ECM evolution stalled at the $50M hurdle

Info-Tech

Executive Summary

The Enterprise Content Management (ECM) market is in a transition period. New license revenue is stalling and a wave of consolidation has drastically reduced the number of independent vendors. The root of this problem lies in the elusiveness of clients with less that $50 million in annual revenue. Unlike their billion dollar brethren, these companies lack the IT infrastructure and process sophistication to successfully support an ECM implementation. This $50 million hurdle is driving rampant innovation in the ECM industry.

This note discusses the market impact of the $50 million hurdle. Issues include:

  • Causes of the $50 million hurdle.
  • Microsoft's importance for ECM evolution.
  • Roles played by Software-as-a-Service (SaaS) and emerging ECM standards.
  • The next hurdle: $8 million.

ECM products can help companies of all sizes to overcome information glut. However, to reach the sub-$50 million market effectively, ECM vendors must innovate to accommodate for a general lack of IT sophistication.

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This was first published in November 2006

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