global enterprise content management ecm software market 2015-2019.pdf

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Global Enterprise Content Management

(ECM) Software Market2015-2019

technavio insighEMISPDF in ilabs02 from 182.72.201.162 on 2016 01 05 11:02:07 GMT. DownloadPDF.Downloaded by in-ilabs02 from 182.72.201.162 at 2016-01-05 11:02:07 GMT. EMIS. Unauthorized Distribution Prohibited.


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01. Executive Summary ........................................ 1

02. List of Abbreviations ........................................ 3

03. Scope of the Report ........................................ 4

03.1 Market Overview .................................................... 4

03.2 Product Offerings .................................................... 5

04. Market Research Methodology ..................... 6

04.1 Market Research Process ...................................... 6

04.2 Research Methodology ......................................... 6

05. Introduction ..................................................... 8

06. Market Landscape ....................................... 10

06.1 Market Overview .................................................. 10

06.2 Market Size and Forecast .................................... 11

06.3 Five Forces Analysis ............................................. 12

07. Market Segmentation by Deployment Model

........................................................................ 14

08. Market Segmentation by Component Type

........................................................................ 17

08.1 Global ECM Software Market by Component Type

2014 ....................................................................... 17

Table of Contents

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08.2 Global ECM Software Market by Component Type

2014-2019 .............................................................. 18

09. Market Segmentation by End-user ............. 20

09.1.1Major Users .................................................................................. 20

09.1.2Other Notable Users .................................................................. 20

09.2 Global ECM Software Market by Geography 2014

.............................................................................. 21

09.3 Global ECM Software Market by Geography

2014-2019 .............................................................. 22

10. Key Leading Countries ................................. 24

10.1 US ........................................................................... 24

10.2 Germany ............................................................... 24

10.3 Brazil ...................................................................... 25

10.4 Japan .................................................................... 25

11. Buying Criteria ............................................... 26

12. Market Growth Drivers .................................. 27

13. Drivers and their Impact ............................... 29

14. Market Challenges ....................................... 30

15. Impact of Drivers and Challenges .............. 32

16. Market Trends ................................................ 33

17. Trends and their Impact ............................... 35

18. Vendor Landscape ....................................... 36

18.1 Competitive Scenario .......................................... 36

18.2 Other Prominent Vendors .................................... 38




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19. Key Vendor Analysis..................................... 39

19.1 EMC ....................................................................... 39

19.1.1Key Facts ..................................................................................... 39

19.1.2Business Overview...................................................................... 40

19.1.3Business Segmentation by Revenue 2013 ............................ 40

19.1.4Business Segmentation by Revenue 2012 and 2013 .......... 41

19.1.5Geographical Segmentation by Revenue 2013 ................. 41

19.1.6Business Strategy ........................................................................ 42

19.1.7Recent Developments ............................................................. 4219.1.8SWOT Analysis ............................................................................. 43

19.2 IBM ......................................................................... 44

19.2.1Key facts ...................................................................................... 44

19.2.2Business overview ...................................................................... 45

19.2.3Business segmentation ............................................................. 45

19.2.4business segmentation by revenue ....................................... 46

19.2.5Business segmentation by revenue 2013 .............................. 47

19.2.6Business segmentation by revenue 2012 and 2013 ............ 47

19.2.7Geographical segmentation by revenue ............................ 48

19.2.8Business strategy ........................................................................ 48

19.2.9Key developments .................................................................... 49

19.2.10 SWOT analysis ........................................................................ 50

19.3 Microsoft................................................................ 51

19.3.1Key Facts ..................................................................................... 51








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19.3.7Recent Developments ............................................................. 54

19.3.8SWOT Analysis ............................................................................. 55

19.4 OpenText ............................................................... 56

19.4.1Key Facts ..................................................................................... 56







19.4.8SWOT Analysis ............................................................................. 60

19.5 Oracle ................................................................... 61

19.5.1Key Facts ..................................................................................... 61







19.5.8SWOT Analysis ............................................................................. 65

20. Other Reports in this Series ........................... 66




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Exhibit 1: Market Research Methodology.................................. 6

Exhibit 2: Types of ECM Component ........................................ 10

Exhibit 3: Global ECM Software Market 2014-2019 ($ billions) ..

....................................................................................... 11

Exhibit 4: Global ECM Software Market by Deployment

Model 2014 ........................................................................... 14

Exhibit 5: Global ECM Software Market by Deployment

Model 2014-2019 ($ billions) ............................................... 15

Exhibit 6: Global ECM Software Market by Deployment 2014-

2019 ..................................................................................... 16

Exhibit 7: Global ECM Software Market by Component Type

2014 ....................................................................................... 17

Exhibit 8: Global ECM Software Market by Component Type

2014-2019 .............................................................................. 18

Exhibit 9: Global ECM Software Market by Geography 2014 ...

