G00251190 Magic Quadrant for Enterprise Video Content Management Published: 26 September 2013 Analyst(s): Whit Andrews Enterprise video content management is now a market with comparable vendors, significant and stable revenue, and a meaningful customer base. Vendors range from megavendor Cisco to very small vendors that are just beginning to have an impact in the market. Market Definition/Description This document was revised on 27 September 2013. The document you are viewing is the corrected version. For more information, see the Corrections page on gartner.com. We define enterprise video content management as "software, appliances or software as a service (SaaS) intended to manage and facilitate the delivery of one-to-any on-demand video across Internet protocols." Many of the vendors in this market offer video delivery across the Internet to people who are external to enterprises. Examples include customers, suppliers, partners, agents and others. Many enterprises demand that vendors support internal delivery, so we focused this analysis on vendors that pursue internal, worker-facing installations as a key part of their business. Many vendors also support external delivery, such as for customer service or commerce.
Magic Quadrant Figure 1. Magic Quadrant for Enterprise Video Content Management Source: Gartner (September 2013) Vendor and Brightcove Brightcove is quite well-known for its cloud video delivery, which powers many external websites with instructional, promotional and marketing messaging. Many enterprises use it to address Page 2 of 17 Gartner, Inc. G00251190
tactical internal video projects as well. It offers internal video delivery, including a creative means of addressing security and workflow integration. Its young stock has experienced substantial volatility: Brightcove's founding CEO stepped down earlier in 2013, and venture capitalists have reduced their stake during the past year as well. It has excellent analytics for understanding audience groups and viewer behavior. Simple pricing model includes starter packages that enterprises find very affordable. Its in-cloud transcoding platform, a recent acquisition, is capable of ingesting and transcoding very large volumes of video quickly. It is a popular choice for Web content management (WCM) vendors as a partner for the integration of video into delivered online experiences; often, enterprises that use it internally also do so externally. Brightcove expends less effort on its native workflow engine for enterprise applications than vendors that are focused on internal-facing or worker-facing delivery. (It does allow for integration to more powerful workflow engines.) Brightcove collects video from file repositories, but provides very limited capability for integrating to teleconference sources to capture video that will be replayed. However, it now offers a "Video Cloud Live" webcasting solution. Gartner's vendor financial rating for Brightcove is Promising. Cisco Most IT professionals see Cisco as being directly connected to video delivery in internal scenarios. The company has adjusted pricing to be more attractive to smaller prospective customers, but the legacy of its higher prices in the market still dissuades many. Also, its solutions remain hardwarecentric. Many IT leaders find working with the megavendor to be reassuring, however, and it frequently appears on shortlists for internal collaboration projects. Gartner's vendor financial rating for Cisco is Positive. Cisco was very early to market with talk-track search in its Pulse feature. This is no longer a unique feature, but still demos very well and captures prospects' attention. Cisco also offers video content management as an aspect of a larger collaboration portfolio. Prospects that wish to combine video content management with digital signage can obtain both from Cisco. Gartner, Inc. G00251190 Page 3 of 17
Cisco remains reluctant to embrace cloud capability, offering remote hosting only with partners. (The storage capacity of its equipment, however, is quite large at nearly 2TB.) Transcoding requires an appliance on-premises. Ignite Ignite has been acquired by Versata, and its future direction is currently uncertain. Ignite uses software-assisted video delivery. It delivers videos to internal workers or others sanctioned specifically by the enterprise. Such a target market makes it simple and easy to price and select for appropriate use cases. Its development road map is ambitious and will significantly improve Ignite's position if it's completed. Its software-assisted delivery model is effective for internal, on-wan installations. Its client-driven or browser-driven player simplifies video interoperability with less transcoding. It has an extremely simple per-device pricing model. Enterprises find video content management to be confusing from a pricing perspective, but having predictability and clarity is attractive because enterprises can predict how pricing will be affected by the expansion of any project or program. Ignite's acquisition makes its strategic direction unclear. Its offering only addresses internal delivery. It currently offers search only within video metadata, such as titles, descriptions and tags. Kaltura Kaltura has developed a modular and extensible platform that allows for significant customization and development. It pursues multiple clusters of use cases with specific capabilities, including media and high education. Its very strong cloud/on-premises hybrid storage model also allows third parties to be storage partners. It has an extremely modular architecture, which allows for application development, customization and incorporation into other applications. It has a highly flexible workflow engine. Page 4 of 17 Gartner, Inc. G00251190
