Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.

E20: a Supply and Market Analysis E20: a Supply and Market Analysis

Gabriella Cattaneo and David Bradshaw IDCBruxelles, September 14, 2010

Apr 8, 2023

© IDC 2

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.

Apr 8, 2023

© IDC 3

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)

Apr 8, 2023

© IDC 4

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

Apr 8, 2023

© IDC 5

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

Apr 8, 2023

© IDC 6

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

Apr 8, 2023

© IDC 7

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

Apr 8, 2023

© IDC 8

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.

Apr 8, 2023

© IDC 9

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)

Apr 8, 2023

© IDC 10

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

Apr 8, 2023

© IDC 11

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).

Apr 8, 2023

© IDC 12

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

Apr 8, 2023

© IDC 13

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

Apr 8, 2023

© IDC 14

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”