Magic Quadrant for Enterprise Content Management

Transcription

1 Magic Quadrant for Enterprise Content Management Gartner RAS Core Research Note G , Toby Bell, Karen M. Shegda, Mark R. Gilbert, Kenneth Chin, Mick MacComascaigh, 15 October 2009, R Enterprises consider ECM as both a strategy to deal with all types of content and a set of software products with capabilities for managing the entire content life cycle. They want ECM solutions to help them run, grow and transform their businesses. WHAT YOU NEED TO KNOW This document was revised on 4 November For more information, see the Corrections page on gartner.com. Unstructured content such as documents, images of forms, photographs, XML components, video clips, podcasts and messages represent the largest body of enterprise information assets. IT buyers are looking to reduce the cost of content management applications, and shorten implementation and integration times, while also addressing new demands from increasingly impatient businesses and end users. Business buyers are looking to take charge of critical content and process technologies, with increasing independence from the control of their IT departments. They are becoming confident about expressing this preference, thanks to support from diverse technology providers. Software as a service (SaaS), open-source software, composite content applications (formerly content-enabled vertical applications [CEVAs], see Note 1), and infrastructure vendors are all part of the enterprise content management (ECM) market in Drivers such as cost optimization and regulatory compliance further influence a shift in emphasis toward business buying, as do marketing messages from the vendors focused on ease of use, integration and administration. Despite an overall downturn in software spending, expenditure on ECM software held steady from 2008 to Compliance requirements, upgrades, added maintenance costs and point solutions have attracted investment from enterprises. Use this Magic Quadrant to assess which ECM vendors have the functional capabilities and vision to support your business objectives and requirements, and which would therefore make suitable strategic partners.

2 2 MAGIC QUADRANT This Magic Quadrant represents a snapshot of the ECM market at a particular point in time. Gartner advises readers not to compare the placement of vendors in prior years as this market is changing vendor acquisitions, partnerships, solutions development and alternative delivery models are evidence of this and the criteria for selecting and ranking vendors continue to evolve. Figure 1. Magic Quadrant for Enterprise Content Management challengers leaders Our assessments take into account vendors current product offerings and overall strategies, as well as their planned initiatives and product road maps. We also consider how well vendors are driving market changes and adapting to changing market requirements. This Magic Quadrant will help CIOs and business and IT leaders who are developing ECM strategies to assess whether vendors have the right products and enterprise platforms to support them. ECM technology has changed greatly in recent years, with broader suite functionality, better process control, improved ease of use and a stronger focus on records. As a result, we strongly advise organizations with ECM technologies that are more than five years old, or with multiple products across departments and geographies, to re-evaluate their content architecture. ability to execute Use this Magic Quadrant to understand the ECM market and how Gartner rates vendors and their packaged products. Draw on this research to evaluate vendors based on a customized set of objective criteria. Gartner advises organizations against simply selecting vendors that appear in the Leaders quadrant. All selections should be buyer-specific, and vendors from the Challengers, Niche Players or Visionaries quadrants may be better matches for your business goals and solution requirements. IBM Microsoft Oracle EMC Hyland Software Open Text Autonomy Xerox HP SAP Perceptive Software Laserfiche Objective Day Software Saperion Fabasoft Alfresco Systemware Xythos Software Ever Team SunGard SpringCM Siav Newgen Software Technologies niche players Source: Gartner (October 2009) visionaries completeness of vision As of October 2009 The ECM market registered double-digit growth from 2004 to 2007, but its expansion slowed to a single-digit rate in 2008, primarily due to the deteriorating global economic conditions. According to Gartner s statistics, worldwide ECM software license and maintenance revenue came to $3.3 billion in Market Overview Organizations need ECM to manage the increasing growth, volume and diversity of the unstructured content that now represents up to 80% of enterprise information. There is an opportunity to start applying to this content some of the rigor currently devoted to structured data in terms of valuation, elimination of redundancies, optimization of architectures for availability, enrichment of metadata, and overall life cycle control. We forecast that total software revenue in the ECM market will grow at a compound annual rate of 9.5% through The market s return to stronger growth is expected to start in 2010, with rates climbing to double digits and worldwide ECM software revenue exceeding $5.1 billion by This represents a healthy market, but it is also one that is undergoing transformation. The Magic Quadrant is copyrighted October 2009 by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner s analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the Leaders quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose Gartner, Inc. and/or its Affiliates. All Rights Reserved. Reproduction and distribution of this publication in any form without prior written permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartner s research may discuss legal issues related to the information technology business, Gartner does not provide legal advice or services and its research should not be construed or used as such. Gartner shall have no liability for errors, omissions or inadequacies in the information contained herein or for interpretations thereof. The opinions expressed herein are subject to change without notice.