Its powerful and flexible analytics serve most use cases. Transcription for search or other purposes is currently licensed from other vendors and provided through Kaltura. The administration and management interface will need more streamlining to make it easy to use. Kontiki Kontiki is well-respected for the internal delivery of video (and other digital objects) for internal use cases within the enterprise. The vendor has excellent partnerships for its go-to-market strategy, including relationships with telecommunications companies and other vendors that have the ear of prospects in the video market. Its software-assisted delivery model is effective for internal, on-wan installations. It has an extremely simple per-worker pricing model. Enterprises find video content management to be confusing from a pricing perspective, but having predictability and clarity is attractive because enterprises can predict how pricing will be affected by the expansion of any project or program. Its client-driven player simplifies video interoperability with less transcoding. Its offering only addresses internal delivery. It currently offers search only within video metadata, such as title, description and tags. KZO Innovations This small vendor was acquired by Bedford Funding during the course of this research. The increased financial viability bodes well for it. KZO's functionality has centered on sharing video between workers in an on-demand mode, with emphasis on annotation and security. This represents an interesting combination with another acquisition of Bedford's, Peoplefluent, which addresses HR tasks such as talent management. Its in-video annotations and sharing such annotations are quite strong, including gridded markup for sharing insight and analysis of video content. It has good management of delivery in online and very-low-bandwidth circumstances. Gartner, Inc. G00251190 Page 5 of 17
It has strong search of metadata, including annotations; it has provided transcripts; and it has captured accompanying textual elements, such as presentation slides. It has limited WAN optimization for internal delivery. Its postacquisition path will require significant investment and effort from Bedford. MediaPlatform MediaPlatform is less well-known than many of the vendors that have invested significantly in marketing and visibility, but it has a respectable customer list and credible developed product. It also offers integrated webcasting. It has a solid workflow for various use cases. Its flexible pricing allows for various approaches that give advantages to end-user enterprises. It has a strong cloud/on-premises hybrid model. Its search capability is limited. It has fewer integration choices than its rivals (but it does have Microsoft SharePoint and salesforce.com). Panopto The lecture-capture vendor is seeking to expand beyond the higher education market, and is addressing corporate training and corporate executive messaging. It offers innovative adaptive rate video delivery and is particularly strong at multicamera, multiperspective video capture. Its usage analytics are quite strong for a vendor that is entering general video content management from lecture capture. Its solid workflow is designed to accommodate more than just the higher education market. Its simple pricing model combines the number of creators and the number of hours delivered. Its search of the talk track requires the use of a partner. Page 6 of 17 Gartner, Inc. G00251190
It is just emerging as an enterprise video content management vendor from a history as a lecture-capture specialist. Polycom This teleconferencing equipment and network vendor acquired Accordent Technologies to enter the video content management market. Its sales force is now effectively delivering the message that video on-demand is part of the large company's offerings, and its capabilities are admirably contemporary in cloud architecture and network optimization. This very large vendor offers financial stability and an easy-to-understand pricing model. Video can reside in the cloud or on-premises, and the application for sharing it can also be divided so that elements reside in either place. The capture of video from videoconferencing and Web-conferencing systems is especially broad. Some clients report that Polycom sales representatives are focusing on delivering hardware, including room unit sales, to the detriment of video content management. Its social functionality (such as "likes" and user-generated tagging) lags behind other vendors. Gartner's vendor financial rating for Polycom is Promising. Qumu Qumu was acquired by legacy video vendor Rimage in 2011 and has increased its visibility to prospects, as reflected by Gartner clients mentioning it more often in our conversations with them. (In September 2013, Rimage renamed itself "Qumu" and identifies enterprise video content management as its best potential for revenue growth.) The vendor has maintained flexibility in its delivery architecture and is adding to its line of functionality, including via the addition of a partnership with Nexidia to strengthen search. Rimage's name change to Qumu reflects the stronger growth opportunity in the contemporary video delivery model. Its very strong cloud/on-premises hybrid storage model also allows third parties to be storage partners. Its new partnership with audio search specialist Nexidia is promising for making it easier to find videos as well as specific spots in them. An effective and modularized workflow allows for integration to external processes. Gartner, Inc. G00251190 Page 7 of 17
