Navigate the maze
COMPANY + DATE
Barclay Rae
Consulting, Mentoring + Troubleshooting
Media + Research
#ITSMGoodness
400+ consulting projects since 1994
www.itsmtv.co.uk
www.barclayrae.com
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ITSM Market Overview - 1
The market is mainly focussed on delivering niche ITSM software
solutions based on ‘ITIL’ best practise.
Many small and mid-sized vendors have operated exclusively in this
market for the best part of 15 – 20 years.
They have shared in the growth of what has been an expanding global
market since the inception and spread of ITIL.
Other, larger generalist IT vendors have built significant product and
service-based revenue-streams based on ITIL tools and implementation
expertise.
ITSM Market Overview - 2
The market continues to grow globally although there is also everincreasing competition, particularly in mature saturated markets like the
UK, Holland and other ITIL early adopters.
As the drive for new sales is tough, vendors have to find and offer clear
differentiators, particularly as ‘ITIL process’ functionality is becoming a
commodity.
Against that there is also the continuing residual effect of the current
economic recession, which for many vendors has required cost cutting,
service-trimming and re-focussing on core business offerings.
ITSM Market Overview - 3
Analysts have criticised many vendors in this market in general for lack
of innovation. This has generally been due to an overall lack of maturity
and demand for more advanced ITIL products and process areas.
Most implementations still focus around Incident, Problem and Change
Management processes.
It is only relatively recently that there have been more demands made
from the industry (at customer and analyst levels) for more functionality
and capability in this area.
Wider developments such as Cloud and SaaS, Mobile, Service
Catalogue, asset and financial management, plus social media and
gamification have also helped to drive demand in this area,.
ITSM Market Overview - 4
Vendors and products fall into 3 main areas:
1. Framework and enterprise
2. Mid-size and niche
3. Small and niche
ITSM S/W Market areas
Tier 1 – generally large framework vendors who provide multi-function
tools across a variety of technical and business areas.
Often these will have the scale and resources to maintain in-house ITIL
consulting training practices – often functionally separate from their
product implementation teams, e.g:
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HP
BMC
IBM
CA
ITSM S/W Market areas
Tier 2 – midsize and niche players, who compete with the framework vendors on
functionality, albeit with varying levels of ability to execute and deliver large
programmes.
Generally these will have some sort of internal consulting and training practise,
although this is mostly focussed on product delivery.
Some of these organisations may also employ industry experts and use industry
media and marketing (e.g. social media) to strengthen their positions as industry
leaders) E.g.
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FrontRange
Hornbill
LanDESK
Axios
Cherwell
Service-Now
Alemba
ICCM
Marval
RMS
ITSM S/W Market areas
Tier 3 – small niche players who have established a good client base e.g. as
a service desk or call logging provider, or with a broader ITIL-based product
set but limited implementation and delivery capability, e.g:
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Sunrise
House-on-the-Hill
Wendia
Topdesk
Manage Engine
OTRS
Easy-Vista
Zendesk
Analysts etc
Gartner – ITSM Magic Quadrant
Forrester Wave
OVUM
EMA
Pink Verify
ITSM Review
Servicesphere
Gartner
ITSSM 2012
MQ
Key areas of functionality
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Incident / Problem / Change / Knowledge integrated
Reporting and MI
Request and fulfilment portals
Service Catalogue
CMDB / Asset Management
APIs and integration
Workflow + process design
Mobile
Social
Key Factors
• ITSM functionality is a commodity
• ‘ITIL’ functionality still sold as a panacea
• SAAS/cloud model was disruptive but now pretty
standard
• Innovation from niche players – e.g. Biomni, IT
SmartDesk, Alemba, etc
• Differentiation on cost, service, implementation
capability
Differentiators
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Tier and Scale
Cost (inc lifetime)
Market history and commitment
Service capability
Post-sales implementation capability
Integration experience
IP + ‘thought leadership’
Marketing and event presence
Industry experts and promoters
Vendor Issues
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Upgrade path and lifecycle
Conservative and lacking in innovation
Corporate profile
PMO and risk awareness
Ability to manage process / project / people /
organisational issues
• Service and support variable
• Product/sector focus for some
• Niche is OK but misses opportunity for integration
Project Issues
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Clarity on objectives and measureable outcomes
Clear and simple (business) focus on requirements
Realistic planning and phasing
Skills and experience of project teams
Data collection
Project Management
Project measurement and accounting
Recommendations
• Stable and mature market – no need to build
• Develop 80/20 common approach
• Be clear at a business level if there are really bespoke
requirements
• Longer term integration provides cost and quality
benefits
• Tactical choices should still use common approach
• Choose the vendor as much as the product