3 The ECM market went through a period of major consolidation from 2003 to The pace of acquisitions then slowed until 2009, when Autonomy purchased Interwoven and Open Text acquired Vignette. We are now in the final stage of market consolidation as vendors look to gain market share and augment broader strategies in relation to information management by expanding composite content application foundations or promoting integration with Microsoft s SharePoint. Market Drivers In general, the economic climate from 2008 to 2009 has forced businesses to make difficult choices in terms of technology spending. However, the ECM market is somewhat insulated from the recession, for three reasons: The sheer size of increase in the volume and complexity of content is stimulating concern and investment. Pricing pressure from open-source vendors or competing stack or suite vendors has driven the price per seat in proposals down to discount level, which has stimulated higher demand (though increases in maintenance and services costs have partly offset this reduction). Often no single person controls the budget for all of an organization s ECM components and solutions, so point purchases remain common. These are often for independent projects whose business sponsors have a single return on investment (ROI) target. Attractive opportunities exist for organizations to consolidate or rationalize certain overlapping and expensive components of vast enterprise content architectures. The breadth and maturity of some ECM offerings means it may now be feasible to address fundamental ECM needs with products from fewer vendors. Regional vendors, vertical-market specialists, open-source software providers, and SaaS vendors may find openings in enterprise departments, but IT and business strategists should seek to rationalize a content architecture that protects against one-off tactical purchases which isolate information or user populations. The need to manage the risks associated with growing stores of unmanaged paper and digital content requires a focus on content valuation and governance. Vendors in various software and service markets are underscoring the threats from uncontrolled content by addressing different messages to different stakeholders in order to stimulate tactical spending on products for image capture, archiving, archiving, records management, policy management, storage (hardware and software), content repository federation, enterprise search, e-discovery, e-forms, and regulatory compliance. Recognition of this has encouraged enterprises to review their strategies for managing content life cycle, access control, availability and costs in more meaningful ways. Market Inhibitors Although the troubled economic climate is stimulating positive change in some scenarios, it is also causing some decision makers to be increasingly cautious. Gartner has noticed an increased requirement for thorough business cases with strong, well-supported ROI arguments. This will prevent any significant upturn in expenditure, but could help sustain the growth of the ECM market in the coming years as organizations realize the more tangible benefits of ECM platforms, frameworks and solutions, and communicate these internally. With a number of vendors introducing or expanding an ECM portfolio, it is sometimes difficult to separate an offering that can support an organization s ECM strategy from one that offers only the more commoditized, basic functions, or that merely supports a single process or user population. Confusion about the breadth and relevance of available ECM software is helping incumbent vendors, commodity-priced alternatives and point solutions with proven near-immediate ROI. With so many applications already in play in most enterprises, strategy should focus on portfolio analysis, project and stakeholder prioritization, and reduced complexity. Key Trends in the ECM Market Among the primary trends that IT architects and planners and business leaders must consider as they develop content management strategies and determine their strategic partners are the following. ECM is now part of IT infrastructure and delivered by infrastructure vendors such as HP, IBM, Oracle, Microsoft and SAP. Inquiries received by Gartner suggest that enterprise architects and IT planners are increasingly looking to standardize on one or more of these vendors strategic platform offerings to support multiple content applications. Integration and federation of content repositories is now critical. Content Management Interoperability Services (CMIS), the Web services protocol jointly developed and proposed by EMC, IBM, Microsoft and others, may succeed where others have failed. It is designed to provide a vendor-neutral way of developing applications that can access content stored in any CMIS-compliant repository. Web channel technologies that deliver improved experiences, customer conversions and loyalty are a primary focus of many enterprises. The influence of the chief marketing officer in directing spending on marketing machines that capitalize on Web content management (WCM), digital asset management (DAM), Web analytics, portals, e-forms, document composition features, social communities, mobile device support and business process management (BPM) is now obvious. The ability to deliver more compelling, dynamic, personalized and media-rich content to any audience on any device, and to measure more accurately the value of the interrelationships of people, processes and content, has led to a breakaway from the ECM suite: WCM for marketing. Application specificity, based on evolving buying centers. Fewer ECM vendors will focus on bundling generalist functions (such as imaging, library services and document collaboration), leaving these functions to infrastructure vendors. Most vendors will instead focus on adding value by bundling specific functions as base configurations vertical or horizontal solutions that are integrated with industry, ERP or CRM applications. Composite content applications are how ECM vendors will deliver value to business buyers. Broadly, such solutions fall into three categories, according to the technologies most often involved in their development. Very few vendors have a market-leading emphasis on, and ability in, all three categories. The three categories are as follows: 3

