Excerpts from Frost & Sullivan's previous update of its Analysis of the Global Enterprise Content Management (ECM) Market

1. Global Enterprise Content Management Market:
Emerging Verticals and Geographies Present Explosive Growth
Opportunities
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2. Table of Contents
Section
Slide Number
Executive Summary
4
Market Overview
11
Market Engineering Measurements
38
Total Market Discussion
-
• External Challenges: Drivers and Restraints
46
• Forecasts and Trends
66
• Market Share and Competitive Analysis
84
• Industry Trends and Implications
105
Global Government Segment Breakdown
112
Global Healthcare Segment Breakdown
120
Global Business and Technology Services Segment Breakdown
128
Global Other Verticals Combined Segment Breakdown
136
Hot Company Watchlist
145
The Last Word - Predictions
151
Appendix
154
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3. Executive Summary
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4. Executive Summary
• This market study, which is part of Frost & Sullivan’s digital media research service,
analyzes the Enterprise Content Management (ECM) market which plays a critical role in
helping businesses manage and interact with an array of content both within the
organization and amongst other content stakeholders such as regulatory bodies and
customers.
• This study discusses in detail how evolving ECM functionality, new business data and
content management needs, and enterprise preferences towards a dynamic, integrated,
organization-wide experience are translating into new business opportunities for the
content management market.
• This study also examines the impact these trends and evolving needs have on the ECM
market and further provides analysis, forecasts and competitive strategies for survival
and growth in this highly innovative and cut-throat market.
• The need to catalogue the plethora of reports, cases, email, memos, chats, marketing
collateral, web pages, and internal records—perhaps the most significant assets to any
business as it weaves together human, brand, and technological resources—has for
decades been a key driving force for the ECM market to invest in improved solutions that
allow enterprise users to access such information. (Continued)
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5. Executive Summary (continued)
• However with each passing year, the use and utility of those information assets is
pushing beyond a simple need to access or manage content, and into the realm where a
quantified, qualified and interactive experience—both within the organization itself and
with relation to its customers—is an even more compelling case for ECM.
• The ECM vendor, then, has two choices to remain competitive. It can continue to invest
in an an all-encompassing solution, expanding out into a comprehensive platform with
broad capabilities from deep data dives to mobile communications to collaborative
workflow and beyond for a variety of customers around the globe, or it must splinter off
to a highly specialized functional focus like Web Content Management or Digital Asset
Management or expertly serve a vertical such as energy or construction.
• As the ECM market continues to consolidate, and there remain fewer than a dozen pureplay ECM vendors, there is no in-between. To effectively compete, the ECM vendor
must committedly grow to meet the multitude of enterprise needs, or must provide a
highly targeted, specialized, best-of-class solution that is both data-driven and
interactive.
• The ECM market earned $2.7 billion in 2012, and is forecast to rise to nearly $8 billion by
2019. The largest verticals within the market today are Government, Healthcare, and
Business and Technology Services, with emerging verticals like engineering, financial
services and transportation among others poised for rapid growth as market awareness
Source: Frost & Sullivan analysis.
grows and ROI is better understood.
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6. Executive Summary—Market Engineering Measurements
Total Enterprise Content Management Market: Global, 2012
Market Overview
Market Stage
Market Revenue
Base Year
Market Growth
Rate
Government
Segment:
Healthcare
Segment:
2.9%
7.8%
(2012)
Mode price per deployment:
$110,000
Base Year
Market Growth
Rate
Business and
Technology
Services
Segment:
8.9%
(2012)
$120,000
Mode price per deployment:
$350,000
(2012)
Base Year
Market Growth
Rate
Average Price
Per Deployment
(Cloud)
$450,000
$2.7 B
Mature
Average Price
Per Deployment
(On-Premise)
(2012)
Base Year
Market Growth
Rate
Base Year
Market Growth
Rate
Others
Segment:
Total ECM
Market –All
Segments:
9.1%
7.6%
(2012)
(2012)
For a tabular version, click here.
