U.S. Web Content Management (WCM) Markets

Faced with an economic slowdown, companies in a range of fields are implementing any and all means to lower operating costs. Because WCM tools enable firms to reduce overhead by managing web sites with fewer people, demand for these solutions is expected to rise rapidly. Successful companies will be those that offer scaleable solutions with high returns on investment. This new Frost & Sullivan study analyzes the fast-growing markets for web content management solutions. It examines emerging demand trends, highlights potential industry challenges, and presents expert revenue forecasts. With such an up-to-date guide to the this field, your firm will be poised to realize its full market potential.

Participants Are Challenged to Meet Specific Needs With Generic Products

"WCM providers that want to increase their market share will have to devote substantial time and resources to studying the segments in which they participate," says the analyst. A solution that perfectly fits the needs of a publishing house does not necessarily address the needs of a financial services or pharmaceutical company. For the WCM provider, however, developing products that are too market specific may not be cost effective.

"Several participants are attempting to find an effective medium between specialized WCM solutions and a generic solution that addresses unrelated areas," says the analyst. This study, which identifies possiblel obstacles and offers strategic recommendations, can help your company anticipate hurdles and outperform the competition.

WCM Providers Compete with In-House Solutions

"Several market participants admit that homegrown solutions are their toughest competitors," says the analyst. Approximately 70 percent of potential WCM clients have turned to their own IT departments to address content issues rather than searching for outside assistance. To win over these customers, WCM providers must convince them that it will be more labor and time intensive to adapt their in-house solutions to new web technologies. By surveying the competitive landscape and highlighting effective business strategies, this study gives its users the essential tools for success.

1. Executive Summary

A. Market Overview

1. Introduction

2. Report Objectives

3. Web Content Management (WCM) - What is it?

4. An Introduction to the U.S. Web Content Management Market

B. Competitive Analysis

1. The U.S. WCM Market in 2001

2. WCM Market Analysis

3. Lack of a Clear Market Share Loser

C. Technologies & Trends

1. J2EE Technology

2. Technology Trends

a. WCM Begins to Merge with Related Solutions

b. Dynamic Content is the Future of the Web

c. WCM Features are Incorporated into Formerly Supporting Platforms

D. Major Research Findings

1. Opportunities and Forecasts

a. Opportunities in the U.S. WCM Market

b. WCM Market Revenue Forecast Summary

E. Pricing Models & Market Metrics

1. Pricing Models

a. Average Pricing & Range of Pricing in the U.S. WCM Market

b. Per Server Pricing

c. Per Processor Pricing

d. Per User Pricing

e. Per Server & Per User Pricing

2. U.S. WCM Market Metrics

a. Implementation Costs

b. Return On Investment

c. Total Cost Of Ownership

F. Strategic Conclusions

2. Total Market

A. Overview

1. Report Objectives Definition & Introduction

a. Report Objectives

b. Web Content Management -

A Market Definition

c. An Introduction to the U.S. Web Content Management Market

2. Challenges

a. Competing with Homegrown WCM Solutions

b. Making the WCM Product Generic Enough to Appeal to Multiple Vertical Markets

c. Midsized Vendors Are Challenged by Marketing Noise of WCM Startups

d. Finding the Purchasing Authority Within an Organization

e. Desire of Companies to Work with Specific Platforms and Technologies

f. Pilot Tests of WCM Solutions Have Become Primary to Many Sales

g. Many WCM Vendors Struggle to Develop ROI Models

h. Companies Need to Understand the Concept of Separating Content from Presentation

i. Templating Strategy Must Reflect Content Contributor Process

j. Paradigm Shift In Content Creator Behavior Needed For WCM Revenue Growth

3. Market Drivers

a. Companies Struggling to Lower Operating Costs Turn to WCM

b. As Web Content Grows, Corporate Demands to Automate Web Site Publishing Rises

c. Web Site Consolidation Drives Demand for WCM Solutions

d. Increasing Numbers of Nontechnical Personnel Contribute to Web Site Content

e. Pressure to Web Enable Enterprise Applications

f. Multinational Corporations Require Multilingual Code Support

g. Web Development Teams Can Be a Hindrance to Rapidly Changing Web Site Content

h. Mobile Devices Create a Need to Repurpose Web Site Content

i. Proliferation of Dynamic Web Sites Increases Demand for Java Based WCM

j. Companies Outgrow Homegrown WCM Solutions

4. Market Restraints

a. Economic Slowdown Lengthens Sales Cycles

b. Companies Want Proof of ROI Prior to Purchase

c. Many Organizations Continue to Develop Homegrown WCM Solutions

d. Multitude of Solutions Creates Marketplace Confusion

e. Hidden Implementation Costs Kill Future Sales

f. Unknown Total Cost of Ownership of Many WCM Solutions Encourages Homegrown Solutions

