ecm industry trends: microsoft & everyone else ecm industry trends: microsoft & everyone...
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ECM IndustryECM IndustryTrends:Trends:Microsoft & Microsoft & Everyone ElseEveryone Else
ECM IndustryECM IndustryTrends:Trends:Microsoft & Microsoft & Everyone ElseEveryone Else
Dan ElamSeptember, 2007
• 3 Billion Pages/day
• 34,000 Pages/Second 24 Hours/day
• 800 Billion Pages Already on File
• Electronic info doubles every two years
Growing Volumes
• Leading unbiased consultants in ECM-related technology
• Led by senior industry experts• Over $4B of ECM procurements• Customers such as IRS, Campbell Soup, and Intel
Strong knowledge of nearly every available
vendor today
eVisory Overview
ECM Market
• Mature ECM market– Companies > 20 years old– 4th-5th generation products– Industry consolidation
• Over 200 software OEMs
• Enterprise implementationsfor virtually all content
• Systems hard to implement – harder to keep current
ECM Market Status
Gartner “Magic Quadrant”
Legal Issues Driving ECM
• Federal rules of evidence changed on December 1, 2006
• No difference between paper and electronic
• New emphasis on liabilityand processes
• Rule says “reasonably” anticipate• Ambiguities favor the lawyers• Fines already are in the millions of dollars
Content is New Liability
Industry Changes – Inexpensive Storage
EDMS and Imaging
E-mail & Office
Documents
Unstructured Content
ERM/COLD
Forms Capture
and Automation
Web
Transactions
The New World of Content
Document
Forms Captureand Automation
ERM/COLDWeb
Transactions
ImagingSystem
Legacy Systems
Where isthe
information?
Today
Document
Document
Legacy Systems
Where isthe
information?
ECMFuture Approach
Acct: 123456
Date Transaction Amt. Bal.
01-03-94 Stuff $2,500 $2,500
03-04-94 More stuff $ 100 $2,600
03-31-94 Lotsa stuff ($2,600) $ 0
12349 23478 234872 2312349 23478 234872 2312349 23478 234872 2312349 23478 234872 2312349 23478 234872 2312349 23478 234872 2312349 23478 234872 2312349 23478 234872 2312349 23478 234872 23
COLD
Document
Where isthe
information?
ECMEventual Approach
• SaaS as hosted solutions is the fastest growing segment of the market
• Projected to be over 25% of the market by 2011
• Software leaders are not SaaS leaders
• Current leaders: traditional service bureaus like ACS, SourceCorp, Lason
• Emerging leaders: Related technology companies such as EasyLink, Zantaz
ECM Market Status
• Much faster deployment
• Typically lower risk since vendor is assuming more of the risk
• Greater security
• Better uptime (especially remote users)
• Lower life cycle costs– Often not an apples vs. oranges
comparison
• No upgrade worries
Why use ECM as SaaS?
• Very complex legacy integration needs
• Enhanced functionality
• Integrators with vertical knowledge
• Doing most development in-house
• Concerns over data being outside
• Some scalability issues
• ROI in a handful of applications
Why use ECM as software?
• Typical ECM purchase implementation is about 9 months for a department
• Typical ECM SaaS is 4-6 weeks
• Often starts departmental
• Organization changes to fit the software instead of modifying the software to fit the organization
Time frames are Very Different
EmTAG 2007
Mike Alsup, Gimmal Group
Toby Bell, Gartner
Tony Byrne, CMS Watch
John Chickering, Fidelity Investments
Jim Cuff, Iron Mountain
Tom Dale, IMC
Russ Edelman, Corridor Consulting
Dan Elam, eVisory
Dick Fisher, Cohasset
* Opinions do not necessarily represent all members or their employers
Carl Frappaolo, AIIM
Gary Gershon, Imerge
Andy Lawrence, Eastman Kodak
Bob Larrivee, AIIM
Tina Torres, Microsoft
Mike Rogers, City of Plano
Don Scott, Lead2Succeed
Jack Scott, Evaluator Group
Paul Steep, Orion Securities
Catherine Teti, US GAO
EmTAG Committee
•New round of VC-backed ECM vendors
•SaaS is eclipsing ASPs
•Microsoft progress, but not dominance
•New round of service bureau consolidation
•Security is becoming more important
•RM is driving deals, but not a break-out
•Technology change is largely incremental
•Interface is poised for radical change
Industry Trends
•First new vendors appearing since the dot-com crash
•Investment money is available again
•Includes low end ECM vendors & MOSS-centric
•ECM Component vendors
•Investment money is available again
•New consultants for litigation support
•Oracle still no progress
New Vendors
•ASPs and other hosted solutions becoming more important
