Enterprise video content management (VCM) doesn't really fit into enterprise content management (ECM). So it's not all that surprising that it has now developed its own space, however chaotic that may be.
According to Gartner’s latest Magic Quadrant for Video Content Management, the video content management market is immature. But it is developing rapidly, driven by parallel technologies like customer relationship management (CRM), enterprise collaboration technologies and e-commerce. And companies like Qumu, Panopto and Kaltura are leading the charge.
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VCM is defined by Gartner as software, applications or Software-as-a-Service (SaaS) that manages the delivery of any on-demand video across the Internet.
The growth of tablets and smartphones has made mobile increasingly important. But this is also about internal information exchange, so Gartner includes the ability to exchange videos across the enterprise as a key entry requirement for this quadrant.
While the management of video content has historically been difficult, the use of video in information exchange is getting more popular — with the result that VCM is increasingly mainstream.
But this young market is still in turmoil, which possibly explains why there are only three vendors in the Leader’s Quadrant and nine vendors vying for position in the Challengers Quadrant. The Magic Quadrant, outside the Leaders’ Quadrant, is as follows:
- Challengers: Kulu Valley, Polycom, Brightcove, VBrick Systems, Perceptive Software, Cisco, Kontiki, Sonic Foundry, and KZO Innovations
- Niche: Agile Contents, MediaPlatform, and Brainshark
- Visionaries: Ramp, Genus Technologies
Market Upheaval And Development
Although the market is currently experiencing extreme turbulence, Gartner expects this to be resolved through consolidation. Consolidation is being driven by hybrid and on-premises architectures that will enable those who prefer the security of keeping video data on-premises.
There are also signs that some aspects of the market are stabilizing, Gartner noted, particularly around delivery to mobile devices, network optimization, security and integration with other systems.
But here is a key reminder: Organizations that are considering investing in VCM should first clearly identify their needs, no matter what a given vendor is offering.
Though some organizations are looking for VCM systems that will keep their content on-premises, the vast majority of potential clients are looking for either SaaS or hybrid systems that combine the best of cloud and on-premises technology
Those that are not taking the cloud route are concerned principally about security, even though almost all SaaS and hybrid vendors are boosting their security offerings to overcome these issues.
About a third of the vendors in this quadrant are offering hybrid solutions and a third are offering only SaaS or cloud installations. With market consolidation, this ratio is likely to change.
The majority of potential clients have specific projects or goals in mind that they are looking to pursue through video. Some of the more notable cases that Gartner is dealing with include CRM for communication with customers and video to create better customer experiences.
Others are looking to enhance enterprise collaboration, particularly across teams, while e-commerce companies are using video to improve their sales and optimize the customer experience across all of their channels.
Training is also a key use case in all organizations, with an associated need to integrate with learning management systems.
Since the VCM market is jammed with smaller vendors and market consolidation is a rising prospect, many of the global vendors in other technology areas are sniffing around for something that will complement their existing platforms.
At the moment, large vendors like Polycom and Cisco are pushing products built around their traditional strength in telepresence and teleconferencing. Others like Microsoft, Oracle, SAP, IBM and Adobe have expressed an interest in snapping up products that they don’t have yet — while they still can.
VCM Magic Quadrant Leaders
So what are the current batch of vendors offering? To get into the Quadrant vendors need to show that:
- Their VCM functionality has been developed natively
- That they can provide, storage, search and integration into other user-facing products
- At least one installation with more than 1,000 seats for internal delivery
- That they market products in either North America or Europe
- They must ordinarily sell their video products separately from other products
- Revenues of $5 million in 2013.
On top of this the Leaders must have developed flexible, extensible products that can be applied to a number of use cases and must be able to show that they have a viable future in both internal and external content management. The Leaders are:
Qumu has partnered with search audio specialist Nexidia to offer audio search across its platform. WAN optimization and tools for provisioning, reporting and monitoring have improved its performance while it has also adjusted its pricing model to make it more transparent.
However, its workflow is basic compared with other vendors, even though it is sufficient for most installations. Gartner also claims that its video production and editing capabilities are only average, and has limited in-video interactivity.
Panopto’s new search facility offers a talk track and in-video text. It also comes with a significant number of ways to capture video from various sources, including a strong connection to Microsoft Lync, while its direct pricing model combines number of hours worked and number of people involved.
Its integration possibilities with SharePoint are quite strong, but limited for other portals. Its video interactivity is also limited, Gartner noted.
Kaltura offers a very strong cloud — on-premises hybrid storage model and allow third party vendors to be storage partners. It has an extremely modular architecture, allowing for applications development, customization and incorporation into other application.
However its in-video interactivity capabilities are limited in comparison with vendors that make such ability a priority. Customers also report that support is inconsistent, but this is probably to do with its rapid growth. Its pricing is not very transparent
If this looks to be a market that still needs development, that’s because it is. However, Garter stated it is likely to develop quickly and there should be some interesting mergers and acquisitions action here in the coming year.