Decreasing
Stable
Increasing
Note: All figures are rounded. The base year is 2012. Source: Frost & Sullivan analysis.
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7. Executive Summary—Market Engineering Measurements
Total Enterprise Content Management Market: Global, 2012
Market Overview and Industry Landscape
Degree of
Technical
Change
Customer Price
Sensitivity
9
5
(scale:1 [Low] to 10 [High])
(scale:1 [Low] to 10 [High])
Market
Concentration
66.7%
(% of market share held by
top 3 companies)
Number of
Competitors
17+
(active market competitors in
base year,)
Compound
Annual Growth
Rate (CAGR)
Total ECM
Market—All
Segments:
16.5%
Industry Advancement
Average
Product
Development
Time
1.5 years
Average R&D
Spend by
Product
20-25%
Marketing
Spend as a
Percent of
Market Revenue
10-15%
For a tabular version, click here.
Decreasing
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Stable
Increasing
Companies with revenue of more than $15.0 M
Note: All figures are rounded. The base year is 2012. Source: Frost & Sullivan analysis.
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8. Executive Summary—CEO’s Perspective
1
Despite a seemingly mature market, less
than 1 percent of all organizations worldwide
have a purpose-built, end-to-end ECM
solution deployed across all functional areas.
2
The need to manage big data, especially
across process-driven industries such as
Energy, Engineering, and Pharmaceuticals,
will increase demand for toolsets to manage
and understand enterprise content.
3
4
However, the market continues to be plagued
by lack of awareness, fragmentation and
confusion in marketing messaging, and
prevalence of homegrown solutions.
With continued ROI validation on the strength
of its value proposition, ECM will grow across
newer verticals and regions, creating stronger
pipelines across EMEA, APAC, and LATAM
regions.
Source: Frost & Sullivan analysis.
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9. Market Overview
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10. Frost & Sullivan Digital Media Focus Areas
Online Video Platforms
Marketing Process
Optimization
Content Protection, Entitlement
& Rights Management
Lecture Capture & Video Webcasting
Marketing Automation
Enterprise Search
Dynamic Publishing
Animation & CAE
Software
Digital Asset
Management & Enterprise
Content Management
Online Video & Web
Analytics
Multi-Platform
Delivery &
CDNs
Encoding & Transcoding
STORAGE
Acquisition
Enterprise
Middleware and Workflow
Digital
Signage
Delivery
Media and
Entertainment
Video
Enabled
Consumer
Devices
STORAGE
Broadcast &
Cinematography Cameras
Encoding & Transcoding
Animation Software
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Nonlinear
Editing
Media Asset
Management
Video
IRDs
Broadcast
Switchers
Scheduling
Video & Ad
Systems
Insertion Servers
IP Video Network
Content Protection, Entitlement
Management
& Rights Management
Pay TV
Middleware
3D
Technologies
Multi-Platform
Delivery &
Online Video
CDNs
Platforms &
Analytics
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11. Market Overview — Introduction
• This research service is part of Frost & Sullivan’s digital media coverage. Frost &
Sullivan analyzes the digital media value chain both for the enterprise and for the media
and entertainment (M&E) industries, and investigates the breadth of technologies that
enable both ecosystems.
• These technologies span digital content creation and acquisition at one end of the value
chain and continue through to the management, repurposing, delivery, analytics, and
engagement of that content at the other end.
• This research service focuses on the Enterprise Content Management (ECM) market
which plays a critical role in helping businesses manage and interact with an array of
content both within the organization and amongst other parties such as regulatory bodies
and customers.
• This study discusses in detail how evolving ECM functionality, new business data and
content management needs, and enterprise preferences towards a dynamic, integrated,
organization-wide experience are translating into new business opportunities for the
content management market.
• This study also examines the impact these trends and evolving needs have on the ECM
market and further provides analysis, forecasts and competitive strategies for survival
and growth in this highly innovative and cut-throat market.
Source: Frost & Sullivan analysis.
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12. Market Overview—Definitions
•
Frost & Sullivan defines Enterprise Content Management (ECM) as a large-scale,
multifunctional, cross-platform content management system designed to address the
structured and unstructured content management needs of a range of organizational
types and sizes.
