Product Type: Market Research Report
Published by: Frost & Sullivan
Published: March 2003
Product Code: R1-4302Description Globalization of Corporate Web Sites and Extension of Web Content Management Offerings to Boost Market
Not withstanding the global economic slowdown, the continuing globalization of corporate intranets and public-facing web sites is driving the need for enterprise content management (ECM) solutions in the United States. This, in turn, is likely to boost revenues for web content management (WCM) vendors that can offer a single enterprise-wide solution to the Global 2000 corporations. Major companies are in the process of rolling out comprehensive ECM solutions that incorporate disparate content management (CM) solutions and include bundled WCM technology. Market share is likely to tilt in favor of those vendors that can provide multilingual support and facilitate web site consolidation for different subsidiaries while managing them under the same content management solution.
Frost & Sullivan has examined the following sectors of the U.S. Digital Content Management market for this report: web content management with reference to document management, knowledge management, digital asset management, digital rights management, collaboration, records management, and portals.
Quantitative Sales Tools and Deeper Penetration of Customer Base Increases Revenue
According to the analyst, "The era of solely focusing on WCM is rapidly coming to a close. Competitive vendors are offering prepackaged ECM suites for the corporate market that enables standardization of CM throughout the organization. These solutions have the flexibility of accomodating other CM components as and when required."
As the move to offer ECM solutions continues to gather momentum, several ECM vendors with WCM solutions are using lists of current maintenance and support contract customers to sell additional CM solutions and drive revenues higher. The analyst adds, "With purchasing decisions being held up due to tight Information Technology budgets, vendors are striving to develop quantitative financial modeling and case studies that can be used in sales pitches. Innovative sales strategies such as offering WCM solutions on ASP models to small and medium enterprises are also boosting revenues."
'Out of the Box' Functionality to Drive Future Market
Reducing implementaion costs is not a topic to be casually brushed aside since the vendor that ignores this market need will be destroyed by the competition. The drive towards out of the box functionality was borne out of customer frustration with exorbitant consultant and implementation costs. Several large WCM vendors in the U.S. market have learned this lesson only after suffering through significant revenue losses and only changed their market approach after conducting in depth focus groups with customers. The importance of out of the box functionality cannot be emphasized enough in the frugal 2003 business climate. Solutions with 'out of the box functionality' that reduce consultancy and implementation costs will garner additional market share at the expense of those vendors that have ignored this need.Table of Contents - 1. Executive Summary
- A. Market Overview
- 1. Introduction
- a. Report Objectives
- b. Web Content Management (WCM) - A Market Definition
- c. An Introduction to the U.S. Web Content Management Market
2. Competitive Analysis
- a. The U.S. Web Content Management Market in 2002
- b. WCM Market Share Analysis
- c. The One Clear Market Share Loser for 2002
3. Technology & Market Trends
- a. Technology Trends
- b. Market Trends
B. Major Research Findings
- 1. Opportunities & Forecasts
- a. Opportunities in the U.S. WCM Market
- b. WCM Market Revenue Forecast Summary
2. Pricing Models & Market Metrics
- a. Pricing Models
- b. Average Pricing & Range of Pricing in the U.S. WCM Market
- c. U.S. WCM Market Metrics
3. Strategic Conclusions
- 2. Total Market
- A. Overview
- 1. Report Objectives Definition & Introduction
- a. Report Objectives
- b. Web Content Management (WCM) - A Market Definition
- c. An Introduction to the U.S. Web Content Management Market
2. Market Challenges 1-3
- a. A Pure Focus on Web Content Management is a Sign of Weakness
- b. Vendors Struggle to Develop Financial Models Showing the Benefit of a Solution
- c. Companies Continue to Specify Preferred Technologies and Platforms
3. Market Challenges 4-6
- a. Homegrown Solutions Continue to Draw Revenue Away from WCM Vendors
- b. Companies Fight for Software Budgets
- c. Better Educated Corporate Consumers Expect More for Less from Content Management Vendors
4. Market Challenges 7-10
- a. Paradigm Shift In Content Creator Behavior Needed For WCM Revenue Growth
- b. Differentiation and Brand Name Awareness are Obstacles to Rapid Growth
- c. Proof of Efficacy / Pilot Tests are on the Rise, is Your Company Ready for the Challenge?