....................................................................................... 21

Exhibit 10: Global ECM Software Market by Geography 2014-

2019 ................................................................................... 22

Exhibit 11: Global ECM Software Market by Geography 2014-

2019 ($ billions) ..................................................................... 23

Exhibit 12: EMC: Business Segmentation by Revenue 2013 ... 40

Exhibit 13: EMC: Business Segmentation by Revenue 2012 and

2013 ($ millions) .................................................................... 41

Exhibit 14: EMC: Geographical Segmentation by Revenue

2013 .................................................................................... 41

List of Exhibits




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Exhibit 15: IBM: business segmentation .................................... 45

Exhibit 16: IBM: business segmentation by revenue 2013 ...... 46

Exhibit 17: IBM: business segmentation by revenue 2013 ...... 47

Exhibit 18: IBM: business segmentation by revenue 2012 and

2013 ($ millions) .................................................................... 47

Exhibit 19: IBM: geographical segmentation by revenue 2013

................................................................................... 48

Exhibit 20: Microsoft: Business Segmentation by Revenue 2013

................................................................................... 52

Exhibit 21: Microsoft: Business Segmentation by Revenue 2012

and 2013($ billions) .............................................................. 53

Exhibit 22: Microsoft: Geographical Segmentation by

Revenue 2013 ...................................................................... 53

Exhibit 23: Open Text: Business Segmentation by Revenue

2014 .................................................................................... 58

Exhibit 24: Open Text: Business Segmentation by Revenue2013 and 2014 ($ billions).................................................... 58

Exhibit 25: Open Text: Geographical Segmentation by

Revenue 2014 ...................................................................... 59

Exhibit 26: Oracle: Business Segmentation by Revenue 2014 ...

..................................................................................... 62

Exhibit 27: Oracle: Business Segmentation by Revenue 2013

and 2014 ($ billions) ............................................................. 63

Exhibit 28: Oracle: Geographical Segmentation by Revenue

2014 ..................................................................................... 63




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Global Enterprise Content Management (ECM) Software Market2015

Global Enterprise Content Management (ECM) Software Market

2015-2019

01.Executive Summary

Market Size 2014: $6.12 billion

2019: $11.61 billion

Market Growth Rate 2014: 12.81%

2019: 13.94%

CAGR 13.66%

Key Geographies

Americas: 52.36%

EMEA: 32.57%

APAC: 15.07%

Key Leading Countries

US

Brazil Germany

Japan

Key Customer Segments

BFSI

Government

Healthcare

Key Market Drivers

Need to Increase Productivity

Need for Effective Time Management

Enterprises Going Green

Increased Demand from BFSI Sector

Key Market Challenges

High Cost of Content and Record Management

Complexity of Various File Formats

Data Security Concerns

Lack of Awareness about Content Management

Key Market Trends

Increased Adoption by SMEs

Emergence of Hybrid and Cloud-based ECM Solutions

Integration with Mobile and Tablet Devices

Increased Demand for Workflow Software Solutions

Key Buying Criteria

Security

Scalability

Compatibility

Cost




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Key Vendors

EMC Corp.

IBM Corp.

Microsoft Corp.

Open Text Corp. Oracle Corp.




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02.List of Abbreviations

B2B - Business-to-Business

BFSI - Banking, Financial services and Insurance

BPM - Business Process Management

CEM - Customer Experience Management

DCC - Document-centric Collaboration

DMS - Document Management System

ECM - Enterprise Content Management

EIM - Enterprise Information Management

FOI - Freedom of Information

ROI - Return on Investment

SaaS - Software as a Service

SME - Small and medium-sized enterprise

VoIP - Voice over Internet Protocol

WCM - Web Content Management




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03.Scope of the Report

03.1 Market OverviewThis report covers the present scenario and the growth prospects of the global ECM software

market for the period 2015-2019. To calculate the market size, it considers the revenue generated

through the following:

Software licenses and subscriptions

Software implementation and maintenance

The report segments the market by ECM component type into:

DMS WCM

DCC

Records management

Document imaging

BPM

Other components

The report also segments the market by deployment mode into:

Cloud-based ECM

On-premises ECM

The report also presents the vendor landscape and a corresponding detailed analysis of the five

leading vendors in the market. In addition, it discusses the major drivers that influence the growth

of the market. It also outlines the challenges faced by vendors and the market at large, as well as

the key trends emerging in the market.




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03.2 Product Offerings

Company Products Offered

EMC

EMC Documentum Platform

My Documentum

IBM IBM Content Manager

FileNet Content Manager

Microsoft Microsoft Office SharePoint

Microsoft Office 365

OpenText OpenText Content Suite

OpenText ECM Suite

Oracle Oracle WebCenter




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04.Market Research Methodology

04.1 Market Research ProcessTechnavio has collected key data related to the global ECM software market and analyzed these

data using a variety of methods. The market dynamics have been ascertained following a

detailed study of the micro, meso, and macroeconomic indicators of the market.

04.2 Research Methodology

This report is based on in-depth qualitative and quantitative analyses of the global ECM software

market. The quantitative analysis involved the application of various projection and sampling

techniques. The qualitative analysis involved primary interviews, surveys, and vendor briefings. The

data gathered as a result of these processes were validated through experts' opinions.

Exhibit 1: Market Research Methodology

Source: Technavio Research

Global Enterprise

ContentManagement (ECM)

Software Market2015-2019




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Based on the research results and technical insights thus gathered, Technavio analysts have

provided a comprehensive analysis of the varied aspects of the market. The impact of global

economic conditions and other macroeconomic indicators was also considered when assessing

the market.




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05. Introduction

ECM is a set of tools used to manage critical business content in an organization. It manages all

types of business content, from simple documentation to interactive real-time video. ECM solutions

enable the management of business information throughout the document and content life cycle

from creation to disposition. ECM solutions consist of various modules that help organizations to

effectively manage content related to business processes and workflows. In addition, the cloud

computing model for ECM has succeeded in changing the deployment of ECM solutions from a

capital expenditure model to a pay-per-use subscription model, which provides greater agility

and cost savings for organizations.

