Now Tech: Contract Lifecycle Management, Q1 2018 · Now Tech: Contract Lifecycle Management, Q1 2018 March 26, 2018 Updated: uly 20, 2018 2018 Forrester Research, Inc. Unauthorized

Now Tech: Contract Lifecycle Management, Q1 2018Forrester’s Overview Of 30 Contract Lifecycle Management Vendors

by Andrew BartelsMarch 26, 2018 | Updated: July 20, 2018

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Key TakeawaysImprove Contract Performance And Value With CLM SoftwareContracts are at the core of B2B relationships, and contract lifecycle management software helps firms create and negotiate new contracts, manage individual contract compliance, and understand the risks, obligations, and entitlements in the contract portfolio.

Select CLM Vendors Based On Functionality And Relevance To Contract Needs, Not SizeOver 30 vendors, including a half-dozen new entrants, compete in the CLM software market. Some vendors focus on sell-side contracts, others on buy-side, and still others on all contracts, with industry and geographic specialties as well.

Choose CLM Vendors That Align With Your Contract NeedsCLM vendors are increasingly focusing their products at specific C-level execs: buy-side suites for CPOs, sell-side CRM-related suites for chief sales officers, and standalone CLM products for general counsels and CFOs. While the best choice for most firms will be a single CLM solution for all contracts, some large firms are choosing to have one solution for sell-side contracts and another for buy-side contracts.

Why Read This ReportYou can use contract lifecycle management (CLM) software to create and negotiate new contracts, manage individual contract compliance, and understand the risks, obligations, and entitlements in your contract portfolio. But to access these benefits, you’ll first have to select from a diverse set of vendors — vendors that vary by size, functionality, geography, and vertical market focus. CIOs and their business partners in legal, sales, purchasing, and finance should use Forrester’s Now Tech report to understand the value they can expect from a CLM provider and select vendors based on functionality and relevance to contract needs.

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Table Of Contents

Improve Contract Performance And Value With CLM Software

Select Vendors Based On Functionality And Relevance

Align Individual Vendor Solutions To Your Organizational Needs

Recommendations

Choose CLM Vendors That Align With Your Contract Needs

Supplemental Material

Related Research Documents

The Contract Life-Cycle Management Market Continues To Grow At A Rate Of 18%

The Forrester Wave™: Contract Life-Cycle Management, Q3 2016

Market Overview: Contract Life-Cycle Management, 2014

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Now Tech: Contract Lifecycle Management, Q1 2018Forrester’s Overview Of 30 Contract Lifecycle Management Vendors

by Andrew Bartelswith Matthew Guarini, Robert Valdovinos, and Alyssa Danilow

March 26, 2018 | Updated: July 20, 2018

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Now Tech: Contract Lifecycle Management, Q1 2018March 26, 2018 | Updated: July 20, 2018

© 2018 Forrester Research, Inc. Unauthorized copying or distributing is a violation of copyright law. [email protected] or +1 866-367-7378

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Forrester’s Overview Of 30 Contract Lifecycle Management Vendors

Improve Contract Performance And Value With CLM Software

Contracts are at the heart of business-to-business (B2B) relationships, especially in the age of the customer when electronic channels increasingly link business buyers and suppliers. Contracts define the terms of those B2B relationships (what is being bought/sold and at what price) and set the conditions of responsibilities and obligations (who does what, who is responsible for which tasks, and who is liable if things go wrong).

Forrester defines the contract lifecycle management products as:

Software solutions that help firms create and negotiate contracts, manage individual contract compliance, and understand the risks, obligations, and entitlements in your contract portfolio.

CLM solutions provide the following business benefits:

› Track and understand all contracts. CLM products pull contracts into a single, centralized electronic repository, where they are accessible (on a controlled access basis) to those who need to view them. Common analytical capabilities include expiration dates of all contracts, finding all contracts with a vendor, identifying contracts with nonstandard clauses, and flagging those under which you are owed or owe payment if conditions are met.

› Create and negotiate contracts. CLM products streamline the drafting of contracts by allowing end users to choose the appropriate contract structure, enter the information they need, and generate the draft contract in compliance with legal standards and guidelines. Workflow routes the draft contract and revisions to the right people for approval, with complete tracking of who made what change in which version.