4 4 Transactional content management solutions focus on imaging, workflow/bpm, archive, records management and e-forms. Content contained within these solutions tends to be static. Processes tend to be long-running and have a high number of forms or documents that demand scalability, life cycle control and human approval (primarily on exceptions). An application interface is almost certain. Collaborative content management solutions focus on compound content object control and library services; document collaboration; workflow automation with alerts, calendaring and task-tracking; browser or portal viewing; and markup, annotation and version control. The focus is on high-value people being involved in the project-based or long-running development and delivery of high-value content and on optimizing the processes, interfaces and objectives that relate them. Contextual content management solutions focus on sets of Web channel technology, such as WCM, DAM, portals, e-forms, Web analytics, social software, XML authoring, rich media management and mobile device support, and on optimizing them to serve as Web-delivered engagement platforms for a variety of industry-focused solutions. Alternative delivery models. More companies and governments want new methods of obtaining ECM capability, including SaaS and open-source software. These new methods will grow in comparison to conventional delivery, but will not eclipse it. Emerging solutions as a service or hosted composite content applications represent the best conversion leverage from on-premises to cloud-based content for business buyers looking to keep costs low and take advantage of optimal combinations of technology, location and process logic. Many suite vendors will deliver SaaS as a satellite offering. The influence of metadata is becoming clearer, whether abstracted from existing paper and digital documents or added when authored, and whether tied to a formal taxonomy or tagged informally by users. As more content objects, ranging from small XML components to larger rich-media files, need to be managed better, the concept of granularity in the content itself, in the policies and rules associated with content processability, and in user information (wants/needs, presence, location) is a key planning consideration for enterprises seeking fuller leverage of information as assets. The more descriptors a content object has, the more likely it is to deliver more value in various contexts. Enhanced usability for nontechnical target audiences. It is now normal for user interfaces for content contribution, consumption and collaboration to be competitive differentiators. More capabilities are becoming easier to access and use, and they include a vast array of modular functions that can be turned on or off as required. Although an ideal content client has yet to emerge, usability and the end-user acceptance are becoming key criteria for selection. The continued influence of the midmarket as a buying center particularly for composite content applications in healthcare, government, financial services, higher education and invoice automation is bringing higher revenue to even some of the larger ECM vendors. Those that focus here have seen significant growth year over year. Here is also an early opportunity for SaaS and open-source vendors to gain traction and visibility. Hybrid Content Architectures Emerge Gartner s analysis shows that organizations of all sizes and in all geographies are considering Microsoft Office SharePoint Server 2007 (MOSS 2007) because of the breadth of capabilities it offers, and because Microsoft is already one of their strategic infrastructure providers. As SharePoint takes hold in an organization, users naturally begin exploring its suitability for a wider range of content management applications and its potential as a replacement for existing solutions. But organizations requiring advanced content management capabilities and process-centric applications will need to augment SharePoint s capabilities with partner offerings or deploy MOSS 2007 alongside an ECM system, rather than as a replacement for it. For organizations where broader information consistency and consistent semantic representations are critical, strategy will become somewhat more complicated. Issues like federated search, metadata strategies, and interoperability between content and records management systems will be critical considerations in SharePoint deployments. Although ECM vendors are touting their ability to integrate with SharePoint, it often isn t integration as much as copying files over. When evaluating integration, always attempt to have one version of the truth. Having one document in SharePoint and a supposed duplicate in an ECM system invites data integrity issues if the documents actually aren t the same, which is the right one? Many enterprises have failed at content management and might be better advised to determine what percentage of content not to manage and to use a resource for that purpose. A draft layer of content at the infrastructure level, with life cycle assignment only upon content creation and a promotion path to the repository of record, makes for a likely preliminary hybrid content architecture plan. Market Definition/Description ECM defined as a strategy can help enterprises take control of their content and, in so doing, boost productivity, encourage collaboration and make information easier to share. ECM defined as software consists of applications that interoperate, but that can be sold and used separately. Gartner defines today s ECM suites as encompassing the following six core components: Document management for check-in/check-out, version control, security and library services for business documents. Document imaging for capturing, transforming and managing images of paper documents. Records management for long-term archiving, automation of retention and compliance policies, and ensuring legal, regulatory and industry compliance. Workflow for supporting business processes, routing content, assigning work tasks and states, and creating audit trails.

