Download - Magic Quadrant for Cloud-Based IT Project and Portfolio Management Services.pdf

7/2/2014 Magic Quadrant for Cloud-Based IT Project and Portfolio Management Services

http://www.gartner.com/technology/reprints.do?id=1-1UB15TY&ct=140520&st=sg 1/12

MagicQuadrantforCloudBasedITProjectandPortfolioManagementServices19May2014ID:G00260413

Analyst(s):DanielB.Stang,RobertA.Handler

VIEWSUMMARY

Thepaceofchangecontinuestoincreasedemandforprojectsandprograms,aswellasdemandforcloudbasedapplicationservicesdesignedtohelpPPMleadersmanageprojectsandprograms.ThisMagicQuadrantanalyzescloudbasedITPPMserviceprovidersandtheirproductsinaverydynamicmarket.

MarketDefinition/DescriptionThecloudbasedITprojectandportfoliomanagement(PPM)providersincludedinthisMagicQuadrantofferSaaSascloudoptimized(wherebytheunderlyingsoftwarehasbeenrefactoredorredesignedforcloudbaseduse)orcloudnative(designedanddevelopedspecificallyforcloudbaseduse).DemandforITPPMsoftwarecontinuestogrow.1Thisisdueinparttoacombinationofsocialandtechnologicalfactors.Socially,enterprisesarebeginningtoseethevalueoftearingdownthefivefootcubicalwalls,andreplacingwatercoolerswithwirelesshotspots,beanbagchairs,configurabledesktopsandwhiteboards.Corporatecultureisshiftingtosupportcollaborationinalessisolatedworkenvironment.Theyseethevalueandadvancesinproductivitytheygetfrommakingtheirworkersmorecomfortablewitheachother,buildingtrust,and,ultimately,makingthecompanyalotmoremoneyinitsrespectivemarket.

TechnologicalshiftsindicatethatITcontinuestoimproveandproliferate.Networksconnecteverythingtoeverythingelse,drivingincreasedcomplexity,whichinturndrivesconstantchange.2Thepaceofchangecontinuestoincreasedemandforprojectsandprograms,notalwayswithincreasedlevelsoffundingorresources.3Webelievetheseeventsarecontributingtocontinuedstronggrowthinthisspace,eventhoughitisbynomeansanewspace.4

In2012,Gartnerdeclaredan"Innovator'sDilemma"5atplayinthePPMtoolmarket.Wellestablishedonpremisestechnologyproviderswithseeminglysecurecustomerbasesandanapparentlockonthemarketwerebeingthreatenedbyrelativelynewandlowendproviders.Todayin2014,thisdeclarationstillholdstrue.WeareseeingiterationsoftraditionalonpremisesPPMsoftwareproductsbeingreplacedbythenewerofferingscoveredinthisresearch.

Whilethesenewerofferingsmayhavefewerfeaturesandfunctions,thisisn'tnecessarilyabadthingforthemainstreammarket.Mostfirsttimebuyersinthemainstreamdon'tneedalotofcapabilityupfront.Buyersingeneral,likeanyone,lookforthepathofleastresistance.ForreturningbuyerslookingforareplacementPPMsystembecausetheirexistingonefailedtheminsomeway,simplicityincorefunctionalityisanattractiveproposition.Forexample,ifalessthansuccessfulandbarelyfunctionalonpremisesPPMapplicationthatismorethanfiveyearsoldonethatisreallynomorethananexpensivetimetrackingsystemwhileotherPPMneedsaregoingunmetcanbereplacedinexpensivelywithintwotothreeweekswithsomethingsignificantlymorefunctionalandconfigurable,manyareaskingtherationalquestion,"Whynot?"Weareseeingthisquestionraisedmoreofteninthefield.

Tocounterthisdynamic,manytraditionalonpremisesITPPMapplicationvendorsarenowofferingsomefixedpriceandfixedscopeSaaSoptionstotheirexistingofferingsatmarketpricesforSaaS.Whilereportsfromearlyadoptersweremixed,currentlymainstreamPPMprovidersofferingfixedpriceandfixedscopesolutionsasSaaSseemtobehavingsomesuccess.Conversely,someofthenewerSaaSproviders,movingoutsideoftheirtraditionaltargetmarketofmidsizeenterpriseIT,arehavingoccasionalgrowingpainsastheylooktoprovidecustomizationscustomizationsthatcontradictaSaaSbusinessmodelrequiringhighdegreesofstandardizationforlargerandmoresophisticatedclients.

FurthercomplicatingthemarketisthequestionablesoundnessoftheunderlyinginfrastructureforSaaStheInternet.Whileithashistoricallyperformedwell,recenteventsrequireconsideration.On24March2014,Basecamp,aproviderofprojectmanagementtoolsasSaaS,wentofflinebecauseofadistributeddenialofservice(DDoS)attacktheproviderwas,infact,beingheldransomformoney.6However,thisDDoSimpactedmanyprojectsthatcouldnotaccessthetoolsasSaaS.WhilemostPPMSaaSprovidershaverelativelyscalableelasticinfrastructure(thatis,thecloud),theyarestillsomewhatsusceptibletoattackssuchasDDoS.Theyalsoaresusceptibletoothervulnerabilities(forexample,theHeartbleedsecuritybug).

Giventhecurrentmarketactivity,1itwouldappearthatorganizationsareseriousaboutmanagingchange.Anytoolsrequiredtomanagethatchangewouldbecomeindispensable.IfenoughhiccupsoccurintheSaaSinfrastructure,it'squitepossiblewe'llseeashiftbacktowardonpremises.Thisisawellestablisheddynamicknownasresourcedependencetheory(RDT).7

Manyotherdynamicsatplaywillimpactthismarketbeyondthe12monthhorizoncoveredinthisresearch.8Asboththepaceandcomplexityofchangecontinuetoincrease,PPMleadersareforcedtoimprovetheirmaturity,whichshoulddrivedemandforadvancedpracticesandtechniquestobesupportedbytoolvendors.WealsoexpecttechnologytrendslikedigitalizationandtheNexusofForcestodriveorganizationstowardaproductdevelopmentparadigmatleastforasignificantnumberofapplicationprojectspotentiallygivingtechnologyproviderswithnewproductdevelopmentfunctionality

EVIDENCE

1Gartner'sPPManalystteamconductedmorethan1,500clientinteractionsconcerningPPMsoftwareandtoolsbetweenJanuary2012andDecember2013,reflectingtheimportanceclientsattachtomakingtherightdecisionsinthisarea.Furthermore,therewasa208%increaseinPPMsoftwareandtoolinquiriesin2013over2012.

2See"GartnerTopPredictions2014:PlanforaDisruptive,butConstructiveFuture."

3See"ITKeyMetricsData2014:ExecutiveSummary."Theoutlookfor2014,basedonpreyearbudgeting,indicatesanaverageplannedincreaseinITspendingofaround3.2%(seeFigure13in"ITKeyMetricsData2014:ExecutiveSummary").ThemajorityofindustriesarestillprojectinganincreaseinITspendingin2014,althoughthelevelofincreasevariesbysector.

4In2014,CFOsexpectthebiggestincreaseofinvestmentfundstobedirectedtowardR&Dandinnovation,suggestingthatCIOswillneedtoprovideevidenceoftightergovernancetosupportthisincrease.See"2014CEOandSeniorExecutiveSurvey:CIOsMustAllyWithCFOsintheRaceforDigitalSupremacy."

5Backgroundinformationon"TheInnovator'sDilemma."

6See"BasecampFallstoBlackmailFueledDenialofServiceAttack,"byIanPaul,PCWorld,24March2014.

7"TheSnowdenEffect:DataLocationMatters"notesthatEuropeanadoptionofSaaSislowerthanNorthAmerica.

8See"Predicts2014:PPMLeadersMustPrepareforExtremeTransformationorPrepareNewResums."

EVALUATIONCRITERIADEFINITIONS

AbilitytoExecuteProduct/Service:Coregoodsandservicesofferedbythevendorforthedefinedmarket.Thisincludescurrentproduct/servicecapabilities,quality,featuresets,skillsandsoon,whetherofferednativelyorthroughOEMagreements/partnershipsasdefinedinthemarketdefinitionanddetailedinthesubcriteria.

