Global Application Lifecycle Management (ALM) Market Growth, Share, Size, Trends and Forecast (2025 - 2031)
By Component;
Software - On-Premise and Cloud Based, Services.By Enterprise Size;
Small & Medium Enterprises and Large Enterprises.By End-User;
Automotive and Transportation, Manufacturing, Aerospace and Defense, BFSI, Energy and Utilities, Retail & E-commerce, Healthcare, IT and Telecom and Others.By Geography;
North America, Europe, Asia Pacific, Middle East and Africa and Latin America - Report Timeline (2021 - 2031).Introduction
Global Application Lifecycle Management (ALM) Market (USD Million), 2021 - 2031
In the year 2024, the Global Application Lifecycle Management (ALM) Market was valued at USD 4,421.08 million. The size of this market is expected to increase to USD 7,192.70 million by the year 2031, while growing at a Compounded Annual Growth Rate (CAGR) of 7.2%.
The Global Application Lifecycle Management (ALM) Market is witnessing significant growth driven by the burgeoning demand for efficient software development solutions across industries. ALM encompasses the management of software applications from their inception to retirement, covering various stages such as planning, development, testing, deployment, and maintenance. In today's dynamic business environment, organizations are under immense pressure to deliver high-quality software products quickly while ensuring compliance with regulatory standards and meeting customer expectations. ALM tools and platforms play a crucial role in addressing these challenges by providing comprehensive frameworks for managing the entire lifecycle of software applications.
One of the primary drivers propelling the growth of the ALM market is the increasing adoption of DevOps practices. DevOps emphasizes collaboration and automation between development and operations teams, aiming to streamline the software delivery process and accelerate time-to-market. As organizations embrace DevOps methodologies, the demand for ALM solutions that seamlessly integrate with DevOps tools and workflows is on the rise. The proliferation of cloud computing and virtualization technologies has led to the integration of ALM with cloud-based development environments, enabling greater flexibility, scalability, and efficiency in software development processes.
Despite the promising growth prospects, the ALM market faces several challenges, including high initial investment costs, resistance to change, and integration complexities with legacy systems. Organizations often encounter difficulties in aligning ALM solutions with existing workflows and toolchains, resulting in implementation delays and operational inefficiencies. Security concerns related to data privacy and intellectual property protection pose significant restraints to ALM adoption, particularly in highly regulated industries such as healthcare and finance. Addressing these challenges requires concerted efforts from ALM vendors, enterprises, and regulatory bodies to foster a conducive environment for sustainable market growth.
Nevertheless, the ALM market presents ample opportunities for innovation and expansion. With the increasing adoption of ALM solutions in emerging markets and the growing demand for specialized tools catering to specific industry verticals, vendors have the opportunity to diversify their offerings and capture new market segments. Moreover, advancements in AI-driven analytics, automation, and integration with emerging technologies such as IoT and blockchain are opening new avenues for enhancing the capabilities of ALM platforms. By capitalizing on these opportunities and addressing the underlying challenges, stakeholders in the ALM ecosystem can drive continued growth and transformation in software development practices worldwide.
Global Application Lifecycle Management (ALM) Market Recent Developments
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In March 2024, LambdaTest, a U.S.,based software company, and Inflectra Corporation have partnered to integrate LambdaTest's cross,browser testing platform with Inflectra's SpiraTeam, creating a unified solution for efficient software development and testing.
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In May 2024, Sonatype Inc., a software company in the U.S., announced an integration with ServiceNow to embed Sonatype Lifecycle’s software composition analysis and open,source vulnerability scans into ServiceNow workflows, enhancing vulnerability management and remediation efficiency
Segment Analysis
The global Application Lifecycle Management (ALM) market, spanning the period from 2020 to 2030, is characterized by diverse components, enterprise sizes, end-users, and geographical segments. In terms of components, the market is bifurcated into software solutions offered through both on-premise and cloud-based platforms, as well as services. The software segment, encompassing on-premise and cloud-based solutions, caters to the varying preferences and infrastructure requirements of enterprises. Services such as implementation, consulting, and support play a critical role in assisting organizations in adopting and optimizing ALM solutions to enhance their software development processes.