Its pricing model is challenging and difficult to interpret. Gartner's vendor financial rating for Qumu is Promising. Sonic Foundry This lecture-capture specialist successfully penetrated government and corporate use cases with an easy-to-use (and sell) appliance; it now extends into a broader spectrum of content management, addressing video from any source. Its references, in many cases, have used it for more than five years, and describe themselves as having expanded their Sonic Foundry use from a few capture stations to more complete installations. The vendor is well-regarded for being responsive and attentive to its customers' concerns. It allows for either cloud or on-premises video storage and application execution. Its effective search capability is based on talk-track analysis. Its robust workflow includes ingestion via capture devices as well as nondevice sources. It has less flexibility in optimizing delivery across WANs and internal networks. It lacks emphasis on social features (but has strong educationally related features). VBrick Systems VBrick is well-known in the military and law enforcement areas, and delivers very strong performance for video that must be delivered live or nearly live without interruption. It has significantly increased its sales efforts in commercial markets in 2013, and now states that 40% of its bookings are from corporate enterprises. It has faced challenges in maturing into a video-ondemand specialist as well, but is undergoing significant changes in its pursuit of this newer market. "Deep sharing" allows for strong collaboration and social capabilities in which elements of videos are shared without being subdivided. It has strong network optimization. Its architecture includes on-premises options and a relatively recent cloud offering. It lacks strong search capabilities (but states it plans to include audio track search). Page 8 of 17 Gartner, Inc. G00251190
It must continue to increase its market presence for video content management. Vendors Added and Dropped We review and adjust our inclusion criteria for Magic Quadrants and MarketScopes as markets change. As a result of these adjustments, the mix of vendors in any Magic Quadrant or MarketScope may change over time. A vendor appearing in a Magic Quadrant or MarketScope one year and not the next does not necessarily indicate that we have changed our opinion of that vendor. This may be a reflection of a change in the market and, therefore, changed evaluation criteria, or a change of focus by a vendor. Added This Magic Quadrant updates the 2012 "MarketScope for Video Content Management and Delivery." We added Panopto, a significant lecture-capture specialist that is seeking to expand decisively beyond higher education and other high-complexity training environments (such as medical practices) into extended, full-spectrum video content management in commercial and government entities. We also added MediaPlatform, which is appearing in inquiries. Dropped We dropped Limelight Networks, Ooyala and SDL because we sought to include only vendors with very significant internal video delivery. All three vendors are still strong candidates for video delivery to users that are external to a company or government. Inclusion and Exclusion Criteria To be included in the Magic Quadrant, vendors must meet the following requirements: Video content management functionality must be natively developed in or founded on a noncommercial open-source technology. Products must provide for workflow, storage, search and integration (into other user-facing products). The vendor must have at least one installation with more than 1,000 seats for internal delivery. The vendor must actively market products in North America or Europe. The vendor must ordinarily sell the video products separately from other products (such as enterprise content management [ECM], portals, Web customer service or infrastructure). Gartner, Inc. G00251190 Page 9 of 17
Evaluation Criteria Ability to Execute Financial stability and positioning are factors here. Also, we include pricing clarity and customer experience here. Ability to Execute includes the ability of a vendor's products to address basic needs, such as transcoding, social capabilities, and integration for capturing or playing back videos. Customers' experiences are still evolving because the products are new to them. Table 1. Ability to Execute Evaluation Criteria Criteria Product or Service Overall Viability Sales Execution/Pricing Market Responsiveness/Record Marketing Execution Customer Experience Operations Weight High High Medium Not Rated Not Rated Medium Not Rated Source: Gartner (September 2013) Completeness of Vision Completeness of Vision is defined by the ability to envision and address the market's future. We also considered what a vendor offers in the differentiating categories of analytics and delivery optimization. In addition, we examined the ability to handle delivery model (especially hybrid cloud and on-premises) and search, which are key realms of innovation in the market. Page 10 of 17 Gartner, Inc. G00251190
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 Weighting High Not Rated Not Rated High Not Rated Not Rated High Not Rated Source: Gartner (September 2013) Quadrant Descriptions Leaders Leaders in the market have developed flexible, extensible products that are effective in a variety of use cases. We expect that they have strong and viable futures. They can address internal or external viewership and are in solid financial positions. Challengers Challengers have credible financial positions and have demonstrated commitment to the market. They may also be developing a stronger vision for the future, but today, they do not fully qualify as Leaders. They may be strong targets for acquisition or financially strong vendors looking to make acquisitions. Visionaries Visionaries are developing new competencies and addressing enterprise needs with flexibility. They need more substantial financial resources and possibly improved depth in necessary functions to establish leadership. Gartner, Inc. G00251190 Page 11 of 17