5 WCM for controlling the content of a website through the use of specific management tools based on a core repository. It includes content creation functions, such as templating, workflow and change management, and content deployment functions that deliver prepackaged or on-demand content to Web servers. Document-centric collaboration for document sharing and supporting project teams. Inclusion and Exclusion Criteria To appear in this Magic Quadrant, a vendor must meet Gartner s criteria for revenue, geographic presence, functional capabilities and referenceability. Specifically, a vendor must: Have at least $10 million in total content management software revenue (licenses, updates and maintenance). An open-source software vendor must have at least $10 million in annual customer subscriptions for maintenance and support. Actively market its products in at least two major regions for example, North America and Europe, the Middle East and Africa (EMEA), or Asia/Pacific and Latin America. Have ECM software commercially available, and active references that use its products in production scenarios. Have a content management suite that addresses the core components listed below. A vendor should have an integrated suite with at least four of these components supplied natively; others may be supplied through partners. Core components of an ECM suite are: Document management. Advanced capabilities such as compound document support and content replication score more highly than do basic library services. Document imaging. For this component we require a vendor to offer two things: (1) document capture (scanning hardware and software, optical and intelligent character recognition technologies and form-processing technology) performed either using native capabilities or through a formal partnership with a third-party solution provider such as Kofax, EMC (Captiva) or Datacap; (2) the ability to store images of scanned documents in the repository as just another content type in a folder, and route them through an electronic process. Records management. The minimum requirement is an ability to enforce retention of critical business documents based on a records retention schedule. Higher ratings are given for certified compliance with standards such as the Department of Defense (DoD) Directive STD, The National Archives (TNA), the Victorian Electronic Records Strategy (VERS) and Model Requirements for the Management of Electronic Records (MoReq). Several ECM vendors qualify for independent analysis of their records management functionality. Workflow. The minimum requirement is simple document review and approval workflow. Higher points are given to vendors with graphical process builders, and serial and parallel routing. Several ECM vendors qualify for independent analysis of their workflow automation or BPM functionality. Web content management. The minimum requirement is a formal partnership with a WCM provider. Native capabilities score more highly than partnerships. Several ECM vendors qualify for independent analysis of their WCM functionality. Document-centric collaboration. Document sharing, project team support and support for ad hoc, threaded discussions about documents. Added Autonomy entered the ECM market in 2009 by acquiring Interwoven, a visionary with strong Web channel and collaborative document management offerings. Also new this year are several strong regional vendors of transactional content software: Fabasoft, Laserfiche, Newgen Software Technologies, Perceptive Software, Siav and Systemware. SpringCM, whose focus has been collaboration and composite content applications, has been selected as the first SaaS-only ECM vendor. Dropped Interwoven was acquired by Autonomy in March 2009 and is no longer an independent entity. Vignette was acquired in July 2009 by Open Text and is no longer an independent entity. Evaluation Criteria Ability to Execute Ability to Execute measures how well a vendor sells and supports its ECM products and services on a global basis. In addition to rating product capabilities, we evaluate each vendor s viability, installed base, pricing, customer support and satisfaction, and product migrations from one major release to another. Evolving Requirements To be considered for the Leaders quadrant, a vendor must provide most components natively, though they may be loosely coupled as a suite. 5

6 6 Though not explicitly identified as a core component, information access or search technology has always been a critical component of an ECM suite, and it plays a big role in helping companies sift through structured and unstructured information. All ECM products ship with a search engine embedded as a core component, so that users can create a full-text index and search the content stored in repositories. Some vendors have added extended components, such as DAM for handling rich media, e-forms, document and archiving, and document composition for high-volume generation of customized documents. Table 1. Ability to Execute Evaluation Criteria Evaluation Criteria Product/Service Overall Viability (Business Unit, Financial, Strategy, Organization) Sales Execution/Pricing Market Responsiveness and Track Record Marketing Execution Customer Experience Operations Source: Gartner Completeness of Vision Completeness of Vision focuses on potential. A vendor might succeed financially in the short term without a clearly defined vision or strategic plan, but it won t become a leader. A vendor with average vision anticipates change by accurately perceiving market trends and exploiting technology. A vendor with superior vision anticipates, directs and initiates market trends, particularly if it integrates its vision for a broad range of areas, and capitalizes on product and service development. Evolving Requirements Weighting High High High Part of our assessment involves looking at how well each vendor understands changing requirements and market trends. We evaluate vendors on their awareness and adoption of emerging functionality, their technical architecture (for example, standards support, Web services and Web 2.0 capabilities), and their focus and abilities in federating and integrating with other content repositories and applications. Table 2. Completeness of Vision Evaluation Criteria Evaluation Criteria Market Understanding Marketing Strategy Sales Strategy Offering (Product) Strategy Business Model Vertical/Industry Strategy Innovation Geographic Strategy Source: Gartner Leaders Weighting High Low Leaders have the highest combined scores for Ability to Execute and Completeness of Vision. They are doing well and are prepared for the future with a clearly articulated vision. In the context of ECM, they have strong channel partners, presence in multiple regions, consistent financial performance, broad platform support and good customer support. In addition, they dominate in one or more technology or vertical market. Leaders deliver a suite that addresses all six core components, though these are not necessarily owned by them, tightly integrated, unique or bestof-breed in each area. We place more emphasis this year on demonstrated enterprise deployments; integration with other business applications and content repositories; incorporation of Web 2.0 and XML capabilities; and vertical process/horizontal solutions focus. Leaders should drive market transformation. There are five Leaders in this year s Magic Quadrant. Challengers Challengers offer good functionality and have a substantial number of installations, but they lack the vision of Leaders. They don t possess all the core ECM components. Instead, they use partnerships to round out their suites. Hyland Software is the only Challenger in this Magic Quadrant. Visionaries Visionaries may offer all capabilities natively or they may partner with other vendors for several core ECM components. In some cases, Visionaries will need to integrate their acquisitions into their product suites. They typically show a strong understanding of the market and anticipate shifting drivers. They may lead efforts relating to standards, new technologies or alternative delivery models, but they have less ability to execute than the Leaders. They are building their market presence.

