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Gartner's Market Analysis of CPM vendors

posted on: June 18, 2011

Gartner published their yearly report about revenue growth and market share in the corporate performance management (CPM) suites software market in 2010. The CPM suites market accelerated to 12.8% revenue growth in 2010 (2009 was 3%), a significantly higher growth rate than enterprise software overall, but in line with overall BI growth.

Key findings

• CPM is realigning to be deeper in finance and less broad
• CPM market consolidates: 3 vendors (Oracle, SAP and IBM) own 64% of the market
• Infor and SAS are ranked 4 and 5 but grew more slowly than market
• Gartner identifies 6 more vendors that exceed $10 million in software revenue
• Exact, Tagetik and Host Analytics are named notable vendors

Market analysis
The focus of the market shifted in 2010 from cross-corporate performance management back to the office of finance, primarily dealing with financial data. The vendors that focussed on the broader CPM-driven functionality (for example, strategy management or profitability modeling) struggled more in 2010 than the vendors that are focussed arround core financial functions (such as financial consolidation and close, financial disclosures, financial governance and the "last mile of finance"). This trend is fueled by increased regulatory requirements, such as IFRS.

After the global recession that hit the IT market in 2009, the market grew in 2010 driven by postcrisis organizational changes. It resulted in bigger deals, new business, replacement and updating of aged existing CPM projects.

Top five vendors

1. Oracle - Number 1 in the CPM suites market with a market share of 28%. The Hyperion brand is the most recognized brand in the office of finance.
2. SAP - A market share of 24% in 2010 due to the integration with SAP and Microsoft environments.
3. IBM - Focused its CPM story around the TM1 engine and financial governance and disclosure management (powerd by the acquisition of OpenPages and Clarity).
4. Infor - Renewed senior management level staff in 2010, announced performance management investments and acquired Lawson early 2011. Grew slower than market.
5. SAS institute - Focus on broader CPM (not only finance and planning) which was a difficult market in 2010.

Other notable vendors

• Exact (Longview) - Still at the same level as it was in 2008 when Longview was acquired. The organisation is moving to working more with third-party partners on implementations.
• Tagetik - Is on a mission to establish itself internationally, direct and through partners resulting in net new sales in 2010. Tagetik is capitalizing on the absence of Microsoft in the CPM market.
• Host Analytics - Is the only Software as a Service CPM vendor and grew over 100% in 2010.

You can read the "Market Share Analysis: CPM Suites, Worldwide, 2010" report on www.gartner.com.