Many companies across the globe have realized the value of the on-demand deployment model

through the cloud and are adopting the solution at an impressive rate and with measurablesuccess because of its lower costs and shared-services model. The cloud model for ECM allows

user organizations to reduce their IT resource requirements for low-value activities such as software

maintenance, software upgrades, patching and maintenance, and license renewals.

The global ECM software market is expected to witness significant growth during the forecast

period. The majority of the demand comes from the Americas, which accounted for more than

50% share of the market revenue in 2014. EMEA and APAC are also experiencing promising growth,

and are expected to grow rapidly in the near future. The value of the global ECM software market

is expected to reach $11.61 billion by 2019, growing at a CAGR of 13.66% during the forecast

period.

With the organizations going global, the customer base has increased exponentially, which has

led to more communication between enterprises and their customers. As most communication

happens in the form of documents such as letters, statements, bills, and marketing materials, a

large quantity of documents are created and delivered. ECM solutions enable organizations to

share documents, information in real time, and provide solutions for any issues in a short time

frame.

The cost of an ECM solution includes the costs of licensing, system design, customization,

implementation, and maintenance. After purchasing the license, organizations also need to hire

experienced personnel to efficiently implement and maintain the ECM solution. Moreover,

enterprises need to train their employees to use the application efficiently. In addition, post

implementation, ECM solutions need to be upgraded according to current market trends, which

is one of the major challenges in terms of cost for organizations.




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In the last few years, many SMEs have become increasingly aware of the significance of ECM

software and have started adopting and implementing it more widely. As their business grows,

SMEs become more focused on having complete visibility of their operational performance and

knowledge about its impact on their business. ECM helps organizations to manage content and

documentation at a lower cost and maintains records in a systematic way for future efficient use.




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06.Market Landscape

06.1 Market OverviewOrganizations are focusing on investing in ECM solutions because of the solutions' ability to

effectively and efficiently capture, store, manage, and deliver enterprise content. Information

records are corporate assets, which if lost could be dangerous for an organization's future viability.

Therefore, the creation and management of information assets that are authentic, reliable, and

accessible is essential. Moreover, organizations need to keep track of the entire life cycle of a

document to comply with regulatory requirements.

An ECM solution consists of the following components:

Exhibit 2: Types of ECM Component


The other components include document compositions, web and content analytics, email

management, e-forms, search contents, and information archiving.

ECM

DMS

WCM

DCC

RecordsManagement

DocumentImaging

BPM

OtherComponents




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06.2 Market Size and Forecast

The global ECM market was valued at $6.12 billion in 2014 and is forecast to reach $11.61 billion

by 2019, growing at a CAGR of 13.66% during the forecast period.

Factors such as the increased need to address security issues and growing demand from

emerging countries are expected to foster market growth in the coming years. ECM software

solutions are used in the BFSI, government, healthcare, entertainment, retail, commercial, and

enterprise sectors among others to provide better visibility and management of content. Many

organizations have started to adopt ECM solutions to enhance overall productivity.

Exhibit 3: Global ECM Software Market 2014-2019 ($ billions)


Based on current market trends and drivers, it is expected that the global ECM software market

will achieve a growth rate of 13.94% by the end of forecast period. ECM solutions enable

enterprises to increase their work efficiency and ROI. They also help to lower operational costs and

enhance profitability, thereby leading to the overall growth of the organization.




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06.3 Five Forces Analysis

Threat of Rivalry

(High)

Competition among theexisting players is high andthey compete to provideECM solutions with better

features.

Bargaining Power ofSuppliers

(Moderate)

The bargaining power ofsuppliers is moderate as themarket consists of a largenumber of vendors and

suppliers.

Bargaining Power ofBuyers

(High)

There are numerous optionsavailable in the market,

hence the bargaining powerof buyers is high.

Threat of New Entrants

(High)

The probability of new playersenter ingthis market is highbecause of advances in

technology give new entrantsthe ability to provide solutions

at competitive prices.

Threat of Substitutes

(Moderate)

Customers can use traditionalin-house management

systems. Hence, the threat of

substitutes is moderate.




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Key

The impact of the five forces is graded on the basis of the intensity and duration of their influence

on the current market landscape. The magnitude of the impact has been categorized as

described below:

Low - Negligible or no impact on the market landscape

Moderate - Medium-level impact on the market

Moderately High - Significant impact on the growth of the market

High - Very high impact, with radical influence on the growth of the market




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07.Market Segmentation by Deployment Model

The global ECM software market can be segmented on the basis of deployment model into the

following:

Cloud-based ECM

On-premises ECM

Cloud-based ECM

Cloud-based ECM provides organizations with the flexibility of storing and accessing data content

quickly with no additional expenditure on servers and system integrators. It is preferred over the

on-premises model because of the growing demand for cloud technology and the need to

reduce operational costs.

On-premises ECM

In the on-premises model the software is purchased and installed on the user enterprise's server.

This method requires more maintenance, but is highly secure and easy to manage.

Exhibit 4: Global ECM Software Market by Deployment Model 2014


The cloud ECM segment accounted for 9.34% of the market share in 2014 and is expected to grow

rapidly by 2019. Many vendors have started delivering ECM solutions on the cloud to cater to the




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growing demand from enterprises. Corporate IT departments can implement the solution at low

cost as the software is maintained at the vendor's data center and can be accessed on a

subscription basis without the need for any software installation at the premises of the user.

In 2014, the on-premises ECM segment accounted for 90.66% of the global market. This model is

more expensive than the cloud deployment model as it requires end-users to have a software

license and install in-house hardware. The model provides options for customization and high data

security, but it is likely to register a declining growth rate during the forecast period.

