“ECM is a rotten term and is desperately misunderstood,” says Pelz-Sharpe.
“To justify what is a very expensive software system, suppliers wax lyrical and,
unfortunately, people buy into it.”
Ben Richmond, founder and CEO of content management consultancy the Content
Group, says that the supplier community is guilty of creating a siloed view of
the market.
“The problem is that all the vendors look at ECM from their own perspective:
Oracle from the database level, IBM from the infrastructure and services level,
and Microsoft from the desktop,” he says. “Every organisation has its own ECM
maturity, so we say understand the best practices around content and only then
can you make informed decisions about where to go.”
After a spate of acquisitions last year, it is widely accepted that the
market is settling down. The major players in terms of size or influence are
still EMC, Oracle, OpenText, IBM, HP and Microsoft.
However, organisations should not fear more acquisitions, as suppliers are
buying to build a customer base or to acquire technology rather than to put
their rivals out of business, according to Mike Davies of analyst firm Ovum.
The solutions currently offered by the major players show an unprecedented
technology maturity, say the experts. All have filled gaps in their portfolios
with well-timed acquisitions of businesses with solid products. But information
professionals should look carefully at solutions to find the right fit for their
requirements, and key to this is finding out the key strengths of each supplier,
says Pelz-Sharpe.
Key strengths
IBM built out its products from a background in business process management,
imaging and storage, and is particularly popular in the financial services and
healthcare sectors, while OpenText will be on the shortlist for any organisation
whose focus is governance risk and compliance. Meanwhile, EMC Documentum is
increasingly focusing on archiving and storage.
Vignette and in particular Interwoven are more traditionally oriented towards
the web content management side, while Alfresco is the largest open source
player on the market popular with financial services and pro-open source
customers. Alfresco has made rapid progress since it burst on the market in 2006
and is widely thought to be as good as its proprietary rivals.
Of the big-name software suppliers that still haven’t dipped their toes into
the ECM market, SAP is undoubtedly the one to watch.
Vignette and Interwoven have long been acquisition targets, but analysts
still believe it’s a case of if not when, despite SAP’s reticence to expand
through acquisition. “They’re getting hammered by Oracle [which bought Stellent]
in this space,” says Pelz-Sharpe. “It’s baffling why they’ve let Oracle get such
a lead.”
For many organisations, a niche supplier may be the best fit for their o
rganisation, and there are hundreds of smaller players that specialise in
specific areas of ECM.
Key factors, according to Pelz-Sharpe, are that the supplier understands your
business, has had personal experience with similar customers, and can offer
local support.
Pelz-Sharpe says the key themes driving the ECM market are compliance and
legal discoverability, and the impact of Microsoft SharePoint, arguably the most
visible and talked about product in the ECM space today. Despite the marketing
hype around it and its visibility among senior decision-makers, SharePoint isn’t
the full ECM package, according to Ovum’s Davis, who says it has limited
capabilities outside its core collaboration functionality.
“Microsoft is not stupid and it knows if it gets to the discussion stage
[with prospects], then it offers those other capabilities via partners,” he
explains.
The future of the ECM market looks to be tied up with the growing importance
of email in content management, and yet more supplier consolidation. This will
create a split between the big infrastructure players all of which take
different approaches to ECM and the smaller niche players, which will seek to
deliver off-the-shelf point products, says Richmond.
“The market will differ between suite environments and point products,”
Richmond says, “but the per-seat price will get closer over the next two years.”
According to Alfresco founder John Newton, the next 12 months will see user
organisations focus more on how they can meet their basic ECM requirements and
shy away from suppliers promoting overly rich feature sets to justify high price
tags.
“Organisations need to figure out how they get control of the content and
search capabilities and how they publish to a web interface,” says Newton. “That
will be the real growth area in content management and it will be delivered by
looking at content as a basic set of services.”
Like ECM, enterprise search is another piece of technology terminology that
is fast becoming inadequate to describe the sophisticated offerings on the
market and the areas they cover. So central is search to a holistic ECM strategy
that in many cases it has already been integrated into content management
products.
Search is a big part of content management simply because organisations need
to be able to find what they have created, managed and stored. Thus, IBM boosted
its significant search capabilities with the acquisition of FileNet; OpenText
acquired several pieces of search technology with its purchase of Hummingbird;
and EMC has home-grown search capabilities. All the major players will have to
continue to develop search if they are to keep pace with the rate of growth of
unstructured data in the enterprise, says Davis.
There are around 30 suppliers in this market that describe themselves as
enterprise search suppliers and the major players can be broadly split into
three tiers. At the top end are Autonomy, Fast (now owned by Microsoft) and
Endeca; all three have complex, sophisticated technology that needs careful
customisation and can take time to implement.
Then come a whole raft of smaller players, including Vivisimo, Exalead and
Sinequa. Although they can be rich in features and functionality, they will
struggle to break into the market, says Davis, because of their lack of
influence, and will generally aim to play in more niche areas in order to
compete.
Mid-tier player
One of the smaller players is Recommind, which plays in the legal, e-discovery
and knowledge management markets. “People are increasingly using search to solve
specific problems,” says the company’s Craig Carpenter.
Finally there are the low-end entry-level products such as Microsoft’s Search
Server Express, Google’s Search Appliance and the IBM Omnifind Yahoo edition.
Although probably the best-known enterprise search supplier, Autonomy is
distancing itself from the search space, focusing on e-discovery, compliance and
records management. Recent acquisitions Meridio and Zantaz reveal Autonomy’s
intent to capture this growing and lucrative market.
Fast also has a strong heritage at the high end of the search market, making
much of its ability to index billions of records. Endeca too has been successful
in the enterprise space, and is “probably the most successful search and
information access company around, in terms of organic growth”, according to
Matt Brown of Forrester Research.
To choose the right product, organisations must decide how many queries they
are likely to make in three to five years and then choose a supplier that can
scale to meet their requirements. End-user feature sets are also important to
monitor as the mid-market suppliers will be able to satisfy the needs of many
organisations.
Search swells
Suppliers are innovating at a rapid rate, and search now covers a broad sweep of
technologies differing greatly in their sophistication, according to Autonomy
chief executive Mike Lynch. “Suppliers are all fundamentally different and good
for different things,” he says. “It’s like comparing and contrasting the
difference between a bike and a plane sometimes.”
Lynch believes technology such as audio and video search will be at the
forefront of future innovation.
And current functionality, such as automatic query guidance (which
understands the meaning of your search term and helps provide more useful
results) and implicit querying (which serves up information relevant to query
content), illustrates the sophistication of what is already available.
There is often said to be a trend towards simplification of the user
interface in search, with the smaller suppliers in particular making much of
their easier deployment and setup options, and user-friendlier products.
“We’re reaching a tipping point here,” says UK country manager for Sinequa,
Colin Hadden. “Business users one level down from the board are saying ‘We can’t
find things and we need a better user experience.’ Enterprise search has to work
harder to give users something worthwhile, because often the content is not
designed to be found.”
Brown believes that the next 12 months are likely to see the high-end
suppliers continue to try and develop other capabilities and move away from
their core competencies in enterprise search.
For Autonomy, this means a continuing move towards archiving, compliance and
records management, and Microsoft’s influence will put a heavy pressure on the
market to cut costs.
There’s also likely to be more in the way of consolidation, with any of the
smaller players, such as Recommind, Vivisimo or even Endeca, ripe for picking up
by an IBM or an Oracle.
Finally, while Google has yet to move with disruptive force in the market,
according to Davis, this year could see the search giant unveil a “world-class
enterprise search product” that will galvanise the industry.
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