Enterprise size is another crucial dimension shaping the ALM market landscape. It encompasses both small and medium enterprises (SMEs) and large enterprises. While large enterprises often have substantial budgets and resources to invest in comprehensive ALM solutions, SMEs are increasingly recognizing the importance of efficient software development practices and are thus investing in ALM technologies tailored to their scale and needs. This duality in enterprise size underscores the market's inclusivity and potential for growth across diverse organizational structures.
Across various end-user industries, the adoption of ALM solutions is witnessing significant traction. Key sectors driving demand include automotive and transportation, manufacturing, aerospace and defense, BFSI, energy and utilities, retail & e-commerce, healthcare, IT and telecom, among others. Each of these industries faces unique challenges and requirements in software development and lifecycle management, ranging from regulatory compliance to stringent quality standards and rapid innovation cycles. ALM solutions address these needs by providing comprehensive tools and methodologies to streamline development processes and ensure the delivery of high-quality software products.
Geographically, the ALM market exhibits a global footprint, with notable regions including North America, Europe, Asia Pacific, Middle East and Africa, and Latin America. North America, with its robust technological infrastructure and early adoption of advanced software development practices, remains a key revenue contributor. Meanwhile, emerging economies in Asia Pacific are witnessing accelerated growth, driven by increasing digitalization initiatives and investments in IT infrastructure. As organizations worldwide recognize the imperative of efficient software development and management practices to remain competitive in the digital era, the ALM market is poised for sustained expansion and innovation throughout the forecast period.
Global Application Lifecycle Management (ALM) Segment Analysis
In this report, the Global Application Lifecycle Management (ALM) Market has been segmented by Component, Enterprise Size, End-User and Geography. Application lifecycle management tools help you bring people and processes together. Micro focus application lifecycle management is a set of software tools for application development and testing created and offered by micro focus. Tools for requirements management, test planning and functional testing, performance testing, developer management, and defect management are included. Alm tools list includes almcomplete by smartbear software, clarity+agilevision+itko by ca technologies, collabnet teamforge by collabnet, devsuite by techexcel, hp application lifecycle management by hp and ibm rational solution for collaborative lifecycle management by ibm. In a nutshell, sdlc is a subset of the alm process, which encompasses all processes in the portfolio, including sdlc. Alm is a considerably larger concept that covers all parts of the programme from conception through retirement, whereas sdlc only concentrates on the software design part (application lifecycle management vs sdlc).
Global Application Lifecycle Management (ALM) Market, Segmentation by Component
The Global Application Lifecycle Management (ALM) Market has been segmented by Component into Software and Services.
The Global Application Lifecycle Management (ALM) Market comprises two main components: software solutions and services, each offering distinct advantages and catering to diverse user needs. Software solutions are offered in both on-premise and cloud-based models, providing flexibility and scalability to organizations of varying sizes and infrastructures. On-premise software offers localized control and customization, ideal for enterprises with strict data governance requirements or legacy systems that cannot migrate to the cloud. Conversely, cloud-based ALM software provides accessibility from anywhere with an internet connection, enabling distributed teams to collaborate seamlessly and reducing the burden of software maintenance and updates on IT departments.
Complementing ALM software are a range of services aimed at assisting organizations in implementing, customizing, and optimizing their ALM solutions. These services encompass consulting, training, implementation, integration, and support, among others. Consulting services help organizations assess their ALM needs and devise strategies for effective implementation, while training services ensure that users are proficient in utilizing ALM tools to their fullest potential. Implementation and integration services streamline the deployment of ALM solutions, ensuring seamless integration with existing IT infrastructure and workflows. Ongoing support services provide troubleshooting assistance and ensure the smooth operation of ALM systems, minimizing downtime and maximizing productivity.
The choice between on-premise and cloud-based ALM software, as well as the selection of service providers, depends on various factors including organizational preferences, IT infrastructure, budgetary constraints, and compliance requirements. While on-premise software offers greater control and customization options, cloud-based solutions provide scalability, accessibility, and reduced IT overhead. Service providers play a crucial role in guiding organizations through the ALM implementation journey, offering expertise, technical support, and personalized solutions tailored to specific business needs. Ultimately, the combination of robust ALM software and comprehensive service offerings empowers organizations to streamline their software development processes, enhance collaboration, ensure quality, and accelerate time-to-market, thereby gaining a competitive edge in today's dynamic business landscape.
