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
MagicQuadrantforCloudBasedITProject
andPortfolioManagementServices
19May2014ID:G00260413
Analyst(s):DanielB.Stang,RobertA.Handler
VIEWSUMMARY
Thepaceofchangecontinuestoincreasedemandforprojectsandprograms,aswellasdemandforcloud
basedapplicationservicesdesignedtohelpPPMleadersmanageprojectsandprograms.ThisMagic
QuadrantanalyzescloudbasedITPPMserviceprovidersandtheirproductsinaverydynamicmarket.
MarketDefinition/Description
ThecloudbasedITprojectandportfoliomanagement(PPM)providersincludedinthisMagicQuadrant
offerSaaSascloudoptimized(wherebytheunderlyingsoftwarehasbeenrefactoredorredesignedfor
cloudbaseduse)orcloudnative(designedanddevelopedspecificallyforcloudbaseduse).DemandforIT
PPMsoftwarecontinuestogrow.
1
Thisisdueinparttoacombinationofsocialandtechnologicalfactors.
Socially,enterprisesarebeginningtoseethevalueoftearingdownthefivefootcubicalwalls,and
replacingwatercoolerswithwirelesshotspots,beanbagchairs,configurabledesktopsandwhiteboards.
Corporatecultureisshiftingtosupportcollaborationinalessisolatedworkenvironment.Theyseethe
valueandadvancesinproductivitytheygetfrommakingtheirworkersmorecomfortablewitheach
other,buildingtrust,and,ultimately,makingthecompanyalotmoremoneyinitsrespectivemarket.
TechnologicalshiftsindicatethatITcontinuestoimproveandproliferate.Networksconnecteverythingto
everythingelse,drivingincreasedcomplexity,whichinturndrivesconstantchange.
2
Thepaceofchange
continuestoincreasedemandforprojectsandprograms,notalwayswithincreasedlevelsoffundingor
resources.
3
Webelievetheseeventsarecontributingtocontinuedstronggrowthinthisspace,even
thoughitisbynomeansanewspace.
4
In2012,Gartnerdeclaredan"Innovator'sDilemma"
5
atplayinthePPMtoolmarket.Wellestablished
onpremisestechnologyproviderswithseeminglysecurecustomerbasesandanapparentlockonthe
marketwerebeingthreatenedbyrelativelynewandlowendproviders.Todayin2014,thisdeclaration
stillholdstrue.WeareseeingiterationsoftraditionalonpremisesPPMsoftwareproductsbeingreplaced
bythenewerofferingscoveredinthisresearch.
Whilethesenewerofferingsmayhavefewerfeaturesandfunctions,thisisn'tnecessarilyabadthingfor
themainstreammarket.Mostfirsttimebuyersinthemainstreamdon'tneedalotofcapabilityupfront.
Buyersingeneral,likeanyone,lookforthepathofleastresistance.Forreturningbuyerslookingfora
replacementPPMsystembecausetheirexistingonefailedtheminsomeway,simplicityincore
functionalityisanattractiveproposition.Forexample,ifalessthansuccessfulandbarelyfunctionalon
premisesPPMapplicationthatismorethanfiveyearsoldonethatisreallynomorethananexpensive
timetrackingsystemwhileotherPPMneedsaregoingunmetcanbereplacedinexpensivelywithintwo
tothreeweekswithsomethingsignificantlymorefunctionalandconfigurable,manyareaskingthe
rationalquestion,"Whynot?"Weareseeingthisquestionraisedmoreofteninthefield.
Tocounterthisdynamic,manytraditionalonpremisesITPPMapplicationvendorsarenowofferingsome
fixedpriceandfixedscopeSaaSoptionstotheirexistingofferingsatmarketpricesforSaaS.While
reportsfromearlyadoptersweremixed,currentlymainstreamPPMprovidersofferingfixedpriceand
fixedscopesolutionsasSaaSseemtobehavingsomesuccess.Conversely,someofthenewerSaaS
providers,movingoutsideoftheirtraditionaltargetmarketofmidsizeenterpriseIT,arehavingoccasional
growingpainsastheylooktoprovidecustomizationscustomizationsthatcontradictaSaaSbusiness
modelrequiringhighdegreesofstandardizationforlargerandmoresophisticatedclients.
FurthercomplicatingthemarketisthequestionablesoundnessoftheunderlyinginfrastructureforSaaS
theInternet.Whileithashistoricallyperformedwell,recenteventsrequireconsideration.On24March
2014,Basecamp,aproviderofprojectmanagementtoolsasSaaS,wentofflinebecauseofadistributed
denialofservice(DDoS)attacktheproviderwas,infact,beingheldransomformoney.
6
However,this
DDoSimpactedmanyprojectsthatcouldnotaccessthetoolsasSaaS.WhilemostPPMSaaSproviders
haverelativelyscalableelasticinfrastructure(thatis,thecloud),theyarestillsomewhatsusceptibleto
attackssuchasDDoS.Theyalsoaresusceptibletoothervulnerabilities(forexample,theHeartbleed
securitybug).
Giventhecurrentmarketactivity,
1
itwouldappearthatorganizationsareseriousaboutmanaging
change.Anytoolsrequiredtomanagethatchangewouldbecomeindispensable.Ifenoughhiccupsoccur
intheSaaSinfrastructure,it'squitepossiblewe'llseeashiftbacktowardonpremises.Thisisawell
establisheddynamicknownasresourcedependencetheory(RDT).
7
Manyotherdynamicsatplaywillimpactthismarketbeyondthe12monthhorizoncoveredinthis
research.
8
Asboththepaceandcomplexityofchangecontinuetoincrease,PPMleadersareforcedto
improvetheirmaturity,whichshoulddrivedemandforadvancedpracticesandtechniquestobe
supportedbytoolvendors.WealsoexpecttechnologytrendslikedigitalizationandtheNexusofForcesto
driveorganizationstowardaproductdevelopmentparadigmatleastforasignificantnumberof
applicationprojectspotentiallygivingtechnologyproviderswithnewproductdevelopmentfunctionality
EVIDENCE
1
Gartner'sPPManalystteamconductedmorethan
1,500clientinteractionsconcerningPPMsoftwareand
toolsbetweenJanuary2012andDecember2013,
reflectingtheimportanceclientsattachtomakingthe
rightdecisionsinthisarea.Furthermore,therewasa
208%increaseinPPMsoftwareandtoolinquiriesin
2013over2012.
2
See"GartnerTopPredictions2014:Planfora
Disruptive,butConstructiveFuture."
3
See"ITKeyMetricsData2014:Executive
Summary."Theoutlookfor2014,basedonpreyear
budgeting,indicatesanaverageplannedincreaseinIT
spendingofaround3.2%(seeFigure13in"ITKey
MetricsData2014:ExecutiveSummary").The
majorityofindustriesarestillprojectinganincreasein
ITspendingin2014,althoughthelevelofincrease
variesbysector.
4
In2014,CFOsexpectthebiggestincreaseof
investmentfundstobedirectedtowardR&Dand
innovation,suggestingthatCIOswillneedtoprovide
evidenceoftightergovernancetosupportthis
increase.See"2014CEOandSeniorExecutiveSurvey:
CIOsMustAllyWithCFOsintheRaceforDigital
Supremacy."
5
Backgroundinformationon"TheInnovator's
Dilemma."
6
See"BasecampFallstoBlackmailFueledDenialof
ServiceAttack,"byIanPaul,PCWorld,24March2014.
7
"TheSnowdenEffect:DataLocationMatters"notes
thatEuropeanadoptionofSaaSislowerthanNorth
America.
8
See"Predicts2014:PPMLeadersMustPreparefor
ExtremeTransformationorPrepareNewResums."
EVALUATIONCRITERIADEFINITIONS
AbilitytoExecute
Product/Service:Coregoodsandservicesofferedby
thevendorforthedefinedmarket.Thisincludes
currentproduct/servicecapabilities,quality,feature
sets,skillsandsoon,whetherofferednativelyor
throughOEMagreements/partnershipsasdefinedin
themarketdefinitionanddetailedinthesubcriteria.
