IDC [Quanta] · Software Development & IT Operations

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The Business Case

Challenges transformed into capabilities with IDC

$1.03T Worldwide PaaS market by 2030, growing at a 35.3% CAGR from 2025

AI is accelerating and rewriting how software gets built.

Challenges

Agentic inflection outrunning roadmaps

52% of orgs already use agentic AI regularly as tools shift from code assist to autonomous agents — vendors sizing roadmaps on last year’s category are already behind.

The build-vs-buy gamble

81.5% see real productivity gains from agentic tools, yet IDC predicts 65% of build-your-own agentic AI projects will be abandoned by 2028 for missing ROI.

Blind spots at the dev↔ops seam

Point subscriptions miss where AI blurs build and operate, as GitOps, IaC, and delivery modernize DevOps — DevSecOps and supply chain lead growth, others move first.

Ungoverned data behind internal AI

Engineering teams building copilots and RAG pipelines lack authoritative, provenance-tracked data — an AI-governance exposure vendors can’t yet help customers close.

Widening builder base, shifting delivery

Low-code, cloud/SaaS, and Kubernetes-native platforms broaden who builds — uneven adoption leaves headroom, AI modernization governed by ALM and portfolio strategy.

New categories, old product lines

Toolchains are spawning entirely new categories — orchestration, spec-driven dev, AI governance, and low-code agent scaffolding — that vendors built for code assist don’t yet cover.

Capabilities

One coherent coverage area, no seams

Whole-lifecycle coverage — dev, cloud, low-code, Kubernetes-native — closes the dev↔ops blind spot.

AI-native foresight, not last year’s roadmaps

70% of developers will partner with AI agents by 2030 — IDC tracks what’s next: orchestration, spec-driven dev.

Buyer data that de-risks build-vs-buy

Adoption data times investment to real curves, not abandoned bets.

Governed data for ungoverned AI pipelines

Provenance-tracked data feeds AI pipelines via API, backed by direct access to specialist analysts.

IDC clients replace fragmented, static views with coherent, real-time evidence — and build for tomorrow’s market instead of catching up to it.

$90.9B Combined ITOM, ITSM, and ITACM software market by 2030, growing at a 13% CAGR from 2026

IT operations fortunes are shifting faster than vendors can position.

Challenges

Vendor fortunes outpacing vendor data

Cloud-delivered ITOM is already 64% of revenue, growing fastest in EMEA at 16.2% CAGR — as software-defined, ephemeral, agentic estates make last year’s market map stale.

Spend doubles, positioning stalling

Median observability spend is doubling toward $1.5M as unified signal spans cloud, edge, and agentic workloads — vendors lacking current data can’t defend position.

Selling into an intent-execution gap

56% are early-stage on AI in ITSM, yet only 30.6% call it fully implemented — buyers now demand accuracy, security, and proven ROI, not pitched intent.

Point tools losing the worksurface

Restorative incident tools, script-based automation, and FinOps solutions risk subsumption as AIOps binds monitoring, analytics, and response into one governed worksurface.

Subscriptions built for the old contest

The contest is shifting from observing IT to governing agentic estates via AIOps and automation — rewarding governance infrastructure vendors, not old coverage.

No regional intelligence for expansion

Vendors entering EMEA or APJ have no validated local buyer or competitive data to expand into these fast-growing regions with confidence.

Capabilities

Coverage that moves with the markets

Global ITOM forecasts (14.7% CAGR to $51.6B) plus EMEA and APJ regional depth keep positioning current, not stale.

Observability demand data, not guesswork

IDC data shows median observability spend rose from $750K in 2024 to planned $1.5M in 2025, aiding pricing/roadmap.

Coverage of the real adoption gap

Research on where ITSM AI adoption stalls — security, cost, training — giving sales a credible pitch against real blockers.

From “observe” to “govern,” first

IDC frames the shift to governing the agentic estate — where AIOps subsumes tools — early, backed by analysts.

IDC clients turn the adoption gap into a roadmap — pricing and positioning for where ITSM AI is headed, not just where it stalled.

Built on data. Enriched by expertise.

Behind IDC Quanta are billions of data points, decades of research, and a global bench of analysts who continuously interpret markets, engage with industry leaders, and provide critical context to emerging trends.

Meet the global analysts powering software and IT insights

Stephen Elliot

Group VP, Global Domain Leader

IT Operations, Application Development & Platforms: Executive Strategies

Worldwide

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25Years exp.

