Frost & Sullivan Foresees Change in Web CM Market

Apr 18, 2003


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New analysis from Frost & Sullivan, U.S. Web Content Management Market, reveals that the enterprise content management (ECM) market generated revenues worth $480.5 million in 2002 and is expected to grow significantly through 2009. Frost & Sullivan predicts that market share is likely to tilt in favor of those vendors that can extend their WCM offering to an enterprise-wide solution with the ability to provide multilingual support and consolidate Web sites for different subsidiaries. WCM vendors are faced with the challenge of explaining the value proposition of stand-alone solutions to prospective clients. Innovative companies are selling WCM on the ASP model to consortiums of small and medium enterprises to boost revenues. The study also found that there was a substantial increase in government contracts in 2002 and the market for homegrown solutions is rapidly diminishing. As the use of Web services increases, there is an industry-wide push to improve collaboration features and content creation tools, according to the analysis. Concerted efforts to develop quantitative financial models and case studies to win new contracts are the business requirements for the industry in 2003 due to constrained IT budgets. Frost & Sullivan claims that future market success will depend on vendors' ability to provide 'out of the box' functionality and compatibility with different technological platforms that will reduce consultancy and implementation costs.

(http://www.frost.com)