OverallViability:Viabilityincludesanassessmentof
theoverallorganization'sfinancialhealth,thefinancial
andpracticalsuccessofthebusinessunit,andthe
likelihoodthattheindividualbusinessunitwillcontinue
investingintheproduct,willcontinueofferingthe
productandwilladvancethestateoftheartwithinthe
organization'sportfolioofproducts.
SalesExecution/Pricing:Thevendor'scapabilitiesin
allpresalesactivitiesandthestructurethatsupports
them.Thisincludesdealmanagement,pricingand
negotiation,presalessupport,andtheoverall
effectivenessofthesaleschannel.
MarketResponsiveness/Record:Abilitytorespond,
changedirection,beflexibleandachievecompetitive
successasopportunitiesdevelop,competitorsact,
customerneedsevolveandmarketdynamicschange.
Thiscriterionalsoconsidersthevendor'shistoryof
responsiveness.
MarketingExecution:Theclarity,quality,creativity
andefficacyofprogramsdesignedtodeliverthe
organization'smessagetoinfluencethemarket,
promotethebrandandbusiness,increaseawareness
oftheproducts,andestablishapositiveidentification
withtheproduct/brandandorganizationintheminds
ofbuyers.This"mindshare"canbedrivenbya
combinationofpublicity,promotionalinitiatives,
thoughtleadership,wordofmouthandsalesactivities.
CustomerExperience:Relationships,productsand
services/programsthatenableclientstobesuccessful
withtheproductsevaluated.Specifically,thisincludes
7/2/2014 Magic Quadrant for Cloud-Based IT Project and Portfolio Management Services
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acompetitiveedge.Also,forsometime,we'veexpectedtrendstodriveorganizationstowardan
enterprisePPMfocus,givingtechnologyproviderswithanemphasisonenterpriseprojectmanagement
aneventualcompetitiveadvantage.Thus,wewillhaveanotherinteresting(thatis,turbulent)yearinthe
ITPPMmarket.
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ProvidersinThisMagicQuadrantAreAppropriateforEvaluationandPotential
UseWhen
YouarelookingformainstreamITPPMfunctionalitydeliveredasaservicetosupportimmediate
processautomationandreportingneeds.
Youdonotexpecttohaveimmediateandspecificneedsforextensivecustomizationordeep
integrationwithenterprisesystems.
Youarenotplanningtoinsourcethefunctionalityinthenearfuture.
Thedata,network,applicationsandlevelsofsecurityofferedbytheprovideraresufficientenoughto
"outsource"theITPPMapplicationfunctionality.
Youwishtomakeashorttermratherthanlongterm(threeyearsormore)commitmenttoITPPM
applicationfunctionality.
YouwantarapiddeploymentofcoreITPPMfunctionalitywithin30days.
YouareatthelowerlevelsofPPMmaturity(Level1or2onGartner'sITScorePPMMaturityModel)
andwantacoresetofPPMapplicationservicesthatwillnotoverwhelmyourendusersinitially,yet
willprovideapathforwardforservicefunctionalitytogrowovertimeastheorganizationmatures.
Youhaveasmallendusergroupwithasfewas20to30endusers.
Youhavealimitedbudget(lessthan$100,000)foracquiringITPPMfunctionalityand/orneeda
waytotestthewatersorpilottheuseofITPPMfunctionalityforayear(oftentogainadditional
managementsupportforlargerPPMefforts).
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MagicQuadrant
Figure1.MagicQuadrantforCloudBasedITProjectandPortfolioManagementServices
Source:Gartner(May2014)
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VendorStrengthsandCautions
AtTask
ITPPMProduct:AtTask
www.attask.com
Strengths
AtTask'sapproachtoworkmanagementwillappealtomostorganizationsthathavetoomuchwork
todoandnotenoughpeopletodoit.
thewayscustomersreceivetechnicalsupportor
accountsupport.Thiscanalsoincludeancillarytools,
customersupportprograms(andthequalitythereof),
availabilityofusergroups,servicelevelagreements
andsoon.
Operations:Theabilityoftheorganizationtomeet
itsgoalsandcommitments.Factorsincludethequality
oftheorganizationalstructure,includingskills,
experiences,programs,systemsandothervehicles
thatenabletheorganizationtooperateeffectivelyand
efficientlyonanongoingbasis.
CompletenessofVision
MarketUnderstanding:Abilityofthevendorto
understandbuyers'wantsandneedsandtotranslate
thoseintoproductsandservices.Vendorsthatshow
thehighestdegreeofvisionlistentoandunderstand
buyers'wantsandneeds,andcanshapeorenhance
thosewiththeiraddedvision.
MarketingStrategy:Aclear,differentiatedsetof
messagesconsistentlycommunicatedthroughoutthe
organizationandexternalizedthroughthewebsite,
advertising,customerprogramsandpositioning
statements.
SalesStrategy:Thestrategyforsellingproductsthat
usestheappropriatenetworkofdirectandindirect
sales,marketing,service,andcommunication
affiliatesthatextendthescopeanddepthofmarket
reach,skills,expertise,technologies,servicesandthe
customerbase.
Offering(Product)Strategy:Thevendor'sapproach
toproductdevelopmentanddeliverythatemphasizes
differentiation,functionality,methodologyandfeature
setsastheymaptocurrentandfuturerequirements.
BusinessModel:Thesoundnessandlogicofthe
vendor'sunderlyingbusinessproposition.
Vertical/IndustryStrategy:Thevendor'sstrategy
todirectresources,skillsandofferingstomeetthe
specificneedsofindividualmarketsegments,including
verticalmarkets.
Innovation:Direct,related,complementaryand
synergisticlayoutsofresources,expertiseorcapital
forinvestment,consolidation,defensiveorpre
emptivepurposes.
GeographicStrategy:Thevendor'sstrategytodirect
resources,skillsandofferingstomeetthespecific
needsofgeographiesoutsidethe"home"ornative
geography,eitherdirectlyorthroughpartners,
channelsandsubsidiariesasappropriateforthat
geographyandmarket.
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AtTask'svisionofmanagingworkacrosstheenterpriseanditstimelyidentificationofmarketsin
needofsupportforworkmanagement,insideandoutsideofIT,enablesitsabilitytoexecuteinthis
market.
AtTaskcontinuestoprovidegoodserviceandasolidITPPMproductasitexpandsintodifferent
markets.
Cautions
AtTask'sofferingmaynotprovideenoughadvancedfunctionalityrequiredbymaturingITPMOs,
suchasformanagingprogramsattheportfoliolevel,andtopdownvettinganddecisionmaking.
AmajorityofAtTaskfunctionalitylendsitselfmoretothebreadthofworkmanagementratherthan
totheindepthneedsofmanagerslookingformorerobustITportfoliomanagementandITprogram
managementfeatures.
Likesomeothercloudbasedproviders,AtTask'smultitenantdatabasestructurestorescustomer
datainshareddatabases.Therefore,therearelimitsontheanalysiscustomerscandowiththedata
theystoreinAtTask,especiallyifcustomerswanttousethirdpartybusinessintelligenceand
reportingtools.
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AutomationCentre
ITPPMProduct:TrackerSuite.Net
www.acentre.com
Strengths
AutomationCentre'sTrackerSuiteusesanexistingemailplatformonpremises,oracloud
deploymentoptiontoprovidecommunicationandcollaborationbetweenprojectmanagersandteam
members.
Timereportingisaknownstrength,withtheabilitytotracktimeagainstdifferentworkefforts,and
tochargeaddedtimetoprojects,includingmaintenanceandsupportefforts.
RecentTrackerSuiteenhancementsemphasizestrongertimereporting(suchasimproved
navigation,conversiontoPDFfileformatandchargingtimetobillingmilestones),aswellasnew
reportsanddatavisualizationtools.
Cautions
AutomationCentremustscaleupitsserviceofferingsfornewcustomersanddeploymentsasnew
businessvolumeincreases.Thiswillmostlikelybedonebycreatingandgrowingapartnerprogram.
TrackerSuitedoesnotprovideintegrationtoAtlassian'sJiraoragiledevelopmenttools.These
integrationsarebecomingmoreandmorepopularinITPPM.
TrackerSuitedoesnotprovideadvancedsupportforITprogrammanagement,ortopdown,IT
portfoliomanagementconfigurations.