Coverage themes

Thought leadership & C-suite impact, AI market & IT buyer impact, Vendor strategy & analysis, Emerging technologies

Highlights

  • Executive Education, Harvard Business School
  • Global influencer and speaker

Regions served

Worldwide

Abbreviated bio

Stephen manages multiple programs spanning IT operations, enterprise management, ITSM, Agile and DevOps, application performance, virtualization, multi-cloud management and automation, log analytics, container management, DaaS, and software-defined compute. He advises senior IT, business, and investment executives globally on the creation of strategy and operational tactics that drive digital transformation and business growth.

Education

B.A., University of Southern California

Jim Mercer

Program VP, Software Development Team Lead

DevOps Practices and Platform Engineering

Worldwide

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25Years exp.

Coverage themes

Modern DevOps software delivery, Platform engineering, Role of AI in DevOps & platform engineering, Mergers & acquisitions

Highlights

  • SAFe certified Agilist
  • Holds multiple U.S. patents

Regions served

Worldwide

Abbreviated bio

Jim is a Program Vice President managing IDC’s DevOps and DevSecOps solutions research, covering application lifecycle management, platform engineering, GitOps, and software supply chain security. He advises senior IT, business, and investment executives worldwide on digital transformation and business optimization strategy. Before joining IDC, he held engineering leadership roles at CA Technologies and later worked as an independent industry consultant.

Education

BS Business Management, Lesley University

Jevin Jensen

Research VP, Intelligent CloudOps

Intelligent Cloud and Edge Operations with FinOps

Worldwide

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25Years exp.

Coverage themes

FinOps, AI cloud automation, Infrastructure as code, CloudOps + automation + observability

Highlights

  • Industry Week 500 IS Innovators No. 142 (2009)
  • Led a 150-person I&O team through a multi/hybrid cloud transformation

Regions served

Worldwide

Abbreviated bio

Jevin covers infrastructure-as-code/GitOps, cloud cost transparency, DevOps, and hybrid/public/multi-cloud management platforms, plus edge management. Prior to IDC, he was Vice President of Global Infrastructure at Mohawk Industries, the world’s largest flooring manufacturer, where he led the P&L and a 150-person I&O team through a multi/hybrid cloud, Agile/DevOps transformation, bringing 25 years of progressive IT leadership.

Education

B.S. Business Administration, University of Tennessee

Arnal Dayaratna

Research Vice President

Generative AI and Low-Code and No-Code Developer Technologies

Worldwide

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10Years exp.

Coverage themes

Agent development & runtime, Models & AI execution architecture, Context, memory & state management, Low-code & no-code developer technologies

Highlights

  • Ph.D., Duke University
  • Taught at Duke University as guest lecturer

Regions served

Worldwide

Abbreviated bio

Dr. Dayaratna’s research examines how agentic AI, generative AI, and AI-driven development tools are transforming software engineering, accelerating software delivery, and reshaping developer workflows. He also studies low-code and no-code technologies and their empowerment of professional and business developers, bringing over a decade of strategy consulting experience directing software development and analytics initiatives in healthcare and pharma.

Education

Ph.D., Duke University; B.A., Princeton University

Phil Hochmuth

Research Vice President

Endpoint Device Management and Enterprise Mobility

Worldwide

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19Years exp.

Coverage themes

Client endpoint management, Unified endpoint management, Enterprise mobility, Mobile device management

Highlights

  • Member, IDC Future of Work research council
  • Frequent commentator to trade press and Wall Street

Regions served

Worldwide

Abbreviated bio

Phil is Research Vice President for endpoint device management and enterprise mobility, covering enterprise end-user device management with a focus on client, unified, and mobile device management, as well as enterprise mobile security. He rejoined IDC in 2016; previously he directed Mobile Workforce Strategies research at Strategy Analytics and led market intelligence at Dyn.

Education

B.A., Journalism, Northeastern University

Archana Venkatraman

Senior Research Director

European AIOps and Observability Value Strategies

Europe

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11Years exp.

Coverage themes

Agentic monitoring & observability, Operational sovereignty & observability, Evolution of observability in the AI era

Highlights

  • Recipient of IDC’s James Peacock Runner-Up award

Regions served

Europe

Abbreviated bio

Archana has 11+ years covering strategic enterprise IT, including IT operations and data management. She focuses on observability, AI observability, operational resilience, ITSM, FinOps, and operational governance and compliance through a European regional lens — regulation, investment trends, skills, and challenges.

Education

Regional expert on European regulation, investment, and skills trends

Shannon Kalvar

Research Director

Enterprise Systems Management, Observability & AIOps

Worldwide

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32Years exp.