•Some vendors privately estimate 50% of their license revenue to be gone with three years
•Software-As-A-Service (SaaS) models use common platform to share data instead of having multiple hosted solutions – further drives down costs to users
•Vendors like SpringCM, Critical Technologies, and others are getting serious investment money, real management teams, and real sales
Hosted Solutions
• Microsoft attempting to define ‘ECM’ on their own terms
ECM Components
SharePoint 2007
• Microsoft attempting to define ‘ECM’ on their own terms
SharePoint ComponentsSource: Microsoft
SharePoint 2007
• Microsoft attempting to define ‘ECM’ on their own terms
• Tight integration to Office, Exchange
• Forms, RM, Portal, etc• Outlook becomes the
user interface• Integrated search
SharePoint ComponentsSource: Microsoft
SharePoint 2007
• Captures metadata for SharePoint
• Forces upgrades due to file format
• Integrates SaveAs to SharePoint
• Makes it much harder for competitors to displace Office
Office 2007
• Will educated users quickly – much faster than AIIM & ARMA
• Significantly change VAR landscape (especially for vertical)
• Bring ECM to the SMB market
• Confuse the customer base
MOSS Impact
Document
ERM/COLD ImagingSystem
SharepointUI Search RM
SharepointStorage
ECMStorage
Microsoft view of ECM
ECM
Document
ERM/COLD ImagingSystem
Sharepoint UI Search RM
ECMStorage
Sharepoint as ECM Middleware
•MOSS (Sharepoint) continues to gain installations
•Little displacement for established larger vendors
•Significant functional and technical gaps
•Some pressure on low end vendors
•Microsoft efforts regarding hosted solutions will either help or hurt ASP/SaaS vendors (but will not be indifferent)
•MOSS is still a serious threat to ECM industry, but consultants and AIIM largely overstate ‘imminent danger’
Microsoft MOSS
•Some limited ECM consolidation
•More on the way: Hyland as prep, OpenText eventually
•Look for ASP/SaaS consolidation quickly as investment dollars drive aggregation
•Significant action in the service bureau market: including box storage (box storage companies are worth more than software in 2007)
Industry Consolidation
•True enterprise deals are forcing very advanced security
• IRS (Negative TIN check)
• Financial Services
• Customer-facing applications
•Content security is still coming gradually, but laws are already driving issues: “Auditability is key given that 32 states currently have strong data breach laws with both civil and criminal penalties.”
•New capabilities may be emerging from Adobe that include security and digital rights for paper
Security
Secure Document
Normal Document
Policy Server
Smart Copier Normal Document
Adobe’s Vision
ECMRepository
Policy Server
Adobe’s Vision
•Important… but not critical (except for compliance)
•Increasingly managing non-records & even temporary info
•Customers largely do not understand issues of records management
•ARMA is still the source instead of AIIM
•More content than ever: Wikis/Blogs, video, VOIP, SMS, instant messages, e-mail, etc.
•RM is probably still the single biggest driver for enterprise deals (vs. departments)
Records Management
•Advances are more to help in the demo than to help the user with an actual business problem
•Pace of industry innovation has slowed
•Products basically work/look the same
•Most products now use SOA or are migrating
•Enhanced browser functionality (i.e., containers, AJAX)
•Search improves, but incrementally (crawlers emerging)
•XML making progress, OpenDoc unclear
Technology Changes
•iPhone (and iPod) demonstrates that superior user interface can rapidly increase market share even against established standards
•Microsoft Surface is example of potential interface to significantly change ECM
•New 3D technology is another possibility
New Interfaces
Microsoft Surface
Surface for ECM
Surface for ECM
Surface for ECM
Surface for ECM
Surface for ECM
Surface for ECM
Are you lookingfor Nick Loy’s
police records?
Surface for ECM
3D Displays
Image copyright by ACM, 2002
3D Displays
3D Displays
• Search – Still important, but no clear market leaders emerging for inside firewall
• Classification – Increasingly important because of unstructured data, but tools aren’t gaining market share
• Funding is there for RM (especially with compliance), but vast gaps in how to solve the problem: “No one really knows how to do Enterprise Records Management yet, but everyone likes to listen to consultants explain it.”
Unclear