Niche Players Niche Players are generally developing their facility in this market after establishing themselves first in other arenas. They are developing the necessary capabilities more completely to pursue enterprise video content management. They may be the best choice in specific use cases. Context Enterprises seeking to establish video on-demand through an enterprise video content management system will discover that vendors are competing for their attention in a confusing marketplace. Some elements are stabilizing, such as delivery to mobile devices. In most cases, though, vendors demonstrate widely divergent strategies for addressing key functions, such as WAN optimization, video search and hybrid cloud/on-premises delivery capabilities. We recommend that companies and governments scrutinize their needs, and then weigh all these different approaches together before comparing on price or functionality. Market Overview Inquiries related to enterprise video content management continue to rise. Vendor revenue growth in this category is significant in some cases, according to credible data provided by vendors under nondisclosure as part of the Magic Quadrant information gathering process. Gartner surveys have shown that IT executives at large companies predicted growth from 7.2 hours of video streamed per user, per month in 2010 to 10.8 hours in 2012 (see "User Survey Analysis: Video Content Management and Delivery: Streaming Goes Mainstream" [Note: This document has been archived; some of its content may not reflect current conditions]). We project that, by 2016, large companies will stream more than 16 hours of video per worker, per month (see "Predicts 2012: Plan for Cloud, Mobility and 'Big Content' in Your ECM Strategy" [Note: This document has been archived; some of its content may not reflect current conditions]). Clients are generally seeking to acquire the products via SaaS or hybrid models. The exception is clients that are concerned about the security of the videos they intend to post, although security is increasingly well-provisioned by SaaS and cloud video content management vendors. Some clients have collated multiple use cases into a single project, and they desire a generalpurpose platform for video. Others are seeking a more specific offering. Use cases include the following: Gartner's CRM team is handling inquiries on establishing video sharing for customer service. The collaboration team has heard from clients that are hoping to establish video as an interteam collaboration medium. E-commerce analysts have heard from clients that are hoping to show videos as a means of improving sales via online channel optimization. Page 12 of 17 Gartner, Inc. G00251190
Training is a key use case in all organizations (with a concomitant need for integration to learning management systems). In higher education, video is becoming a critical opportunity for differentiation, educational reach and operational efficiency. We examined various key elements of vendors' capabilities, and this Magic Quadrant analysis focuses on vendors that generally offer solutions intended to address a broad segment of enterprise video use cases. Specialist vendors that address particular areas like e-commerce (such as product demonstration videos for retail websites) or lecture capture only are not included. Key elements we asked about were: WAN optimization Workflow creation and provision Integration, including interoperation with other applications, the ability to address multiple formats and security Use-related analytics The facility to make videos searchable The ability to work with mobile devices, including Android-powered and ios-powered phones and tablets Accomplishing internal video sharing and external video storing demands that a variety of different capabilities be addressed. Meaningful video sharing products must be able to address network optimization for external or internal users and workflows to address the use cases for which the products are targeted. Content management functions that are intended to address governance challenges, such as the approval or life cycle of specific video content objects, are also critical. Gartner is seeing vendors enter the market from a wide variety of positions. Very large vendors, such as Cisco and Polycom, are developing product lines that leverage their traditional strengths in telepresence and teleconferencing. Other very large vendors have expressed an interest in acquiring the smaller vendors in this evaluation. Many smaller vendors are also entering the market from digital asset management, content delivery network (CDN) or other video-specific backgrounds. Video content management and delivery must coexist with various other kinds of software, such as ECM, portal and WCM platforms, and learning management systems. Generally, these software platforms will serve as display contexts for videos, but may also perform other roles, such as workflow bases or foundations for searching for and finding video. It's too early in the development of this market to begin assigning market sizes or attempting forecasts. SaaS is particularly popular in the market, and nearly all the substantive vendors offer it as a native capability or via another party. SaaS will certainly grow, especially for use cases in which Gartner, Inc. G00251190 Page 13 of 17