7 Niche Players Niche Players typically focus on specific categories of ECM technology (such as transactional content management), midmarket buyers, or supplements to the offerings of business application or stack providers. They may also be infrastructure vendors delivering basic content management functionality (like SAP, for example). This category may include vendors that are still ramping up their overall ECM efforts and that have neither the vision nor the execution to break out of the Niche Players quadrant. Some Niche Players are boutiques that serve only certain regions, industries or functional domains, not the broader market. Vendor and Alfresco Since 2005, Alfresco has led the drive for open-source ECM to become more widely accepted. Alfresco supports two business models: (1) a community version in the true sense of open source; (2) an enterprise version that is built on open-source technology but for which Alfresco charges a subscription fee to cover maintenance and support. Alfresco provides document management, WCM, records management, DAM, collaboration and imaging capabilities both directly and through OEM partnerships. Website: Alfresco s key OEM relationships with Adobe, Quark and Ricoh, among others, provides some assurance of viability. Alfresco s management, partners and industry visibility all contribute to its relevance in a competitive market as do lower entry and maintenance costs. Its focus on the use of social networking, mashups and the standards that support them will keep application developers interested in Alfresco. Alfresco s suite is still evolving and its WCM capabilities are not as mature as its core document management services. Alfresco provides published application programming interfaces (APIs), but does not have packaged, certified integration with ERP or CRM applications such as those of SAP and Oracle (Siebel CRM). This level of integration is typically a prerequisite for transactional content processes, and some Alfresco partners have built these for customers. As is not uncommon with open-source software, customers of Alfresco sometimes need a higher degree of technical competency to manage implementation. Autonomy A leader in enterprise search and e-discovery, Autonomy bolstered its presence in the ECM market in 2009 by acquiring Interwoven, a Visionary in 2008 s Magic Quadrant. Prior acquisitions included Meridio, a document and records management provider, Zantaz, an archiving and policy management provider, and Verity, a search, process and e-forms vendor. Autonomy has demonstrated its ability to implement policy-based governance for financial services, regulated industries and law firms, but must still prove itself as a broader ECM contender. Autonomy is not a traditional repository-centric content management vendor, but has a solid vision and expanded capabilities in contextual and federated content management. Website: Autonomy has the installed base and technology to build momentum in ECM. It signaled a strong interest in Web channel technology by integrating its Intelligent Data Operating Layer (IDOL) platform and Optimost analytics into TeamSite, and by creating a promotional message about meaning-based marketing that seems to resonate with WCM buyers. Autonomy is more visible than in previous years. As a result, it is being considered for more ECM opportunities. Autonomy has now built and/or bought enough products to exploit a transition to automated, cloud-based ECM on a single platform for all data types Autonomy s strong portfolio of acquired companies and technologies does not yet form a cohesive whole. Autonomy has limited capabilities in transactional and composite content applications, which is where differentiation in terms of scale and vertical solutions is required. Autonomy will need to develop an ECM solutions strategy that extends beyond legal drivers and regulated markets. Day Software Day Software has been a visionary for several years by virtue of its technical foundation, which includes support for open-source products and standards such as JSR-170/JSR-283 and CMIS, and a focus on developing composite content applications. Day s CRX platform is focused on contextual content management with WCM, document management/dam and social collaboration. Website: 7

8 8 Day has led industry efforts on integration standards such as JSR-170 and, more recently, JSR-283 and CMIS. It has also been instrumental in developing the Java Content Repository, a standards-based repository based on Java Specification Request (JSR) specifications. The entire Day platform is based on a single modern modular architecture and platform built on open standards and an opensource core. New DAM and social collaboration services, and new OEM and technology partnerships, are strengthening this vendor s composite content applications strategy. Day has exhibited improved market understanding and marketing strategy in the past year, and has built a number of valuable partnerships. Day has seen volatility in recent years. A recent management revamp, new products and a return to profitability in 2009 might signal increased stability. Given its focus on standards, Day might seem distracted from the goal of delivering an ECM suite. As with several standards-based or open-source platforms, Day s software may require deeper technical and administrative skills to implement. EMC EMC continues to move closer toward alignment of its hardware, software, services and solutions capabilities in ECM. The introduction of two key product combinations SourceOne for archiving and e-discovery, and CenterStage as both a client for Documentum and for unifying collaboration across social media supplements its existing strengths. Transactional content applications where EMC s emerging BPM suite and powerful on-ramp (Captiva) and off-ramp (Document Sciences) acquisitions can be coupled continue to attract the interest of large enterprises. Website: EMC s collection of content application functionality is delivered more seamlessly than those of other market leaders. Supplementing its core components are a number of archive, process, digital asset, forms, analytics and storage options. No other vendor