Coverage themes

Future of operations, AIOps: beyond the automation, Observability in practice, The ephemeral estate

Highlights

  • Member, IDC Future of Work and AI councils
  • Contributor to major operations frameworks in use today

Regions served

Worldwide

Abbreviated bio

Shannon focuses on the evolution of digital work, AI in both end-user and IT operational contexts, and the transformation of IT management as organizations navigate exponential data growth and complexity amid tumultuous economic and geopolitical times. He has 32+ years of experience as an analyst and executive, including prior roles at OneAmerica, ITT, and Lockheed Martin.

Education

M.B.A., Bellarmine University

Gary Chen

Research Director

Software-Defined Compute: Virtualization, Cloud, and Container Platforms

Worldwide

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10Years exp.

Coverage themes

VMware migration, AI-assisted migration and modernization, VM and container convergence, Kubernetes as core AI infrastructure

Highlights

  • Former Senior Analyst, Yankee Group

Regions served

Worldwide

Abbreviated bio

Gary is IDC’s Research Director, Software Defined Compute, covering server virtualization, container infrastructure and management, and cloud system software such as OpenStack. Prior to IDC, he was a Senior Analyst at Yankee Group focusing on SME infrastructure, server virtualization, and cloud computing, and has 10 years of IT and software development experience.

Education

B.S. in Psychology, University of Miami

Adam Reeves

Research Director

PaaS for Developers of Modern and Edge Applications

Worldwide

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30Years exp.

Coverage themes

Public cloud services (PaaS), Serverless, containers/Kubernetes & emerging PaaS, Multicloud, How AI impacts PaaS

Highlights

  • Former Head of Market & Product Strategy, ScienceLogic

Regions served

Worldwide

Abbreviated bio

Adam leads IDC’s worldwide research on PaaS for developers of modern and edge applications, combining demand-side research with market modeling to track the evolving needs of PaaS buyers building and deploying applications in the cloud, across multiple clouds, and at the edge. He joined IDC from ScienceLogic, where he led market and product strategy.

Education

B.A. in Economics, Wesleyan University

Melinda Ballou

Research Director

AI Assurance, ALM, Quality and Portfolio Strategies

Worldwide

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32Years exp.

Coverage themes

Agentic software testing, quality & engineering, Leveraging agile ALM & PLM with AI, Strategic portfolio, PPM & value management

Highlights

  • Futurist and multi-disciplinary thought leader

Regions served

Worldwide

Abbreviated bio

Melinda delivers insights into the future of AI assurance and the impact of AI, ML, and agentic adoption on agile and digital work, resilience, quality, and product and software engineering. She has 32+ years of experience as an analyst, strategist, and IT leader focused on software life cycle, automated software quality and testing, and strategic portfolio management.

Education

B.A., Williams College; M.A. in Professional Writing, MIU

Matthew Flug

Research Manager

Cloud Application Deployment Platforms

Worldwide

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8Years exp.

Coverage themes

AI applications & deployment platforms, Platform engineering, Application modernization, Buying patterns & trends

Highlights

  • Former analyst, Forrester Research

Regions served

Worldwide

Abbreviated bio

Matt is a Research Manager within IDC’s Cloud Application Deployment Platforms practice, focusing on software vendors, cloud providers, and end-customer software development and deployment plans. He covers emerging PaaS solutions supporting developers deploying performant, modern, cloud-native applications, bringing over 8 years of research and industry analysis experience, including roles at Forrester Research and Outreach.

Education

B.A. in Political Science, Northeastern University

George Mironescu

Associate Research Director

Cloud Native Engineering Practices

Worldwide / Europe

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20Years exp.

Coverage themes

Modern application design & engineering, Integrated stack design & engineering, Software engineering for AI app delivery, Sovereign software stacks

Highlights

  • 20+ years engaging with technology vendors and buyers worldwide

Regions served

WorldwideEurope

Abbreviated bio

George leads software development and engineering research streams covering modern application delivery, developer and software engineering tooling, delivery pipelines and practices, cloud-native frameworks, and emerging methodologies across the software delivery lifecycle. He advises clients on sourcing, competitive positioning, and strategic options, with a career in enterprise software and IT services beginning in the 2000s.

Education

Bachelor’s degree, ASE Bucharest University of Economic Studies

Dr. Adam Resnick

Research Manager

Modern Software Development and Developer Trends

Worldwide

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15Years exp.

Coverage themes

Developer influence, GenAI & developer productivity, Developer tools, Evolution of developer personas

Highlights

  • Ph.D. in Political Science, University of Colorado

Regions served

Worldwide

Abbreviated bio

Dr. Resnick conducts research on contemporary software development and how it is changing alongside market drivers and end-user needs, providing market intelligence to leading suppliers of developer tools and commercial and open-source software, with a focus on tools and technologies that enable developer productivity. He brings over fifteen years of qualitative and quantitative market research experience.

