Solid roi and business value benefits Easy deployment capabilities Incremental usage-based pricing Strong security, compliance, and cost management capabilities During the next one to two years enterprise customers will be struggling to balance ongoing support for critical innovation projects with the reality of constrained budgets and head count limitations. Cloud will continue to be strategic and cloud management systems and software will be needed to optimize those resources. SaaS-delivered solutions are likely to continue to see the greatest rates of growth MARKET SHARE The market for worldwide cloud system and service management software and SaaS increased stimated 33. 5% from 2018 to 2019 to total $7. 4 billion this market covers cloud infrastructure and application management encompassing public, private, hybrid, and multicloud architectures including bare metal VM. and container-based environments As shown in Table 1(refer back to Figure 1), the top 5 vendors by share were VMware, Microsoft, IBM Red Hat, Cisco(including AppDynamics), and New Relic. Public cloud hyperscalers saw strong increases in demand for paid management solutions as did other Saas -delivered otego ong TABLE Worldwide Cloud System and service Management Software Revenue by Vendor,2017-2019(SM) 2019 Shar 2018-2019 2017 2018 Growth (%) VMware 1,1653 1.471.2 Microsoft 9 781.6 10316 320 IBM-Red Hi 448.2 533.1 620.6 8.3 16.4 2538 3782 48.8 74 45.1 164.0 3 423.2 BMC 267.7 3328 408.1 133 208.4 3142 50.8 Service Now 1134 1775 4.0 66.8 Dynatrace 897 153.8 275.6 Datalog 81.1 145 3 253.9 3.4 748 2020|DC #US45083420©2020 IDC #US45083420 3  Solid ROI and business value benefits  Easy deployment capabilities  Incremental usage-based pricing  Strong security, compliance, and cost management capabilities During the next one to two years enterprise customers will be struggling to balance ongoing support for critical innovation projects with the reality of constrained budgets and head count limitations. Cloud will continue to be strategic and cloud management systems and software will be needed to optimize those resources. SaaS-delivered solutions are likely to continue to see the greatest rates of growth. MARKET SHARE The market for worldwide cloud system and service management software and SaaS increased an estimated 33.5% from 2018 to 2019 to total $7.4 billion. This market covers cloud infrastructure and application management encompassing public, private, hybrid, and multicloud architectures including bare metal, VM, and container-based environments. As shown in Table 1 (refer back to Figure 1), the top 5 vendors by share were VMware, Microsoft, IBM￾Red Hat, Cisco (including AppDynamics), and New Relic. Public cloud hyperscalers saw strong increases in demand for paid management solutions as did other SaaS-delivered offerings. TABLE 1 Worldwide Cloud System and Service Management Software Revenue by Vendor, 2017–2019 ($M) 2017 2018 2019 2019 Share (%) 2018–2019 Growth (%) VMware 906.7 1,165.3 1,471.2 19.8 26.2 Microsoft 587.9 781.6 1,031.6 13.9 32.0 IBM–Red Hat 448.2 533.1 620.6 8.3 16.4 Cisco 253.8 378.2 548.8 7.4 45.1 New Relic 164.0 279.3 423.2 5.7 51.5 BMC 267.7 332.8 408.1 5.5 22.6 Splunk 133.7 208.4 314.2 4.2 50.8 ServiceNow 113.4 177.5 296.0 4.0 66.8 Dynatrace 89.7 153.8 275.6 3.7 79.2 Datadog 81.1 145.3 253.9 3.4 74.8