OverallViability:Viabilityincludesanassessmentoftheoverallorganization'sfinancialhealth,thefinancialandpracticalsuccessofthebusinessunit,andthelikelihoodthattheindividualbusinessunitwillcontinueinvestingintheproduct,willcontinueofferingtheproductandwilladvancethestateoftheartwithintheorganization'sportfolioofproducts.

SalesExecution/Pricing:Thevendor'scapabilitiesinallpresalesactivitiesandthestructurethatsupportsthem.Thisincludesdealmanagement,pricingandnegotiation,presalessupport,andtheoveralleffectivenessofthesaleschannel.

MarketResponsiveness/Record:Abilitytorespond,changedirection,beflexibleandachievecompetitivesuccessasopportunitiesdevelop,competitorsact,customerneedsevolveandmarketdynamicschange.Thiscriterionalsoconsidersthevendor'shistoryofresponsiveness.

MarketingExecution:Theclarity,quality,creativityandefficacyofprogramsdesignedtodelivertheorganization'smessagetoinfluencethemarket,promotethebrandandbusiness,increaseawarenessoftheproducts,andestablishapositiveidentificationwiththeproduct/brandandorganizationinthemindsofbuyers.This"mindshare"canbedrivenbyacombinationofpublicity,promotionalinitiatives,thoughtleadership,wordofmouthandsalesactivities.

CustomerExperience:Relationships,productsandservices/programsthatenableclientstobesuccessfulwiththeproductsevaluated.Specifically,thisincludes



acompetitiveedge.Also,forsometime,we'veexpectedtrendstodriveorganizationstowardanenterprisePPMfocus,givingtechnologyproviderswithanemphasisonenterpriseprojectmanagementaneventualcompetitiveadvantage.Thus,wewillhaveanotherinteresting(thatis,turbulent)yearintheITPPMmarket.

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ProvidersinThisMagicQuadrantAreAppropriateforEvaluationandPotentialUseWhen

YouarelookingformainstreamITPPMfunctionalitydeliveredasaservicetosupportimmediateprocessautomationandreportingneeds.Youdonotexpecttohaveimmediateandspecificneedsforextensivecustomizationordeepintegrationwithenterprisesystems.Youarenotplanningtoinsourcethefunctionalityinthenearfuture.Thedata,network,applicationsandlevelsofsecurityofferedbytheprovideraresufficientenoughto"outsource"theITPPMapplicationfunctionality.Youwishtomakeashorttermratherthanlongterm(threeyearsormore)commitmenttoITPPMapplicationfunctionality.YouwantarapiddeploymentofcoreITPPMfunctionalitywithin30days.YouareatthelowerlevelsofPPMmaturity(Level1or2onGartner'sITScorePPMMaturityModel)andwantacoresetofPPMapplicationservicesthatwillnotoverwhelmyourendusersinitially,yetwillprovideapathforwardforservicefunctionalitytogrowovertimeastheorganizationmatures.Youhaveasmallendusergroupwithasfewas20to30endusers.Youhavealimitedbudget(lessthan$100,000)foracquiringITPPMfunctionalityand/orneedawaytotestthewatersorpilottheuseofITPPMfunctionalityforayear(oftentogainadditionalmanagementsupportforlargerPPMefforts).

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MagicQuadrant

Figure1.MagicQuadrantforCloudBasedITProjectandPortfolioManagementServices

Source:Gartner(May2014)

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VendorStrengthsandCautionsAtTaskITPPMProduct:AtTask

www.attask.com

Strengths

AtTask'sapproachtoworkmanagementwillappealtomostorganizationsthathavetoomuchworktodoandnotenoughpeopletodoit.

thewayscustomersreceivetechnicalsupportoraccountsupport.Thiscanalsoincludeancillarytools,customersupportprograms(andthequalitythereof),availabilityofusergroups,servicelevelagreementsandsoon.

Operations:Theabilityoftheorganizationtomeetitsgoalsandcommitments.Factorsincludethequalityoftheorganizationalstructure,includingskills,experiences,programs,systemsandothervehiclesthatenabletheorganizationtooperateeffectivelyandefficientlyonanongoingbasis.CompletenessofVisionMarketUnderstanding:Abilityofthevendortounderstandbuyers'wantsandneedsandtotranslatethoseintoproductsandservices.Vendorsthatshowthehighestdegreeofvisionlistentoandunderstandbuyers'wantsandneeds,andcanshapeorenhancethosewiththeiraddedvision.

MarketingStrategy:Aclear,differentiatedsetofmessagesconsistentlycommunicatedthroughouttheorganizationandexternalizedthroughthewebsite,advertising,customerprogramsandpositioningstatements.

SalesStrategy:Thestrategyforsellingproductsthatusestheappropriatenetworkofdirectandindirectsales,marketing,service,andcommunicationaffiliatesthatextendthescopeanddepthofmarketreach,skills,expertise,technologies,servicesandthecustomerbase.

Offering(Product)Strategy:Thevendor'sapproachtoproductdevelopmentanddeliverythatemphasizesdifferentiation,functionality,methodologyandfeaturesetsastheymaptocurrentandfuturerequirements.

BusinessModel:Thesoundnessandlogicofthevendor'sunderlyingbusinessproposition.

Vertical/IndustryStrategy:Thevendor'sstrategytodirectresources,skillsandofferingstomeetthespecificneedsofindividualmarketsegments,includingverticalmarkets.

Innovation:Direct,related,complementaryandsynergisticlayoutsofresources,expertiseorcapitalforinvestment,consolidation,defensiveorpreemptivepurposes.

GeographicStrategy:Thevendor'sstrategytodirectresources,skillsandofferingstomeetthespecificneedsofgeographiesoutsidethe"home"ornativegeography,eitherdirectlyorthroughpartners,channelsandsubsidiariesasappropriateforthatgeographyandmarket.



AtTask'svisionofmanagingworkacrosstheenterpriseanditstimelyidentificationofmarketsinneedofsupportforworkmanagement,insideandoutsideofIT,enablesitsabilitytoexecuteinthismarket.AtTaskcontinuestoprovidegoodserviceandasolidITPPMproductasitexpandsintodifferentmarkets.

Cautions

AtTask'sofferingmaynotprovideenoughadvancedfunctionalityrequiredbymaturingITPMOs,suchasformanagingprogramsattheportfoliolevel,andtopdownvettinganddecisionmaking.AmajorityofAtTaskfunctionalitylendsitselfmoretothebreadthofworkmanagementratherthantotheindepthneedsofmanagerslookingformorerobustITportfoliomanagementandITprogrammanagementfeatures.Likesomeothercloudbasedproviders,AtTask'smultitenantdatabasestructurestorescustomerdatainshareddatabases.Therefore,therearelimitsontheanalysiscustomerscandowiththedatatheystoreinAtTask,especiallyifcustomerswanttousethirdpartybusinessintelligenceandreportingtools.

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AutomationCentreITPPMProduct:TrackerSuite.Net

www.acentre.com

Strengths

AutomationCentre'sTrackerSuiteusesanexistingemailplatformonpremises,oraclouddeploymentoptiontoprovidecommunicationandcollaborationbetweenprojectmanagersandteammembers.Timereportingisaknownstrength,withtheabilitytotracktimeagainstdifferentworkefforts,andtochargeaddedtimetoprojects,includingmaintenanceandsupportefforts.RecentTrackerSuiteenhancementsemphasizestrongertimereporting(suchasimprovednavigation,conversiontoPDFfileformatandchargingtimetobillingmilestones),aswellasnewreportsanddatavisualizationtools.

Cautions

AutomationCentremustscaleupitsserviceofferingsfornewcustomersanddeploymentsasnewbusinessvolumeincreases.Thiswillmostlikelybedonebycreatingandgrowingapartnerprogram.TrackerSuitedoesnotprovideintegrationtoAtlassian'sJiraoragiledevelopmenttools.TheseintegrationsarebecomingmoreandmorepopularinITPPM.TrackerSuitedoesnotprovideadvancedsupportforITprogrammanagement,ortopdown,ITportfoliomanagementconfigurations.