› Drive contract compliance through integration to transaction systems. Order management systems for B2B need information on what the contract specifies should be sold to a customer. CLM systems intersect with sales force automation systems, configuration, pricing and quoting systems, and revenue management systems in the lead-to-settle process or with eProcurement, eInvoicing, eSourcing, spend analysis, and supplier risk and performance management products in the source-to-pay process.

Select Vendors Based On Functionality And Relevance

The CLM market can be segmented by revenue into large established players (over $30 million in annual revenue), midsized players ($10 million to $30 million), and smaller players (less than $10 million) (see Figure 1). While vendor size is certainly a consideration in choosing a CLM vendor, product relevance to various C-level executives that get involved with contract creation, negotiation, and management is much more important. We identified the following three segments of the CLM market, based primarily on types of contract a vendor supports for different executive roles and how the vendor links CLM to related applications (see Figure 2):

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GimmalIvaluaLegal Suite CLMOpenTextOpen WindowsOptimusBT

CallidusCloudCoupaConcordContractRoomCorridor CompanyEcteon

< $10M

JAGGAERModel NPramataSirion LabsSpringCMSymfactZycus

AgiloftBravoSolutionCLM MatrixCobbleStoneCongaDetermineGEPExigent (Chameleon)

$10M to $30M

ApttusAveva ProCon (8over8)ExariIcertisOracleSAP AribaSeal

> $30M in annual revenue

Contract Lifecycle Management

Q1 2018

FIGURE 1 Now Tech Contract Lifecycle Management Market Presence Segments, Q1 2018

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› CPOs look for buy-side CLM that fits in broader ePurchasing suites. Contracts loom large for chief procurement officers (CPOs) who oversee corporate buying processes. Eight CLM solutions come as part of larger ePurchasing suites. These vendors have many clients that use the CLM product primarily for buy-side contracts, offer complementary apps like eSourcing and supplier risk and performance management, and are starting to digitize the contract content to make it easier to integrate this data into procurement or invoicing apps.

› CSOs want sell-side CLM that links to broader CRM suites. Just as contracts play an important role in the purchasing process, they are critical on the sell-side for chief sales officers (CSOs) who want to deliver revenue. CSOs want CLM products that are compatible with their sales force automation products and easy for salespeople to use, so leads can turn into proposals and the contracts quickly and efficiently. CSOs also prefer CLM products that can be used to generate contract proposals; link to configuration, pricing, and quoting engines (both to create contracts and to drive contract execution during transactions); and, in some industries, interface with revenue management products for handling rebates and discounts for customers and distributors.

› GCs and CFOs seek all-contract CLM with strong contract creation and analytics. For general counsels (GCs) and chief financial officers (CFOs), a key requirement for a CLM solution is its coverage of all contracts. Most GCs want their lawyers to work with just one CLM product for both sales and purchasing contracts.1 GCs tend to gravitate to products that leverage Microsoft Word and Microsoft Sharepoint (which their attorneys routinely use). They also are starting to look for CLM solutions that link to legal matter management products and other apps they use. For GCs and CFOs, being able to run reports and analysis of their contract portfolio’s risks, obligations, and entitlements is critical, and advanced analytics that provide better insight into that portfolio is emerging as a differentiator.

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FIGURE 2 Now Tech Functionality Segments: Contract Lifecycle Management, Q1 2018

High segment functionality Moderate segment functionality Low segment functionality

Buy-side contract capabilities

Sell-side contract capabilities

All-side contract capabilities

Experience with and high client use of the product for buy-side contracts

Experience with and high client use of the product for sell-side contracts

Linkage to eSourcing, spend analysis, and SRPM

Linkage to CRM, CPQ, and revenue management

Leveraging Microsoft Word and Sharepoint

Advanced analytics for contract risk and compliance

Digitizing contract content for integration with sales or purchasing systems

Natural language processing for automated contract importing

Guided learning systems to steer employees to the right contract

Align Individual Vendor Solutions To Your Organizational Needs

The following tables provide an overview of each of the CLM vendors, including what kind of CLM vendor they are, their CLM product’s focus, their mix of clients by geography and vertical industry, their deployment model, and related product offerings. Use this information to help inform your understanding of the market and to shortlist vendors (see Figure 3, see Figure 4, and see Figure 5).

