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Analysis Of IT Management Software Sales Deals

The Megavendors Are Missing Out On Smaller Deals

August 3, 2009

Authors

  • By Peter O'Neill,
  • Thomas Mendel, Ph.D.
  • with Bradford J. Holmes,
  • Scott Santucci,
  • Edward Radcliffe

Why Read This Report

IT management software (ITMS) is one of the most dynamic and complex IT markets, with more than 300 vendors competing for market share. Vendor strategists are increasingly looking for greater insights into the dynamics behind pure revenue by category, which is something Forrester has been evaluating since 2005. For the first time, Forrester therefore analyzed the global distribution, size of deals, and variances by vendor category. Among the big four megavendors (BMC Software, CA, HP, and IBM), the average deal size is around $140,000. For the total market, however, it's only around $40,000. To optimize sales effectiveness, strategists can use deal size as one of the four possible levers they monitor and control, with the other levers being staffing, close rate, and shortening sales cycles. We believe that different deal sizes demand differentiated and targeted sales profiles and marketing messaging in this market.

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