Magic Quadrant for IDARS, 2003
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1 Magic Quadrant for IDARS, 2003 Many enterprises use integrated document archive and retrieval systems to store, present and archive mission-critical documents. Increased need for external user access to documents strengthens IDARS' strategic value. Core Topic Knowledge & Content Mgmt., Collaboration & E-Learning: Content, Media and Publishing Key Issues Which vendors will provide critical support in content, media or document management? How will document/content management evolve in the next five years? Strategic Planning Assumption By year-end 2005, due to scalability and archiving needs, enterprises will consolidate their integrated document archive and retrieval system product lines into one or two master repositories (0.8 probability). The integrated document archive and retrieval system (IDARS) market is in transition. Vendors will inevitably consolidate and/or exit the market given that IDARS is a mature technology and the economy is slow. In the past year, few vendors have executed well, and several failed to retain their positions. Leaders have succeeded because of platform support (particularly in mainframe and Unix environments) and the buildout of other content management components. Other key market trends include: The convergence between IDARS and distributed output management (DOM) also continues, with several of the vendors represented in both markets. The leading applications for IDARS continue to be statement presentment, report distribution, and customer service and support. Electronic bill presentment and related customer self-service still show promise as outlets for IDARS, but the economic climate prompted many enterprises to put these types of initiatives on hold. Many enterprises consider IDARS an integral part of their comprehensive content management strategy. As a result, when enterprises select a vendor, they often factor in ancillary content management capabilities, such as imaging and integrated document management (IDM). IDARS vendors come in three types: The departmental specialist The enterprise solution provider, which addresses most platforms, has a highly scalable offering and offers e-business solutions in the form of online statement presentment Imaging vendors, which offer IDARS in conjunction with their IDM suite offerings Positioning in the Magic Quadrant for IDARS, 2003 is based on a vendor's ability to execute and completeness of its vision (see Figure 1). Figure 1 Magic Quadrant for IDARS, 2003
2 Source: Gartner Research (June 2003) Leaders IDARS leaders achieve the highest combined measures of ability to execute and vision. They are doing well today and are prepared for the future. They must have: Strong channel partners Presence in multiple geographies Consistently strong financial performance Broad support for platforms and data streams The most comprehensive and scalable products The ability to combine push and pull features of report distribution systems and computer output to laserdisc (COLD) As a group, leaders exhibit the highest win-loss ratios and growth above the industry average. These strategic vendors have the highest likelihood to survive and drive the IDARS market.
3 BMC Software is usually seen as a platform-specific vendor. Because of its presence in the network system administration market, it benefits from cross-selling opportunities, particularly in DOM. IBM continues to execute well. It discounts heavily on software licenses while seeking to gain favorable service revenue. Like BMC, IBM is seen primarily as a platform-specific choice. A significant amount of its IDARS business is derived from enterprises that invest in other IBM technologies, primarily IBM's Content Manager suite. Mobius diversified its products in 2002 to gain workflow, Web content management, IDM, digital asset management and records management capabilities. Mobius leads because of its scalability, platform support and strong execution across multiple IDARS applications, including report distribution, bill presentment and customer self-service. Historically a leader in IDARS, Mobius plans to enter the comprehensive content management market. This decision confirms Gartner's research that IDARS is part of most enterprises' content management plans. Quest Software has good report distribution capabilities, connections to enterprise resource planning (ERP), customer relationship management (CRM) and DOM functions. It focuses on supporting Oracle applications. Quest offers the best combined DOM/IDARS offering, but it does poorly with presentment. RSD has executed well in Europe but has a smaller presence in North America. U.S. enterprises often consider RSD for replacing the IDARS product of Computer Associates International. RSD strengths include platform support and ease of use. Systemware provides strong platform support and scalability. It has won a number of contracts based on bill presentment. For further growth, Systemware must build an international presence because most of its customers are U.S. enterprises. Visionaries IDARS visionaries have strong vision but are limited in their ability to execute. They generally have impressive technology and strategies but may not yet have the management team or partners needed for market breadth, the financial resources or the timely marketing efforts. As a group, visionaries are growing, and their win-loss ratios meet or fall below the industry average. Acartus (formerly Maximal) focuses on U.S. clients and Windows platform support. Acartus converts print streams to PDF for storage and has original equipment manufacturer (OEM) relationships with several document management vendors. Anacomp offers one of the few scalable application service provider (ASP) solutions for enterprises that want to outsource their archive and viewing. It has recently added archiving to its solution set. AXS-One focuses on customer self-service by using Web services technology in conjunction with IDARS repositories in a data warehouse. Beta Systems Software has good global presence and platform support. It would benefit from stronger marketing of its IDARS capability. Cypress shows good scalability and document delivery due to its expertise in DOM. This vendor does well in supporting platforms other than Microsoft. Datawatch has strong OEM relationships for its Monarch report mining technology. Datawatch combines content management with Web-based analysis of archived report data as well as handling ASCII print stream transformation to XML. eistream, a production imaging specialist, emphasizes IDARS in a limited way. This vendor is pursuing a strong opportunity to sell COLD into its large installed base. EPSIIA, a division of Fiserv, provides solid IDARS solutions primarily as an ASP. Despite a good technical foundation, EPSIIA offers limited support beyond the Microsoft platform. Gauss has a solid product with comprehensive content management capabilities.
