Dive Brief:
- VMware, IBM and Microsoft are leading the cloud systems management market, according to a new report from IDC.
- VMware currently has 22.6% of the market, followed by IBM and Microsoft with 12.9% and 12.6%, respectively.
- However, Microsoft had the fastest growing market share for cloud systems management last year, outpacing VMware.
Dive Insight:
The need for cloud systems management software stems from the growing popularity of hybrid cloud solutions. By the end of 2017, the IDC expects that more than 80% of enterprise IT organizations will use a hybrid cloud approach with multiple public cloud services, in addition to private or non-cloud infrastructure.
Overall, IDC said the cloud systems management software market grew 25% in 2015, totaling $2.9 billion.
"Market demand continues to be strongest among enterprise customers and in the Americas where large-scale multicloud architectures supporting a range of mission-critical workloads are becoming the norm," said Mary Johnston Turner, IDC research vice president, Enterprise Systems Management Software in an announcement.
Hewlett Packard Enterprise (7.4%), BMC (7.3%) and Cisco (5.4%) also made appearances in IDC’s report. Nearly a third of the market consists of "others"—smaller vendors that sell cloud systems management software. The data suggests that some of the older cloud systems management providers may be struggling, potentially leaving room for new players to emerge and grow.
The report is a good sign for VMware, which has been struggling in the cloud market lately. In April, VMware announced the head of its cloud efforts, executive vice president, Bill Fathers was leaving the company. Fathers led VMware’s vCloud Air project for three years. Earlier this month, VMware announced it hired a former Oracle vice president to head its cloud unit.
