This IDC study discusses the acceleration of the IT project and portfolio management (ITPPM) market, which experienced high growth in 2004 ? more than double the growth observed in 2003. This acceleration of the ITPPM market was due to a variety of factors that came together additively. The increasing role and complexity of IT in the enterprise, the need to better align IT with business needs, and corporate governance requirements combined to give this market segment of the overall project and portfolio management (PPM) market dramatic growth.

The pervasive use of PPM tools in IT is long overdue, so we are naturally encouraged by the strong interest in ITPPM, regardless of the reason. IDC forecasts strong continuing growth in the ITPPM segment, with expected revenue approaching the magical $1 billion mark around the end of the decade.

"Demand should remain strong for ITPPM tools throughout our forecast period, and there is further, strong market and product evolution that will occur as larger vendors deliver more complete ITLM solutions," said Melinda Ballou, program director for Applicaton Life-Cycle Management at IDC. "Smaller vendors will continue to play a key role in product and market innovation, and differentiated ITPPM solutions will come into play in that context as further consolidation occurs with additional acquisitions during the 2006?2009 time frame."