New Enterprise Content Management Research Highlights Growth

August 9th, 2006: Objective tops the list of enterprise content management (ECM) systems across Australia and New Zealand. Research confusing on technology platforms

The report, titled, Asia Pacific Enterprise Content Management Software Market - 2005 from Frost & Sullivan gives an overview of the Asia Pacific region's take-up of ECM. With strong growth expected over the next six years and the SMB area taking over from the Enterprise as the major motive force. However, its definition of ECM aggregates five distinct technology areas.

Enterprise Content Management is seen by Frost and Sullivan comprises the following elements:

• Collaborative Document Management (CDM)
• Records Management (RM)
• Digital Asset Management (DAM)
• Document Imaging (DI)
• Web Content Management (WCM)
• Workflow Management (WM)

The stand-out for our region is obviously the inclusion of digital asset management. Peter Graves, of Frost and Sullivan told IDM, "We carry out global research, and in the United States, this area tends to be seen as DAM. We realised, however, that in the Asia Pacific region, ECM was more acceptable."

For the A&NZ region, 12 companies comprised the main marketshare:

The key findings regarding the Australian ECM software market, in what F&S claims is the only research of its kind, are as follows:

• 2005 revenues are estimated at US$30.6 million with the expectation that US$51.7 million will be reached for 2012.
• The Australian ECM software market is mature and within a 'late stage' of development
• Government is expected to be the key vertical market for growth.
• The ECM market is highly competitive, and is expected to remain so. This is due mainly to strong competition among local vendors.
• Although the growth in the area has been driven by large enterprises, the report maintains that before its 2012 cut-off point, small-to-medium sized businesses (SMBs) will take over.
• Australia represents 29.8% of the entire Asia Pacific region.

Key vertical markets for ECM - as defined in the report - are to be expected, "Banking, financial services, and insurance (BFSI), government and education, manufacturing, legal, and telecommunications, were the key verticals that adopted the ECM software in 2005."

According to Graves, the methodology underlying the research, "We speak vendors and channels in each market. We try to talk to 80% of the market in each area. Those people then fill in a qualitative spreadsheet and also a qualitative feedback form about the state of the market. There is no end-user feedback as this is a purely supply-side. In the case of publicly-listed companies we also cross-check with ASX reporting."

IDM sought comment from a range of vendors in the region; however, as this story goes online few had seen the report so were reticent to comment.

Interwoven's Chris Lynch, was prepared to make a comment, however, "I really need to see it first, however, in general terms, the market is certainly going well. When you consider that 47% of the market spend comes from the government, and it is certainly splashing it around. The education process (for ECM) seems to be over."

In terms of the report itself, Lynch was sceptical, despite agreeing that in the A&NZ region, Objective's market lead appeared valid, "I don't know how much of it it (the research) is factual. You just filled out a form."

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