Exhibit 5: Global ECM Software Market by Deployment Model 2014-2019 ($ billions)


The global cloud ECM software market was valued at $0.57 billion in 2014 and is expected to

reach $1.26 billion by 2019, growing at a CAGR of 17.06%. The BFSI sector in APAC is at the forefront

of adopting the cloud deployment model.

The global on-premises ECM software market was valued at $5.55 billion in 2014 and is expected

to reach $10.35 billion by 2019, growing at a CAGR of 13.29%. Rapid growth, an increase in M&A,

and product diversification have made the market highly competitive, so vendors have to

constantly innovate to gain or maintain market share.




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Exhibit 6: Global ECM Software Market by Deployment 2014-2019


The revenue generated by the on-premises ECM segment is expected to decline during the

forecast period, and by 2019 the segment will hold a market share of 89.18%. Companies that do

not have the expertise to maintain their own IT infrastructure prefer to outsource their IT-related

activities to third-party service providers.




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08.Market Segmentation by Component Type

08.1 Global ECM Software Market by Component Type 2014The DMS and WCM segments together held a market share of more than 40% in 2014, and they

will post rapid growth during the forecast period and continue to dominate the market.

Exhibit 7: Global ECM Software Market by Component Type 2014


The DMS segment accounted for 22.27% of the market share in 2014 and is expected to grow

rapidly by 2019

The WCM segment accounted for 18.68% of the market share in 2014 and is expected to grow

moderately during the forecast period

The DCC segment accounted for 15.86% of the market share in 2014 and is expected to grow

at a moderate pace

The records management segment accounted for 12.52% of the market share in 2014 and isexpected to witness less growth during the forecast period

The document imaging segment accounted for 11.51% of the market share in 2014 and is

expected to grow slowly by 2019

The BPM segment accounted for 10.67% of the market share in 2014 and is expected to grow

rapidly by 2019

The other components segment accounted for 8.49% of the market share in 2014




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08.2 Global ECM Software Market by Component Type 2014-2019

Exhibit 8: Global ECM Software Market by Component Type 2014-2019


The DMS segment has the highest share in the global ECM software market and is expected to

account for 22.41% of the market in 2019. One of the key factors contributing to the growth of this

segment is the increasing demand from SMEs. Documents are used in key business areas in every

organization, whether they are commercial, governmental, non-profit, or any other type of

organization. Documents contain business information that links all the business functions of an

organization and thus they are a constituent part of business processes.

The WCM segment is growing at a higher rate than the overall ECM software market. Some of the

major drivers of this segment are the increasing importance of data-rich Internet applications,

increasing adoption of contextual content management, and increasing focus of companies on

consumer-centric marketing.




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The DCC segment is expected to account for 15.96% of the global ECM software market by 2019.

The dynamic nature of the business environment is encouraging organizations to implement DCC

platforms to remain competitive in the market. Also the adoption of cloud computing has resulted

in a lowering of the implementation cost DCC solutions. This will encourage SMEs to adopt such

solutions, which will further enhance the growth of the market.

The records management segment is expected to account for 12.42% of the global market by

2019. This segment is driven by increasing demand from companies that wish to improve their

business processes, automate procedures, and reduce costs. In addition, the need to comply with

various government regulations are expected to drive the growth of the market.

The share of the document imaging segment will decline slightly during the forecast period.

Document imaging management systems are used across industries to effectively manage

documents for increased ease and process efficiency. The document imaging management

market in the US is dominated by financial companies, which occupy a major share of the market.

However, document imaging management in the Healthcare industry is growing at a faster rate,

and healthcare companies will be a powerful driver of the market by 2019.

The BPM segment is expected to account for 10.79% of the global market by 2019. BPM is used by

organizations for assigning work tasks, content delivery, and auditing of data content and various

other tasks.




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09.Market Segmentation by End-user

The global ECM software market is categorized into the following end-user segments:

09.1.1

Major Users

BFSI

Government

Healthcare

BFSI

The BFSI sector is under strict regulatory and legal pressure to maintain both physical and

electronic records to comply with regulations. Any violation in compliance by BFSI companies can

lead to penalties and could damage their corporate image, eventually leading to the loss of

market value. This has forced many financial services companies to intensify their focus on ECM.

Government

The government sector is also a key end-user of ECM software solutions. Many countries worldwide

have implemented FOI legislation. The establishment of such laws requires government agencies

to maintain a record of relevant documents and produce them as and when required. The need

for transparency in government agencies continues to push ECM implementation in the

government sector.

Healthcare

Healthcare providers are increasingly using ECM solutions to address increasing regulatory

compliance and economic costs. Intensifying competition to provide superior quality care and

services at a reduced cost has forced healthcare providers to implement content management

solutions.

09.1.2

Other Notable Users

Education

Legal

Consumer goods

Manufacturing

Media and entertainment

Retail

Telecom and IT

Transportation




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The education and legal sectors are among the other notable end-users in the global ECM

software market. The growth of the education services sector is encouraging many education

service providers to implement ECM solutions to deal with the huge volumes of information stored

in universities.

Legal firms are increasingly using ECM solutions to comply with legal requirements by keeping

track of all legal transactions and managing the associated risks. As a result of the exponential

increase in information flowing over the Internet, the risk of losing critical content is higher than

before. The ability of ECM solutions to automate the capture of documents for future use in

litigation and legal compliance is pushing many legal firms to adopt ECM solutions. Market

Segmentation by Geography

09.2 Global ECM Software Market by Geography 2014The Americas accounted for the majority of the market in 2014 with a share of 52.36%. While it will

witness declining growth during the forecast period, it will continue to dominate the market with

a share of 51.08% in 2019.