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ClarizenITPPMProduct:Clarizen

www.clarizen.com

Strengths

Clarizen'spaceofproductinnovation,specificallyasitrelatestoprovidingcollaboration,communication,andsocialnetworkingonacloudbasedplatform,isexemplary.Clarizenoffersanapplication"marketplace"ofboltoncapabilitiesand/orconfigurationsthatareeasytoaccessandadopt,andthataddresspersonaspecificusecases.Clarizen'sproductdevelopmentfocusisonprovidingflexiblecapabilitiesthatareeasytoadopt,andthatsupporthowpeopleworkandhowtheywanttowork.

Cautions

Clarizen'sofferingmaynotprovideenoughfunctionalityrequiredbymaturingITPMOs,includingadvancedprogrammanagementandportfoliomanagementcapabilities,suchasmanagingacrossprogramsattheportfoliolevel,andanalyticalsupportwhenperformingtopdownvettinganddecisionmaking.AmajorityofClarizenfunctionalitylendsitselfmoretothebreadthofworkmanagementratherthantotheindepthneedsofmanagerslookingformorerobustportfoliolevelfeaturesspecificallyforITprojectandprogrammanagement.ThesefeaturesrequirecustomizationofClarizenreportingservicesand/orassistancefromClarizen.DuetoClarizen'smultitenantdatabasestructure,therearelimitsontheanalysisthatcustomerscanperformwiththedatatheystoreinClarizen,especiallyifcustomerswanttousethirdpartybusinessintelligenceandreportingtools.ClarizenoffersAPIsandotherevolvingworkaroundstoaddresstheneedsofcustomreporting.

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DaptivITPPMProduct:Daptiv

www.daptiv.com

Strengths

Daptiv'saveragenumberofusersperdealhascrestedtomorethan200,rivalingthatoflarge



enterpriseITPPMvendors.UsersreportDaptiv'sproducthasmadesignificantgainsinusabilityandconfigurability,andtheextensiveuseofIBMCognossoftwareisaddressingsomereportingflexibilityconcernstypicallyassociatedwithcloudbasedITPPMapplications.DaptivisnowthepreferredpartnerforBMCSoftwareforITPPMinthecloud.BMCcustomersshouldexpectricherintegrationbetweenDaptivandBMCproductsasthispartnershipevolves.

Cautions

WhiletheuseofCognosaddressesanumberofreportingneeds,thereisalearningcurveassociatedwithusingthisoption.SizelimitationsandotherfactorscanresultinlaggingresponsetimeswhenrunningreportsinDaptiv.SomeDaptivcustomersreporttheycannoteasilycreateaggregateportfoliosandperformprogramlevelrollups.Programandportfoliomanagementislimitedlargelytothesystem'sexistingreportingservices.Userscannoteasilyshowdependenciesacrossprojectsindifferentportfolios.DuetoDaptiv'smultitenantdatabasestructure,therearelimitsontheanalysisthatcustomerscanperformwiththedatatheystoreinDaptiv,especiallyifcustomerswanttousethirdpartybusinessintelligenceandreportingtoolsotherthanCognos.

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InnotasITPPMProduct:Innotas

www.innotas.com

Strengths

Innotas'corestrengthsemphasizeportfoliolevelfunctionalityakeydifferentiatorfrommanyprovidersofitstype.Innotas'roadmapissignificantlyalignedwiththeforwardprogressionandinnovationssurfacinginthecloudbasedITPPMmarket,astheproductcontinuestoattractadoptionfromdeveloperteamsasaworkmanagementtool,andITPMOscontinuetoadoptitasatopdownportfoliomanagementsystem.Innotas'integrationplatformisbackedbyaservicelevelagreementandInnotas'supportstaff.Continuedexamplesofuseofthisplatforminthefieldamongcustomersdemonstrateprovenintegrationtothirdpartyproducts,includingAtlassian'sJira,MicrosoftTeamFoundationServer(TFS)andBMCRemedy.

Cautions

Innotasissusceptibletogrowingpainsasitcontinuestoscaleuptomeettheneedsoflargerprojectorganizations.Theseorganizationsmayeventuallyrequirethevendortosupportmoreandmoreusersandeventuallyprovideadedicateddatabase.Therefore,Innotasmayneedtoonedayprovidededicatedinstancesforitslargercustomers.Althoughitscloudbasedintegrationplatformandservicesarevisionaryandhaveshowninitialpromise,InnotaswillbechallengedwithhiringandretainingtopintegrationexpertisetomeetthemountingdemandforintegrationtothirdpartydatasourcesandITproducts.DuetoInnotas'multitenantdatabasestructure,customers'dataisstoredinshareddatabases.Therefore,therecanbelimitsontheanalysiscustomerscandowiththedatatheystoreinInnotas,especiallyifcustomerswanttousethirdpartybusinessintelligenceandreportingtools.

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One2teamITPPMProduct:One2team

www.one2team.com

Strengths

One2teamaddedanumberofinnovativefeaturesandfunctionstoitsproduct,including"slideboards,"akanbanlikeuserinterfaceformanagingtodolists,deliverables,projectdemands,risks,investments,ideasandotherobjectsdefinedinthesystem.Otherimprovementsincludecriticalpathvisualizationintheplanningmodule,andnewanalyticalcapabilities.One2team'spersonadrivenapproachtoproductdevelopmentprovidesgooddesignoftrulyusefulfeatures,suchasmobileviewsand"Googlelike"searchforteammembers.One2team'sproductandvisionareperhapsthestrongestamongprovidersabletosupportEuropeanonlycustomersforcloudbasedITPPM.

Cautions

AlthoughwellpositionedforITPPMprospectsinEurope,One2teamhasalimitedreachinNorthAmerica.Likemanyothersinthisspace,userswouldlikegreaterreportingcapabilitiesandmoreaccesstothedatatheystoreonOne2team'scloudservices.Usersreportoutoftheboxprojectmanagementbestpracticesandcontentcouldbeenhancedtohelpaidtheircontinuedmaturationandfurtheradoptionoftheproduct'scapabilities.

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onepointProjectsITPPMProduct:onepointProjects

www.onepointprojects.com



Strengths

Importantadditionstoproductfunctionalityincludeprojectprioritizationandportfolioanalysis.AllprevioususeofJavaontheclientsidehasbeenremovedfromtheproductandreplacedwithHTML5,makingiteasierforonepointProjectstobeusedonmobiledevices.ForJirausers,atwowayintegrationcapabilitywasreleasedinApril2014aspartofonepointProjectsrelease12.1,allowingsynchronizationbetweenworkmanagedinJiraandonepointProjects.

Cautions

AlthoughwellpositionedtosupportITPPMcustomersandprospectsinEurope,onepointProjectshasvirtuallynopresenceinNorthAmericaorAsia.SalesandrevenuespecificallyfromonepointProjects'cloudbasedofferingisnotkeepingpacewithotherprovidersinthecloudbasedITPPMmarket.IntegrationwithotherkeyITsoftwareapplicationsandsystemsislacking(suchasRallySoftwareandBMCRemedy).

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OracleITPPMProduct:InstantisEnterpriseTrack

www.oracle.com

Strengths

Oracle'scorporatePPMvision,ifproperlyexecuted,willappealtolargeorganizationslookingforenterprisePPMparticularlyifOracleenterpriseapplicationsarealsobeingused.Recentimprovementstotheproductincludevariablerateandcapitalizedlaborcosting,andprojectleveltimeapproval.InstantisEnterpriseTrackcangenerateMicrosoftPowerPointslideswithcustomerspecificvisualtemplatesforuseasinstantprojectstatusreports.

Cautions

CustomersrelyingonInstantis'ITPPMspecificfeaturesandfunctionsshouldbeawarethat,asapartofalargerPPMOracleportfolio,thereisstillariskthatInstantismaybedistractedbytheneedtointegratetheproductwithcomplementaryapplicationsandtechnologyinOracle'scurrentproductportfolio.Oracle'scustomersreportincreasedpricing,aswellaslagtimesinprocessingspeedandinupdatingprojectrecords,andtroublesomeuploadingofandintegrationwithMicrosoftProjectplans,allofwhichmaynotbethefaultofOracle.OracleInstantisEnterpriseTrackdoesnotprovideintegrationtoRallySoftware'sagiledevelopmentproducts.