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Clarizen
ITPPMProduct:Clarizen
www.clarizen.com
Strengths
Clarizen'spaceofproductinnovation,specificallyasitrelatestoprovidingcollaboration,
communication,andsocialnetworkingonacloudbasedplatform,isexemplary.
Clarizenoffersanapplication"marketplace"ofboltoncapabilitiesand/orconfigurationsthatare
easytoaccessandadopt,andthataddresspersonaspecificusecases.
Clarizen'sproductdevelopmentfocusisonprovidingflexiblecapabilitiesthatareeasytoadopt,and
thatsupporthowpeopleworkandhowtheywanttowork.
Cautions
Clarizen'sofferingmaynotprovideenoughfunctionalityrequiredbymaturingITPMOs,including
advancedprogrammanagementandportfoliomanagementcapabilities,suchasmanagingacross
programsattheportfoliolevel,andanalyticalsupportwhenperformingtopdownvettingand
decisionmaking.
AmajorityofClarizenfunctionalitylendsitselfmoretothebreadthofworkmanagementrather
thantotheindepthneedsofmanagerslookingformorerobustportfoliolevelfeatures
specificallyforITprojectandprogrammanagement.Thesefeaturesrequirecustomizationof
Clarizenreportingservicesand/orassistancefromClarizen.
DuetoClarizen'smultitenantdatabasestructure,therearelimitsontheanalysisthatcustomers
canperformwiththedatatheystoreinClarizen,especiallyifcustomerswanttousethirdparty
businessintelligenceandreportingtools.ClarizenoffersAPIsandotherevolvingworkaroundsto
addresstheneedsofcustomreporting.
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Daptiv
ITPPMProduct:Daptiv
www.daptiv.com
Strengths
Daptiv'saveragenumberofusersperdealhascrestedtomorethan200,rivalingthatoflarge
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enterpriseITPPMvendors.
UsersreportDaptiv'sproducthasmadesignificantgainsinusabilityandconfigurability,andthe
extensiveuseofIBMCognossoftwareisaddressingsomereportingflexibilityconcernstypically
associatedwithcloudbasedITPPMapplications.
DaptivisnowthepreferredpartnerforBMCSoftwareforITPPMinthecloud.BMCcustomersshould
expectricherintegrationbetweenDaptivandBMCproductsasthispartnershipevolves.
Cautions
WhiletheuseofCognosaddressesanumberofreportingneeds,thereisalearningcurveassociated
withusingthisoption.Sizelimitationsandotherfactorscanresultinlaggingresponsetimeswhen
runningreportsinDaptiv.
SomeDaptivcustomersreporttheycannoteasilycreateaggregateportfoliosandperformprogram
levelrollups.Programandportfoliomanagementislimitedlargelytothesystem'sexistingreporting
services.Userscannoteasilyshowdependenciesacrossprojectsindifferentportfolios.
DuetoDaptiv'smultitenantdatabasestructure,therearelimitsontheanalysisthatcustomerscan
performwiththedatatheystoreinDaptiv,especiallyifcustomerswanttousethirdpartybusiness
intelligenceandreportingtoolsotherthanCognos.
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Innotas
ITPPMProduct:Innotas
www.innotas.com
Strengths
Innotas'corestrengthsemphasizeportfoliolevelfunctionalityakeydifferentiatorfrommany
providersofitstype.
Innotas'roadmapissignificantlyalignedwiththeforwardprogressionandinnovationssurfacingin
thecloudbasedITPPMmarket,astheproductcontinuestoattractadoptionfromdeveloperteams
asaworkmanagementtool,andITPMOscontinuetoadoptitasatopdownportfoliomanagement
system.
Innotas'integrationplatformisbackedbyaservicelevelagreementandInnotas'supportstaff.
Continuedexamplesofuseofthisplatforminthefieldamongcustomersdemonstrateproven
integrationtothirdpartyproducts,includingAtlassian'sJira,MicrosoftTeamFoundationServer
(TFS)andBMCRemedy.
Cautions
Innotasissusceptibletogrowingpainsasitcontinuestoscaleuptomeettheneedsoflarger
projectorganizations.Theseorganizationsmayeventuallyrequirethevendortosupportmoreand
moreusersandeventuallyprovideadedicateddatabase.Therefore,Innotasmayneedtooneday
providededicatedinstancesforitslargercustomers.
Althoughitscloudbasedintegrationplatformandservicesarevisionaryandhaveshowninitial
promise,Innotaswillbechallengedwithhiringandretainingtopintegrationexpertisetomeetthe
mountingdemandforintegrationtothirdpartydatasourcesandITproducts.
DuetoInnotas'multitenantdatabasestructure,customers'dataisstoredinshareddatabases.
Therefore,therecanbelimitsontheanalysiscustomerscandowiththedatatheystoreinInnotas,
especiallyifcustomerswanttousethirdpartybusinessintelligenceandreportingtools.
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One2team
ITPPMProduct:One2team
www.one2team.com
Strengths
One2teamaddedanumberofinnovativefeaturesandfunctionstoitsproduct,including
"slideboards,"akanbanlikeuserinterfaceformanagingtodolists,deliverables,projectdemands,
risks,investments,ideasandotherobjectsdefinedinthesystem.Otherimprovementsinclude
criticalpathvisualizationintheplanningmodule,andnewanalyticalcapabilities.
One2team'spersonadrivenapproachtoproductdevelopmentprovidesgooddesignoftrulyuseful
features,suchasmobileviewsand"Googlelike"searchforteammembers.
One2team'sproductandvisionareperhapsthestrongestamongprovidersabletosupport
EuropeanonlycustomersforcloudbasedITPPM.
Cautions
AlthoughwellpositionedforITPPMprospectsinEurope,One2teamhasalimitedreachinNorth
America.
Likemanyothersinthisspace,userswouldlikegreaterreportingcapabilitiesandmoreaccessto
thedatatheystoreonOne2team'scloudservices.
Usersreportoutoftheboxprojectmanagementbestpracticesandcontentcouldbeenhancedto
helpaidtheircontinuedmaturationandfurtheradoptionoftheproduct'scapabilities.
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onepointProjects
ITPPMProduct:onepointProjects
www.onepointprojects.com
7/2/2014 Magic Quadrant for Cloud-Based IT Project and Portfolio Management Services
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Strengths
Importantadditionstoproductfunctionalityincludeprojectprioritizationandportfolioanalysis.
AllprevioususeofJavaontheclientsidehasbeenremovedfromtheproductandreplacedwith
HTML5,makingiteasierforonepointProjectstobeusedonmobiledevices.
ForJirausers,atwowayintegrationcapabilitywasreleasedinApril2014aspartofonepoint
Projectsrelease12.1,allowingsynchronizationbetweenworkmanagedinJiraandonepoint
Projects.
Cautions
AlthoughwellpositionedtosupportITPPMcustomersandprospectsinEurope,onepointProjects
hasvirtuallynopresenceinNorthAmericaorAsia.
SalesandrevenuespecificallyfromonepointProjects'cloudbasedofferingisnotkeepingpacewith
otherprovidersinthecloudbasedITPPMmarket.
IntegrationwithotherkeyITsoftwareapplicationsandsystemsislacking(suchasRallySoftware
andBMCRemedy).
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Oracle
ITPPMProduct:InstantisEnterpriseTrack
www.oracle.com
Strengths
Oracle'scorporatePPMvision,ifproperlyexecuted,willappealtolargeorganizationslookingfor
enterprisePPMparticularlyifOracleenterpriseapplicationsarealsobeingused.
Recentimprovementstotheproductincludevariablerateandcapitalizedlaborcosting,andproject
leveltimeapproval.
InstantisEnterpriseTrackcangenerateMicrosoftPowerPointslideswithcustomerspecificvisual
templatesforuseasinstantprojectstatusreports.
Cautions
CustomersrelyingonInstantis'ITPPMspecificfeaturesandfunctionsshouldbeawarethat,asa
partofalargerPPMOracleportfolio,thereisstillariskthatInstantismaybedistractedbytheneed
tointegratetheproductwithcomplementaryapplicationsandtechnologyinOracle'scurrent
productportfolio.
