An overview of the Global Enterprise Content Management market

Global Enterprise Content Management Market: Emerging Verticals and Geographies Present Explosive Growth

Opportunities

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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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Executive Summary

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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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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 pure-play 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 grows and ROI is better understood.

Source: Frost & Sullivan analysis.

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Base Year Market Growth Rate

Healthcare Segment:

7.8%

Executive Summary—Market Engineering Measurements

Market Stage

Mature

Market Revenue

$2.7 B(2012)

Average Price Per Deployment(On-Premise)

$450,000

Average Price Per Deployment(Cloud)

$120,000


Government Segment:

2.9%


Business and Technology Services Segment:

8.9%


Total ECM Market –All Segments:

7.6%

Total Enterprise Content Management Market: Global, 2012Market Overview

Note: All figures are rounded. The base year is 2012. Source: Frost & Sullivan analysis.Stable IncreasingDecreasing

For a tabular version, click here.

(2012) (2012) (2012) (2012)

Mode price per deployment: $350,000

Mode price per deployment: $110,000


Others Segment:

9.1%(2012)

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Executive Summary—Market Engineering Measurements

Compound Annual Growth Rate (CAGR)

Total ECM Market—All Segments:

16.5%

Total Enterprise Content Management Market: Global, 2012

Companies with revenue of more than $15.0 MNote: All figures are rounded. The base year is 2012. Source: Frost & Sullivan analysis.

Stable IncreasingDecreasingFor a tabular version, click here.

Market Concentration

66.7%(% of market share held by

top 3 companies)

Customer Price Sensitivity

9

(scale:1 [Low] to 10 [High])

Degree of Technical Change

5

(scale:1 [Low] to 10 [High])

Number of Competitors

17+(active market competitors in

base year,)

Market Overview and Industry Landscape

Average Product Development Time

1.5 years

Industry Advancement

Marketing Spend as a Percent of Market Revenue

10-15%

Average R&D Spend by Product

20-25%

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Executive Summary—CEO’s Perspective

3

However, the market continues to be plagued by lack of awareness, fragmentation and confusion in marketing messaging, and prevalence of homegrown solutions.

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.


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.

1

4

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.

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Market Overview

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Frost & Sullivan Digital Media Focus Areas

Lecture Capture & Video Webcasting

Video Enabled

Consumer Devices

Broadcast & Cinematography Cameras

Encoding & Transcoding

Acquisition DeliveryMiddleware and Workflow

Enterprise

Media and Entertainment

Encoding & Transcoding

Digital Asset Management & Enterprise

Content Management

Media Asset Management

Video & Ad Insertion Servers

Nonlinear Editing

IRDs

Online Video & Web Analytics

Multi-Platform Delivery &

CDNs

Multi-Platform Delivery &

CDNs

Content Protection, Entitlement & Rights Management

STORAGE

STORAGE

Marketing Automation Marketing Process Optimization

Dynamic Publishing

Animation Software

Animation & CAE Software

3D Technologies

Video Switchers

IP Video Network Management

Online Video Platforms &

Analytics

Enterprise Search

Pay TV Middleware

Online Video Platforms

Digital Signage

Content Protection, Entitlement & Rights Management

Broadcast Scheduling Systems

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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.


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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 small across every global region. (Continued) Source: Frost & Sullivan analysis.

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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.


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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)


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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… Source: Frost & Sullivan analysis.

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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.


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The Last Word

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The Last Word—Predictions

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 ever-strengthening 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.

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).


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Appendix

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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.

http://www.frost.com/prod/servlet/me-research.pag

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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

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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


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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)