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ProjectObjectsITPPMProduct:ProjectObjects

www.projectobjects.com

Strengths

ProjectObjects'corestrengthsemphasizeportfoliolevelfunctionalityakeydifferentiatorfromotherprovidersofitstype.ProjectObjectsisoneofthefewhistoricalonpremisesITPPMvendorsthatchosetoaddressSaaSbyprovidingacloudbased(ratherthancloudhosted)deploymentoption.ThisallowsProjectObjectstooffercustomersthechoiceofadedicated,onpremisesdeployment,ortodeploypurelyasacloudbasedoffering.ProjectObjectsiseasytouseandisdesignedtoscalebotharchitecturallyandmethodologically,witha"progressiveprojectmanagement"approachtoimplementation.

Cautions

ProjectObjects'userdocumentationandtraining,includingvideobasedtraining,needsimprovementtohelpcustomerswithadoptionandtoincreaseandencouragetheuseofmoreadvancedfunctionality.AlthoughProjectObjectshasnotspentconsiderabletimedevelopingcollaborationorsocialnetworkingcapabilitiesaspartofitsPPMapplicationservices,ithasmadesomeinitialstepstowarddoingso.ArecentreleaseintroducessocialPPMcollaborationcalledtheProjectObjectsCollaborationSpace,providingchat,theabilitytoshareideas,andthemashingupofsocialcollaborationfeatureswithformalprojectmanagementprocesses.ProjectObjectsdoesnotyetprovideintegrationpointstoITservicemanagement(ITSM)systems(suchasServiceNowandBMCRemedy).

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UplandSoftwareITPPMProducts:PowerSteering,EPMLive

www.uplandsoftware.com

Strengths

SincethecomingtogetherofthevariousfirmscomprisingUpland(mainlythroughacquisition),the



rateofproductinnovationisincrementallyimproving,andshouldcontinuetoimprove,assumingthecontinuedfinancialbackingfrominvestors.UplandhasassembledsomekeytechnologypiecestoenableitsvisionofbeingasingleproviderofbestofbreedcloudbasedPPMofferings.Includingworkflow,documentmanagementandITfinancialmanagementaspartofafamilyofproductsonaSaaSplatformmakesforacompellingargumentformatureclientslookingforasinglesource,cloudbasedITPPMprovider.

Cautions

ProspectslookingtomakeaproductselectionintheneartermmaybestymiedbypotentiallyoverlappingandredundantproductfunctionalityacrossUpland'smultipleacquiredproductlines.UntilUplandSoftwaresuccessfullyadvancesonitsvision,whichwouldincludeconsolidationandintegrationofcloudbasedproductsandservices,aswellasconsolidationofunderlyingbusinessoperations,customerswillnotfullybenefitfromUpland'svision.Withoutacompellingvaluepropositiontothecontrary,GartnerseescustomerscontinuingtobeopentoselectingmultipletechnologiesandPPMproductsfrommultipleproviders,limitingmarketdemandforaunique,singlesource,cloudbasedPPMproviderandafamilyofproductsthatUplandhasplannedforthemarket.

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VCSonlineITPPMProduct:VPMiEnterprise

www.vcsonline.com

Strengths

VPMiEnterpriseofferssolidresourcemanagementcapabilities,withuniquedifferentiatorssuchas"askandgive"resourcerequestmanagementandfulfillment.Theproduct'sUIiseasytoadoptandwrittencompletelyinHTML5,enablingmoreadaptableusewithmobiledevices.VPMiofferscompetitivepricingandishistoricallyresponsivetoclientneeds,despiteitssmallsize.

Cautions

TheproductlacksintegrationtocommonagileintegrationtoolssuchasRallySoftwareandAtlassian'sJira.Whilerecentinvestmentsinmarketingmayprovefruitful,historicallylowemphasisonmarketinghasimpactedgrowth,whichlimitsproductinnovation.VCSonlineseemstohavelargelylimiteditsmarkettoNorthAmerica.

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VendorsAddedandDroppedWereviewandadjustourinclusioncriteriaforMagicQuadrantsandMarketScopesasmarketschange.Asaresultoftheseadjustments,themixofvendorsinanyMagicQuadrantorMarketScopemaychangeovertime.Avendor'sappearanceinaMagicQuadrantorMarketScopeoneyearandnotthenextdoesnotnecessarilyindicatethatwehavechangedouropinionofthatvendor.Itmaybeareflectionofachangeinthemarketand,therefore,changedevaluationcriteria,orofachangeoffocusbythatvendor.

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AddedUplandSoftware,whichwasrecentlyformed

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DroppedEPMLive,whichbecamepartofUplandSoftwarePowerSteeringSoftware,whichbecamepartofUplandSoftwareTenrox,whichbecamepartofUplandSoftware,andnowfocusesonPPMmarketsoutsideofIT

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InclusionandExclusionCriteriaTheproductmustbeanITPPMproductsignificantlysupportinginternalITPPM.Theproductmustbegenerallyavailableandactivelymarketedforthepastfourconsecutiveyears,withoutanysignificantcompany,productorservicedisruptions.PPMprovidersthathave"restarted"or"resurrected"olderITPPMcompaniesorproductlines/platformswillnotbeincluded.Productdeploymentissignificantlyofcloudnativeandcloudoptimizedapplicationservices.Asastandardwayofdoingbusiness,theprovidermustoffershorttermcontractsthatareusuallynolongerthan12monthsinlength.Allowancesaremadeformultiyearagreementswhereapplicable.Averagedeploymenttimesmustbebetweentwoweeksand30days.Theseproviderswillsupportasfewas10userspercustomer(sometimesevenless),butcanalsoscaleuptosupportsomecasesinvolvinghundredsorthousandsofusers.Providersmusthaveacquiredatleast10newITPPMcustomers(notrepeatbusiness)onaverage,peryear,from2009to2013.



Asignificantpercentageoftheprovider'sinstalledbaseistypicallyonshortterm,12monthsubscriptionsinvolvingamultitenantenvironment.Providersmusthave$10millioninannualrevenueorsignificantfinancialbacking.

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EvaluationCriteriaAbilitytoExecuteProductorService:Coregoodsandservicesofferedbytheproviderthatcompetein/servethedefinedmarket.Inaddition,thisincludescurrentproduct/servicecapabilities,quality,featuresetsandskillswhetherofferednativelyorthroughOEMagreements/partnerships,asdefinedinthemarketdefinitionanddetailedinthesubcriteria.Highermarksaregivenforeaseofuse,balancedwithfunctionaldepth,atacosteffectiveprice.Thevendoroffersalowcostofentry.AheavyemphasisexistsontheamountofITPPMfunctionality,asdefinedinthisresearch,thattheproductcanprovideagainstthepricepointsofferedbytheproviderandinrelationtootherproductsinthemarket.Scalabilityoftheapplicationattheteammemberlevelincludingdownwardtowardverysmallusergroups(fewerthan30users)andupwardtowardverylargeusergroups(thousandsofusers).ThevendoroffersSaaScontractmodelsandflexibility,aswellascosteffectiveprocessconsultingandotherservices.

OverallViability:Anassessmentoftheoverallorganization'sfinancialhealth,thefinancialandpracticalsuccessofthebusinessunit,andthelikelihoodthattheindividualbusinessunitwillcontinueinvestingintheproduct,willcontinueofferingtheproductandwilladvancethestateoftheartwithintheorganization'sportfolioofproducts.

SalesExecution/Pricing:Theprovider'scapabilitiesinallpresalesactivitiesandthestructurethatsupportsthem.Thisincludesresponsivenessinsalesengagement,dealmanagement,pricingandnegotiation,presalessupport,andtheoveralleffectivenessofthesaleschannel.