Global Application Lifecycle Management (ALM) Market, Segmentation by Enterprise Size
The Global Application Lifecycle Management (ALM) Market has been segmented by Enterprise Size into Small & Medium Enterprises and Large Enterprises.
In the Global Application Lifecycle Management (ALM) Market, both Small & Medium Enterprises (SMEs) and Large Enterprises play pivotal roles, each facing distinct challenges and opportunities. For SMEs, ALM solutions offer a pathway to enhance operational efficiency and competitiveness in a dynamic market landscape. With limited resources, SMEs often seek cost-effective ALM tools tailored to their specific needs. ALM enables SMEs to streamline their software development processes, from planning to deployment, thereby accelerating time-to-market and ensuring product quality. ALM solutions empower SMEs to foster collaboration among dispersed teams, enabling efficient project management and resource allocation.
Conversely, Large Enterprises leverage ALM solutions to manage the intricacies of large-scale software development projects spanning multiple teams, departments, and geographic locations. These enterprises require robust ALM platforms capable of handling diverse toolchains, integration challenges, and compliance requirements. ALM enables large enterprises to maintain visibility and control over their software development lifecycle, mitigating risks and ensuring regulatory compliance. ALM fosters innovation within large enterprises by facilitating continuous improvement and adaptation to evolving market demands.
Both SMEs and Large Enterprises encounter barriers in adopting ALM solutions. SMEs often face budget constraints and limited access to skilled personnel, necessitating user-friendly and affordable ALM solutions tailored to their scale and requirements. On the other hand, Large Enterprises grapple with the complexities of legacy systems, organizational resistance to change, and the need for seamless integration with existing IT infrastructure. Overcoming these barriers requires strategic planning, stakeholder engagement, and investment in training and support services.
Nevertheless, the Global ALM Market presents abundant opportunities for both SMEs and Large Enterprises. SMEs can capitalize on the growing availability of cloud-based ALM solutions, offering scalability, flexibility, and affordability. SMEs can benefit from partnerships with ALM vendors and service providers to access specialized expertise and resources. For Large Enterprises, opportunities lie in harnessing emerging technologies such as AI and machine learning to enhance ALM capabilities, driving innovation and competitiveness. Strategic collaborations and acquisitions enable Large Enterprises to expand their ALM offerings and market presence, catering to diverse industry verticals and customer needs.
Global Application Lifecycle Management (ALM) Market, Segmentation by End-User
The Global Application Lifecycle Management (ALM) Market has been segmented by End-User into Automotive and Transportation, Manufacturing, Aerospace and Defense, BFSI, Energy and Utilities, Retail & E-commerce, Healthcare, IT and Telecom and Others.
The Automotive and Transportation sector is increasingly turning to Application Lifecycle Management (ALM) solutions to streamline software development processes for vehicle systems, telematics, and connected car technologies. ALM aids in managing the complexities of automotive software, ensuring compliance with industry standards, and enhancing collaboration among dispersed teams. With the rise of electric and autonomous vehicles, ALM becomes indispensable for managing the lifecycle of embedded software, ensuring safety, reliability, and interoperability.
In the Manufacturing industry, ALM plays a vital role in managing software applications used in production processes, supply chain management, and quality control systems. ALM solutions help manufacturers optimize product development cycles, reduce time-to-market, and ensure seamless integration between software and hardware components. With the advent of Industry 4.0 and smart manufacturing initiatives, ALM facilitates the integration of IoT devices, data analytics, and automation technologies, driving efficiency and innovation across the manufacturing value chain.
Aerospace and Defense companies rely on ALM to manage the development of mission-critical software for aircraft, satellites, and defense systems. ALM ensures compliance with stringent regulatory requirements, such as DO-178C for airborne software, while enabling collaboration between engineering teams and subcontractors. With the increasing complexity of aerospace software, ALM helps mitigate risks, improve project visibility, and accelerate the delivery of reliable and secure software solutions to meet the demands of defense and commercial aviation markets.
