Project and portfolio management (PPM) is now a separate market from the application development tools sector. PPM applications address three core functions: time, resource, and cost management.
The EMEA PPM market resisted a turbulent 2007, growing at 12.9 per cent to reach €309m (£274m). This was due to an awareness of the benefits of PPM, a sizable mid-market and stronger vendor marketing.
Western Europe remains the largest, fastest-growing EMEA market, albeit fragmented. Only two vendors have more than 10 per cent market share. Alternative delivery models, such as software-as-a-service (SaaS), are encouraging adoption. Vendors without a SaaS strategy must develop one to counter competition.
Gartner recommends global providers localise their PPM products, extending
beyond simple translation. Partnering with local implementation and service
providers will be vital to vendor success. The worldwide PPM growth rate was
about 24 per cent, partly due to organisations
recognising the merits of project control.
Weak economic conditions have driven demand for PPM systems in portfolio, financial and resource management.
The UK is the largest EMEA market, with a 26.3 per cent share, followed by Germany with 14.3 per cent, France with 10.9 per cent, and the Netherlands with 10.5 per cent.
More mature economies are showing double-digit growth. On average, Eastern Europe grew 17.2 per cent, the Middle East and Africa 9.7 per cent.
Mid-market demand is rising across EMEA because the region abounds with mid-size organisations. Prospects are increasingly considering SaaS or on-demand PPM technologies, which will lead to market consolidation.
Seasoned practitioners are investing more in PPM implementations. Despite technology limitations, users are continuing to adopt PPM processes as they assess the cost of their IT services.
With PPM software used in UK projects, some growth is due to construction projects for the London Olympics. The top five vendors command 51 per cent of the EMEA market, up from 44 per cent in 2006. Local player Maconomy, despite growth, slipped out of the top five.
Microsoft’s growth was just above average at 16.9 per cent. In the top five, Primavera, CA and Planview all grew faster than average. CA grew fastest, achieving 62.1 per cent growth during 2007. In the same year, HP had a windfall from deferred maintenance revenue that could not be recognised in 2006.
The PPM market is so wide that enterprise application offerings can deliver value for clients whenever tight integration is needed.
Niche providers can deliver targeted, easy-to-use offerings. Smaller PPM providers should partner other software companies to deliver complementary offerings, such as payroll or HR, to meet the threat from ERP vendors. Smaller providers can use specific functional areas for an edge. Local language and customs are important across EMEA.
Expand regionally to regain ground against larger players. Partnering local implementation players will help. Growth rates worldwide can be larger than Eurozone ones if the dollar devalues against the Euro, as it did during 2007.
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