EMEA accounted for a market share of 32.57% in 2014 and will register a moderate growth rate

because of the high adoption of ECM software solutions by the BFSI sector.

APAC accounted for a market share of 15.07% in 2014. However, the region will, increase its market

share and post significant growth by 2019.

Exhibit 9: Global ECM Software Market by Geography 2014





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Exhibit 10: Global ECM Software Market by Geography 2014-2019


09.3 Global ECM Software Market by Geography 2014-2019

The Americas recorded revenue of $3.2 billion in 2014 and is expected to reach $5.93 billion by

2019, growing at a CAGR of 13.1%. The high adoption of cloud ECM is the major growth driver of

this market.

The market in EMEA was valued at $1.99 billion in 2014 and will reach $3.8 billion by 2019, growing

at a CAGR of 13.76%. EMEA is expected to account for 32.71% of the global market by 2019. The

UK and Germany are the major revenue-generating countries in the region. APAC realized

revenue of $0.92 billion in 2014 and is expected to realize $1.88 billion by 2019, growing at a CAGR

of 15.33%. Increased investments in the SME sector in the adoption of ECM solutions will help the

region increase its market share to 16.21% by 2019.




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Exhibit 11: Global ECM Software Market by Geography 2014-2019 ($ billions)





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10.Key Leading Countries

10.1 US

Due to the presence of many major ECM solution vendors in the US, the country is considered to

be the leader in the global ECM software market. It accounted for a market share of 35-37% of

the global ECM software market in 2014. The large volume of data generated by enterprises

applications is one of the major drivers in this market.

10.2 Germany

The presence of many large-scale industries has made Germany a leading country in the global

ECM software market. It accounted for a market share of 18-20% of the global ECM software

market in 2014. The need to reduce the time taken for service delivery is driving the market in

Germany.

Major Driver

Large Volume ofData Generated by

Enterprises

Major Challenge

Intense Competition

Major Trend

Growing M&A amongVendors

US

35-37%

Japan

8-10%

Germany

18-20%

Brazil

10-12%




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10.3 Brazil

The increasing importance of effective content management is driving the ECM software market

in Brazil. The country accounted for a market share of 10-12% of the global ECM software market

in 2014. However, concerns about the privacy of data, especially in cloud infrastructure, poses a

significant challenge to this market's growth.

10.4 Japan

In Japan, the market is witnessing high growth because of the need to effectively manage

corporate assets and the growth in the services sector have driven enterprises to invest heavily in

ECM to sustain their business growth and improve productivity. The market in Japan accounted

for a share of 8-10% of the global ECM software market in 2014.

Major Driver

Need to ReduceService Delivery Time

Major Challenge

Managing RegulatoryCompliance

Major Trend

Growing Adoption ofCloud ECM

Major Driver

Effective ContentManagement

Major Challenge

Data SecurityConcerns

Major Trend

Support fromGovernment Sector

Major Driver

EffectiveManagement ofCorporate Assets

Major Challenge

High Cost ofImplementation

Major Trend

Entrance of ForeignPlayers




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11.Buying Criteria

Parameter Details Customer Segments Significance Attached

Security

The ECM solution should

provide effective security

features to protect

against unauthorized

access and prevent

alteration or deletion of

content.

BFSI

Government

Healthcare

Scalability


be able to provide all

content management

features as well asadditional features

depending on

requirements.

BFSI

Government

Healthcare

Compatibility


have the capability to

integrate with pre-existing

technologies and third-

party tools to process

documents.

BFSI

Government

Healthcare

Cost


be cost-effective for

adoption by a variety of

organizations.

BFSI

Government

Healthcare

Key

The impact of the buying criteria is graded on the basis of the intensity and duration of their

influence on the current market landscape. The magnitude of the impact has been categorized

as described below:




Low High

1 2 3 4 5

Low High

1 2 3 4 5

Low High

1 2 3 4 5

Low High

1 2 3 4 5

Low High

1 2 3 4 5

Low High

1 2 3 4 5

Low High

1 2 3 4 5

Low High

1 2 3 4 5

Low High

1 2 3 4 5

Low High1 2 3 4 5

Low High

1 2 3 4 5

Low High

1 2 3 4 5




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12.Market Growth Drivers

Some of the major drivers in the global ECM software market are:






An ECM solution increases productivity and efficiency and also provides secured document

retention and backup recovery. Organizations are seeking systems that can manage files and

documents in a systematic manner. In addition, they are focusing on streamlining business

processes and increasing efficiency. An ECM solution helps organizations to control and manage

documents in order to respond more quickly to business changes as they occur. To transform their

current business activities into more streamlined processes, organizations are increasingly

adopting DCC solutions that reduce costs, increase productivity, and reduce risk as a means to

become more responsive to the changing business environment.


An ECM solution saves time through improved data handling, which allows organizations to

provide an immediate response to information requests and auditor requests. Retrieval becomes

an issue when the volume of documents is huge. ECM can enable organizations to find

documents and files in seconds rather than hours. Moreover, the volume of semi-structured and

unstructured content is rapidly increasing in organizations, particularly in the BFSI and healthcare

sectors. Therefore, organizations are under increasing pressure to set up and maintain an efficient

system for content retrieval.


Organizations are moving toward the paperless office concept to reduce their environmental

impact. The vast use of paper in business affects the environment in many ways. In general, the

planet's natural resources are being consumed faster than they can be replenished. More trees

are cut down every year than planted and forests worldwide are disappearing at a startling rate.