external customers are the primary target for videos, or in which organizations want to insulate themselves from unpredictability in storage infrastructure costs. A significant number of vendors we evaluated offer software, SaaS or appliances that address at least some of the necessities in video content management, but they did not meet the inclusion criteria for one or more reasons. We recommend that enterprises consider the following vendors for various reasons. They were not included in the full evaluation because they did not meet the inclusion criteria, or because we learned of them too late to include them: Adobe offers video content management for external delivery, with a focus on e-commerce and marketing. Echo360 is a lecture-capture vendor that is seeking to expand its offerings to address video content management. Fordela is a cloud-based digital asset management vendor that specializes in video platforms for the media industry. Kulu Valley focuses on delivering online presentations. Limelight, a CDN vendor, mostly addresses the external delivery of video. Ooyala previously pursued enterprise clients for internal delivery projects, but now focuses on external delivery. OpenText, the content management and business process management vendor, has developed video content management as an aspect of its product line. Ramp, which developed video search and analytics, now offers video content management as well. SDL focuses on external video delivery for marketing and merchandising. Sorenson 360 offers low-price bundles for basic installations. Viocorp is based in the Asia/Pacific region. Gartner Recommended Reading Some documents may not be available as part of your current Gartner subscription. "How Gartner Evaluates Vendors and Markets in Magic Quadrants and MarketScopes" "Understanding Gartner's Financial Ratings of IT Vendors" "MarketScope for Video Content Management and Delivery" Page 14 of 17 Gartner, Inc. G00251190
Evaluation Criteria Definitions Ability to Execute Product/Service: Core goods and services offered by the vendor for the defined market. This includes current product/service capabilities, quality, feature sets, skills and so on, whether offered natively or through OEM agreements/partnerships as defined in the market definition and detailed in the subcriteria. Overall Viability: Viability includes an assessment of the overall organization's financial health, the financial and practical success of the business unit, and the likelihood that the individual business unit will continue investing in the product, will continue offering the product and will advance the state of the art within the organization's portfolio of products. Sales Execution/Pricing: The vendor's capabilities in all presales activities and the structure that supports them. This includes deal management, pricing and negotiation, presales support, and the overall effectiveness of the sales channel. Market Responsiveness/Record: Ability to respond, change direction, be flexible and achieve competitive success as opportunities develop, competitors act, customer needs evolve and market dynamics change. This criterion also considers the vendor's history of responsiveness. Marketing Execution: The clarity, quality, creativity and efficacy of programs designed to deliver the organization's message to influence the market, promote the brand and business, increase awareness of the products, and establish a positive identification with the product/brand and organization in the minds of buyers. This "mind share" can be driven by a combination of publicity, promotional initiatives, thought leadership, word of mouth and sales activities. Customer Experience: Relationships, products and services/programs that enable clients to be successful with the products evaluated. Specifically, this includes the ways customers receive technical support or account support. This can also include ancillary tools, customer support programs (and the quality thereof), availability of user groups, service-level agreements and so on. Operations: The ability of the organization to meet its goals and commitments. Factors include the quality of the organizational structure, including skills, experiences, programs, systems and other vehicles that enable the organization to operate effectively and efficiently on an ongoing basis. Completeness of Vision Market Understanding: Ability of the vendor to understand buyers' wants and needs and to translate those into products and services. Vendors that show the highest Gartner, Inc. G00251190 Page 15 of 17
degree of vision listen to and understand buyers' wants and needs, and can shape or enhance those with their added vision. Marketing Strategy: A clear, differentiated set of messages consistently communicated throughout the organization and externalized through the website, advertising, customer programs and positioning statements. Sales Strategy: The strategy for selling products that uses the appropriate network of direct and indirect sales, marketing, service, and communication affiliates that extend the scope and depth of market reach, skills, expertise, technologies, services and the customer base. Offering (Product) Strategy: The vendor's approach to product development and delivery that emphasizes differentiation, functionality, methodology and feature sets as they map to current and future requirements. Business Model: The soundness and logic of the vendor's underlying business proposition. Vertical/Industry Strategy: The vendor's strategy to direct resources, skills and offerings to meet the specific needs of individual market segments, including vertical markets. Innovation: Direct, related, complementary and synergistic layouts of resources, expertise or capital for investment, consolidation, defensive or pre-emptive purposes. Geographic Strategy: The vendor's strategy to direct resources, skills and offerings to meet the specific needs of geographies outside the "home" or native geography, either directly or through partners, channels and subsidiaries as appropriate for that geography and market. Page 16 of 17 Gartner, Inc. G00251190
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