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E20: a Supply and Market Analysis E20: a Supply and Market Analysis
Gabriella Cattaneo and David Bradshaw IDCBruxelles, September 14, 2010
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AgendaAgenda
• A working definition of Enterprise 2.0, identifying the products, technologies and markets related to it;
• Sizing up and forecasting the E20 Market value for the EU, US, Asia;
• Description of main players, their offerings and their opinions about this market perspectives;
• Analysis of market dynamics by business sector, company size and key success factors.
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But What is sold as Enterprise 2.0?But What is sold as Enterprise 2.0?
Dedicated tools:
• People : Tools Identifying people with expertise, knowledge or interest in a particular area and linking to them;
• Content: Tools supporting the Finding, labeling and sharing useful content/information
Collaboration: Wiki/collaboration/authoring and (shared in real-time) project work tools
Integrated suites offering all the above functionalities
“Embedded” E20 systems :
Extensions of collaboration, knowledge management, document management and similar tools with E20 functionalities (ex.salesforce.com Chatter application)
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The EU Market for Enterprise 2.0 The EU Market for Enterprise 2.0
Source:/Notes:
2009 2010 2015 -
100
200
300
400
500
600
97 €M159 €M
559 €M
Market size includes software license, maintenance and subscription fees for licensed on-premise software, SaaS/cloud services and open-source.Source: IDC 2010
Today, 0.13% of EU SW Market
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Worldwide E20 Market sizes*, €mWorldwide E20 Market sizes*, €m
*Market size includes software license, maintenance and subscription fees for licensed on-premise software, SaaS/cloud services and open-source.Source: IDC 2010
2009 2010 2015 -
100
200
300
400
500
600
700
800
900
1,000
1,100
1,200
1,300
1,400
United States
Rest of Amer-icas
Japan
Asia-Pacific
EU
Rest of EMEA Region
357 €M
595 €M
2,271 €M
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EU market sectors sizes*, €mEU market sectors sizes*, €m
Source: IDC 2010
Finance
and P
rofe
ssio
nal Serv
ices
Teleco
ms,
Tra
nsport,
Media
and U
tilitie
s
Manufa
cturin
g (incl.
Agricultu
re a
nd Const
ruct
ion)
Distrib
ution
Public S
ector
0
50
100
150
200
250
200920102015
114.9 €M
68.9 €M
209.6 €M
50.9 €M
114.8 €M
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Potential Services Markets Associated with E2.0 in the EU (2009)Potential Services Markets Associated with E2.0 in the EU (2009)
New software sales (x)
Implementation services (1-3x)
Change management & other consulting services (10-100x)
97 €M
134 €M
179 €M
Source: IDC 2010
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Key characteristics of the Enterprise 2.0 market in the EU27 Key characteristics of the Enterprise 2.0 market in the EU27
• Small but rapidly growing (CAGR is 49% for E2.0 vs. 4% of average SW market)
• Served by a mix of local and international players (mainly US)
• A pioneering market• Vendors believe that most EU organizations do not yet
perceive Enterprise 2.0 as relevant to the mainstream of the business.
• A market in transition• From a market for a set of tools for teams working
together to a vital means of generating business value and competitive edge.
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World players:
• IBM/Lotus (US)
• Salesforce.com (US)
• Atlassian (Australia)
• SocialText (US)
Vendors interviewedVendors interviewed
EU players:
•Huddle (UK)
•Coremedia (Germany)
•blueKiwi (France)
•xWiki (France)
APAC players:
•Global Kalp (Australia)
•Tata Consulting Services (India)
•Weaver (China)
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Key similarities between vendorsKey similarities between vendors
• Over half the vendor interviewed provide a full suite that integrates the three strands of E2.0 (people, content and collaboration) and nearly all vendors provide capabilities in two or more areas.
• The trajectory of almost all vendors is toward a full suite that covers all three areas, while maintaining strength in the "core" area that is at the heart of the vendor's differentiation from other players in the market.
• Almost all vendors that were willing to disclose their growth numbers reported strong growth, and some reported 100% or more
• Some of those unwilling or unable to go "on record" over their growth performance also said that growth was strong
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Key differencesKey differences
• Dedicated US vendors tend to be much larger than vendors from other regions with the exception of Atlassian (which has a substantial presence in California
• European vendors were more likely to build multi-language capabilities into their products from the start
• European vendors were generally smaller (APAC vendors did not disclose their sizes; Tata Consulting Services is clearly a very large organization, though this does not tell use the size of its E2.0 product group).
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Today, a market for Large enteprisesToday, a market for Large enteprises
Customer size segment under 10 10-99 100-249 250 to 999 1000 or more
Portion of E2.0 revenue 4% 11% 11% 12% 62%
• Adoption of E2.0 is highest amongst large and sometimes very large organizations. The uptake of E2.0 software as a tool for change management programs will be a big driver
• There is some adoption of E2.0 in smaller organizations which appears to be predominantly tactical and partial
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The EU market vs the US market: why does it lag behind?The EU market vs the US market: why does it lag behind?
• The US is the home of the software industry• Most of the major E2.0 software vendors are US-based, or companies with a
strong presence there• Their early reference customers (typically other software companies) are often
familiar to the buyers.• The software industry “eats its own dog-food”• Software vendors outside the US will typically try to enter the US market as soon
as they are able
• According to vendors, US buyers typically move faster than European buyers. • US buyers often decide to go straight to a full roll-out
• This seems linked to a homogenous business environment• Similar European buyers typically do pilot roll-outs with a small number of users,
then move step-by-step in roll-out programs.
• An attempt to build consensus amongst business units/users?• US customers are also more open to using cloud-based services, which increases
roll-out velocity
• Though EU customers are catching up, there is still a significant gap
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Key Success Factors for EU-based vendors Key Success Factors for EU-based vendors
• Build localized software and services
• Focus on Customer service and identify and articulate customer benefits
• Address business needs rather than technology needs
• Provide proof of effectiveness
• Invest in security and availability features
• Be aware or privacy concerns
• Support Change Management Features
• Eat your own “dog-.food”