Also, paper processing and recycling produces chemical waste that enters into the ecosystem

via the ground or rivers and oceans. Thus the earths freshwater supply is greatly affected by

contaminants and so is the marine environment. The use of a DMS enables organizations to

replace printing and manual filing with electronic processes to reduce and eliminate paper

consumption and waste, and thereby reduce adverse impacts on the environment.




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The volume of content created, published, and shared within organizations is growing on daily

basis. An exponential rise in the volume of data and an increasing number of document input

channels is making it more difficult than ever for financial services organizations in particular to

manage critical information. The volume of data increases as organizations expand their

operations across nations and venture into new fields. Information records are corporate assets,

which if lost could threaten an organization's future viability. Therefore ECM solutions are

increasingly being adopted by the BFSI sector because they provide organizations with a platform

for managing and delivering information across an enterprise. They also help to reduce costs,

enable document collaboration, reduce loss of documents, and provide stakeholders with more

timely access to information.




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13.Drivers and their Impact

Driver Impact on Key Customer Category

BFSI Government Healthcare

Need to Increase

Productivity

Need for Effective Time

Management


Increased Demand from

BFSI Sector

DriverImpact on Region

Americas EMEA APAC

Need to Increase

Productivity

Need for Effective Time

Management


Increased Demand from

BFSI Sector

Key

The impact of the drivers is graded on the basis of the intensity and duration of their influence on

the current market landscape. The magnitude of the impact has been categorized as described

below:

Low - Negligible or no impact on the market landscape Moderate - Medium-level impact on the market


Low High

1 2 3 4 5

Low High

1 2 3 4 5

Low H

1 2 3 4 5

Low High

1 2 3 4 5

Low High

1 2 3 4 5

Low H

1 2 3 4 5

Low High

1 2 3 4 5

Low High

1 2 3 4 5

Low H

1 2 3 4 5

Low High

1 2 3 4 5

Low High

1 2 3 4 5

Low H

1 2 3 4 5

Low High

1 2 3 4 5

Low High

1 2 3 4 5

Low H

1 2 3 4 5

Low High

1 2 3 4 5

Low High

1 2 3 4 5

Low H

1 2 3 4 5

Low High1 2 3 4 5

Low High1 2 3 4 5

Low H1 2 3 4 5

Low High

1 2 3 4 5

Low High

1 2 3 4 5

Low H

1 2 3 4 5




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14.Market Challenges

Some of the major challenges facing the global ECM software market are:




Lack of Awareness about Content Management


The deployment of an ECM solution involves a very complex and costly process to define

requirements, and implementing a complete traditional ECM solution takes a very long time. This

increases the criticality of the process because once the deployment has started it becomes very

costly to make any further changes. It also requires expensive additional infrastructure, complex

programming, and extra time and money to ensure data integration and data quality. In addition,

most vendors charge extra for software updates that deliver improved features. Moreover, some

vendors force end-users to purchase updates by refusing to provide technical support if they have

not purchased the latest version.


Many organizations have concerns about the effectiveness of the collaboration between

different file formats. Employees usually save documents in their respective systems and in various

available file formats. The file format used by one employee can be different from that used by

another. Hence, opening the required file in a different system can become a difficult task.

Moreover, the exponential increase in the volume of enterprise documents is making it difficult for

organizations to control costs, improve responsiveness, and integrate business processes and

applications. The enterprise documents of any organization are corporate intelligence and are

compiled in a variety of formats such as text, images, video, presentations, and graphics. The

huge volume of data in different formats makes ECM solutions less effective when dealing with

different data types.


Enterprises are always concerned about their data security and related issues when using ECM

solutions. This concern is greater when the tool is installed using the SaaS-based model. During the

deployment of SaaS-based ECM solutions, the data resides in the cloud servers of the vendor,

which increases the risk of data mishandling. In a multi-tenant model, there is a higher risk of

information leaks, which could lead to misuse or manipulation of data. For organizations, the




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security of data is a vital aspect of cloud infrastructure and applications. In addition, many

enterprises are concerned about data loss and misuse by the IT professionals who install the tools.

Lack of Awareness about Content ManagementBoth large enterprises and SMEs face several challenges caused by poor content management,

including unnecessary expense due to large amounts of duplicated data and administration of

legacy systems. However, enterprises are still lagging behind in terms of understanding the benefits

of ECM and, most importantly, they do not know how to use it effectively to improve their content

retrieval process. However, market vendors and some large organizations have begun to provide

education and training in such solutions to employees, suppliers, and distributors.




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15. Impact of Drivers and Challenges

Key

The impact of the drivers and challenges is graded on the basis of the intensity and duration of

their influence on the current market landscape. The magnitude of the impact has been

categorized as described below:



Moderately High - Significant impact on the growth of the market





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16.Market Trends

Some of the major trends in the global ECM software market are:






In the past, SMEs had limited options when adopting a system that would ensure optimal business

performance because they did not require, or could not afford, all the features of enterprise-class

software systems. Their options were limited to freeware, low-end, or open-source solutions that

mainly focused on server or network monitoring. In recent years, many SMEs have become

increasingly aware of the benefits of ECM software and are looking for complete visibility of

business operations. This trend has created an opportunity for ECM solution vendors to develop

new versions of their products and attract SMEs, and thus improve their presence in this market.