•
Frost & Sullivan examines the strategic deployment methodologies and business use
cases behind the above-described ECM platform, and views these less tangible yet
important aspects of content management as part of the value in an ECM solution and
therefore part of its definition.
•
As discussed in the next few slides, this definition is both dynamic and ever-changing.
Frost & Sullivan notes that we find it necessary redefine ECM in our research much
more frequently than in other markets we cover.
•
The ECM market covers many enterprise functional areas and an increasing array of
content types, forcing the market to constantly revaluate how the solution is defined.
•
Originally ECM was deployed as a point solution to fulfil specific organizational needs
such as document management, file management, records management, case
management, compliance or other business process requirements.
•
Yet today ECM functions as a unified software platform, rather than a multitude of
isolated applications, promoting data-driven discovery, enabling collaborative workflows,
and providing a host of new functionality, while being deployed by businesses large and
Source: Frost & Sullivan analysis.
small across every global region. (Continued)
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13. Market Overview—Definitions (continued)
• Today the scope and market positioning of various ECM solutions on the market today
vary significantly across vendors and across target verticals.
• Accordingly, we view ECM products as providing an architectural foundation for making
content more accessible, immediate, collaborative, secure and dynamically useful for
client companies. Frost & Sullivan believes that defining ECM in such a way is not only a
mirror reflecting the current ECM industry, but is a landscape broad enough to allow for
the lightening-fast changes on the ECM horizon.
• As the concept and definition of an ECM solution has evolved, it has still retained its core
focus on content management service (CMS) needs while adapting to changing
demands and market forces. There are still many cultural and structural changes
occurring in the larger digital content ecosystem that are driving changes within and
responding to the core capabilities of ECM systems.
• ECM platforms, carefully integrated within the enterprise IT infrastructure, have arguably
become the most crucial piece within the enterprise workflow. Such systems are largely
client/server applications but have also started to be deployed through the cloud and
enable the ingest, indexing, archiving, search, retrieval, browsing, annotation, role-based
access, version control, repurposing, collaboration, records management, analytics
driven experience management and multi-platform delivery of enterprise content.
Source: Frost & Sullivan analysis.
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14. Market Overview—Segment Definitions
• ECM provides a platform for traditionally siloed systems to integrate with and provide a
collaborative workflow environment for different knowledge workers to seamlessly work on
content creation, management, repurposing and delivery.
• Quantitative analysis and projections within this study are based on the definition discussed
in this section, and an extended analysis of the larger marketplace and complementary
technologies are provided as applicable.
• Given the increasingly complex ECM environment and the continued global expansion and
revenue growth of ECM solutions, Frost & Sullivan has been for the first time able to begin
to subdivide the market into multiple segments.
• Where our previous research investigated the ECM market in broader terms and analyzed
the entire customer base as a single entity due to imperfect market information, this update
has been able to identify, analyze and quantify the verticals served by ECM solutions and
compare the pace of growth of these verticals globally.
• Frost & Sullivan dissected the market into 14 primary verticals that ECM solutions serve.
The largest of these are Government, Healthcare, and Business and Technology Services.
• Of the remaining 11 verticals other significant markets include Financial Services,
Insurance, Legal, Media, Retail, Energy and Construction among others. A complete list of
verticals is defined in the next slides. (Continued)
Source: Frost & Sullivan analysis.
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15. Market Overview—Segment Definitions (continued)
Enterprise Content Management segments, for the purpose of this study, have been defined
as follows:
• Business and Technology Services: includes software, information technology (IT),
consulting, and other technology-centered business operations and management tools
• Construction and Engineering: includes architecture and construction of buildings and
homes, as well as all design and manufacturing such as aerospace and defense,
chemicals, and infrastructure projects, barring automotive and telecommunications
• Education: includes K-12 as well as Higher Education
• Energy: includes energy companies as well as energy-generating infrastructure
• Financial Services: includes banking and financial services excluding insurance
• Government: includes city, state, and national governmental agencies
• Healthcare: includes all healthcare and life sciences-oriented product and service
businesses, specifically hospital and pharmaceutical, excluding insurance
• Hospitality: includes hotels, restaurants and resorts, but excludes transportation which is
covered separately
• Insurance: includes insurance-related practices across all verticals such as personal,
corporate, auto, and health, among others
Continued…
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Source: Frost & Sullivan analysis.