Oracle'scustomersreportincreasedpricing,aswellaslagtimesinprocessingspeedandinupdating
projectrecords,andtroublesomeuploadingofandintegrationwithMicrosoftProjectplans,allof
whichmaynotbethefaultofOracle.
OracleInstantisEnterpriseTrackdoesnotprovideintegrationtoRallySoftware'sagiledevelopment
products.
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ProjectObjects
ITPPMProduct:ProjectObjects
www.projectobjects.com
Strengths
ProjectObjects'corestrengthsemphasizeportfoliolevelfunctionalityakeydifferentiatorfrom
otherprovidersofitstype.
ProjectObjectsisoneofthefewhistoricalonpremisesITPPMvendorsthatchosetoaddressSaaS
byprovidingacloudbased(ratherthancloudhosted)deploymentoption.ThisallowsProjectObjects
tooffercustomersthechoiceofadedicated,onpremisesdeployment,ortodeploypurelyasa
cloudbasedoffering.
ProjectObjectsiseasytouseandisdesignedtoscalebotharchitecturallyandmethodologically,
witha"progressiveprojectmanagement"approachtoimplementation.
Cautions
ProjectObjects'userdocumentationandtraining,includingvideobasedtraining,needs
improvementtohelpcustomerswithadoptionandtoincreaseandencouragetheuseofmore
advancedfunctionality.
AlthoughProjectObjectshasnotspentconsiderabletimedevelopingcollaborationorsocial
networkingcapabilitiesaspartofitsPPMapplicationservices,ithasmadesomeinitialstepstoward
doingso.ArecentreleaseintroducessocialPPMcollaborationcalledtheProjectObjectsCollaboration
Space,providingchat,theabilitytoshareideas,andthemashingupofsocialcollaborationfeatures
withformalprojectmanagementprocesses.
ProjectObjectsdoesnotyetprovideintegrationpointstoITservicemanagement(ITSM)systems
(suchasServiceNowandBMCRemedy).
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UplandSoftware
ITPPMProducts:PowerSteering,EPMLive
www.uplandsoftware.com
Strengths
SincethecomingtogetherofthevariousfirmscomprisingUpland(mainlythroughacquisition),the
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rateofproductinnovationisincrementallyimproving,andshouldcontinuetoimprove,assuming
thecontinuedfinancialbackingfrominvestors.
Uplandhasassembledsomekeytechnologypiecestoenableitsvisionofbeingasingleproviderof
bestofbreedcloudbasedPPMofferings.
Includingworkflow,documentmanagementandITfinancialmanagementaspartofafamilyof
productsonaSaaSplatformmakesforacompellingargumentformatureclientslookingfora
singlesource,cloudbasedITPPMprovider.
Cautions
Prospectslookingtomakeaproductselectionintheneartermmaybestymiedbypotentially
overlappingandredundantproductfunctionalityacrossUpland'smultipleacquiredproductlines.
UntilUplandSoftwaresuccessfullyadvancesonitsvision,whichwouldincludeconsolidationand
integrationofcloudbasedproductsandservices,aswellasconsolidationofunderlyingbusiness
operations,customerswillnotfullybenefitfromUpland'svision.
Withoutacompellingvaluepropositiontothecontrary,Gartnerseescustomerscontinuingtobe
opentoselectingmultipletechnologiesandPPMproductsfrommultipleproviders,limitingmarket
demandforaunique,singlesource,cloudbasedPPMproviderandafamilyofproductsthatUpland
hasplannedforthemarket.
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VCSonline
ITPPMProduct:VPMiEnterprise
www.vcsonline.com
Strengths
VPMiEnterpriseofferssolidresourcemanagementcapabilities,withuniquedifferentiatorssuchas
"askandgive"resourcerequestmanagementandfulfillment.
Theproduct'sUIiseasytoadoptandwrittencompletelyinHTML5,enablingmoreadaptableuse
withmobiledevices.
VPMiofferscompetitivepricingandishistoricallyresponsivetoclientneeds,despiteitssmallsize.
Cautions
TheproductlacksintegrationtocommonagileintegrationtoolssuchasRallySoftwareand
Atlassian'sJira.
Whilerecentinvestmentsinmarketingmayprovefruitful,historicallylowemphasisonmarketing
hasimpactedgrowth,whichlimitsproductinnovation.
VCSonlineseemstohavelargelylimiteditsmarkettoNorthAmerica.
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VendorsAddedandDropped
WereviewandadjustourinclusioncriteriaforMagicQuadrantsandMarketScopesasmarketschange.As
aresultoftheseadjustments,themixofvendorsinanyMagicQuadrantorMarketScopemaychange
overtime.Avendor'sappearanceinaMagicQuadrantorMarketScopeoneyearandnotthenextdoes
notnecessarilyindicatethatwehavechangedouropinionofthatvendor.Itmaybeareflectionofa
changeinthemarketand,therefore,changedevaluationcriteria,orofachangeoffocusbythatvendor.
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Added
UplandSoftware,whichwasrecentlyformed
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Dropped
EPMLive,whichbecamepartofUplandSoftware
PowerSteeringSoftware,whichbecamepartofUplandSoftware
Tenrox,whichbecamepartofUplandSoftware,andnowfocusesonPPMmarketsoutsideofIT
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InclusionandExclusionCriteria
TheproductmustbeanITPPMproductsignificantlysupportinginternalITPPM.
Theproductmustbegenerallyavailableandactivelymarketedforthepastfourconsecutiveyears,
withoutanysignificantcompany,productorservicedisruptions.PPMprovidersthathave"restarted"
or"resurrected"olderITPPMcompaniesorproductlines/platformswillnotbeincluded.
Productdeploymentissignificantlyofcloudnativeandcloudoptimizedapplicationservices.
Asastandardwayofdoingbusiness,theprovidermustoffershorttermcontractsthatareusually
nolongerthan12monthsinlength.Allowancesaremadeformultiyearagreementswhere
applicable.
Averagedeploymenttimesmustbebetweentwoweeksand30days.
Theseproviderswillsupportasfewas10userspercustomer(sometimesevenless),butcanalso
scaleuptosupportsomecasesinvolvinghundredsorthousandsofusers.
Providersmusthaveacquiredatleast10newITPPMcustomers(notrepeatbusiness)onaverage,
peryear,from2009to2013.
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Asignificantpercentageoftheprovider'sinstalledbaseistypicallyonshortterm,12month
subscriptionsinvolvingamultitenantenvironment.
Providersmusthave$10millioninannualrevenueorsignificantfinancialbacking.
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EvaluationCriteria
AbilitytoExecute
ProductorService:Coregoodsandservicesofferedbytheproviderthatcompetein/servethedefined
market.Inaddition,thisincludescurrentproduct/servicecapabilities,quality,featuresetsandskills
whetherofferednativelyorthroughOEMagreements/partnerships,asdefinedinthemarketdefinition
anddetailedinthesubcriteria.Highermarksaregivenforeaseofuse,balancedwithfunctionaldepth,at
acosteffectiveprice.Thevendoroffersalowcostofentry.AheavyemphasisexistsontheamountofIT
PPMfunctionality,asdefinedinthisresearch,thattheproductcanprovideagainstthepricepointsoffered
bytheproviderandinrelationtootherproductsinthemarket.Scalabilityoftheapplicationattheteam
memberlevelincludingdownwardtowardverysmallusergroups(fewerthan30users)andupward
towardverylargeusergroups(thousandsofusers).ThevendoroffersSaaScontractmodelsand
flexibility,aswellascosteffectiveprocessconsultingandotherservices.
OverallViability:Anassessmentoftheoverallorganization'sfinancialhealth,thefinancialandpractical
successofthebusinessunit,andthelikelihoodthattheindividualbusinessunitwillcontinueinvestingin
theproduct,willcontinueofferingtheproductandwilladvancethestateoftheartwithinthe
organization'sportfolioofproducts.
SalesExecution/Pricing:Theprovider'scapabilitiesinallpresalesactivitiesandthestructurethat
supportsthem.Thisincludesresponsivenessinsalesengagement,dealmanagement,pricingand
negotiation,presalessupport,andtheoveralleffectivenessofthesaleschannel.