MarketResponsiveness/Record:Highmarksaregiventoopportunisticprovidersthatcanrespondquicklyandchangedevelopmentand/orcompanydirectiontomeettheneedsofanevolvingmarketplace.Providersshouldbeflexibleandachievecompetitivesuccessasopportunitiesdevelop,competitorsact,customerneedsevolveand/ormarketdynamicschange.Thiscriterionalsoconsiderstheprovider'shistoryofresponsivenesstocustomerrequests.

MarketingExecution:Theclarity,quality,creativityandefficacyofprogramsdesignedtodelivertheorganization'smessagetoinfluencethemarket,promotethebrandandbusiness,increaseawarenessoftheproducts,andestablishapositiveidentificationwiththeproduct/brandandorganizationinthemindsofbuyers.Thismindsharecanbedrivenbyacombinationofpublicity,promotionalinitiatives,thoughtleadership,wordofmouthandsalesactivities.

CustomerExperience:Relationships,productsandservices/programsthatenableclientstobesuccessfulwiththeproductsevaluated.Specifically,thisincludesthewayscustomersreceivetechnicalsupportoraccountsupport.Thiscanalsoincludeancillarytools,customersupportprograms(andthequalitythereof),availabilityofusergroups,SLAs,andsoon.Vendorsgainhighmarksforrapidimplementationstakingfewerthan21daystocomplete.Services/programsareevaluated,includingPPMprocessconsultingservices,atlittleornoextracost,thatenableclientstobesuccessfulwiththeproducts.Vendorshaveanassessedlevelofresponsivenessintechnicalsupportoraccountsupport.Ancillarytools,customersupportprograms(andthequalitythereof),availabilityofusergroups,andSLAsareoffered.Theyprovidecustomersatisfactioninsmall(fewerthan30users),medium(morethan100users)andlarge(morethan250users)implementations.

Operations:Theabilityoftheorganizationtomeetitsgoalsandcommitments.Factorsincludethequalityoftheorganizationalstructure,suchasskills,experiences,programs,systems,underlyinginfrastructure,andothervehiclesthatenabletheorganizationtooperateeffectivelyandefficientlyonanongoingbasis.Securityanddataprivacyarealsoassessed.

Table1.AbilitytoExecuteEvaluationCriteria

Criteria Weight

ProductorService High

OverallViability High

SalesExecution/Pricing Medium

MarketResponsiveness/Record High

MarketingExecution High

CustomerExperience High

Operations High


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CompletenessofVisionMarketUnderstanding:Theabilityoftheprovidertounderstandbuyers'wantsandneeds,andtotranslatethoseintostrongITPPMapplicationservicesinthecloud.Providersthatshowthehighestdegreeofvisionlistentoandunderstandbuyers'wantsandneeds,andcanshapeorenhancethosewiththeiraddedvision.CloudbasedPPMprovidersshouldbeabletotemperorquietthevoiceofthecustomer,toavoiddrivingallproductdevelopmentbasedsolelyoninstalledcustomers.Vendorsrecognizeandperiodicallydepartfromcoreproductdevelopmenttoexploratoryproductdevelopmenttoaddresstheneedsofpotentialcustomersoutsidethecompany'sknowntargetmarketsorinstalledbase.



MarketingStrategy:Aclear,differentiatedsetofmessagesconsistentlycommunicatedthroughouttheorganizationandexternalizedthroughthewebsite,advertising,customerprogramsandpositioningstatements.

SalesStrategy:Thestrategyforsellingproductsthatusestheappropriatenetworkofdirectandindirectsales,marketing,serviceandcommunicationaffiliatesthatextendthescopeanddepthofmarketreach,skills,expertise,technologies,servicesandthecustomerbase.

Offering(Product)Strategy:Howtheproviderapproachesproductdevelopment.Theprovider'sapproachtoproductdevelopmentanddeliveryemphasizesdifferentiation,functionality,methodologyandfeaturesetsastheymaptocurrentandfuturerequirements.Aheavyemphasisisplacedontimetovalueasitrelatestodeployment(fewerthan21days),easeofuse,easeofaccessibilityandeaseofadoption.Acostcompetitivepricingmodelexists,aswellasevidenceofthesameobservedinthefield.NativefeaturesandfunctionsexistversusrelianceonOEMagreementsand/orintegrationofthirdpartyproducts.VendorshaveaSaaSarchitecture.

BusinessModel:Thesoundnessandlogicoftheprovider'sunderlyingbusinessproposition.Theprovideroffersvalueforcustomerswithlowlevelsofrisk,through12monthcontractsandthelowcostofownershiporaccess.Thelogicoftheprovider'sunderlyingbusinesspropositionissound.Lockon,aconsciousdecisionbycustomerstosupporttheservicebecauseofitsvalue,ishighlydesirable.

Vertical/IndustryStrategy:Theprovider'sstrategytodirectresources,skillsandofferingstomeetthespecificneedsofindividualmarketsegments,includingverticalmarkets.

Innovation:Direct,related,complementaryandsynergisticlayoutsofresources,expertiseorcapitalforinvestment,consolidation,defensiveorpreemptivepurposes.Thevendoroffersseasonalproductreleases,andexhibitsrapiddevelopmentandagiledrivenreleases.Itsfunctionalitydemonstratesastrongproductvisionthatpushesthemarketinnewdirections,notjusttheprovider.Ithasademonstratedabilitytoleadthe"herd"ofthemarket,ratherthanfollowit.Thevendorshowsimprovementstoreportingservices,introducessocialnetworkingandcollaborationaspartofITPPMprocessautomation,offersmobileapplicationdevelopmentanddevicesupport,hasuserexperienceinnovations,providesnewanddifferentiatingfunctionality,andshowcasesotheractivitiesthatdemonstratetheabilitytorespondquicklytotheneedsforemergentfunctionalityand/orintroducenewconcepts,techniquesandfunctionsintheapplicationservicesthemselves.

GeographicStrategy:Theprovider'sstrategytodirectresources,skillsandofferingstomeetthespecificneedsofgeographiesoutsideits"home"ornativegeography,eitherdirectlyorthroughpartners,channelsandsubsidiaries,asappropriateforthatgeographyandmarket.

Table2.CompletenessofVisionEvaluationCriteria

EvaluationCriteria Weighting

MarketUnderstanding High

MarketingStrategy High

SalesStrategy High

Offering(Product)Strategy High

BusinessModel High

Vertical/IndustryStrategy Low

Innovation High

GeographicStrategy Medium


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QuadrantDescriptionsLeadersCloudbasedITPPMserviceprovidersidentifiedasLeadersinthisMagicQuadrantmeetmanyITPPMapplicationfunctionalityandprocessautomationrequirementsoftargetedconsumers.LeadersproviderobustandcomprehensivefunctionalityspecificallyforinternalITdepartmentseitherfortheprojectexecutionlevelcustomerorfortheportfoliolevelcustomer,andsometimesbothtypesofcustomers.LeaderssupportthegenerationandmanagementofinternalITprojectportfolios,andcantrackothertypesofinternalITspecificdemands,suchasminorsoftwarechangerequests,applicationenhancements,andbuganderrorfixes,somanagerscanassessthecumulativeimpactthatalltypesofworkwillhaveonafixedresourcesupply.ProductdepthinseveralcoreITPPMareassuchasdemandmanagementandanalysis,advancedscheduling,resourceandcostmanagement,andoutoftheboxintegrationtokeythirdpartyITapplications(suchasITSMsoftwareorapplicationdevelopmenttools)setsLeadersapartfromcompetitors.Someoftheproviderscansupportportfolioanalysis(forinvestmentprioritization).SomeLeadersarealsoofferingprogram(versusproject)managementsupportintheirproducts.

MostLeaderscandemonstrateastrongmarketpresence,combinedwithahigherthanusualleveloffrequencyinsalesactivityandexecution.Leadersaregrowingthenumberoftheirinstalledbases,andtheiraveragenumberofendusersperdealissteadilyincreasingyearoveryear.LeaderscanverifytheirlongevityandstabilityasSaaSprovidersintheITPPMmarket.TheyalsodemonstrateastrongSaaScommitmentastheirprimarybusinessmodel,aswellasaresultingstrongSaaSarchitectureandsignificantcloudbasedapplicationdevelopment.