g. Inability to Download Site History from Homegrown or Competitor Solution Slows New Sales

h. Solutions with Per Seat Pricing Perpetuate the Web Development Team Bottleneck

i. WCM Solutions that are not J2EE Compatible Face an Uphill Sales Battle

j. Multichannel Content Delivery Not Supported by Many WCM Vendors

5. Technologies

a. J2EE

b. Content Capture & XML Conversion Solution

c. Image Content Management

6. Abbreviations & Definitions

B. Forecasts and Trends

1. Revenue Forecasts

a. WCM Market Revenue Forecast

2. Market Engineering Analysis

a. Saturation

b. Market Competitiveness

c. Technical Change

d. Market Concentration

e. Return on Investment

f. Total Cost of Ownership

3. Market and Technology Trends

a. Realization of the Need for One Content Creation/WCM Solution Within an Enterprise

b. Platform Vendors Will Incorporate Basic WCM Solutions Into the Platform Itself

c. Web Site Consolidation

d. Media Asset Management Vendors Search to Integrate Lightweight WCM Solution

e. Acceptance that Business Applications Should Be Available Via The Internet

f. CTOs Become Highly Involved with Purchase Decisions

g. Commoditization of Page Based WCM Solutions

h. Focus on Dynamic Content Rather than Static

i. Merging of WCM, Document Management, and Media Asset Management Solutions

j. Emerging Realization That WCM is About Nontechnical Users, Not Web Development Teams

4. Pricing Trends & Demand Analysis

a. Pricing Models

b. Per Server Pricing

c. Per Processor Pricing

d. Per User Pricing

e. Per Server & Per User Pricing

f. Pricing Sensitivity

g. Implementation Costs

h. Demand Analysis

C. Competitive Analysis & Strategic Recommendations

1. Competitive Structure

2. Market Share & Product Analysis

a. Market Share Winner In 2001 And Why

b. A Lack Of Market Share Losers In 2001 Will Not Continue Into 2002

c. Product Analysis

3. Strategic Recommendations 1-5

a. Pricing Models - Per Server Pricing

b. Corporate Desire to Work with Specific Platforms and Technologies

c. ROI Models & Understanding What They Mean

i. ROI Does Not Equal Payback Period

d. Paradigm Shift in Content Creator Behavior Needed

e. Competing with Homegrown WCM Solutions

4. Strategic Recommendations 6-10

a. Making the WCM Product Generic Enough to Appeal to Multiple Vertical Markets

b. Midsized Vendors are Challenged by Marketing Noise of WCM Startups

c. Finding the Purchasing Authority Within an Organization

d. Companies Need to Understand the Concept of Separating Content from Presentation

e. Templating Strategy Must Reflect Content Contributor Process

D. Frost & Sullivan Market Engineering Awards

1. Explanation of Market Engineering Awards

2. Market Engineering Leadership Award

3. Product Differentiation Innovation Award

4. Strategic Alliance Innovation Award

List of Charts

Chapter 2

Median Web Developer Salaries Summer 2001

Total Content Delivery Market: Revenue Forecasts (U.S.), 2001-2008

Web Content Management Market: Market Engineering Measurements (U.S.), 2001

The Merging of MAM, WCM, And DM (U.S.), 2001

The Merging of MAM, WCM, And DM (U.S.), 2006

Total WCM Market Pricing Model Breakdown 2001

Total WCM Market Pricing Model Breakdown 2008

Implementation Cost Multiples For 2001

2001 WCM Sales by Vertical Markets

2000 U.S. WCM Market Share Percentages

2001 U.S. WCM Market Share Percentages

List of Figures

Web Content Management Market: Impact of Top Ten Industry Challenges (U.S.), 2001-2008

Web Content Management Market: Market Drivers Ranked in Order of Impact (U.S.), 2001-2008

Web Content Management Market: Market Restraints Ranked in Order of Impact (U.S.), 2001-2008

Web Content Management Market: Revenue Forecasts (U.S.), 2000-2008

Web Content Management Market: Average Implementation Costs (U.S.), 2001

Web Content Management Market: Distribution Trends (U.S.), 2000-2005

Web Content Management Market: Competitive Structure (U.S.), 2001

Web Content Management Market: Ten Most Important Market Elements to Integrate into Your Business Planning (U.S.), 2002

Web Content Management Market: Market Share Trends of Major Market Participants (U.S.), 2000

Web Content Management Market: Market Share Trends of Major Market Participants (U.S.), 2000-2001

Web Content Management Market: Products Offered by Major Market Participants (U.S.), 2001