MarketResponsiveness/Record:Highmarksaregiventoopportunisticprovidersthatcanrespond
quicklyandchangedevelopmentand/orcompanydirectiontomeettheneedsofanevolving
marketplace.Providersshouldbeflexibleandachievecompetitivesuccessasopportunitiesdevelop,
competitorsact,customerneedsevolveand/ormarketdynamicschange.Thiscriterionalsoconsidersthe
provider'shistoryofresponsivenesstocustomerrequests.
MarketingExecution:Theclarity,quality,creativityandefficacyofprogramsdesignedtodeliverthe
organization'smessagetoinfluencethemarket,promotethebrandandbusiness,increaseawarenessof
theproducts,andestablishapositiveidentificationwiththeproduct/brandandorganizationintheminds
ofbuyers.Thismindsharecanbedrivenbyacombinationofpublicity,promotionalinitiatives,thought
leadership,wordofmouthandsalesactivities.
CustomerExperience:Relationships,productsandservices/programsthatenableclientstobe
successfulwiththeproductsevaluated.Specifically,thisincludesthewayscustomersreceivetechnical
supportoraccountsupport.Thiscanalsoincludeancillarytools,customersupportprograms(andthe
qualitythereof),availabilityofusergroups,SLAs,andsoon.Vendorsgainhighmarksforrapid
implementationstakingfewerthan21daystocomplete.Services/programsareevaluated,includingPPM
processconsultingservices,atlittleornoextracost,thatenableclientstobesuccessfulwiththe
products.Vendorshaveanassessedlevelofresponsivenessintechnicalsupportoraccountsupport.
Ancillarytools,customersupportprograms(andthequalitythereof),availabilityofusergroups,andSLAs
areoffered.Theyprovidecustomersatisfactioninsmall(fewerthan30users),medium(morethan100
users)andlarge(morethan250users)implementations.
Operations:Theabilityoftheorganizationtomeetitsgoalsandcommitments.Factorsincludethe
qualityoftheorganizationalstructure,suchasskills,experiences,programs,systems,underlying
infrastructure,andothervehiclesthatenabletheorganizationtooperateeffectivelyandefficientlyonan
ongoingbasis.Securityanddataprivacyarealsoassessed.
Table1.AbilitytoExecuteEvaluation
Criteria
Criteria Weight
ProductorService High
OverallViability High
SalesExecution/Pricing Medium
MarketResponsiveness/Record High
MarketingExecution High
CustomerExperience High
Operations High
Source:Gartner(May2014)
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CompletenessofVision
MarketUnderstanding:Theabilityoftheprovidertounderstandbuyers'wantsandneeds,andto
translatethoseintostrongITPPMapplicationservicesinthecloud.Providersthatshowthehighest
degreeofvisionlistentoandunderstandbuyers'wantsandneeds,andcanshapeorenhancethosewith
theiraddedvision.CloudbasedPPMprovidersshouldbeabletotemperorquietthevoiceofthe
customer,toavoiddrivingallproductdevelopmentbasedsolelyoninstalledcustomers.Vendorsrecognize
andperiodicallydepartfromcoreproductdevelopmenttoexploratoryproductdevelopmenttoaddressthe
needsofpotentialcustomersoutsidethecompany'sknowntargetmarketsorinstalledbase.
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MarketingStrategy:Aclear,differentiatedsetofmessagesconsistentlycommunicatedthroughoutthe
organizationandexternalizedthroughthewebsite,advertising,customerprogramsandpositioning
statements.
SalesStrategy:Thestrategyforsellingproductsthatusestheappropriatenetworkofdirectandindirect
sales,marketing,serviceandcommunicationaffiliatesthatextendthescopeanddepthofmarketreach,
skills,expertise,technologies,servicesandthecustomerbase.
Offering(Product)Strategy:Howtheproviderapproachesproductdevelopment.Theprovider's
approachtoproductdevelopmentanddeliveryemphasizesdifferentiation,functionality,methodologyand
featuresetsastheymaptocurrentandfuturerequirements.Aheavyemphasisisplacedontimeto
valueasitrelatestodeployment(fewerthan21days),easeofuse,easeofaccessibilityandeaseof
adoption.Acostcompetitivepricingmodelexists,aswellasevidenceofthesameobservedinthefield.
NativefeaturesandfunctionsexistversusrelianceonOEMagreementsand/orintegrationofthirdparty
products.VendorshaveaSaaSarchitecture.
BusinessModel:Thesoundnessandlogicoftheprovider'sunderlyingbusinessproposition.Theprovider
offersvalueforcustomerswithlowlevelsofrisk,through12monthcontractsandthelowcostof
ownershiporaccess.Thelogicoftheprovider'sunderlyingbusinesspropositionissound.Lockon,a
consciousdecisionbycustomerstosupporttheservicebecauseofitsvalue,ishighlydesirable.
Vertical/IndustryStrategy:Theprovider'sstrategytodirectresources,skillsandofferingstomeetthe
specificneedsofindividualmarketsegments,includingverticalmarkets.
Innovation:Direct,related,complementaryandsynergisticlayoutsofresources,expertiseorcapitalfor
investment,consolidation,defensiveorpreemptivepurposes.Thevendoroffersseasonalproduct
releases,andexhibitsrapiddevelopmentandagiledrivenreleases.Itsfunctionalitydemonstratesa
strongproductvisionthatpushesthemarketinnewdirections,notjusttheprovider.Ithasa
demonstratedabilitytoleadthe"herd"ofthemarket,ratherthanfollowit.Thevendorshows
improvementstoreportingservices,introducessocialnetworkingandcollaborationaspartofITPPM
processautomation,offersmobileapplicationdevelopmentanddevicesupport,hasuserexperience
innovations,providesnewanddifferentiatingfunctionality,andshowcasesotheractivitiesthat
demonstratetheabilitytorespondquicklytotheneedsforemergentfunctionalityand/orintroducenew
concepts,techniquesandfunctionsintheapplicationservicesthemselves.
GeographicStrategy:Theprovider'sstrategytodirectresources,skillsandofferingstomeetthe
specificneedsofgeographiesoutsideits"home"ornativegeography,eitherdirectlyorthroughpartners,
channelsandsubsidiaries,asappropriateforthatgeographyandmarket.
Table2.CompletenessofVision
EvaluationCriteria
EvaluationCriteria Weighting
MarketUnderstanding High
MarketingStrategy High
SalesStrategy High
Offering(Product)Strategy High
BusinessModel High
Vertical/IndustryStrategy Low
Innovation High
GeographicStrategy Medium
Source:Gartner(May2014)
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QuadrantDescriptions
Leaders
CloudbasedITPPMserviceprovidersidentifiedasLeadersinthisMagicQuadrantmeetmanyITPPM
applicationfunctionalityandprocessautomationrequirementsoftargetedconsumers.Leadersprovide
robustandcomprehensivefunctionalityspecificallyforinternalITdepartmentseitherfortheproject
executionlevelcustomerorfortheportfoliolevelcustomer,andsometimesbothtypesofcustomers.
LeaderssupportthegenerationandmanagementofinternalITprojectportfolios,andcantrackother
typesofinternalITspecificdemands,suchasminorsoftwarechangerequests,application
enhancements,andbuganderrorfixes,somanagerscanassessthecumulativeimpactthatalltypesof
workwillhaveonafixedresourcesupply.ProductdepthinseveralcoreITPPMareassuchasdemand
managementandanalysis,advancedscheduling,resourceandcostmanagement,andoutofthebox
integrationtokeythirdpartyITapplications(suchasITSMsoftwareorapplicationdevelopmenttools)
setsLeadersapartfromcompetitors.Someoftheproviderscansupportportfolioanalysis(forinvestment
prioritization).SomeLeadersarealsoofferingprogram(versusproject)managementsupportintheir
products.
MostLeaderscandemonstrateastrongmarketpresence,combinedwithahigherthanusuallevelof
frequencyinsalesactivityandexecution.Leadersaregrowingthenumberoftheirinstalledbases,and
theiraveragenumberofendusersperdealissteadilyincreasingyearoveryear.Leaderscanverifytheir
longevityandstabilityasSaaSprovidersintheITPPMmarket.TheyalsodemonstrateastrongSaaS
commitmentastheirprimarybusinessmodel,aswellasaresultingstrongSaaSarchitectureand
significantcloudbasedapplicationdevelopment.