CloudbasedITPPMserviceLeadersprovidedepthandbreadthoffunctionalityintheirapplicationservices,representingmanyyearsofdevelopmentandinnovation.TheseprovidershavealargeinstalledbaseofSaaScustomers,canprovidefunctionalityandprocessautomationforcustomersin30daysor



less,andcangivecustomerstheabilitytoincrementallyinvestintheirservicesthroughstandard12monthcontracts.CloudbasedITPPMserviceLeaderscanprovideoverwhelmingevidencethattheyareactivelysellingandmarketingtheirsolutions.Theirsalesandmarketingprogramscontinuetobehighlyeffective.Leadersarebecomingmoreengagedwithcustomersasprocessconsultants,inadditiontobeingaserviceprovider.

Leadersarecurrentlystablefinancially.Inaddition,nosignificantbusinessoroutsidedisruptionhasshakenordistractedtheLeadersinthisMagicQuadrant.

ManyoftheprovidersinthisMagicQuadrantarefocusedonSaaSastheirmainorsolebusinessmodelanemergentdeploymentapproachandbusinessmodelwhosesuccessisdependentheavilyontheadoptionandconsumptionbyendusers.Thus,cloudbasedITPPMserviceproviderstendtogenerateasuitableamountofrevenueannuallytosustainthemselves,butthoserevenuetotalsareafarcryfromthenumbersobservedamongonpremisesandtraditionalorcloudhostedPPMsoftwareproviders.

AnyoftheprovidersinthisMagicQuadrantcouldbeacquiredorhavealreadybeenacquiredrecentlyastheydrawmoreattentiontothemselves.GiventhemodesttotalrevenueofthecollectivelotofprovidersappearinginthisMagicQuadrant,Leadersarelikelytobethemostattractiveacquisitiontargets,becausetheyexhibitstrongfunctionality,asizableinstalledbase,lowriskcostofentryintoautomatingPPMprocesses,andenoughflexibilityintheirarchitecture,applicationcode,pricingmodels,andserviceagreementstocarrytheircustomersthroughthegrowingpainsassociatedwithITPPM.Leadersmaintainrepeatbusinessovertime,strengtheningtheirfinancialviabilityandenablingthemtoinvestmoreintheirSaaSofferingsandsupportingservices.

LeaderssharemanyattributeswithtechnologyprovidersratedasVisionariesandChallengers,buttheyarealsodifferentiatedbycomparativelyhigherratingsinmanyareas,notjustafew,withoverwhelmingcustomerreferencessupportingtheirclaimssubmittedasevidence,andothersignificantobservationsmadebyGartner.Consistencybetweenaprovider'sstatedstrategyandproductdirection,anditsexecution(thatis,integrity)isimportant,alongwithdemonstratedvision,enablingtheprovidertoaddressemergingandoftenvaguelydefinedmarketrequirements.

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ChallengersTherearenoChallengersinthisyear'sMagicQuadrantforcloudbasedITPPMservices.IforwhenaproviderisidentifiedasaChallenger,itwouldbeacompanythatresemblestheLeadersinmanyways,suchasproductdepthandbreadthcombinedwithenoughexperiencedproductdevelopment,salesandmarketingpersonneltoeffectivelyreachandmeettheneedsofthemarket.Infact,mostofthedescriptionaboutLeaderscanbeappliedtoChallengers.Challengers,however,appearassuchmainlybecausetheymayhaverecentlyembracedcloudbasedITPPMSaaSastheirmainbusinessmodel,ortheircloudbasedbusinessmodel,althoughthefocalpointgoingforward,hasnoteclipsedtheirotherbusinessmodels,whichmayincludeahistoryofonpremisesand/orhostedPPMsoftwareimplementations.

Challengersareconsistentintheirsalesandmarketingcampaigns,anddemonstrateobvioussuccessinsalesandmarketingexecutionadifferentiatorfromNichePlayersinthisMagicQuadrantasreflectedingrowingcustomercountsandaveragenumbersofuserspercustomer.ChallengerstypicallyofferastrongcoresetofITPPMfunctionalityasaservice,whiledemonstratinganabilitytosellandmarketthatcoreset.Theyalso,however,maybemissingfeaturesandfunctionsinsomeITPPMprocessareas,suchasdemandmanagement,programmanagement,socialnetworkingormobiledevicesupport.ChallengersmaynotbekeepingpacewithLeadersincloudbasedITPPMinoverallCompletenessofVision,buttheydoprovideacoresetoffunctionsthatinternalITdepartmentsmayfindsufficienttomeetamajorityoftheircoreITPPMrequirements.

ChallengersmaynotyetreadilysupporttopdownITPPMbaseddecisionmaking,analysisandplanning,nordotheyfrequentlyselltheirproducttoanITPMO.Wheretheydolacktopdownportfoliomanagementcapabilityandsalesexecution,theyoftenmakeupforitwithrobustexecutionlevelITPPMfeaturesandfunctionality.Incontrast,someLeadersandVisionariescansupportportfoliolevelITPPMcustomers,inadditiontoexecutionlevelITPPMcustomers,andselltheirproducttobothprojectmanagementconstituenciesandPMOconstituencies.

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VisionariesCloudbasedITPPMserviceprovidersintheVisionariesquadrantareenjoyingsteadybutmodestincreasedgrowthincustomercountandaverageuserspercustomer.SomeVisionariesinthisMagicQuadranthavebeenoperatinginthespaceformorethanadecade.VisionariesmaydifferfromLeadersinproductdepthandbreadth,orintotalrevenueorfinancialviability,ortheymaylacktheinstalledbaseandsalesexecutiontrackrecordofaChallenger.Theyalso,however,oftendemonstratesome"visionary"featuresandtraitsresemblingthoseofLeaders,suchasintheirSaaSarchitectureand/orcloudbasedapplicationdevelopmentactivity,ortheirSaaSbasedbusinessmodelandSLAswithcustomers.

LikeLeaders,VisionariesseektoenableITPPMbroadlyasabusinessprocess,buttheyalsomayfocusonspecificITPPMfunctionalityandnotprovideasmuchproductbreadth,ortheymayfocusonthemostinnovativesolutionswhilebackfillingtheirITPPMserviceswithcorefunctionalityovertime.SomeVisionarieshavebeenmoreexperimentalwithbusinessmodels,andtheymayapproachvariousmarketsmorebroadly,withvariablepackagingandpricing(forexample,freetrials,tryandbuyoptionsandflexiblecontractdurations).

CompletenessofVisionratingsofVisionariesreflectinnovativeapproachesinareassuchascollaboration,socialnetworking,mobiledevicesupport,interoperabilitywiththirdpartydatasources,andgroupspecificcollaboration(forexample,forPMOs,steeringcommittees,workgroups,projectexecutionenvironmentsandteams).Thefinancialviability,numberofcustomersandaveragenumberofusersperdealofVisionariesmaynotcomparetothoseofLeadersinthisMagicQuadrant,buttheseprovidersmakeupforsuchlimitationsthroughinnovativefeaturesandfunctionality,aswellasdirect,responsivecustomercareandsomeinfluenceoverfutureproductdevelopment.

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NichePlayersCloudbasedPPMserviceprovidersidentifiedasNichePlayersinthisMagicQuadrantoftenemphasizespecificITPPMfeaturesandfunctionsversusprovidingabroadandfunctionallydeepcloudservice.Inothercases,NichePlayershavedecidedtoembraceSaaSastheirprimarybusinessmodelmovingforward.Asaresult,theyhavebuiltasingleinstance,multitenantITPPMSaaSenvironmentorotherflavorofcloudbasedPPMservicefortheircustomers.

NichePlayersalsoincludecloudbasedITPPMserviceprovidersoperatinginaspecificcountryorgeographicregionthathavenotyetdemonstratedagrowingglobalpresence.InbuildingaSaaSplatformandofferingITPPMapplicationsasaservice,theseprovidersaretryingtobreakoutoftheiroriginaltargetmarketsbyprovidingaSaaSofferingthatisavailabletoanycustomer,regardlessofgeographicallocation.Likewise,NichePlayersalsomakereadyuseofonlinemarketingtools,servicesandchannelstoextendtheirglobalreachandbringaboutglobalbrandawarenessaspartofaSaaSbasedITPPMbusinessstrategy.

