Wednesday, June 28, 2006

Identity Management Services Market

A topic of recent interest to me is regarding the Identity Management Services Market, with forcasting and the whole nine. If you google "identity management market", or other similar searches, you'll a few papers on the topic, although their focus is naturally on the product side of things.

Radicati, about 9 months ago, released in their analysis "Identity Management Market, 2005-2009" that the Identity Management market, including all segments -- full-suites, provisioning, secure access/authentication, and federated identity solutions -- will reach over $1.2 billion in 2005 in worldwide revenues, and grow to over $8.5 billion by 2008. I recall Jamie Lewis back in 2004's Catalyst Conference provide a progress report on the IdM market, and he described it back then as the first round of M&A activity coming to a close (I wonder where that puts us today?...havent heard of a good acquisition lately). Anyhow, both were regarding the state of affairs of the software side of things. What about services? I'm sure the folks in Deloitte, PWC, etc. have thoroughly researched the topic - unfortunately, I'm unable to find anything directly on the matter.
Obviously, when the product market is hot, the services should necessarily follow - but that could be contingent on a number of issues. How difficult are the integrations? Are the products increasing in sophistication, thereby easing administrative and deployment burdens? Is ease of use even high on vendors' lists? If not, why? and when will it be? Lots of questions, few answers.
Anyhow, this is a topic that concerns me due to my profession, although I'm not losing sleep on it since the market seems like its chugging along at a decent pace. What does concern me are the questions: for how long? what are the trends in various verticals regarding the selection of professional services firms for services work? How many are outsourcing their deployment and support work? How many are utilizing in-house resources? What factors are affecting decisions regarding which firms to award the bid to? I personally have answers to some of these questions based on my experiences in the market, yet a more scientific study would be welcoming.

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