CloudbasedITPPMserviceLeadersprovidedepthandbreadthoffunctionalityintheirapplication
services,representingmanyyearsofdevelopmentandinnovation.Theseprovidershavealargeinstalled
baseofSaaScustomers,canprovidefunctionalityandprocessautomationforcustomersin30daysor
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less,andcangivecustomerstheabilitytoincrementallyinvestintheirservicesthroughstandard12
monthcontracts.CloudbasedITPPMserviceLeaderscanprovideoverwhelmingevidencethattheyare
activelysellingandmarketingtheirsolutions.Theirsalesandmarketingprogramscontinuetobehighly
effective.Leadersarebecomingmoreengagedwithcustomersasprocessconsultants,inadditionto
beingaserviceprovider.
Leadersarecurrentlystablefinancially.Inaddition,nosignificantbusinessoroutsidedisruptionhas
shakenordistractedtheLeadersinthisMagicQuadrant.
ManyoftheprovidersinthisMagicQuadrantarefocusedonSaaSastheirmainorsolebusinessmodel
anemergentdeploymentapproachandbusinessmodelwhosesuccessisdependentheavilyonthe
adoptionandconsumptionbyendusers.Thus,cloudbasedITPPMserviceproviderstendtogeneratea
suitableamountofrevenueannuallytosustainthemselves,butthoserevenuetotalsareafarcryfrom
thenumbersobservedamongonpremisesandtraditionalorcloudhostedPPMsoftwareproviders.
AnyoftheprovidersinthisMagicQuadrantcouldbeacquiredorhavealreadybeenacquiredrecentlyas
theydrawmoreattentiontothemselves.Giventhemodesttotalrevenueofthecollectivelotofproviders
appearinginthisMagicQuadrant,Leadersarelikelytobethemostattractiveacquisitiontargets,because
theyexhibitstrongfunctionality,asizableinstalledbase,lowriskcostofentryintoautomatingPPM
processes,andenoughflexibilityintheirarchitecture,applicationcode,pricingmodels,andservice
agreementstocarrytheircustomersthroughthegrowingpainsassociatedwithITPPM.Leadersmaintain
repeatbusinessovertime,strengtheningtheirfinancialviabilityandenablingthemtoinvestmorein
theirSaaSofferingsandsupportingservices.
LeaderssharemanyattributeswithtechnologyprovidersratedasVisionariesandChallengers,butthey
arealsodifferentiatedbycomparativelyhigherratingsinmanyareas,notjustafew,withoverwhelming
customerreferencessupportingtheirclaimssubmittedasevidence,andothersignificantobservations
madebyGartner.Consistencybetweenaprovider'sstatedstrategyandproductdirection,andits
execution(thatis,integrity)isimportant,alongwithdemonstratedvision,enablingtheproviderto
addressemergingandoftenvaguelydefinedmarketrequirements.
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Challengers
TherearenoChallengersinthisyear'sMagicQuadrantforcloudbasedITPPMservices.Iforwhena
providerisidentifiedasaChallenger,itwouldbeacompanythatresemblestheLeadersinmanyways,
suchasproductdepthandbreadthcombinedwithenoughexperiencedproductdevelopment,sales
andmarketingpersonneltoeffectivelyreachandmeettheneedsofthemarket.Infact,mostofthe
descriptionaboutLeaderscanbeappliedtoChallengers.Challengers,however,appearassuchmainly
becausetheymayhaverecentlyembracedcloudbasedITPPMSaaSastheirmainbusinessmodel,or
theircloudbasedbusinessmodel,althoughthefocalpointgoingforward,hasnoteclipsedtheirother
businessmodels,whichmayincludeahistoryofonpremisesand/orhostedPPMsoftware
implementations.
Challengersareconsistentintheirsalesandmarketingcampaigns,anddemonstrateobvioussuccessin
salesandmarketingexecutionadifferentiatorfromNichePlayersinthisMagicQuadrantasreflectedin
growingcustomercountsandaveragenumbersofuserspercustomer.Challengerstypicallyofferastrong
coresetofITPPMfunctionalityasaservice,whiledemonstratinganabilitytosellandmarketthatcore
set.Theyalso,however,maybemissingfeaturesandfunctionsinsomeITPPMprocessareas,suchas
demandmanagement,programmanagement,socialnetworkingormobiledevicesupport.Challengers
maynotbekeepingpacewithLeadersincloudbasedITPPMinoverallCompletenessofVision,butthey
doprovideacoresetoffunctionsthatinternalITdepartmentsmayfindsufficienttomeetamajorityof
theircoreITPPMrequirements.
ChallengersmaynotyetreadilysupporttopdownITPPMbaseddecisionmaking,analysisandplanning,
nordotheyfrequentlyselltheirproducttoanITPMO.Wheretheydolacktopdownportfolio
managementcapabilityandsalesexecution,theyoftenmakeupforitwithrobustexecutionlevelITPPM
featuresandfunctionality.Incontrast,someLeadersandVisionariescansupportportfoliolevelITPPM
customers,inadditiontoexecutionlevelITPPMcustomers,andselltheirproducttobothproject
managementconstituenciesandPMOconstituencies.
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Visionaries
CloudbasedITPPMserviceprovidersintheVisionariesquadrantareenjoyingsteadybutmodest
increasedgrowthincustomercountandaverageuserspercustomer.SomeVisionariesinthisMagic
Quadranthavebeenoperatinginthespaceformorethanadecade.VisionariesmaydifferfromLeaders
inproductdepthandbreadth,orintotalrevenueorfinancialviability,ortheymaylacktheinstalledbase
andsalesexecutiontrackrecordofaChallenger.Theyalso,however,oftendemonstratesome"visionary"
featuresandtraitsresemblingthoseofLeaders,suchasintheirSaaSarchitectureand/orcloudbased
applicationdevelopmentactivity,ortheirSaaSbasedbusinessmodelandSLAswithcustomers.
LikeLeaders,VisionariesseektoenableITPPMbroadlyasabusinessprocess,buttheyalsomayfocuson
specificITPPMfunctionalityandnotprovideasmuchproductbreadth,ortheymayfocusonthemost
innovativesolutionswhilebackfillingtheirITPPMserviceswithcorefunctionalityovertime.Some
Visionarieshavebeenmoreexperimentalwithbusinessmodels,andtheymayapproachvariousmarkets
morebroadly,withvariablepackagingandpricing(forexample,freetrials,tryandbuyoptionsand
flexiblecontractdurations).
CompletenessofVisionratingsofVisionariesreflectinnovativeapproachesinareassuchascollaboration,
socialnetworking,mobiledevicesupport,interoperabilitywiththirdpartydatasources,andgroupspecific
collaboration(forexample,forPMOs,steeringcommittees,workgroups,projectexecutionenvironments
andteams).Thefinancialviability,numberofcustomersandaveragenumberofusersperdealof
VisionariesmaynotcomparetothoseofLeadersinthisMagicQuadrant,buttheseprovidersmakeupfor
suchlimitationsthroughinnovativefeaturesandfunctionality,aswellasdirect,responsivecustomercare
andsomeinfluenceoverfutureproductdevelopment.
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NichePlayers
CloudbasedPPMserviceprovidersidentifiedasNichePlayersinthisMagicQuadrantoftenemphasize
specificITPPMfeaturesandfunctionsversusprovidingabroadandfunctionallydeepcloudservice.In
othercases,NichePlayershavedecidedtoembraceSaaSastheirprimarybusinessmodelmoving
forward.Asaresult,theyhavebuiltasingleinstance,multitenantITPPMSaaSenvironmentorother
flavorofcloudbasedPPMservicefortheircustomers.