In the BFSI sector, ALM is instrumental in managing the lifecycle of banking, financial, and insurance applications, ensuring reliability, security, and compliance with regulatory standards such as Basel III and GDPR. ALM solutions enable financial institutions to streamline software development processes, enhance customer experience through digital banking platforms, and mitigate risks associated with cyber threats and data breaches. With the growing adoption of fintech innovations and digital transformation initiatives, ALM becomes indispensable for BFSI organizations to stay competitive and resilient in a rapidly evolving market landscape.
Global Application Lifecycle Management (ALM) Market, Segmentation by Geography
In this report, the Global Application Lifecycle Management (ALM) Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.
Global Application Lifecycle Management (ALM) Market Share (%), by Geographical Region, 2024
The Global Application Lifecycle Management (ALM) Market is poised for significant growth across various geographic regions from 2020 to 2030. In North America, particularly in the United States and Canada, the market is anticipated to witness robust expansion due to the region's strong presence of IT enterprises and a proactive approach towards adopting advanced software development methodologies. The increasing demand for software development efficiency, coupled with the widespread adoption of DevOps practices, is expected to drive substantial growth in this region. The emphasis on quality assurance and compliance requirements is likely to fuel the adoption of comprehensive ALM solutions.
In Europe, countries such as the United Kingdom, Germany, and France are expected to contribute significantly to the growth of the ALM market. The region's mature IT infrastructure and stringent regulatory environment create opportunities for ALM vendors to offer solutions tailored to address compliance and risk management needs. The integration of ALM with cloud computing technologies is anticipated to gain traction in Europe, driving efficiency gains and cost savings for organizations across various industries.
In the Asia Pacific region, countries like China, India, and Japan are projected to experience rapid growth in the ALM market fueled by the expansion of the IT sector and increasing investments in digital transformation initiatives. The proliferation of mobile and web application development, coupled with the growing adoption of ALM solutions to streamline the software development lifecycle, is expected to drive substantial market growth in this region. The emergence of start-ups and SMEs in countries like India and Southeast Asian nations presents significant opportunities for ALM vendors to penetrate untapped markets and cater to the evolving needs of diverse customer segments.
In the Middle East and Africa (MEA) and Latin America regions, the ALM market is poised for steady growth, albeit at a relatively slower pace compared to other regions. Factors such as increasing digitization initiatives, rising awareness about the benefits of ALM solutions, and investments in IT infrastructure are expected to drive market expansion. Challenges such as limited IT budgets, infrastructure constraints, and a shortage of skilled professionals may impede the pace of growth in these regions. Nonetheless, strategic partnerships, collaborations, and investments in technology infrastructure are likely to create new opportunities for ALM vendors to expand their presence and capture market share in MEA and Latin America.
Market Trends
This report provides an in depth analysis of various factors that impact the dynamics of Global Application Lifecycle Management (ALM) Market. These factors include; Market Drivers, Restraints and Opportunities.
Drivers, Restraints and Opportunity
Drivers:
- Demand for Better Collaboration and Communication
- Compliance Requirements and Regulations
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Expansion of Mobile and Web Application Development-The expansion of mobile and web application development presents a significant opportunity for the Global Application Lifecycle Management (ALM) Market. With the proliferation of smartphones, tablets, and other internet-enabled devices, there's an increasing demand for innovative mobile and web applications across various industries. This surge in demand necessitates robust ALM solutions that can streamline the entire development process, from ideation to deployment and maintenance. ALM tools tailored for mobile and web applications enable developers to manage code repositories, automate testing procedures, and ensure seamless integration with backend systems, enhancing overall efficiency and time-to-market.
The dynamic nature of mobile and web application development requires agile ALM frameworks capable of accommodating frequent updates and iterations. ALM platforms equipped with agile methodologies and collaboration features empower development teams to adapt quickly to changing requirements, iterate on features based on user feedback, and deliver high-quality applications at a rapid pace. By facilitating continuous integration and delivery (CI/CD) pipelines specific to mobile and web environments, ALM solutions enable developers to deploy updates seamlessly while ensuring stability and reliability across different platforms and devices.
The proliferation of mobile and web applications introduces new challenges in terms of device fragmentation, operating system diversity, and performance optimization. ALM tools with comprehensive testing capabilities, including compatibility testing, performance testing, and user experience testing, play a crucial role in addressing these challenges. By providing developers with insights into application performance across various devices and network conditions, ALM solutions empower them to optimize code, prioritize bug fixes, and enhance user satisfaction.