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FIGURE 3 Now Tech Large Vendors: Contract Lifecycle Management, Q1 2018

> $30M in annual revenue

Type of vendorGeographic andindustry focus

Deploymentoptions

Sell-side suite vendor and buy-side suite vendor

Buy-side CLM, linked to project management

CLM specialist

CLM specialist



CLM supplementor

Americas, EMEA, Australia; all industries

Global; oil and gas, other asset-intensive industries

US, Europe, Australia;�nancial services, insurance, legal and professional services, technology

US, Europe, Asia Paci�c;all industries

All geographies;all industries



SaaS only

Single-instance licensed, on-premises or hosted


Single-instance licensed, on-premises or hosted; SaaS



SaaS only

Also offers

eProcurement, revenue management, order management, CPQ

eSourcing, project management

Legal matter management

ePurchasing suite, order management, SFA, CPQ

ePurchasing suite, order management, SFA, CPQ

Apttus

Aveva ProCon (8over8)

Exari

Icertis

Oracle

SAP Ariba

Seal

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FIGURE 4 Now Tech Midsize Vendors: Contract Lifecycle Management, Q1 2018

$10M to $30M


Deploymentoptions

CLM specialist

Buy-side suite vendor

CLM specialist

CLM specialist

CLM specialist




Americas, Europe, Asia; �nancial services, legal departments, life sciences, healthcare, education, government

Europe and Americas;many industries

US, Europe, and Asia Paci�c; many industries, especially pharmaceuticals, healthcare, energy/oil and gas, high-tech, manufacturing

US; many industries

US; many industries

US, Europe, Australia, Singapore; many industries

Americas, EMEA, Australia; all industries

US, Europe;manufacturing, transportation and logistics, life sciences, healthcare, retail, CPG, higher education, and public sector

Primarily single-instance hosted or multi-tenant SaaS, but also licensed, on-premises

SaaS only



SaaS only

SaaS only

SaaS only

SaaS only

Also offers

Business process management and work�ow; service desk suite

ePurchasing suite

Lease management, rights management, case management, matter management

eSourcing, eProcurement, project management

Content management

ePurchasing suite

ePurchasing suite

ePurchasing suite

Agiloft

BravoSolution

CLM Matrix

CobbleStone

Conga

Determine

GEP

JAGGAER

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FIGURE 4 Now Tech Midsize Vendors: Contract Lifecycle Management, Q1 2018 (Cont.)

$10M to $30M


Deploymentoptions

Sell-side suite vendor

CLM supplementor

CLM supplementor

CLM specialist

CLM specialist

Buy-suite suite vendor

US, Europe;pharmaceuticals, life sciences, electronics

US;diverse industries

US, UK, Europe, Canada, Australia;all industries

US, some Europe;all industries

US and Europe: �nancial services, pharmaceuticals, high tech, manufacturing, energy, professional services, consumer goods, and public sector



SaaS

SaaS

SaaS


SaaS only

Also offers

Revenue management, CPQ

Digitization-as-a-service (DaaS)

Supplier governance; revenue assurance

Full document management, work�ow management tools

Third-party risk management,policy management,legal entity management,operational risk management,custom GRC manangement

ePurchasing suite

Model N

Pramata

Sirion Labs

SpringCM

Symfact

Zycus

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FIGURE 5 Now Tech Small Vendors: Contract Lifecycle Management, Q1 2018

<$10M


Deploymentoptions

Sell-side suite vendor


CLM specialist

CLM specialist

CLM specialist

CLM specialist

US;many industries

Americas, EMEA, Australia;all industries

US and EMEA;healthcare, technology, �nance, manufacturing,

US, EMEA;diverse industries, particularly high-tech, media, telecommunications, �nance, pharma, and energy

US, EMEA, other Americas; telecommunications, professional services, utilities, and other industries

UK, US, Canada, Australia, EU; insurance, �nancial services, and property management to date

SaaS only

SaaS only

SaaS only

SaaS only

Single-instance licensed, on-premises or hosted, multitenant/dedicated and full SaaS


Also offers

Order management, SFA, CPQ

ePurchasing suite

Legal spend analysis product; legal BPO; contract analytics and optimization; legal review services

CallidusCloud

Coupa

Concord

ContractRoom

Corridor Company

Exigent (Chameleon)

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FIGURE 5 Now Tech Small Vendors: Contract Lifecycle Management, Q1 2018 (Cont.)