LikeVisionaries,NichePlayersdifferfromLeadersandChallengersinareassuchastotalrevenue,financialstrength,marketingexecutionand/orsizeoftheirinstalledbase,buttheyalsoareoftendedicatedtosupportingspecificITPPMprocessautomationneedsinoneorafewselectareas.Theiroverallsizeintermsofheadcountputsthemcloseenoughtocustomerstofullyunderstandwhatimprovementsshouldbemadetotheirproductsquicklyintheneartermtokeeptheircustomershappy.Customersmaybenefitfromhavingmoreinfluenceovertheprovider'sfutureproductdevelopment.

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ContextWhileprojectmanagementisessentiallythemanagementofstructuredworktodeliverasignificantlycomplicatedorcomplexsolution,portfoliomanagementisthemakingofmanagementdecisionsdeterminingwhichprojects(andprograms)aretheappropriateonesinwhichtoinvest.TheITPPMserviceproviderscoveredinthisMagicQuadrantprovidesupportforoneorbothofthem.

ThisMagicQuadrantoffersanindepthanalysisofthecompetitivepositioningforcloudbasedITPPMservicesbyshowcasingtherelativeplacementofthemainplayersinthemarketaccordingtoavarietyofcriteria,andbyofferingdetailedstrengthsandcautionsforeachoftheincludedproviders.TheratingsoftheprovidersrepresentacombinationofresearchandclientreferencechecksconductedspecificallyfortheMagicQuadrantprocess,alongwithinputfromtheGartnerPPMresearchcommunity,ongoingproviderbriefings,interactionswithGartnerclientsandmarketdevelopments.

Gartner'scomprehensiveMagicQuadrantforcloudbasedITPPMservicesisausefulstartingpointfromwhichtoidentifyandevaluatesuchaservice.Selectionofagoodprovidershouldbebasedonadetailedevaluationofneedsandobjectives,comparedwithaserviceprovider'scapacitytofulfillthoserequirementsandexpectationsovertime.Therefore,enterprisesmustdeterminewhichcloudbasedITPPMserviceprovidercanbestaddresstheirparticularrequirements.

WhatIsaCloudBasedITPPMServicesProvider?

ThecloudbasedITPPMprovidersincludedinthisMagicQuadrantofferSaaSascloudoptimized(wherebytheunderlyingsoftwarehasbeenrefactoredorredesignedforcloudbaseduse)orcloudnative(designedanddevelopedspecificallyforcloudbaseduse).ApplicationservicesaretypicallylighterweightofferingsprovidingthecorefunctionalitydesiredbymainstreamITPPMleaders.

Theseserviceshaverapidtimetovalue,andminimizefinancialcommitmentandrisk.Strongdemandforthesesolutionspersists,astheseproviders:

Aregenerallysmalltomidsize,yetgrowingProvidemainstreamPPMsoftwarefunctionalityinthecloudTypicallyhave75%ormoreoftheirinstalledbaseontheircloudnativeorcloudoptimizedplatformsProvidecosteffective,rapiddeploymentofPPMfunctionality,withoutrequiringuserstoownormanagethesoftwareinstanceSellmainly12monthcontracts

TheunderlyinginfrastructureofcloudbasedITPPMapplicationservicesiscloudcomputingscalableITenabledcapabilitiesdeliveredasaservicetoexternalcustomersusingInternettechnologies.Theapplicationcodeisalsobuilttotakeadvantageofcloudcomputing.(Formoreinformationoncloudarchitectures,see"CreatingCloudSolutions:ADecisionFramework,2011.")

Althoughthecloudarchitecturedistinctionofthesolutionproviderisimportant,generallyenablingfasterimplementationtimes,itisjustoneofseveraldifferencesamongthecloudbasedITPPMservicesincludedinthisreportandtheonpremises/cloudhostedITPPMofferingsincludedinGartner's"MarketScopeforITProjectandPortfolioManagementSoftwareApplications."

CloudbasedITPPMprovidersmainlysell12monthcontracts.Implementationtimestypicallytakeaslittleastwoweeksbutrarelyextendbeyond30days,exceptincasesofaboveaveragesizedealsinvolvinglargernumbersofendusers(thatis,severalhundredusersormore).Averagedealsizesrangefrom30to125usersperdeal,butallhaveafewcaseswherecustomershavedeployedsignificantlylargernumbersofenduserlicenses(forexample,morethan1,000users).

CloudBasedITPPMServicesfortheExecutionLevelCustomer

ExecutionlevelITPPMcustomersaremainlyinterestedinenhancingthedatasharing,collaborationandcommunicationbetweenprojectmanagersandteammembersinaprojectenvironment.AlltheprovidersfeaturedinthisMagicQuadrantoffersomelevelofcentralizedrequest,demand,project,resourceandtimemanagementcapabilities.Reportingservicescanprovideconsolidatedvisibilityintothecurrentstateofprojects,resourcesandspending.

Theseapplicationssupportdetailedprojectorworkrecordcreation,schedulingandleveling,resourcemanagementandallocation,timereporting,andprojectcostmanagement,amongotherPPMprocesses.Reportingservices,includingportfoliostylereporting,canaggregatethedatathesystemcollectsfrom



usersperformingtheseactivitieswithinthePPMsystem.

Integrationwithotheradjacentsystems,includingITmanagementsystems(suchasthehelpdesk),enablesuserstofunneldifferenttypesofworkitems,otherthanformallydefinedprojects,intothePPMsystemtodooneormoreofthefollowing:

CapturenonprojectresourcedemandSourceandallocatenonprojectworkTracktheuseofresourcesonnonprojectandotherworkitemsTrackthecostofmanagingnonprojectandotherworkitems

SomeexecutionsideITPPMconfigurationscanbeflexibleenoughtoprovidelighterversionsofproviders'projectandresourcemanagementfeaturesasanalternativetousingthirdpartyservicedeskandtroubleticketmanagementsystemstomanageoperationalITservicerequests.However,mostITPPMproductsoftenstopshortofreadilyembeddedandfullsupportforITILstandardsoftenfoundinITservicemanagement(ITSM)products.

ApplicationvaluefortheexecutionlevelITPPMcustomerisoftenhighlydependentontherateofadoptionbyendusers(suchasprojectmanagersandteammembers)ofmultiplePPMfeaturesatthelowestlevelsofworkmanagementdetail.Strongeradoptionratesleadtobettercommunicationbetweenprojectmanagersandteammembers,greatervisibilityintowhatishappeningattheexecutionlevel,andbetterreportingtomanagementandstakeholdersinterestedintheprogressofinvestments,programsandprojects.

ApplyingsocialnetworkingandcollaborationfeaturesandfunctionsinaPPMcontextwithinanexecutionlevelPPMdeploymentcanaidoracceleratedailyenduseradoptionofthePPMsystem,becauseitcancurbthetendenciesofprojectteammemberstogooutsidethePPMsystem(forexample,byusingemail,spreadsheetsorthirdpartytimereportingsystems)tohandlecommunicationanddatasharingduringprojectexecutionactivities.

FortheexecutionlevelPPMcustomer,projectportfolioreportingservicescanbethe"shinyobjects"thatconvincemanagementofthevalueinautomatingexecutionlevelprocesses.However,executionlevelPPMcustomersshouldassumebusinessmanagerswillnotactivelyparticipateintheuseofthePPMsystembeyondaccessingreportsandpersonaldashboards.

CloudBasedITPPMServicesfortheProjectPortfolioLevelCustomer

ProjectportfoliolevelITPPMcustomersaremainlyinterestedinenhancingthedatasharing,collaboration,andcommunicationbetweenprojectmanagersandbusinesssponsorsandanyrolesinbetween.Consequently,projectportfoliolevelITPPMcustomerswilloftenlookforatopdown,standalonesysteminwhichthe"portfoliomanagement"featuresandcapabilitiesarenotcenteredonordependentontaskandassignmentleveltimereportinganddetailedprojectschedulemanagement,asisoftenthecasewithexecutionlevelITPPMconfigurations.