Technological developments in cloud computing and mobile technology have led to advances

in ECM practices. Cloud-based ECM is adopted by organizations that want to place some

content in the cloud without compromising the security of their organizational content and it also

saves costs. Organizations are still in the early stage of this technological shift as much of their

focus has been on the private cloud and virtualization. However, some organizations have set up

their own data centers for moving their mission-critical applications to the cloud. In addition,

hybrid ECM is a suitable solution for cloud-based applications as mobile users can enhance

collaboration without disturbing existing production applications.


A greater number of business applications and advances in technology have made the use of

mobile devices for ECM popular among a large number of enterprises. In today's mobile-centric

world, organizations are increasingly adopting mobile document collaboration technology to

ensure that users can access and collaborate on content and business documents anytime and

anywhere using any device. A variety of applications and services are available for mobile

content access and collaboration, which enable employees to collaborate in real time and work

more effectively. In addition, smartphones and tablets have touch-based user interfaces, location

support, broad network connectivity, video support, and VoIP, which enable organizations to

better communicate, collaborate, socialize, create, and consume business content and




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documents over mobile devices. Mobile applications have transformed the Internet from a web-

centric to an app-centric model. These mobile tools are being provided by organizations to their

employees at work to drive their satisfaction and productivity.


As technologies evolve and support teleworking trends, more employees are working from home

than ever before. This is driving the demand for electronic workflow software. Businesses that use

electronic workflow solutions will be able to ensure performance is not slowed down because of

delayed approval processes. Since the solutions allow decision makers to digitally sign off on

operations, they support the mobile workforce without raising any productivity issues. The workflow

software manages the flow of engagement and document information through various steps. The

option of having a central control panel to monitor and facilitate engagement in a digital world

will become increasingly important in the coming years.




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17. Trends and their Impact

Key

The impact of the trends is graded on the basis of the intensity and duration of their influence on

the current market landscape. The magnitude of the impact has been categorized as described

below:







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18.Vendor Landscape

18.1 Competitive ScenarioThe global ECM software market is highly fragmented due to the presence of numerous small and

large vendors. As a result of increased competition, the market has been witnessing consolidation

where vendors are providing additional features and smaller entities are being acquired by or

merged with major players in order to remain competitive in the market. Several factors such as

the emergence of cloud computing, mobile solutions, social collaboration, and the need for large

vendors to strengthen their product portfolios are encouraging this consolidation.

In order to increase their customer base, vendors in the global ECM software market have

increased their focus on building solution packages. Pure-play vendors are innovative and

continually respond to customer requirements. This enables them to compete with the larger

vendors more effectively and the result is intense competition in the market. However,

consolidation and attrition are anticipated in the near future, which will make it harder for

organizations to select the right cloud-based ECM solution to meet their requirements.

It has been observed that established vendors such as IBM, EMC, Microsoft, OpenText, Oracle,

and HP are placing an emphasis on maintaining and growing their offerings to provide customers

with new value-added services and drive revenue opportunities at the same time.

Leading Vendors Analysis 2014

EMC

EMC has been experiencing a declining growth rate in the market over the past few years, while

its competitors are showing a strong growth rate. To address this issue, the company has formed

the Information Intelligence Group and, under a new leadership team, is developing cloud

content management and industry solutions. In 2010, the company acquired Greenplum, which

specializes in data warehouses and analytics and has more than 100 customers, including OMX,

NYSE Euronext, Skype, Equifax, and T-Mobile USA. This acquisition has helped the company to

significantly expand its client base.

IBM

IBM competes in the global ECM software market through two channels. First, the company

acquires and develops document management solutions and then sells them, and second, it

designs and implements its own ECM solutions through its Global Services Consulting division. Its

ECM offering is based on its FileNet DMS and its complementary software solutions. To cater to

organizations' document collaboration requirements, IBM offers the Lotus Connections platform,




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which includes wikis, blogs, user profiles, and other social networking capabilities, and is one of

the fastest growing software solutions developed by the company. The company's Lotus Quickr

application enables organizations to develop platforms to edit and share document-centric

content, such as Word and PowerPoint files. IBM can leverage its strong base of existing Lotus

customers to enhance its presence in the market. Also, IBM can focus on companies that are not

using Microsoft's SharePoint but are willing to move to social business software and greater

collaboration.

Microsoft

Microsoft offers SharePoint, a group of software solutions for collaboration, file sharing, and web

publishing. SharePoint is Microsoft's fastest growing server software product and combines ECM

with social networking features. The company has also introduced SharePoint 2010 with advanced

features to cater to the needs of SMEs. The company's SharePoint solution helps organizations to

handle document collaboration well and also offers integration with portal, document, WCM,

business intelligence, enterprise search, social, and application development capabilities in a

single offering. Microsoft SharePoint offers good integration with other Microsoft Office products

such as Outlook and Exchange for email and calendaring and Lync for unified communications.

With the release of SharePoint 2013, the company added sync and share capabilities with SkyDrive

Pro. The company is rapidly developing SharePoint as the portal of choice for team collaboration

and document sharing.

OpenText

The company's core offering is the OpenText ECM Suite, which effectively satisfies the content

management needs of organizations across various verticals. It focuses on enhancing life cycle

management, optimizing transactional content processes, and improving engagement through

more effective use of business content. The company's ECM suite includes various components

such as document management, collaboration, records management, email management,

archiving, WCM, digital asset management, social media, customer communications

management, portal, capture, business process management, and case management.

Oracle

Oracle offers the WebCenter Content solution, which incorporates the Oracle ECM Suite 11g. The

company made a significant move toward enhancing its web management capabilities with the

acquisition of FatWire Software in June 2011. This acquisition provides Oracle with features and

functionality that focus more on organizations' marketing departments than on their IT

departments. The company's WebCenter portfolio is made available to all of its core products

including Siebel and PeopleSoft, thus providing them with strong ECM functionality. However, the

company lacks strong archiving and compound document publishing capabilities.