has as effectively built a content management stack that can manage content across its entire life cycle. EMC is also part of the CMIS standard initiative, which positions it to put content in competitor repositories under management. EMC has positioned itself aggressively as a development platform for composite content applications, using the right components to deliver basic configurations of its product for solutions buyers in large markets. An early example is case management, delivered on its Documentum xcelerated Composition Platform (xcp). Challenging its ecosystem of partners and customers (and its own internal resources) to build code-free applications on its case-based platform is an important next step. EMC has the customer base, global presence, technology assets, sales force and message to remain at the top of the mature ECM market, especially in the life sciences, financial services, and telco, media and entertainment sectors. It is also investing in alternative delivery models, including SaaS and cloud hosting, with the intention of challenging newer entrants. EMC s product delivery, promotion and road maps for ECM are fairly tactical and pragmatic, not clearly tied to a broader corporate strategy for enterprise information management. The company s marketing messages seem more geared to idealizing combinations of software with storage hardware for short-term sales synergies. Considering its enterprise penetration, EMC should find upselling easy, yet its revenues from maintenance and new licenses lag behind those of others. EMC needs to hone its messaging and positioning, particularly for CenterStage and SourceOne, in order to communicate a more cohesive strategy for ECM and to educate the market effectively. A key consideration to stave off competition in enterprise accounts, while adding value with new offerings, will be to explain why they should invest in Documentum now. The Documentum family of products includes more than 30 branded components, and the contracts for any implementation can be daunting to understand. Although EMC has concluded that bundling is a good idea in product terms, it has yet to clarify and add value to its sales process, so its message remains confusing to customers. Ever Team France s Ever Team focuses on vertical-market solutions, SharePoint supplements and transactional content management in EMEA. It has a growing footprint in the energy industry. Ever Team is one of the few vendors that offers both Java EE and.net platform support. Website: A substantial portion of Ever Team s new license revenue and growth derives from its partner channel. Ever Team delivers a good program for services partner certification and continues to build an ecosystem for the development and delivery of composite content applications.

9 Ever Team delivers a range of products developed for fast deployment and low cost of services. Ever Team has a very small footprint in key markets outside France, Spain and the Middle East, and must build an even stronger channel. Ever Team s range of solutions from those for small and midsize businesses to large enterprises is not matched by the marketing muscle necessary to build visibility. Ever Team will have to pick a primary focus and marketing approach to succeed. Fabasoft Fabasoft, an Austria-based company, was founded in The Fabasoft Folio product family covers a broad range of ECM capabilities. This vendor has focused heavily on government and compliance applications. It also has gained some traction with its Mindbreeze enterprise search offering. Website: Fabasoft s records management module is the first, and currently only, offering to be certified for the MoReq2 standard, which was released in February The Fabasoft Folio suite provides a comprehensive set of capabilities, including project management, DAM, and SAP and SharePoint archiving. Fabasoft built its ECM suite from the ground up, and uses standards such as Ajax, Web Distributed Authoring and Versioning (WebDAV), SOAP and Internet Message Access Protocol (IMAP). Fabasoft must expand its footprint in North America and grow its system integrator (SI) partner channel. It currently works with CSC and Unisys, but in a regional capacity (CSC in Austria and Switzerland, and Unisys in Portugal, for example). Some capabilities of the Fabasoft Folio suite, such as WCM, are not equal to those offered by best-of-breed providers. HP HP entered the ECM market in 2008 with its acquisition of Tower Software. Although HP TRIM software addresses a range of ECM capabilities, it focuses on document and records management. HP is using the HP TRIM platform to extend its vision for information governance with a focus on productivity, compliance, archiving and e-discovery. Website: information-management-trim.html HP has the financial resources, services pull-through and global footprint to help HP TRIM compete better against established ECM vendors. HP TRIM has a particularly strong base of customers in government organizations, especially in the Asia/Pacific region. HP TRIM, along with the HP Integrated Archive Platform (IAP) product, provides a strong platform for information governance with records management and archiving. HP is still building a sales and partner channel to support HP TRIM on a global scale. Before its acquisition, Tower Software was regionally focused. HP TRIM s overall capabilities still lag behind those of the leading ECM vendors, particularly in WCM and process management. Substantial investments are needed to achieve parity. Customers report that the limited amount of professional services support with deep product familiarity is becoming an issue. Hyland Software Hyland Software has continued to exhibit a clear direction for its OnBase solution. The company has a strong vertical-marketfocused strategy based on.net architecture, SaaS availability, composite content application solutions medical records, claims processing and invoice automation and transactional content management fundamentals. It has grown both organically and through acquisitions. Website: 9 Fabasoft s developer platform (DUCX) needs to be made easier to use, starting with the addition of a graphical process modeler.