Education

Ph.D., University of Colorado; B.A., University of California

Katie Norton

Senior Research Manager

DevSecOps, Vulnerability Management, and Software Supply Chain Security

Worldwide

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10Years exp.

Coverage themes

Application security & DevSecOps tooling, Vulnerability prioritization & remediation, SBOM & secure software supply chain, Securing AI & AI in AppSec

Highlights

  • Google Data Analytics Professional Certificate

Regions served

Worldwide

Abbreviated bio

Katie is a Senior Research Manager for IDC’s DevSecOps and Software Supply Chain Security practice, researching, writing, and advising clients on the fast-evolving DevSecOps and software supply chain security markets. Her core research covers integrating security into the software development lifecycle and buying patterns for DevSecOps tooling, and with a background in research administration and data analytics, she takes a data-first approach to market analysis.

Education

M.S.A. in Research Administration, CMU

Snow Tempest

Research Manager

AI-Enabled IT Service Management

Worldwide

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15Years exp.

Coverage themes

AI in ITSM, ITSM & employee service modernization, Service management for digital resilience, IT asset management & intelligence

Highlights

  • Led projects generating over $2M in revenue

Regions served

Worldwide

Abbreviated bio

Snow is Research Manager for IDC’s IT Service Management program, delivering research and advisory for IT executives, vendor management teams, and investment executives. Her research covers IT service management, cost transparency tools, software asset management, and the use of AI and NLP for service management, drawing on over 18 years across research, user experience, marketing, and technical writing roles.

Education

B.A. in English, Princeton University

Filippo Vanara

Senior Research Analyst

Enterprise Client Computing Platforms

Worldwide

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5Years exp.

Coverage themes

Virtual client computing (VCC), Desktop-as-a-service (DaaS), Virtual desktop infrastructure (VDI), Digital employee experience (DEX)

Highlights

  • Sustainability coursework, University of Oxford

Regions served

Worldwide

Abbreviated bio

Filippo has over 7 years of experience in the tech industry, covering cloud computing, CloudOps, and sustainability. He now leads Enterprise Client Computing Platforms research, focusing on virtual client computing, desktop-as-a-service, virtual desktop infrastructure, and digital employee experience, analyzing market trends, maturity, and vendor portfolios and strategies.

Education

B.A. in Business Management, University of Pavia, Italy

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“ML, agents, and agentic agents will shape the future and provide significant opportunities for business transformation.”

Stephen Elliot

Group Vice President, IDC

IDC Data and Research

What’s inside

Generative AI & agentic AI software development Arnal Dayaratna
Developer trends & productivity Adam Resnick
Low-code / no-code platforms Arnal Dayaratna
Platform as a service (PaaS) Adam Reeves
DevSecOps & supply chain security Katie Norton
Cloud native engineering practices George Mironescu
Modern software business outcomes and value chains George Mironescu
Agentic development security Katie Norton
Cloud app deployment / PaaS Matthew Flug
Software AI assurance and PPM Melinda Ballou
Application modernization Matthew Flug
DevOps practices & platform engineering Jim Mercer
Endpoint device management Phil Hochmuth
AI-enabled ITSM Snow Tempest · Stephen Elliot
Enterprise mobility / EUC Phil Hochmuth
IT asset management Snow Tempest
Observability, AIOps, SRE Shannon Kalvar · Stephen Elliot
European CloudOps & FinOps Archana Venkatraman
AI observability & ops (EMEA) Archana Venkatraman
Enterprise systems management Shannon Kalvar · Stephen Elliot
Virtual client computing / DaaS Filippo Vanara
Software-defined compute Gary Chen · Stephen Elliot
IT automation, IaC, FinOps, edge Gary Chen
Container platforms & Kubernetes Jevin Jensen · Stephen Elliot
Generative & agentic AI for developers Arnal Dayaratna · Adam Resnick
AI app deployment platforms Matthew Flug · Adam Reeves
AI for software engineering Jim Mercer · George Mironescu
Securing AI in dev pipelines Katie Norton · Jim Mercer
AI digital workspace & mobility Filippo Vanara · Phil Hochmuth
AI-enabled ITSM, testing, quality Snow Tempest · Melinda Ballou
Observability, FinOps, AIOps Archana Venkatraman · Gary Chen
AI operations, private cloud Shannon Kalvar · Archana Venkatraman · Jevin Jensen

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