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16. Market Overview—Segment Definitions (continued)
•
Legal: includes legal and paralegal firms
•
Media and Entertainment: includes the enterprise-side of the Media and Entertainment
industry. Creative content is addressed in Frost & Sullivan’s Global Digital Asset
Management (DAM) coverage.
•
Public: includes public sector includes non-profit and non-governmental organizations
•
Telecommunications: includes all telecommunications-related services and their
infrastructure, such as fixed line, wireless, and broadband, among others
•
Transportation: includes mainly the automotive industry
This study is analyzed in four segments. The first three, Government, Healthcare, and
Business and Technology Services, are as defined above. The fourth, “Other” aggregates the
remaining 11 verticals described in this section. The terms segment and vertical are used
interchangeably in this study.
Source: Frost & Sullivan analysis.
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17. The Last Word
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18. The Last Word—Predictions
1
ECM vendors seem poised to traverse a promising journey in the years
ahead, so long as they offer an innovative, integratable, relevant, and
price-competitive product, and create a business case that appeals to the
global enterprise’s business process needs and return on investment
(ROI).
2
While today the majority of ECM revenues are in the NALA-based
Government, Healthcare, and Business and Technology Services, over the
forecast period this will be overridden by ECM deployments in the Middle
East, Africa, and APAC regions, and from the Energy, Construction and
Engineering, and Financial Services sectors.
3
While a mature market, ECM today is taking new turns and everstrengthening its value proposition through the likes of data and analytics
feature sets, mobile and cloud access, and collaborative workflow
applications. Yet the ECM vendor must think globally and work to unroll
wholistic solutions enterprise-wide to fend off homegrown and specific
problem-focused piecemeal solutions.
Source: Frost & Sullivan analysis.
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19. Legal Disclaimer
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20. Appendix
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21. Market Engineering Methodology
One of Frost & Sullivan’s core deliverables
is its Market Engineering studies. They
are based on our proprietary Market
Engineering Methodology. This approach,
developed across the 50 years of
experience assessing global markets,
applies engineering rigor to the often
nebulous art of market forecasting and
interpretation.
A detailed description of the methodology
can be found here.
Source: Frost & Sullivan research.
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22. Partial List of Companies Interviewed
• Alfresco
• Astoria
• EMC
• Ever Team
• HP (Autonomy)
• Hyland Software
• Newgen
• Nuxeo
• Objective
• OpenText
• Perceptive Software
• Percussion Software (WCM)—for extended market insight
• Sitecore
• SpringCM
Source: Frost & Sullivan research.
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23. Market-Related Acronyms and Abbreviations
Employed In This Study
In accordance with market and industry standards, the following acronyms may be used in
this study:
•
BPM: Business Process Management
•
CM: Content Management
•
CMS: Content Management System
•
CRM: Customer Relationship Management
•
DAM: Digital Asset Management
•
DM: Document Management
•
ECM: Enterprise Content Management
•
EIM: Enterprise Information Management
•
ERP: Enterprise Resource Planning
•
RM and RMS: Records Management and Records Management System
•
Tech: technology
•
VAR: value-added reseller
•
WCM* and WEM*: Web Content Management and Web Experience Management
*may be used interchangeably
Source: Frost & Sullivan analysis.
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24. Additional Sources of Information Related to Enterprise
Content Management
• Analysis of the Global Online Analytics Market (NAEA-70)
• Global Digital Asset Management Markets (N95C-70)
• Global Marketing Process Optimization Market (N9AE-70)
• Global Enterprise Search Market (NB94-70)
• Global Media and Entertainment Disk Storage Market (NA09-70)
Source: Frost & Sullivan research.
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