Over the last two years, Gartner considers the ecommerce space to still be dominated by the same leaders named in its last Magic Quadrant report, namely IBM, Oracle and hybris.
Consolidation Slows, Segment Stabalizes
Gartner's ecommerce MQ for 2013 is not much different from the one it released near the end of 2011. Since then, the leaders have remained the same, only one vendor was dropped and two added. None of these moves, however, were the result of a vendor falling out of favor with analysts. eBay-Magento, for example, was added because Gartner kept getting asked about the product, even though eBay-GSI Commerce was already on the list as a challenger in 2011.
eBay-GSI Commerce still occupies that challenger spot along with Demandware, Digital River and SAP, all of which were also challengers in the last ecommerce MQ. iCongo and Oracle iStore both dropped out of the challenger spot in this MQ. iCongo was acquired by segment leader hybris, and Oracle iStore (as opposed to Oracle Commerce, a segment leader) dropped to the niche player category.
The only other vendor dropped was Microsoft Commerce Server because it has transferred the intellectual property to commerceserver.net. Even so, the commmerceserver.net Commerce Server product still made the niche player category
IBM, Oracle + hybris
IBM, Oracle and hybris still lead the ecommerce space, and Forrester agreed with this assessment in its latest ecommerce Wave from last fall. Forrester didn't evaluate quite as many vendors as Gartner did in this MQ, but it also had Demandware in the leader category.
Demandware ranked high in the Gartner report as well, just out of the leader quadrant, and heading up the challenger rankings. As for the true leaders, Gartner cited hybris' rapid growth, 90% in 2011 and almost as much in 2012, functionality, flexibility and diversity of delivery models as it strengths. Cautions were the fact its Saas model is still in its infancy, it doesn't integrate with other systems as well, and the fact it has a nascent presence in Asia/Pacific and Japan.
Gartner liked IBM's WebShphere Commerce for its technology vision, language support (available in 13 languages) and native support for iOS and Android devices. Its main drawbacks included added cost and complexity, extra time needed to deploy and the fact its Saas deployment model is also nascent.
Oracle made the leader quadrant on its strength of being used across many industries, having advanced features like coupon tracking and serialized coupon codes and its ability to integrate with Siebel systems. Cautions were its complete lack of a Saas model, a somewhat murky product road map and references to a lack of communication between Oracle product support and the development team.
As mentioned above, Gartner chose eBay-GSI Commerce, Demandware, Digital River and SAP as challengers, but there was also a vendor called Intershop. Intershop creeped into the challenger quadrant from the niche player category in 2011 on account of its competitive pricing in the telecom, manufacturing, high tech and retail industries.
Gartner especially liked the fact it won 50 new deals and has about 50% of customers in the US $100 million revenue range. Gartner warned Intershop is highly dependent on just two customers that make up for about 20% of its business, and it has been slow to move on mobile commerce where native support has not yet been introduced.
Demandware, along with eBay-GSI Commerce, is the closest to breaking into the leaders quadrant on the strength of its 2012 IPO, strong growth and its large circle of technology partners. Its main drawback was its low satisfaction ratings on content management and reporting and its lack of presence in Asia/Pacific and Japan.
eBay-GSI Commerce is product of eBay's purchase of GSI in 2011, and Gartner liked its record with established brands in North America and Europe, and its mobile development framework for extending capabilities to multiple operating systems and devices. Cautions were its inability to deliver the next version release on schedule (now slated for the first half of 2013) and its high percentage of revenue share.
High demand was cited as one reason SAP was chosen as an ecommerce challenger, and Gartner also highlighted its tight alignment with other SAP products and features like a unified interface for mobile. SAP was dinged for its high cost of implementation and the fact its latest product, Web Channel Experience Management is brand new and has few customers at this point. That leaves Digital River as the final challenger, and Gartner liked its broad platform that has expanded services for marketing, demand generation, payments and subscription management.
Cautions were that it focuses so much on digital industries, it may not be a good fit for those in apparel or industrial products, and a lack of flexibility
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