NichePlayersalsoincludecloudbasedITPPMserviceprovidersoperatinginaspecificcountryor
geographicregionthathavenotyetdemonstratedagrowingglobalpresence.InbuildingaSaaSplatform
andofferingITPPMapplicationsasaservice,theseprovidersaretryingtobreakoutoftheiroriginaltarget
marketsbyprovidingaSaaSofferingthatisavailabletoanycustomer,regardlessofgeographical
location.Likewise,NichePlayersalsomakereadyuseofonlinemarketingtools,servicesandchannelsto
extendtheirglobalreachandbringaboutglobalbrandawarenessaspartofaSaaSbasedITPPMbusiness
strategy.
LikeVisionaries,NichePlayersdifferfromLeadersandChallengersinareassuchastotalrevenue,
financialstrength,marketingexecutionand/orsizeoftheirinstalledbase,buttheyalsoareoften
dedicatedtosupportingspecificITPPMprocessautomationneedsinoneorafewselectareas.Their
overallsizeintermsofheadcountputsthemcloseenoughtocustomerstofullyunderstandwhat
improvementsshouldbemadetotheirproductsquicklyintheneartermtokeeptheircustomershappy.
Customersmaybenefitfromhavingmoreinfluenceovertheprovider'sfutureproductdevelopment.
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Context
Whileprojectmanagementisessentiallythemanagementofstructuredworktodeliverasignificantly
complicatedorcomplexsolution,portfoliomanagementisthemakingofmanagementdecisions
determiningwhichprojects(andprograms)aretheappropriateonesinwhichtoinvest.TheITPPM
serviceproviderscoveredinthisMagicQuadrantprovidesupportforoneorbothofthem.
ThisMagicQuadrantoffersanindepthanalysisofthecompetitivepositioningforcloudbasedITPPM
servicesbyshowcasingtherelativeplacementofthemainplayersinthemarketaccordingtoavarietyof
criteria,andbyofferingdetailedstrengthsandcautionsforeachoftheincludedproviders.Theratingsof
theprovidersrepresentacombinationofresearchandclientreferencechecksconductedspecificallyfor
theMagicQuadrantprocess,alongwithinputfromtheGartnerPPMresearchcommunity,ongoing
providerbriefings,interactionswithGartnerclientsandmarketdevelopments.
Gartner'scomprehensiveMagicQuadrantforcloudbasedITPPMservicesisausefulstartingpointfrom
whichtoidentifyandevaluatesuchaservice.Selectionofagoodprovidershouldbebasedonadetailed
evaluationofneedsandobjectives,comparedwithaserviceprovider'scapacitytofulfillthose
requirementsandexpectationsovertime.Therefore,enterprisesmustdeterminewhichcloudbasedIT
PPMserviceprovidercanbestaddresstheirparticularrequirements.
WhatIsaCloudBasedITPPMServicesProvider?
ThecloudbasedITPPMprovidersincludedinthisMagicQuadrantofferSaaSascloudoptimized(whereby
theunderlyingsoftwarehasbeenrefactoredorredesignedforcloudbaseduse)orcloudnative(designed
anddevelopedspecificallyforcloudbaseduse).Applicationservicesaretypicallylighterweightofferings
providingthecorefunctionalitydesiredbymainstreamITPPMleaders.
Theseserviceshaverapidtimetovalue,andminimizefinancialcommitmentandrisk.Strongdemandfor
thesesolutionspersists,astheseproviders:
Aregenerallysmalltomidsize,yetgrowing
ProvidemainstreamPPMsoftwarefunctionalityinthecloud
Typicallyhave75%ormoreoftheirinstalledbaseontheircloudnativeorcloudoptimizedplatforms
Providecosteffective,rapiddeploymentofPPMfunctionality,withoutrequiringuserstoownor
managethesoftwareinstance
Sellmainly12monthcontracts
TheunderlyinginfrastructureofcloudbasedITPPMapplicationservicesiscloudcomputingscalableIT
enabledcapabilitiesdeliveredasaservicetoexternalcustomersusingInternettechnologies.The
applicationcodeisalsobuilttotakeadvantageofcloudcomputing.(Formoreinformationoncloud
architectures,see"CreatingCloudSolutions:ADecisionFramework,2011.")
Althoughthecloudarchitecturedistinctionofthesolutionproviderisimportant,generallyenablingfaster
implementationtimes,itisjustoneofseveraldifferencesamongthecloudbasedITPPMservices
includedinthisreportandtheonpremises/cloudhostedITPPMofferingsincludedinGartner's
"MarketScopeforITProjectandPortfolioManagementSoftwareApplications."
CloudbasedITPPMprovidersmainlysell12monthcontracts.Implementationtimestypicallytakeas
littleastwoweeksbutrarelyextendbeyond30days,exceptincasesofaboveaveragesizedeals
involvinglargernumbersofendusers(thatis,severalhundredusersormore).Averagedealsizesrange
from30to125usersperdeal,butallhaveafewcaseswherecustomershavedeployedsignificantly
largernumbersofenduserlicenses(forexample,morethan1,000users).
CloudBasedITPPMServicesfortheExecutionLevelCustomer
ExecutionlevelITPPMcustomersaremainlyinterestedinenhancingthedatasharing,collaborationand
communicationbetweenprojectmanagersandteammembersinaprojectenvironment.Allthe
providersfeaturedinthisMagicQuadrantoffersomelevelofcentralizedrequest,demand,project,
resourceandtimemanagementcapabilities.Reportingservicescanprovideconsolidatedvisibilityintothe
currentstateofprojects,resourcesandspending.
Theseapplicationssupportdetailedprojectorworkrecordcreation,schedulingandleveling,resource
managementandallocation,timereporting,andprojectcostmanagement,amongotherPPMprocesses.
Reportingservices,includingportfoliostylereporting,canaggregatethedatathesystemcollectsfrom
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usersperformingtheseactivitieswithinthePPMsystem.
Integrationwithotheradjacentsystems,includingITmanagementsystems(suchasthehelpdesk),
enablesuserstofunneldifferenttypesofworkitems,otherthanformallydefinedprojects,intothePPM
systemtodooneormoreofthefollowing:
Capturenonprojectresourcedemand
Sourceandallocatenonprojectwork
Tracktheuseofresourcesonnonprojectandotherworkitems
Trackthecostofmanagingnonprojectandotherworkitems
SomeexecutionsideITPPMconfigurationscanbeflexibleenoughtoprovidelighterversionsofproviders'
projectandresourcemanagementfeaturesasanalternativetousingthirdpartyservicedeskand
troubleticketmanagementsystemstomanageoperationalITservicerequests.However,mostITPPM
productsoftenstopshortofreadilyembeddedandfullsupportforITILstandardsoftenfoundinITservice
management(ITSM)products.
ApplicationvaluefortheexecutionlevelITPPMcustomerisoftenhighlydependentontherateof
adoptionbyendusers(suchasprojectmanagersandteammembers)ofmultiplePPMfeaturesatthe
lowestlevelsofworkmanagementdetail.Strongeradoptionratesleadtobettercommunicationbetween
projectmanagersandteammembers,greatervisibilityintowhatishappeningattheexecutionlevel,and
betterreportingtomanagementandstakeholdersinterestedintheprogressofinvestments,programs
andprojects.
ApplyingsocialnetworkingandcollaborationfeaturesandfunctionsinaPPMcontextwithinanexecution
levelPPMdeploymentcanaidoracceleratedailyenduseradoptionofthePPMsystem,becauseitcan
curbthetendenciesofprojectteammemberstogooutsidethePPMsystem(forexample,byusingemail,
spreadsheetsorthirdpartytimereportingsystems)tohandlecommunicationanddatasharingduring
projectexecutionactivities.
FortheexecutionlevelPPMcustomer,projectportfolioreportingservicescanbethe"shinyobjects"that
convincemanagementofthevalueinautomatingexecutionlevelprocesses.However,executionlevel
PPMcustomersshouldassumebusinessmanagerswillnotactivelyparticipateintheuseofthePPM
systembeyondaccessingreportsandpersonaldashboards.
CloudBasedITPPMServicesfortheProjectPortfolioLevelCustomer
ProjectportfoliolevelITPPMcustomersaremainlyinterestedinenhancingthedatasharing,
collaboration,andcommunicationbetweenprojectmanagersandbusinesssponsorsandanyrolesin
between.Consequently,projectportfoliolevelITPPMcustomerswilloftenlookforatopdown,stand
alonesysteminwhichthe"portfoliomanagement"featuresandcapabilitiesarenotcenteredonor
dependentontaskandassignmentleveltimereportinganddetailedprojectschedulemanagement,asis
oftenthecasewithexecutionlevelITPPMconfigurations.
