Only a week after Forrester’s Wave for Enterprise CMS, Gartner has published its Magic Quadrant for Enterprise Content Management. If the Wave describes a market that is healthy but segmenting, Gartner describes one that is growing with vendors forced to cater to demands for mobile and cloud capabilities as well as functionality for specific verticals.
ECM Market Evolves
It also notes the emergence of lightweight cloud environments as vendors try to keep their clients from exploring the increasingly diverse functionality of some of the cloud-based file sharing environments that are quick to deploy and relatively cheap.
How this evolves over the coming year remains to be seen. That said, this year’s Magic Quadrant for Enterprise Content Management points to ongoing growth in the space with a current value of US$ 4.7 billion annually on the back of a 7.2% expansion over the course of last year.
The Quadrant also points to a dynamic IT market and identifies 23 vendors that have fulfilled the criteria for entry into the Magic Quadrant. It is worth noting here that 14 of those vendors were included in the Niche Quadrant and 6 in the Leader’s Quadrant.
The number of vendors in the Niche Quadrant would seem to concur with Forrester’s conclusion that the market is segmenting and that many vendors are creating, or exploiting, their own corner of the market in a specific vertical, or product areas.
That is, of course, with the exception of the Leaders who, as in other Magic Quadrants, cover the entire range of functionality. This year’s Leaders, in alphabetical order, are as follows: EMC, Hyland Software, IBM, Microsoft, OpenText and Perceptive.
Oracle was the sole entry in the Challengers’ Quadrant, while Alfresco and Xerox were the only Visionaries. The other vendors all fell into the Niche Players Quadrant. HP was added this year based on the functionality that it obtained through the Autonomy acquisition.
Today, in the first of a two-part look at the Magic Quadrant we will take a deeper look at the Leaders’ Quadrant, while later in the week we will look at the 14 vendors who made it into the Niche Quadrant.
To understand what is happening in the market, Gartner has analyzed the enterprise content management (ECM) market from two different perspectives, which, it says, characterizes the market now:
- A strategic approach where ECM offers enterprises the possibility of controlling their content, enabling collaboration and making information easier to share.
- As a software toolset and set of applications that offer content lifecycle management.
From either perspective, ECM core components consist of:
- Document management: All aspects of managing documents in the enterprise from security management to library services, version control and even content replication.
- Image-processing applications: Offers users the ability to capture data and manage information from paper documents.
- Workflow/business process management (BPM): Applications for routing content into business processes.
- Records management: Long-term retention and management of key documents through automation and policies to ensure legal and regulatory compliance.
- Web content management (WCM): The management of content and the overall Web experience of users through specific management tools built around a core content repository.
- Social content: Enables document sharing, collaboration, knowledge management and project team support. Also includes social tools like blogs and wikis.
- Extended components: This can, and ideally does, include components like document composition, e-signature, search, content and analytics.
For the purposes of this Magic Quadrant, Gartner has given each of the elements different weighting depending on their importance for users. This year the weighting is as follows:
- Document management: 15%
- Image-processing applications: 18%
- Workflow/BPM: 22%
- Records management: 13%
- WCM: 7%
- Social content: 15%
- Extended components: 10%
To be included in the Quadrant in the first place is quite a feat. For 23 vendors to make it in demonstrates just how dynamic the market is. For inclusion this year, vendors must:
- Show at least US$ 10 million in annual content management revenues
- Have a product footprint in at least 2 major regions
- Have ECM software available commercially and references that can vouch for that
- Produce a suite that has at least 4 components listed above supplied natively
ECM Leaders Quadrant
On top of that, the Leaders must be able to show that they have a clearly articulated vision for the future of ECM and that they have a strong channel partner base to push that vision forward. They must also provide the majority of components in one suite as well as the ability to integrate with other business applications.
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