Documents & Records Management: An Analysis of Market Trends to 2013

• Provides an overview of the most important trends affecting the DRM market, including an assessment of the competitive dynamics.
• Delivers a comprehensive assessment of the current state of the DRM market and the changing preferences of end-users.
• Presents Datamonitor's view on the future of the industry value chain and recommends specific go-to-market strategies.

• Gain an in-depth knowledge on the dynamics of DRM market post consolidation and the growth strategies of vendors
• Understand the changing preferences of users and technology evolution in the DRM space
• Adjust go-to-market strategies to address current market challenges

Overview

Catalyst

Summary

Key Messages

The adoption of DRM is expected to increase significantly across all enterprise size bands

Convergence between the DRM domain and the broader ECM eco-system will accelerate

DRM vendors will need to strengthen product integration capabilities to compete effectively

Product rationalization in the post-consolidation era will affect user investment decisions

Vendors will need to address data security issues before promoting on-demand solutions

Service quality emerges as a key differentiating feature as technology differences vanish

Enterprise sourcing preferences shift strongly towards direct procurement from vendors

Table of contents

Table of figures

Table of tables

A mature enterprise application domain, DRM enjoys pervasive recognition and deployment

Despite the global economic slowdown, the DRM market should display healthy growth

DRM adoption is significant, but the market has scope for growth

North America is the largest market for DRM, and is more agile than Europe in growth terms

DRM growth hotspots are emerging in Asia, the Middle East, and Central & Eastern Europe

Growth in Italy and Japan is expected to be the most sluggish over the next five years

With many projects underway, Australia, Italy and the Benelux emerge as active markets

Financial Services, Manufacturing and the Public Sector represent the largest DRM Markets

Healthcare is the fastest growing sector, and telecommunications is the slowest

Healthcare, Banking, Public Sector and Insurance have the highest DRM penetration

Healthcare, Banking, Public Sector & Insurance are set to command most DRM investments

DRM penetration is proportional to both enterprise revenues and employee numbers

The DRM investment outlook is brightest in the mid-market and among large enterprises

Technology Evolution

DRM remains in step with the demand for stronger compliance and higher productivity

The divisions continue to blur between DRM and the broader ECM ecosystem

Workflow Management, Collaboration and Search are now considered a standard offering

The ‘manage-everything-as-a-record’ paradigm is fast gaining traction

Social computing technologies are influencing DRM systems in more ways than one

Integration capabilities acquire critical importance in the DRM world

Customer Impact

The economic downturn should have a significant medium-term impact on investments

The pace of product line consolidation may warrant a cautious approach from end-users

IT services vendors may shift the market dynamics, but independent vendors will survive

The on-demand model will need time to take off owing to security and privacy concerns

Competitive Landscape

The diverse nature of vendors lends the market a fragmented dynamic

EMC and IBM have emerged as clear market leaders in DRM

Microsoft leads in terms of DRM mindshare as Open Text slips out of the top three…

EMC, Open Text and Microsoft do not perform as well in terms of perceived product quality

Service capabilities come into sharper focus as technology differentiation is difficult

Quality of service profoundly impacts the perception of value for money

Go to Market

Recommendations

APPENDIX

Methodology

Extended methodology

Further reading

Ask the analyst

Datamonitor consulting

Disclaimer

TABLE OF FIGURES

Figure 1: DRM solutions are exhibiting a higher growth rate than other enterprise applications

Figure 2: DRM is the largest and the slowest-growth segment in ECM

Figure 3: DRM is the largest and the slowest-growing segment in ECM

Figure 4: Proportion of enterprises planning to make DRM investments within 6 months (by date of survey)

Figure 5: Proportion of enterprises planning to make DRM investments in 6 to 24 months (by date of survey)

Figure 6: Global DRM license revenue opportunity by region, $ millions

Figure 7: Countries with the highest growth in DRM License Revenues, CAGR 2008-2013

Figure 8: Countries with the lowest growth in DRM license revenues, CAGR 2008-2013

Figure 9: % of enterprises stating that DRM projects are their most important engagement (by country)

Figure 10: DRM license revenues by vertical market, $ millions

Figure 11: Global DRM license revenues by vertical market, $ millions

Figure 12: Proportion of enterprises (%) that have invested in DRM by vertical market

Figure 13: Proportion of enterprises (%) planning DRM investment by segment and vertical market

Figure 14: Proportion of enterprises to have invested in DRM by size band (revenues)

Figure 15: Proportion of enterprises to have invested in DRM by size band (number of employees)

Figure 16: Proportion of enterprises planning to make DRM investments within six to 24 months

Figure 17: Proportion of enterprises planning to make DRM investments within six to 24 months

Figure 18: The expanding DRM domain blurs the boundaries with ECM

Figure 19: Records and the associated metadata as the unique mechanism for information management

Figure 20: The scope of DRM integration

Figure 21: Global DRM market revenue share by vendor segmentation

Figure 22: DRM vendor standings in terms of technology strength and user perception (rating scale 1-10)

Figure 23: Which vendors do you consider as leaders in the DRM market? (multiple responses accepted)

Figure 24: DRM vendor standings in terms of technology strength and user perception (rating scale 1-10)

Figure 25: DRM vendor standings in terms of technology strength and perceived product quality

Figure 26: Importance of DRM vendor attributes, rating on a scale of 1 (not important) to 4 (very important)

Figure 27: DRM vendor standings, value for money and service quality (rating scale 1-10)

Figure 28: Channel preferences of users in the DRM space, percentage of respondents

Figure 29: Proportion of enterprises engaging with direct suppliers for DRM solutions

Figure 30: Proportion of enterprises engaging with resellers for DRM solutions

Figure 31: What is your preferred approach to deploying DRM solutions?

Figure 32: The prevalence of Hosted DRM solutions by enterprise size band (revenues)

TABLE OF TABLES

Table 1: Global license revenues across various enterprise application segments, $ millions

Table 2: Global license revenues by Enterprise Content Management segment, $ millions

Table 3: Enterprise incidence of DRM sub-segments in 2008

Table 4: Global DRM license revenues by region, $ millions

Table 5: Global DRM license revenues by vertical market, $ millions

Table 6: Global DRM license revenues by vertical market, $ millions

Table 7: Effects of various influencing factors on the size and timescale of DRM investments

Table 8: DRM vendor standings in terms of technology strength and user perception (rating scale 1-10)

Table 9: What is your preferred approach to buying DRM solutions?

Table 10: Proportion of enterprises using the direct supplier channel for DRM

Table 11: Proportion of enterprises using the reseller channel for DRM

Table 12: What is your preferred approach to deploying DRM solutions?

Table 13: Proportion of enterprises using the Hosted DRM solutions