM tools would carry through until 2020, the report concluded that numerous enterprises will likely shift their focus towards managed ITOM or ITOM-as-a-service (ITOMaaS). Additionally, the adoption of an open-source software presents a more cost-effective and accessible approach to bringing ITOM functions to the cloud.

Laurie Wurster, research director at Gartner, said: "While acceptance of OSS ITOM is increasing, traditional closed-source ITOM software still has the biggest budget allocation today. Moreover, complexity and governance issues that face users of OSS ITOM tools cannot be ignored.

"In fact, these issues open up opportunities for ITOM vendors. Even vendors that are late to market with ITOM functionality can compete in this area."

Gartner's report also highlighted that through 2020, both public cloud and managed services will continue to remain more popular as a result of advances in ITOM tools. As a result, the growth of subscription models for both cloud and on premise will spike.

Despite this however, on-premises deployments will continue to be the preferred approach, which in turn introduces several obstacles for some ITOM vendors. This include vendors not offering cloud to lose ground to competitors that can deliver ITOM on both cloud and on-premise.

Matthew Cheung, research director at Gartner, commented: "Customer demand has driven traditional software vendors to transform and adapt to the changing technology and competitive landscapes.

"Competitive pressure from cloud (SaaS offerings) and commercial OSS (offerings with a free license plus paid support) is forcing ITOM providers to move toward subscription-based business models for both cloud and on-premises deployments.

"This shift will eliminate revenue growth spikes as the large upfront investment seen in traditional models is spread out over time in a repeatable revenue stream."

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