In conclusion, the expansion of mobile and web application development represents a lucrative opportunity for the Global ALM Market. By investing in ALM solutions tailored for mobile and web environments, organizations can streamline their development processes, improve collaboration among teams, and deliver high-quality applications that meet the evolving needs of modern users. As mobile and web technologies continue to evolve, ALM vendors have the opportunity to innovate and differentiate their offerings to stay ahead in this dynamic market landscape.
Restraints:
- Limited Availability of Skilled Professionals
- Vendor Lock-in with Proprietary Solutions
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Scalability and Flexibility Concerns-Scalability and flexibility concerns represent pivotal challenges within the Global Application Lifecycle Management (ALM) Market. ALM solutions must accommodate the dynamic needs of diverse development projects, from small-scale initiatives to enterprise-level endeavors. One prominent concern lies in the ability of ALM platforms to seamlessly scale with evolving project requirements. As software development teams expand in size or undertake more complex projects, they require ALM tools capable of accommodating increased workloads without sacrificing performance or efficiency. Failure to address scalability concerns may result in bottlenecks, delays, or degraded performance, hindering the productivity and effectiveness of development teams.
Flexibility is paramount in ALM solutions to cater to the varied methodologies, workflows, and toolchains prevalent across different organizations and industries. One-size-fits-all approaches often fall short in meeting the unique needs and preferences of diverse development teams. Flexibility entails the adaptability of ALM platforms to integrate with existing tools, support multiple development methodologies (such as Agile, Waterfall, or hybrid approaches), and accommodate custom workflows tailored to specific project requirements. Inadequate flexibility may lead to friction in adoption, as development teams encounter resistance or inefficiencies when attempting to align ALM processes with their preferred workflows or toolsets.
Scalability and flexibility concerns extend beyond the internal dynamics of development teams to encompass the broader technological landscape. With the proliferation of cloud computing, containerization, and microservices architectures, ALM solutions must evolve to support distributed development environments and hybrid infrastructures. Scalability becomes increasingly crucial as organizations leverage cloud-based resources to scale infrastructure on-demand, while flexibility enables seamless integration with diverse cloud platforms and services. Failure to address these concerns may impede organizations' ability to capitalize on the scalability and cost-efficiency benefits offered by cloud-native development and deployment models.
Addressing scalability and flexibility concerns requires a holistic approach encompassing both technological innovation and organizational adaptation. ALM vendors must prioritize the development of scalable architectures capable of handling growing workloads and evolving infrastructures, while also fostering flexibility through modular design, open APIs, and customizable workflows. Organizations must invest in robust change management processes and provide adequate training and support to ensure smooth transitions to scalable and flexible ALM solutions. By addressing these concerns proactively, organizations can empower their development teams to navigate the complexities of modern software development and achieve greater agility, efficiency, and innovation.
Opportunities:
- Demand for Hybrid and Multi-Cloud Solutions
- Expansion through Partnerships and M&A
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Holistic Lifecycle Management Evolution-The evolution of Holistic Lifecycle Management (HLM) within the Global Application Lifecycle Management (ALM) Market signifies a paradigm shift towards a comprehensive approach to software development and management. In essence, HLM encompasses the entire spectrum of the software lifecycle, from conceptualization and design to deployment and maintenance. Unlike traditional ALM, which often focuses on individual phases or aspects of development, HLM integrates disparate processes and tools into a unified framework, facilitating seamless collaboration and coordination across teams and departments.
One key aspect of HLM evolution is its alignment with emerging technologies such as artificial intelligence (AI), machine learning (ML), and automation. By leveraging these technologies, HLM enables predictive analytics, automated testing, and intelligent decision-making throughout the software lifecycle. This not only enhances development efficiency but also improves the quality and reliability of the end product. HLM's adaptability to changing technological landscapes ensures that organizations can stay ahead of the curve in an increasingly competitive market.
Another notable trend in HLM evolution is the growing emphasis on customer-centricity and user experience. HLM frameworks prioritize user feedback and iterative development cycles, enabling organizations to quickly adapt to evolving customer needs and market demands. By integrating customer feedback loops and user experience design principles into the development process, HLM ensures that software products are not only functional but also intuitive and user-friendly, thereby driving customer satisfaction and loyalty.