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18.2 Other Prominent Vendors

Company Description

Adobe Global diversified software company

AlfrescoGlobal core ECM player with cloud-based content

management offerings

EPiServer Provider of WCM and online community platforms

Ever Team Integrated ECM solution provider

FabasoftDeveloper of software and provider of cloud services to

the public and private sectors across the globe

HP Global IT hardware and software provider

Hyland Software Global provider of cloud-based ECM software solutions

Laserfiche Global content management solutions provider

M-Files On-premises and cloud DMS provider

Newgen Software Technologies Global computer software solutions provider

Perceptive Software Global content management solutions provider

Saperion Global ECM solutions provider

SDLGlobal provider of translation services for multilingual

content

Software Innovation

Develops and sells ECM and information management

software built on the Microsoft SharePoint and Office

platform

SpringCM Global cloud-based ECM solutions provider

SunGard iWORKS Offers business process and ECM solutions

Systemware Global ECM solutions provider

Xerox Global document management solutions provider




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19.Key Vendor Analysis

19.1 EMC

19.1.1

Key Facts

Company Details Description

Stock Listings New York Stock Exchange

Ticker Symbol EMC




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19.1.2

Business Overview

EMC was established in 1979 and is headquartered in the US. It offers data storage, information

security, virtualization, analytics, cloud computing, and other products and services that enable

businesses to store, manage, protect, and analyze data. It operates in five different segments such

as information storage, VMware virtual infrastructure, RSA information security, information

intelligence group, and pivotal.

The company offers enterprise storage systems and software deployed in storage area networks,

networked attached storage, unified storage combining both object storage andor direct

attached storage environments, as well as providing backup and recovery, disaster recovery, and

archiving solutions.

The company also offers information security solutions that are engineered to combine agile

controls for identity assurance, fraud detection, and data protection. It operates in more than 86

countries by employing more than 60,000 people worldwide. It earned revenue of $23,222 million

in 2013.

19.1.3

Business Segmentation by Revenue 2013

Exhibit 12: EMC: Business Segmentation by Revenue 2013





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19.1.4

Business Segmentation by Revenue 2012 and 2013

Exhibit 13: EMC: Business Segmentation by Revenue 2012 and 2013 ($ millions)


19.1.5 Geographical Segmentation by Revenue 2013

Exhibit 14: EMC: Geographical Segmentation by Revenue 2013





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19.1.6

Business Strategy

Operational strategy

The company expects to invest in various technologies, including cloud computing, big data, and

IT, and to innovate in its R&D center worldwide. It plans to expand its product portfolio, thereby

increasing its customer base. The main aim of the company is to be the global leader in

virtualization and cloud infrastructure.

19.1.7

Recent Developments

Company Details Description

Key Partnerships January 2014: Enters into a partnership with Lockheed

Martin to jointly develop its market in the Israeli industry

Key Mergers and Acquisitions

May 2014: Enters into an agreement to acquire DSSD

February 2014: Completes the acquisition of AWS

Holding, paying approximately US$1.8 billion in cash

July 2013: Acquires Aveksa, a provider of cloud-based

services




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19.1.8

SWOT Analysis




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19.2 IBM

19.2.1 Key facts

Company details Description

Stock listing New York stock exchange

Ticker symbol

IBM




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19.2.2

Business overview

IBM is one of the largest vendors in the global big data services market. The company offers various

types of hardware, software, consulting, and infrastructure services. Its offerings find applications

in various sectors such as aerospace and defense, banking, consumer products, electronics,

healthcare, media and entertainment, retail, education, and government.

IBM's R&D operations differentiate it from its competitors. It annually invests about $6 billion in R&D.

The company conducts its research works with clients and business units through 12 global labs.

For 2013, the company spent about $6,226 million on R&D. IBM registered the highest number of

US patents for the 21st consecutive year in April 2013. Its range of patents represents a diverse

range of inventions.

As of December 31, 2013, the companys manufacturing and development facilities in the US has

about 18 million square feet of floor space, of which 16 million is owned and 2 million is leased.

Besides this, it has similar facilities in 15 other countries, wherein, of the total 6 million square feet of

floor space, 2 million is owned and 4 million is leased.

19.2.3

Business segmentation

The company conducts its business operations through the following five segments: global

technology services, global business services, software, systems and technology, and global

financing.

Exhibit 15: IBM: business segmentation





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IBM's global technology services segment offers IT infrastructure services and business process

services. This segment specializes in strategic outsourcing services, global process services,

integrated technology services, and technology support services. Its global business services

segment offers professional and application outsourcing services, and specializes in consulting

and systems integration and application management. Through its software segment, the

company offers middleware and operating systems software. Its Systems and Technology

segment provides computing and storage solutions, including servers, disk and tape storage

systems and software, semiconductor technology and products, packaging solutions,

engineering and technology services, and retail store solutions. IBMs global financing segment

offers services such as commercial financing, client financing, and remanufacturing and

remarketing.

19.2.4

business segmentation by revenue

The company generated revenue of $99,751 million in 2013.

Exhibit 16: IBM: business segmentation by revenue 2013


IBM's other segments, including corporate and other operations, accounted for 1% of the totalrevenue.




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19.2.5

Business segmentation by revenue 2013

Exhibit 17: IBM: business segmentation by revenue 2013


19.2.6 Business segmentation by revenue 2012 and