ITprojectportfoliolevelcustomerswantacommonplatformforplanning,prioritizingandapprovingdemandpriortosuchworkitemsbeingpassedontoanexecutionlevelITPPMsystem.Theywantthisplatformtoreplaceexistingspreadsheetbasedplanningandselectionexercises,whilealsointegratingthisplatformwithdifferentdatasourcesthatcanincludeoneormoreexecutionlevelITPPMandITSMsystems,aswellasfinancialdatasources.

ChoosingITprojectportfoliolevelPPMallowscustomersoftheITdepartment,programmanagers,projectmanagers,andresourcemanagerstocommunicateandcollaborateduringhighlevelprojectandresourceplanninganddecisionmaking.Summarized,aggregate,executionlevelinformationcanalsobefedintothecommonplatformwithoutseverelydisruptingthewayaprojectmanagerworksonadailybasis.

ITPPMandAgileDevelopmentSupport

Withoutaddinganynew,specificfunctions,ITPPMsystemshavesomeoftheadministrativeworkflow"plumbing"tobeconfiguredtosupportpartsofagiledevelopment,butbynomeansaretheyagoodreplacementfordedicatedapplicationdevelopmenttoolsthatreadilysupportagiledevelopmentmethodsandworkmanagement.ThesuccessfuluseofanITPPMsystemtosupportagiledevelopmentteamsatmoredetailedlevelsismainlydependentonhowwellthatsystemcomplementsandintegrateswithadeveloper'stypicaldevelopmentprocessesandenvironment.DevelopersdonotwanttobeforcedtojumpfromtheirdevelopmentworkspacestoanexternalITPPMsystemtorecordtimeonagiledevelopmentactivities.

AlthoughmostITPPMprovidershavenotfullyintegratedPPMprocesseswithagiledevelopmentprocessestoallowadeveloperto"stayput"whenworkingonagileactivities(thosewithPPMreportingimplications),thereisagrowingtrendtoprovidepreconfiguredITPPMapplicationssupportingcollaboration,communicationandprojectportfoliolevelreportingforagiledevelopment.ProviderswithexistingfootholdsinapplicationdevelopmentprocesssoftwaremarketsarealreadyplanningtoprovidetransparentITPPMfunctionalityinintegrateddevelopmentenvironments.

Inaddition,someoftheITPPMproviderscoveredinthisMagicQuadrantareemphasizingtheimportanceofprovidingaggregateapplicationdevelopmentactivityreportingoutoftheboxintheirproducts.Todoso,ITPPMprovidersareforgingpartnershipsand/orbuildingandsupportingintegrationpointsbetweentheirproductsandAtlassian'sissueandbugtrackingJiraproduct,aswellasRallySoftware'sproductsforagiledevelopment.

ITPPM,SocialNetworkingandCollaboration

Socialnetworkingandcollaborationplatforms,capabilitiesandintegrationpointsarebeginningtofindtheirwayintoITPPMapplications.GartnerisseeingafewdifferentapproachestoapplyingsocialnetworkingandcollaborationinanITPPMcontext.SomeprovidersinthisMagicQuadrantarerelyingonclassicandbasiccommunicationtoolsandfunctions,includingissuetracking,threadeddiscussions,synchronization,integrationtoandfromemailsystemsandapplications,andothermechanismsthathavebeenstaplesofITPPMsoftwareproductsforyears.Otherprovidersarepartneringwithsocialnetworkingandcollaborationproviders,suchasChatterandJive.Stillothersareplanningtobeorarefullyengagedindevelopingnativesocialnetworkingandcollaborationaspartoftheircoreproducts,oraretakingthebuyversusbuildroute,likeMicrosoftdidwhenitacquiredYammerin2012.



SocialnetworkingandcollaborationinITPPMapplicationsseemmorelikefadsthatcouldfadeawaysomeday,ratherthanbecominglegitimatemainstayITPPMcapabilities.Atthelowestlevelsofprocessautomation,however,theaddedfeaturesandcapabilitiescantriggerviraladoptionamongendusers.Atthehighest(portfolio)levels,theycouldprovideawaytosupportpointintimeandemergentcommunicationneedsamongportfoliomanagersandbusinessleaders.

Atthemoment,PPMtosocialnetworkingapplicationintegrationdoesnotfeelmuchdifferentthanleavinganITPPMapplicationandgoingintoanemailsystemtodiscussaprojectwithteammembersorotherconstituents.However,ifITPPMprovidersbegintobuildPPMtosocialnetworkingintotheirapplications,enduserswillmorelikelystayinthatITPPMsystemforlongerperiodsofaworkday.EndusersthatvaluethesocialnetworkingandcollaborationcapabilitiesofanITPPMsystemwillwanttologintoitwhentheyfirstgettoworkforthedayandstayinsidetheITPPMsystemtocollaborateandcommunicatealldaylong,ratherthanleavingittouseoutsidepersonalproductivitytoolsandservices,suchasemail,toholdITPPMdiscussions.

ITPPMandMobileDeviceSupport

ManyITPPMproviderscontinuetouseHTML5toconnectanITPPMsystemtoanumberofmobiledevices,includingtabletsandsmartphones.ThereseemstobeastrongconsensusamongmanyoftheITPPMprovidersinthisMagicQuadrantthatbuildingdedicatedapplicationsforaseriesofknownwirelessandmobiledevicesavailableinthefieldwouldonlycreatetoomuchoverheadandcomplexityforthem.Instead,theseprovidersaremostlyleveragingHTML5developmenttopushoutspecificfeaturesandcapabilitiestomobileusersoftheirproduct.Insomecases,ITPPMvendorsarerewritingtheirentireapplicationcodebasetosupportHTML5.

ITPPMprovidersarefocusedondeliveringthreemainmobilecapabilitiestotheircustomersearly:

Timereporting,allowingenduserstoreporttheirtimefrommobiledevicesTheabilitytoapproveitemswithinaprocessflowofanITPPMsystem,whichenablesmanagerstoapprove,forexample,timesheetsorprojectideas,orrequestsfrommobiledevicesExecutivereportingtomobiledevices,soendusers(forexample,businessmanagersorprojectmanagers)canaccessandviewreportsanddashboardinformationfromtheirtabletsorsmartphones

ConsumersshouldexpectslowbutcontinuousincrementalmobilesupporttoappearintheirITPPMproductsofchoiceovertime,withHTML5beingthemainvehiclefordeliveringit.Providerswillbechallengedinbringingmoreandmorefeaturesandfunctionstomobiledevices,becausethenatureandcharacteristicsofmobiledevicescanlimitanenduser'sabilitytoperformcertainfunctionseasilyinanITPPMsystemfromtheirtabletsorsmartphones.Forinstance,manyITPPMsystemshavebeendesignedtobeaccessibleviabrowsers.Historically,theworkingassumptionwasthatthebrowserwasbeinglaunchedfromaPC,terminalorlaptopdevice.Tabletsandothermobiledevices,however,maynotalwaysincludethingssuchaskeyboardsoramouse/cursor.Therefore,performingcertainfunctionswithinanITPPMsystemcanbedifficultorevenimpossibleifattemptingtodosothroughcertainmobiledevices.

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MarketOverviewThecloudbasedITPPMservicesmarketprovidesanarrayofdifferentflavorsandapproachestoleveragingandusingITPPMapplicationsremotely,ratherthanbringingasysteminhouse.CloudoptimizedorcloudnativeITPPMapplications,deliveredasaservice,providebenefitsforconsumersinexchangeforsometradeoffsintheabilitytofullyown,control,extendandcustomizetheirownITPPMinvestments.BysacrificingtotalcontrolofanITPPMsystemforrapidavailability,adoptionandconsumption,consumersofcloudbasedITPPMservicescanaccessfunctionalityfromvirtuallyanywhere,whilelimitingtheirfinancialcommitmentstooneyearincrements,aswellastheiroverallriskininvestinginITPPMprocessautomation.

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