10 10 In 2009, Hyland improved its records management capabilities by earning DoD certification. This positions it better for buyers in government agencies. Hyland s embrace and extend strategy for SharePoint is bearing fruit as it staves off conversions and builds value in new accounts. Strong leadership, clear strategy, happy customers and verticalmarket focus make Hyland s OnBase a shortlist candidate for many companies. Hyland will have to continue to build a vertical-solutions partner ecosystem with strong domain expertise in a variety of business processes. IBM is a portfolio company with a broad but often overlapping set of products. Based on Gartner s discussions with IBM customers and prospects, this has caused confusion about IBM s overall vision and product road map. Though IBM has made progress in the past year, clients still report frustration with its inability to articulate a cohesive vision for its product brands. Within its broad content-related portfolio, some offerings are not equivalent to best-of-breed products from competitors (Lotus Web Content Management, for example), while others (such as Cognos Business Intelligence [BI] and Optim Integrated Data Management, in addition to Lotus Web Content Management) are only loosely coupled with IBM s core content platforms (FileNet P8 and Content Manager Version 8). IBM has begun addressing this challenge by bundling Cognos BI with FileNet BPM, for example and it intends to provide deeper integration between Lotus Web Content Management and its ECM products. Hyland needs to complete development and delivery of a richer client application that puts content (and users) in a processoriented context. Because of Hyland s continued success, it is potentially an acquisition target. IBM As a major IT infrastructure and services vendor, IBM has the opportunity to capitalize on its content management and related technologies in ways that its pure-play ECM competitors cannot. A strategic initiative driving much of the direction and integration of its ECM platforms involves the broader discipline of enterprise information management. IBM has multiple products that qualify as ECM, but it is strongest in transactional and collaborative content management for the financial services and government sectors. Website: www-01.ibm.com/software/data/content-management IBM remains the largest global ECM vendor by total software revenue, with a 22% market share in IBM has begun innovating through enhancements to its content analytics and mashup offerings, fostering composite application support and delivery. It delivered ECM-focused widgets for creating mashups as part of the FileNet P8 4.5 release. Tighter coupling of several components has yielded improved opportunities to create a platform for composite content applications with a case management foundation. Feedback from Gartner clients indicates that customers are frustrated with IBM s complex pricing model, the need for services resources to get products up and running, and the quality and consistency of technical support. Laserfiche Although Laserfiche has been in this market since 1987, it has only recently been successful in moving beyond departmental implementations. Laserfiche Rio (ECM) and Laserfiche Avante (BPM) are focused on helping enterprises move from paper-based processes to more efficient electronic ones. Laserfiche emerged from the imaging, workflow and archiving market. It generates transactional content management revenue via its reseller channel, which is focused on North America but has growing presence elsewhere. Website: Traditionally, Laserfiche has positioned itself as a vendor of lower-cost offerings for small and midsize enterprises needing DoD certified records management. Laserfiche has grown its business during the past five years. It continues to manage itself conservatively and to capitalize on its claim of delivering fast ROI. Value-based pricing and alternative models such as the ability to rent a Laserfiche system keep this vendor competitive, even against SaaS vendors.

