Ovum says CM vendors need to rethink

The content management sector is not as rosy as it seems, says Ovum, with vendors fighting for a dropping number of large projects. Key to surviving maybe focusing on the low end of the market.

  • E-Mail
By  Neil Denslow Published  November 14, 2002

The content management (CM) sector is not as rosy as it seems, says Ovum, with the vendors all fighting for a dropping number of large projects. In order to survive, the analyst house suggests that vendors switch their focus to the low-end of the market.

Ovum’s pessimism runs contrary to the widespread perception that the CM industry is holding its own. However, while players in the document-focused market, such as Documentum have registered double digit growth, vendors in the web-focused market, including BroadVision, have seen revenue drop by 70%.

“The bottom has dropped out of the market for large scale sophisticated and expensive web-focused content management systems,” says Chris Harris-Jones, principal analyst, Ovum.

“The few thousand deals of this nature happened in the last two or three years when most blue chip companies first deployed their online strategies. In addition, most companies’ website requirements nowadays are basic: very few actually need the level complexity of pure-play retail sites like Amazon’s, for example. The high-end market is now saturated and the present market mostly consists of maintenance and upgrade projects that cannot sustain previous revenue levels,” he explains.

When companies realise the chaotic state of their internal content, there is a strong demand for structure and more efficient organisation. Document-focused vendors are meeting this challenge ‘significantly better’ than their web-based counterparts, but they are still overlooking the potentially lucrative low end, by only offering expensive and complex products.

“There is real opportunity for simple, therefore cheap, enterprise-wide systems to provide reliable but straightforward document-focused management on every desk,” says Harris-Jones. “The demand has never been satisfied. We need vendors to effectively do for content management software what Microsoft has done for office automation tools.”

“Significantly, none of the content management vendors generate revenues in excess of $300m, but the market has enormous potential running into tens of billions," he adds.

Add a Comment

Your display name This field is mandatory

Your e-mail address This field is mandatory (Your e-mail address won't be published)

Security code