Ovum: Vendors Fail to Meet User Needs for Web Content Management; Market for Web Content Management to Reach $13 Billion by 2004, But Vendors Need to Improve Their Offerings

Business Wire, May 8, 2000

Business/Technology Editors

BOSTON--(BUSINESS WIRE)--May 8, 2000

It is said that content is key, but managing content in today's fast-paced Web environment is equally crucial. But current software tools fail to provide complete solutions and there is little awareness of the `big picture' amongst vendors. In a new report released today by independent research and consulting company Ovum, vendors are told that they need to keep functionality, technology and most importantly business strategy `top of mind'.

"As more and more businesses turn to the Web, it is extremely important for them to develop a content management strategy," says Christopher Harris-Jones, lead author of Web Content Management: Strategies, Technologies and Markets. "It is not just about what's on a company's Web site, but how the content attracts and maintains visitors. This requires management and tools that can automate this task in a manner that reflects the organization's business processes." Immaturity of products combined with diversity of content, and the various types of sites found on the Web, creates a market with complex end-user requirements, but vendors are more interested in putting the right `spin' on their marketing than delivering the solutions required.

Ovum defines the core tasks of Web content management as falling
into three categories:

--  managing the creation of the structure for the content and the Web
    site,

--  managing the content components through techniques such as
    versioning, configuration, automated linking and searching,

--  publishing the content to the live Web site.

With such requirements in place, vendors from the established software provider to the up-and-coming start-up need to develop product strategies that incorporate their core competencies while addressing user needs. "Web content management is a point solution," adds Harris-Jones. "Vendors from document management tools, to e-commerce, to infrastructure software providers need to be clear about what they offer. They have to reduce the market confusion by addressing the business issues, not just the technology. Their solutions need to be more intelligent, and companies will need to develop partnerships to offer the functionality end users want." As the market matures, vendors will not be able to rely on their past successes - creating the need for enhanced customer support and services.

For the user, Web content management involves a multi-faceted approach that involves understanding technology requirements and organizing their own internal organizational culture. "Web content management tools are not the answer to everything," confirms Harris-Jones. "Users need to understand their content and the effort involved long before selecting a vendor - keeping in mind that not all tool requirements come out of the same box." This creates integration issues that both software vendors and end users need to address at the strategy level, before moving on to implementation that may require expertise not found within either organization. Thus, there is an increasing opportunity found in the services sector.

Ovum also finds that the service market for Web content management tools will grow to $8 billion in 2004. This represents one and a half times the market for software and creates opportunity for everyone involved. "The service sector will grow rapidly as organizations realize that it is not simply a matter of `getting the technology going'," concludes Harris-Jones. "Understanding business infrastructure and managing cultural elements will require a realization of such issues, especially in the business-to-business environment."

About the report

Web Content Management: Strategies, Technologies and Markets, authored by Ovum analysts Chris Harris-Jones, Alan Pelz-Sharpe and Clive Burrows, is available from Ovum now and costs $2695, (pound)1595, (euro)2555 and A$3795. The report provides a model for addressing Web content management, and offers both end-users and vendors with market overviews, development scenarios, technology trend analysis and detailed case studies. It also includes profiles of leading vendors including Broadvision/Interleaf, Documentum, Interwoven and IBM, and provides forecast on how the market and associated technologies will develop over the next five years. For further product information call Ovum at (800) 642-OVUM or visit http://www.ovum.com.

About Ovum

Ovum is an independent research and consulting company, offering expert advice on IT, telecommunications and e-commerce. Its mission is to help its customers make successful decisions. Ovum's analysis of key market, technical and regulatory developments is highly respected worldwide for its authority, quality and clarity.

Established in 1985, Ovum has a dynamic growth record of 25% per year, and offices in London, Boston and Melbourne. Ovum's 90 analysts provide reports, advisory services, and strategic consultancy to suppliers, users and policy makers worldwide.

Note to editors:

A white paper offering further information on the report's findings is available to accredited members of the press only. You can request a copy from your local press relations contact (see below).