Project, Portfolio Mgmt Software Mkt Declined 1.5 Per Cent In 2009

According to Gartner, Inc, worldwide project and portfolio management (PPM) software revenue totaled $1.16 billion in 2009, a 1.5 percent decrease from 2008 revenue of $1.18 billion.

“After a five-year period of strong, mostly double-digit growth, the financial turmoil in late 2008 and subsequent spending uncertainties in early 2009 left a negative mark on the usually robust PPM market in 2009,” said Laurie Wurster, Research Director, Gartner. “Falling growth rates provided flexible vendors and new entrants the opportunity to be creative with business subscription and delivery models, such as software as a service (SaaS) and drive revenue up by meeting client requirements.”

Combined market share for the top 5 PPM vendors increased significantly in 2009, up to 58 percent of the market compared with 43 percent in 2008. Oracle went from being the No. 4 vendor in 2008, with 7.7 percent market share, to the leading vendor, with 22.6 percent of the market in 2009. Wurster said that Oracle’s strong growth in 2009 can be attributed to the December 2008 acquisition of Primavera Systems, the long-term PPM market leader.

CA’s revenue increased 14.6 percent in 2009, largely owing to its subscription-based revenue recognition model, which results in revenue being recognised gradually, after the contract is signed, and thus the vast majority of its revenue came from contracts signed up to five years prior to 2009.