4 IMR is a Microsoft-centered solution with good compact disc/digital videodisc (CD/DVD) archiving and integrated document repository, but limited print stream handling. INSCI has strong channel partnerships with Unisys and Xerox and a related integrated document and output management product. It would benefit from a better presence in Europe. IXOS Software has improved its presence in North America and reduced its reliance on SAPonly implementations. Like Mobius, IXOS has used acquisitions to diversify beyond archivefocused IDARS and to offer other content management capabilities, such as Web content management. Levi, Ray & Shoup supports many platforms, with particular emphasis on mainframes and DOM. Macro4 is in both the DOM and IDARS markets. Macro4 has succeeded in presentment and customer service, mainly in the United Kingdom. It continues its work on expanding its IDARS presence in the United States. Optical Image Technology has executed well due to its value-added reseller channel and focus on production imaging. Redwood Software focuses on key vertical industry opportunities, especially healthcare. Redwood recently won bids in higher education, a relatively unexplored IDARS market. TREEV provides enterprise report management (ERM)/COLD, imaging and application outsourcing primarily to the North American financial services market. Challengers IDARS challengers can execute today but have limited vision. They display strong channel, product and financial capabilities, but without change they will not lead the industry in innovation or strategic insight. As a group, challengers will grow faster than the industry average but may score lower win-loss ratios. Hyland Software continues to show impressive growth via its strong value-added reseller channel and document imaging capabilities. Tower Technology now offers its IDARS product as a stand-alone module. Tower benefits from its single-repository approach to production imaging and IDARS. It needs to offer stronger integration with leading ERP and CRM systems. Niche Players IDARS niche vendors have limited vision and weak ability to execute in the general market. In a focused market (a particular geography, vertical industry or product segment), their influence may rise. Although this vendor class typically exhibits the highest number of business failures, not all niche vendors are problematic. As a group, niche vendors grow and have win-loss ratios below industry averages. Win-loss ratios rise when you count only the niche market sales. Computer Associates International has moved down from challenger to niche status. Its customers continue to migrate from its IDARS offering, and the vendor shows no consistent interest or ability to win new customers, although it offers competitive technology. Its decline is due to a failure to execute. Feith Systems focuses on records management, imaging, workflow and COLD, primarily in North America. FileNet has good scalability, and some enterprises like the capabilities of its single repository in conjunction with imaging services. Conversely, the lack of native print stream storage prevents FileNet from being an IDARS specialist. FileNet's content management product set includes IDARS and report management capabilities, but the vendor doesn't often promote them separately. Legato Systems (formerly OTG) performs consistently in the midmarket. Optika, primarily an imaging vendor, has decent departmental capabilities for IDARS.
5 SER Solutions continues to focus on a vertical niche: midsize banks in North America. It focuses on Microsoft platforms and possesses one of the market's better search mechanisms. SER has landed more deals recently in imaging areas, such as form processing, than in IDARS. Xenos went from being a component supplier to the IDARS market to becoming an active participant by acquiring Rush Creek Software. Acronym Key ASP application service provider CD compact disc COLD computer output to laserdisc CRM customer relationship management DOM distributed output management DVD digital videodisc ERM enterprise report management ERP enterprise resource planning IDARS integrated document archive and retrieval system IDM integrated document management OEM original equipment manufacturer Enterprise Advice Enterprises need to realize that IDARS must be considered in the context of their overall content management architecture plans. Documents stored in IDARS are mainly static (that is, they don't change), and they serve as an important repository of corporate records. Given that the number of people who need to access the information contained in IDARS repositories is growing, scalability will continue to be one of the most-important selection criteria. This factor alone will force enterprises to consolidate their multiple IDARS products into one master repository. When enterprises use this Magic Quadrant as a tool, we also advise them to factor in the IDARS/DOM convergence in their vendor selection decisions. Bottom Line: Demand for access to documents stored in integrated document archive and retrieval systems is growing, due in part to the increased use of IDARS for online customer access to their statements or bills. By year-end 2005, due to scalability and archiving needs, enterprises will consolidate their IDARS product lines into one or two master repositories (0.8 probability). Use this IDARS Magic Quadrant to help select an IDARS vendor with the capabilities to support those strategies. Source: Gartner Integrated Document & Output Management Research Note M , T. Bell, J. Lundy, 26 June 2003.
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