- d. Content Management - a Horizontal Solution, a Vertical Solution, an Indecisive Solution?
5. Market Drivers 1-4
- a. Increasing Numbers Of Nontechnical Personnel Contribute To Web Site Content
- b. Globalization of Corporate Websites Fuels Growth for Content Management Revenue
- c. Web Enablement of Enterprise Applications Continues to Drive the Need for Content Management
- d. Corporations Place Focus on Strategic Initiatives with Positive ROI Potential
6. Market Drivers 5-7
- a. Successful Partnering of Vendors with Systems Integrators and ISVs Generates Growth
- b. Code and Content Convergence Drives Growth for Some Vendors
- c. More Focus on the Information Lifecycle than in the Past Creates Revenue Growth Opportunities
7. Market Drivers 8-10
- a. Companies Outgrow Homegrown Content Management Solutions
- b. The Drive to Have One Enterprise Wide Content Management Solution Pushes Revenue Upwards
- c. Vendors Creating ECM Solutions Achieve Deeper Penetration into the Install Base
8. Market Restraints 1-4
- a. Inability of Some Vendors to Convincingly Prove ROI Restrains Revenue Growth
- b. Corporate IT Departments Don't Understand Content Creator Needs
- c. Pricing Pressures Hold Back Entire Market Revenue Growth Potential
- d. Sluggish Economy Hinders Growth Prospects for Content Management Vendors
9. Market Restraints 5-7
- a. U.S. Businesses Grow Nervous about Long-Term Viability of CM Software Vendors
- b. The Demand for Building the Business Case Grows and Lengthens Sales Cycles
- c. Departmental Budgeting Allocation Confusion Delays Revenue Growth
10. Market Restraints 8-10
- a. Abundance of Content Management Solutions Confuses Part of Market Place
- b. Exorbitant Consultant / Implementation Costs Scare Away Potential Customers
- c. Insecurity Among Part of the Target Market Regarding Wisdom of Moving to the Web
11. Abbreviations & Definitions
B. Forecasts & Trends
- 1. Revenue Forecasts
- a. WCM Market Revenue Forecast
2. Market Engineering Analysis
- a. Saturation
- b. Market Competitiveness
- c. Average Price and Market Revenues
- d. Technical Change
- e. Market Concentration
3. Market Trends 1-5
- a. Enterprise Content Management Suites Offer Prepackaged Solutions for the Corporate Market
- b. The Purchase Process Differs Between the U.S. and Europe
- c. Collaboration Hits Mainstream CMS Systems
- d. Companies Make Moves to Reduce the Number of Vendors They Deal With
- e. Market Consolidation Process Accelerated by Sluggish Economy in late 2001, 2002 and Early 2003
4. Market Trends 6-10
- a. CMS Vendors Examine the ASP Revenue Model
- b. Content Management Vendors See Opportunity With Government Contracts
- c. Web Content Management is Only One Piece of the Content Management Pie in 2003
- d. WCM Market Moves Away From Proprietary Content Repositories
- e. Content Moves Through Similar Evolution Process as Relational Data
5. Technology Trends 1-3
- a. Management of Disparate Data Repositories from WCM/ECM Software Interfaces
- b. Unified Enterprise Content Management Platforms Emerge in 2002 and 2003
- c. In Context/In Line Editing of Web Pages
6. Technology Trends 4-6
- a. Content Creation & Management Merges with Portals
- b. A New Development Platform for Microsoft CMS Emerges
- c. Digital Rights Management (DRM) Makes a Blip on the Radar
7. Technology Trends 7-10
- a. Niche Vendor Pounces on the Apple Market
- b. Knowledge Management (KM) Meets WCM
- c. Web Services Makes its CMS Debut
- d. Custom Content Management Solutions Take a Back Seat to Out of the Box CMS Functionality
8. 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. Per Processor & Per User Pricing
- g. Pricing Sensitivity
- h. Implementation Costs
- i. Demand Analysis
C. Competitive Analysis & Strategic Recommendations
- 1. Competitive Structure
- 2. Market Share & Product Analysis
- a. Market Share Winner In 2002 And Why
- b. Market Share Losers In 2002 And Why
- c. Product Analysis
3. Strategic Recommendations 1-3
- a. Not Letting Your WCM Focus Turn into a Weakness
- b. It's Time to Get Serious About Financial Modeling in the Sales Process
- c. Religion of Techologies and Platforms Requires a Well Planned Counter Attack
4. Strategic Recommendations 4-6
- a. Thinking About How to Counteract the Homegrown Solution Threat
- b. Pricing Wars are Here, Will You Survive or Will You Fail?