HLM evolution underscores the importance of scalability, flexibility, and interoperability in modern software development environments. As organizations increasingly adopt hybrid and multi-cloud architectures, HLM frameworks must be capable of seamlessly integrating with diverse technologies and platforms. Interoperable HLM solutions enable organizations to leverage existing investments in infrastructure and tools while embracing new innovations and emerging trends. The evolution of Holistic Lifecycle Management represents a transformative shift in how organizations approach software development, emphasizing collaboration, innovation, and customer value throughout the entire lifecycle.
Competitive Landscape Analysis
Key players in Global Application Lifecycle Management (ALM) Market include:
- Atlassian Corporation Plc
- CollabNet, Inc
- Digite, Inc
- Inflectra Corporation
- Micro Focus International plc
- Microsoft Corporation
- Parasoft Corporation
- Polarion Software GmbH (Siemens AG)
- SAP SE
- The Hewlett-Packard Company
- The International Business Machines Corporation
In this report, the profile of each market player provides following information:
- Company Overview and Product Portfolio
- Key Developments
- Financial Overview
- Strategies
- Company SWOT Analysis
- Introduction
- Research Objectives and Assumptions
- Research Methodology
- Abbreviations
- Market Definition & Study Scope
- Executive Summary
- Market Snapshot, By Component
- Market Snapshot, By Enterprise Size
- Market Snapshot, By End-User
- Market Snapshot, By Region
- Global Application Lifecycle Management (ALM) Market Dynamics
- Drivers, Restraints and Opportunities
- Drivers
- Demand for Better Collaboration and Communication
- Compliance Requirements and Regulations
- Expansion of Mobile and Web Application Development
- Restraints
- Limited Availability of Skilled Professionals
- Vendor Lock-in with Proprietary Solutions
- Scalability and Flexibility Concerns
- Opportunities
- Demand for Hybrid and Multi-Cloud Solutions
- Expansion through Partnerships and M&A
- Holistic Lifecycle Management Evolution
- Drivers
- PEST Analysis
- Political Analysis
- Economic Analysis
- Social Analysis
- Technological Analysis
- Porter's Analysis
- Bargaining Power of Suppliers
- Bargaining Power of Buyers
- Threat of Substitutes
- Threat of New Entrants
- Competitive Rivalry
- Drivers, Restraints and Opportunities
- Market Segmentation
- Global Application Lifecycle Management (ALM) Market, By Component, 2021- 2031(USD Million)
- Software
- Cloud Based
- On-Premise
- Services
- Global Application Lifecycle Management (ALM) Market, By Enterprise Size, 2021- 2031(USD Million)
- Small & Medium Enterprises
- Large Enterprises
- Global Application Lifecycle Management (ALM) Market, By End-User, 2021- 2031(USD Million)
- Automotive and Transportation
- Manufacturing
- Aerospace and Defense
- BFSI
- Energy and Utilities
- Retail & E-commerce
- Healthcare
- IT and Telecom
- Others
- Global Application Lifecycle Management (ALM) Market, By Geography, 2021- 2031(USD Million)
- North America
- United States
- Canada
- Europe
- Germany
- United Kingdom
- France
- Italy
- Spain
- Nordic
- Benelux
- Rest of Europe
- Asia Pacific
- Japan
- China
- India
- Australia & New Zealand
- South Korea
- ASEAN (Association of South East Asian Countries)
- Rest of Asia Pacific
- Middle East & Africa
- GCC
- Israel
- South Africa
- Rest of Middle East & Africa
- Latin America
- Brazil
- Mexico
- Argentina
- Rest of Latin America
- North America
- Global Application Lifecycle Management (ALM) Market, By Component, 2021- 2031(USD Million)
- Competitive Landscape
- Company Profiles
- Atlassian Corporation Plc
- CollabNet, Inc
- Digite, Inc
- Inflectra Corporation
- Micro Focus International plc
- Microsoft Corporation
- Parasoft Corporation
- Polarion Software GmbH (Siemens AG)
- SAP SE
- The Hewlett-Packard Company
- The International Business Machines Corporation
- Company Profiles
- Analyst Views
- Future Outlook of the Market