ITprojectportfoliolevelcustomerswantacommonplatformforplanning,prioritizingandapproving
demandpriortosuchworkitemsbeingpassedontoanexecutionlevelITPPMsystem.Theywantthis
platformtoreplaceexistingspreadsheetbasedplanningandselectionexercises,whilealsointegrating
thisplatformwithdifferentdatasourcesthatcanincludeoneormoreexecutionlevelITPPMandITSM
systems,aswellasfinancialdatasources.
ChoosingITprojectportfoliolevelPPMallowscustomersoftheITdepartment,programmanagers,project
managers,andresourcemanagerstocommunicateandcollaborateduringhighlevelprojectandresource
planninganddecisionmaking.Summarized,aggregate,executionlevelinformationcanalsobefedinto
thecommonplatformwithoutseverelydisruptingthewayaprojectmanagerworksonadailybasis.
ITPPMandAgileDevelopmentSupport
Withoutaddinganynew,specificfunctions,ITPPMsystemshavesomeoftheadministrativeworkflow
"plumbing"tobeconfiguredtosupportpartsofagiledevelopment,butbynomeansaretheyagood
replacementfordedicatedapplicationdevelopmenttoolsthatreadilysupportagiledevelopmentmethods
andworkmanagement.ThesuccessfuluseofanITPPMsystemtosupportagiledevelopmentteamsat
moredetailedlevelsismainlydependentonhowwellthatsystemcomplementsandintegrateswitha
developer'stypicaldevelopmentprocessesandenvironment.Developersdonotwanttobeforcedtojump
fromtheirdevelopmentworkspacestoanexternalITPPMsystemtorecordtimeonagiledevelopment
activities.
AlthoughmostITPPMprovidershavenotfullyintegratedPPMprocesseswithagiledevelopment
processestoallowadeveloperto"stayput"whenworkingonagileactivities(thosewithPPMreporting
implications),thereisagrowingtrendtoprovidepreconfiguredITPPMapplicationssupporting
collaboration,communicationandprojectportfoliolevelreportingforagiledevelopment.Providerswith
existingfootholdsinapplicationdevelopmentprocesssoftwaremarketsarealreadyplanningtoprovide
transparentITPPMfunctionalityinintegrateddevelopmentenvironments.
Inaddition,someoftheITPPMproviderscoveredinthisMagicQuadrantareemphasizingtheimportance
ofprovidingaggregateapplicationdevelopmentactivityreportingoutoftheboxintheirproducts.Todo
so,ITPPMprovidersareforgingpartnershipsand/orbuildingandsupportingintegrationpointsbetween
theirproductsandAtlassian'sissueandbugtrackingJiraproduct,aswellasRallySoftware'sproductsfor
agiledevelopment.
ITPPM,SocialNetworkingandCollaboration
Socialnetworkingandcollaborationplatforms,capabilitiesandintegrationpointsarebeginningtofind
theirwayintoITPPMapplications.Gartnerisseeingafewdifferentapproachestoapplyingsocial
networkingandcollaborationinanITPPMcontext.SomeprovidersinthisMagicQuadrantarerelyingon
classicandbasiccommunicationtoolsandfunctions,includingissuetracking,threadeddiscussions,
synchronization,integrationtoandfromemailsystemsandapplications,andothermechanismsthat
havebeenstaplesofITPPMsoftwareproductsforyears.Otherprovidersarepartneringwithsocial
networkingandcollaborationproviders,suchasChatterandJive.Stillothersareplanningtobeorare
fullyengagedindevelopingnativesocialnetworkingandcollaborationaspartoftheircoreproducts,orare
takingthebuyversusbuildroute,likeMicrosoftdidwhenitacquiredYammerin2012.
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SocialnetworkingandcollaborationinITPPMapplicationsseemmorelikefadsthatcouldfadeaway
someday,ratherthanbecominglegitimatemainstayITPPMcapabilities.Atthelowestlevelsofprocess
automation,however,theaddedfeaturesandcapabilitiescantriggerviraladoptionamongendusers.At
thehighest(portfolio)levels,theycouldprovideawaytosupportpointintimeandemergent
communicationneedsamongportfoliomanagersandbusinessleaders.
Atthemoment,PPMtosocialnetworkingapplicationintegrationdoesnotfeelmuchdifferentthan
leavinganITPPMapplicationandgoingintoanemailsystemtodiscussaprojectwithteammembersor
otherconstituents.However,ifITPPMprovidersbegintobuildPPMtosocialnetworkingintotheir
applications,enduserswillmorelikelystayinthatITPPMsystemforlongerperiodsofaworkday.End
usersthatvaluethesocialnetworkingandcollaborationcapabilitiesofanITPPMsystemwillwanttolog
intoitwhentheyfirstgettoworkforthedayandstayinsidetheITPPMsystemtocollaborateand
communicatealldaylong,ratherthanleavingittouseoutsidepersonalproductivitytoolsandservices,
suchasemail,toholdITPPMdiscussions.
ITPPMandMobileDeviceSupport
ManyITPPMproviderscontinuetouseHTML5toconnectanITPPMsystemtoanumberofmobile
devices,includingtabletsandsmartphones.ThereseemstobeastrongconsensusamongmanyoftheIT
PPMprovidersinthisMagicQuadrantthatbuildingdedicatedapplicationsforaseriesofknownwireless
andmobiledevicesavailableinthefieldwouldonlycreatetoomuchoverheadandcomplexityforthem.
Instead,theseprovidersaremostlyleveragingHTML5developmenttopushoutspecificfeaturesand
capabilitiestomobileusersoftheirproduct.Insomecases,ITPPMvendorsarerewritingtheirentire
applicationcodebasetosupportHTML5.
ITPPMprovidersarefocusedondeliveringthreemainmobilecapabilitiestotheircustomersearly:
Timereporting,allowingenduserstoreporttheirtimefrommobiledevices
TheabilitytoapproveitemswithinaprocessflowofanITPPMsystem,whichenablesmanagersto
approve,forexample,timesheetsorprojectideas,orrequestsfrommobiledevices
Executivereportingtomobiledevices,soendusers(forexample,businessmanagersorproject
managers)canaccessandviewreportsanddashboardinformationfromtheirtabletsor
smartphones
ConsumersshouldexpectslowbutcontinuousincrementalmobilesupporttoappearintheirITPPM
productsofchoiceovertime,withHTML5beingthemainvehiclefordeliveringit.Providerswillbe
challengedinbringingmoreandmorefeaturesandfunctionstomobiledevices,becausethenatureand
characteristicsofmobiledevicescanlimitanenduser'sabilitytoperformcertainfunctionseasilyinanIT
PPMsystemfromtheirtabletsorsmartphones.Forinstance,manyITPPMsystemshavebeendesigned
tobeaccessibleviabrowsers.Historically,theworkingassumptionwasthatthebrowserwasbeing
launchedfromaPC,terminalorlaptopdevice.Tabletsandothermobiledevices,however,maynot
alwaysincludethingssuchaskeyboardsoramouse/cursor.Therefore,performingcertainfunctions
withinanITPPMsystemcanbedifficultorevenimpossibleifattemptingtodosothroughcertainmobile
devices.
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MarketOverview
ThecloudbasedITPPMservicesmarketprovidesanarrayofdifferentflavorsandapproachesto
leveragingandusingITPPMapplicationsremotely,ratherthanbringingasysteminhouse.Cloud
optimizedorcloudnativeITPPMapplications,deliveredasaservice,providebenefitsforconsumersin
exchangeforsometradeoffsintheabilitytofullyown,control,extendandcustomizetheirownITPPM
investments.BysacrificingtotalcontrolofanITPPMsystemforrapidavailability,adoptionand
consumption,consumersofcloudbasedITPPMservicescanaccessfunctionalityfromvirtuallyanywhere,
whilelimitingtheirfinancialcommitmentstooneyearincrements,aswellastheiroverallriskininvesting
inITPPMprocessautomation.
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