- c. Being Prepared for the Educated Corporate Consumer, Comparing Apples with Apples
5. Strategic Recommendations 7-10
- a. Addressing Resistance Issues Among Content Creators
- b. Getting Your Brand Known and Differentiating Your Company from the Pack
- c. Being Prepared When Your Company is Asked to Perform a Pilot Test
- d. Don't Let Your Desire to Sell to Vertical Markets Distract Your Vision to Sell Horizontally
D. Frost & Sullivan Market Engineering Awards
- 1. Explanation of Market Engineering Awards
- a. Frost & Sullivan's 2002 Market Engineering Awards
- b. Market Engineering Awards
2. Market Share Leadership Award - Interwoven Inc.
- 3. Product Innovation - Vignette
- 4. Product Line Strategy - Documentum
- 5. Strategic Alliance Innovation - RedDot Solutions and Hummingbird
- 6. Marketing Strategy - Microsoft Corporation
- List of Figures & Charts
- List of Figures
- Web Content Management Market: Impact of Top Ten Industry Challenges (U.S.), 2002-2009
- Web Content Management Market: Impact of Top Ten Industry Challenges on Business Functions (U.S.), 2002-2009
- Web Content Management Market: Impact of Top Ten Industry Challenges (U.S.), 2002-2009
- Web Content Management Market: Impact of Top Ten Industry Challenges on Business Functions (U.S.), 2002-2009
- Web Content Management Market: Impact of Top Ten Industry Challenges (U.S.), 2002-2009
- Web Content Management Market: Impact of Top Ten Industry Challenges on Business Functions (U.S.), 2002-2009
- Web Content Management: Market Drivers Ranked in Order of Impact (U.S.), 2002-2009
- Web Content Management: Market Drivers Ranked in Order of Impact (U.S.), 2002-2009
- Web Content Management: Market Drivers Ranked in Order of Impact (U.S.), 2002-2009
- Web Content Management: Market Restraints Ranked in Order of Impact (U.S.), 2002-2009
- Web Content Management: Market Restraints Ranked in Order of Impact (U.S.), 2002-2009
- Web Content Management: Market Restraints Ranked in Order of Impact (U.S.), 2002-2009
- Web Content Management: Revenue Forecasts (U.S.), 2002-2009
- Web Content Management Market: Average Implementation Costs (U.S.), 2002/2003
- Web Content Management: Distribution Trends (U.S.), 2000-2009
- Web Content Management Market: Competitive Structure (U.S.), 2002/2003
- Web Content Management Market: Ten Most Important Market Elements to Integrate into Business Planning (U.S.), 2003
- Web Content Management Commercial Market: Company Market Share by Revenues (U.S.), 2002
- Web Content Management Market: Products Offered by Major Market Participants (U.S.), 2002/2003
- Web Content Management: Database of Key Industry Participants by Product Type (U.S.), 2003
- Web Content Management Market: Strategic Recommendations to Address the Impact of Industry Challenges (U.S.), 2002-2009
- Web Content Management Market: Strategic Recommendations to Address the Impact of Industry Challenges (U.S.), 2002-2009
- Web Content Management Market: Strategic Recommendations to Address the Impact of Industry Challenges (U.S.), 2002-2009
- List of Charts
- Total Content Delivery Market: Revenue Forecasts (U.S.), 2002-2009
- Total Content Delivery Market: WCM Division (U.S.), 2002
- Web Content Management Market: Market Engineering Measurements (U.S.), 2002
- The Merging of DAM, WCM, DM, KM, RM, DRM, Project Management and Collaboration (U.S.), 2003
- Total WCM Market Pricing Model Breakdown 2002
- Total WCM Market Pricing Model Breakdown 2009
- Implementation Cost Multiples For 2002
- 2001 WCM Sales By Vertical Markets
- 2002 WCM Sales By Vertical Markets
- 2002 U.S. WCM Market Share Percentages for Commercially Available WCM
- 2002 U.S. WCM Market Share Percentages for Commercial and Non-Commercial WCM
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