<$10M


Deploymentoptions

CLM specialist

CLM specialist


CLM specialist

CLM specialist


CLM specialist

North America, some Europe; healthcare; insurance; banking; energy; education;media and entertainment; government; manufacturing

US;media and entertainment, state and local government

Europe, North America, Asia Paci�c;many industries

Europe, US, Canada;many industries

US, Canada, Europe, APAC;many industries

Australian government, resources, utilities, education, health & logistics

US,biotech and pharma companies



Single-instance hosted





Also offers

eInvoicing

ePurchasing suite

Legal matter management

Content management

eSourcing, eTendering, eProcurement, category Management, project management

Compliance management

Ecteon

Gimmal

Ivalua

Legal Suite CLM

OpenText

Open Windows

OptimusBT

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Recommendations

Choose CLM Vendors That Align With Your Contract Needs

CLM vendors come in a wide variety of sizes, focus areas, deployment models, and price points. This Now Tech report is designed to provide firms looking for a CLM solution with the information they need to pick the half dozen or so vendors from which they will solicit RFPs. In doing so, CIOs need to keep the following considerations in mind.

› Caucus with contract stakeholders to define your most important contract needs. Like contracts themselves, CLM can play many roles in a firm, with different value propositions for different stakeholders. CIOs need to serve as a broker between the requirements of GCs, CFOs, chief procurement officers, and chief sales officers. For some firms, CLM vendors with a buy-side contract focus and a competitive ePurchasing suite will be the best options. For others, CLM vendors that offer a sell-side CLM linked to sales force automation and configuration, pricing, and quoting apps will be attractive. And for still others, strengths in creation, compliance, and risk management of all contracts will be paramount.

› Treat size as a secondary consideration in choosing vendors. In general, larger software vendors tend to be safer bets because their revenues provide evidence of financial stability and viability. However, size is less important in the fast-growing, rapidly evolving CLM market. A few of the larger vendors like Apttus and Icertis have been strong leaders in Forrester’s CLM Waves, but others are resting on past laurels. Meanwhile, midsize and even small CLM vendors often combine strong growth with profitability, making them viable as well as attractive vendors.

› Try to find one CLM vendor for all contracts but be open to two or more. There are many advantages of having one CLM for all contracts, including having a single repository, single contract creation and negotiation process, and comprehensive contract reporting and analysis. But these advantages can be offset when CPOs insist on having CLM linked to eSourcing and supplier risk and performance management, while their CSO counterparts lobby for having CLM connected to sales force automation, CPQ, and revenue management.

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Supplemental Material

Market Presence Methodology

We defined market presence in Figure 1 based on the vendors’ revenues from CLM products only. When vendors did not share this information with us, we made estimates, using factors like number of clients, number of employees, and pricing model. We presented these estimates to the vendors for confirmation or guidance and adjusted them based on this feedback. Not all vendors provided revenue data or feedback on our estimates. To avoid putting vendors that did provide revenue numbers or guidance in a disadvantageous position compared to those did, all revenue numbers in this report are listed as Forrester estimates.

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Companies Interviewed For This Report

We would like to thank the individuals from the following companies who generously gave their time during the research for this report.

Agiloft

Apttus

Aveva (8over8)

BravoSolution (now part of JAGGAER)

CallidusCloud (now part of SAP)

CLM Matrix

CobbleStone

Concord

Conga

ContractRoom

Corridor Solutions

Coupa

Determine

Ecteon

Exari

GEP

Gimmal

Icertis

Ivalua

JAGGAER

Legal Suite

Model N

OpenText

OpenWindow

OptimusBT

Oracle

SAP Ariba

Seal

Sirion Labs

SpringCM

Symfact

Zycus

Endnotes1 An emerging exception is large firms where the general counsel has split the legal team into those who work with buy-

side contracts and those who work with sell-side contracts.

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