11 Despite enterprise-scale implementations, Laserfiche s marketing efforts have not resonated fully with enterprise buyers. Its visibility and credibility need a boost. Laserfiche needs to expand beyond the government and educational markets, enter more geographies, and focus on dynamic and Web-oriented content. The combination of Rio and Avante to create composite content applications developed from the center and delivered via the channel will require focus and investment. Microsoft MOSS 2007 has been very successful in gaining seats and mind share for Microsoft, as well as for many of its partners and even its competitors. The next release is due in the first half of SharePoint is primarily a document management and collaborative content management platform, but its influence in the global ECM market cannot be overstated. Website: Because MOSS 2007 goes well beyond basic content management into portal, search and collaboration technologies, it has attracted a large following since its release almost three years ago. Few Gartner inquiries about ECM fail to touch on SharePoint, partly because of Microsoft s successful seeding strategy of including core library services in Windows SharePoint Services (WSS) that are free and easy to use. Thanks to Microsoft s position as a stack vendor, MOSS 2007 has attracted a very large ecosystem, with many thirdparty software vendors building extensions and system integrators generating big business around deployments and customizations. SharePoint has caused many enterprises to focus on an ECM strategy. This influence has also been felt by the other vendors in the market, which either position their products as logical supplements in a hybrid content architecture based on SharePoint, or shift their product messaging toward verticalmarket solutions that deliver value owing to their specificity to domains where Microsoft does not compete. Although SharePoint s flexibility is a benefit, it also creates challenges as enterprises struggle to build the right technical and information architectures. Microsoft has published guidance and made resources available to address this issue, but the breadth of MOSS 2007 s capabilities and the sometimes inflated expectations of sponsors can lead to deployment and governance concerns. Newgen Software Technologies From its base in India, Newgen has developed a strong presence in EMEA as a vendor of transactional content platforms for large financial services institutions and business process outsourcers. Strong leadership and key accounts management, relevant technology and a services partner program that is paying global dividends should support the company s entry into new markets. Website: Newgen s installed base includes some very large banks, insurers and business process outsourcers. The company s mix of on-premises, SaaS and hosted platform extensions relates well to the changing market. Newgen s focus on governance and risk control via its OmniCompliance composite content application will pay dividends in emerging markets where organizations are moving from paper and paper-based documents and processes to electronic ones. Newgen is poised to enter new markets by leading with sales support alone. It may discover that, because of pressure on implementation, training and technical support, growth demands services partners and a certification program that will take time to develop. Newgen is not well-known outside its core geography and vertical markets. Newgen is competing against IBM/FileNet and EMC, among others, in the imaging and BPM sectors. Given their presence and account footprints in large banks and insurers in North America and Europe, Newgen will have trouble unseating them. Much of Newgen s support is delivered remotely, due to a lack of local services partners. 11 MOSS 2007 has records management and archiving limitations, modest WCM capabilities, and limited BPM/imaging capabilities for building composite content applications. Customer feedback regarding large, decentralized deployments of MOSS 2007 indicates a need for improvements in scalability, deployment management, latency and replication functionality.

12 12 Objective Objective, an Australian vendor, has a Java-based platform with a focus on the public sector in Asia/Pacific and Europe and strengths in transactional content management. New in 2009 are increased professional services and solutions development capacity (delivered both directly and via partners) and a SaaS offering based on the acquisition of Limehouse Software. Website: Objective has the components and the composite content application development initiative to win government and engineering accounts. ObjectPoint the company s integration subsystem for Microsoft Office and SharePoint has profited from co-promotion from Microsoft in Objective s key geography. Objective s recent acquisition of Limehouse might help it penetrate more than 300 government accounts in the U.K. and U.S. Objective continues to position itself as a life cycle account manager for its customers, directly providing professional services for composite content applications and integration. It has begun to establish relationships with major system integrators, but needs to expand further and extend this channel at a time when demand is high. Objective s support is, by design, limited outside its targeted geographies. If it enters new markets via a SaaS model, it will have to remedy this shortcoming. Objective continues to focus on being a niche specialist provider of solutions to the public sector in specific geographies. It will need to hasten the development and delivery of innovative solutions to reach its vision. Open Text Open Text has acquired a number of vendors in ECM and adjacent markets, and has become the largest pure-play ECM vendor. Most recently it bought Vignette a visionary vendor in the 2008 Magic Quadrant and added more Web content, imaging and workflow, portal and collaboration products to its portfolio. The venerable Livelink product has become part of the newly-branded Open Text ECM Suite. Across its portfolio of products, Open Text covers the entire spectrum of content life cycle management and solutions development capabilities. Website: Open Text has a large number of composite content applications suited to a number of horizontal- and verticalmarket buyers, principally in the government, high-tech, energy and life science sectors. Its catalog includes competitive offerings in a range of product and solution categories. It would be difficult to find a content management use case for which Open Text lacks an offering. Open Text s partner agreements with SAP and Microsoft are keeping it relevant in relation to infrastructure vendors. Particularly with regard to SAP reseller deals in imaging, archiving, workflow, document and records management, Open Text is well-placed to become a finalist in most SAP shops as they consider buying additional software to better integrate content from any source within a business context. The acquisition of Vignette particularly its contextual content management foundation could create a media services opportunity for Open Text. Open Text needs to continue to focus on brand architecture and deliver a coherent message about the strategic implications of its offerings and their likely futures. Portfolio rationalization should swiftly follow. Open Text s strategy of capitalizing on acquisitions for maintenance revenue in ECM could prove uncertain as further consolidation will occur and pricing pressure from competitors is likely. Keeping all its customers satisfied will be difficult in light of either a lack of strategic investment in code innovation for some products or their prompt retirement. Open Text has attracted negative feedback about the overall customer experience it delivers. The company could benefit from a revamped support strategy. Oracle Oracle has been expanding its ECM market footprint while building content management functionality into its enterprise business applications. Oracle ECM Suite includes document management, WCM, records management, imaging and process management. Though it does have transactional content management functionality including synergies with its own ERP and CRM applications Oracle is widely considered to be more of a collaborative and contextual content vendor. Website: