March 11, 2010 – According to new research from Saugatuck Technology, IT service management is being targeted by a new set of vendors. User IT organizations can choose from a growing list of alternatives with options ranging from traditional on-premise solutions to on-premise appliances to SaaS and cloud-based tools.

CIOs require cost-effective visibility into widely disparate business processes and IT resources, and want IT resource management systems that provide a single system of record for what is happening everywhere. According to Saugatuck’s report, globalization, outsourcing, mobility, open source, consumer IT, SaaS and cloud computing have infiltrated the business to such an extent that IT organizations are becoming open ecosystems that need different management capabilities. The IT organization has moved from the purchase and management of point solutions to buying more integrated technologies from fewer vendors.

Saugatuck reports that service delivery models such as SaaS have the potential to change the IT service management software landscape. The “Big Four” vendors (i.e., BMC, CA, HP and IBM) have dominated the IT service management market. Now, says Saugatuck, pressure from cloud computing, economic recession and budget constraints is threatening their positions.

“My advice is if you are looking to upgrade your client-server application to the next level, you should view this as a major task,” says Robert McNeill, VP Research, Saugatuck Technology. “Classically big vendors are challenged by SaaS. You should look at alternatives, evaluating total cost – cost to upgrade, configure, manage over time – and consider ease of use.”

Key criteria to be used in evaluating SaaS-based alternatives can be found in Saugatuck’s report “The Cloudy Future of IT Service Management.”

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