Ovum: Microsoft's New SharePoint Portal Server to Force Vendors Out of Content Management Market

Business Wire, Feb 5, 2001

Business Editors/High-Tech Writers

BOSTON--(BUSINESS WIRE)--Feb. 5, 2001

Ovum, the independent analyst and consulting company, predicts the imminent release of Microsoft's new SharePoint Portal Server (SPS) will force smaller vendors out of the content management market, leaving many unable to compete, unless they form new partnerships.

Ovum estimates that the content management market will be worth $7 billion by 2006. The most effective way of gaining returns on IT investments is through effective business processes, encompassing workflow and content management. Companies are allocating budget and resources to address this area, opening up opportunities for vendors with the right solutions.

In stark contrast to other NASDAQ listed organizations, growth potential for vendors in this market is huge. Alan Pelz-Sharpe, Principal Consultant, explains the impetus behind the growth in the market. He says: "It has taken a long time for businesses to realize that the currency of the e-economy is content. Content management is not just about storage or offering part of a solution. Business processes must center on managing the lifecycle of content by using effective collaboration and workflow technologies. Ovum's research indicates that companies are now realizing they need to get content management right, before they'll benefit from a real rate of return on their IT investment."

As the market becomes significantly more valuable, smaller vendors will struggle against the offerings of the large corporations such as Microsoft's SharePoint Portal Server and BizTalk Server; and Lotus' Domino.Doc, Workflow and K-Station. Microsoft's new SPS promises a single business solution offering customers content management, portal services, workflow and search technologies.

Ovum has researched the impact these vendors are likely to have on the market place. Pelz-Sharpe says: "Microsoft and Lotus' focused strategies will result in a new commodity, i.e. an integrated content management and workflow technology solution for large groups of users at a low seat price. Microsoft and Lotus are offering complete content management solutions at a fraction of the cost charged by their competitors in the market today. Although a few companies (such as Documentum, FileNET, IBM and Open Text) with established client bases in vertical markets such will be able to compete within their spheres, many smaller vendors will be forced out."

"Ovum predicts that for many smaller vendors, particularly workflow vendors, their best chance of surviving is by merging with a larger organization," concludes Pelz-Sharpe.

About this research

This research is from the report, Ovum Evaluates: Content Management authored by Alan Pelz-Sharpe and Angela Ashenden, published in January of 2001. For more information, please contact Ovum at http://www.ovum.com or call (800) 642 - OVUM.

About Ovum

Ovum is an independent analyst and consulting company, offering expert advice on IT, telecoms and e-commerce. Our mission is to help you make successful decisions. The authority, quality and clarity we apply means our analysis of key developments is highly respected worldwide.

With expected sales in 2000 of more than $30 million and growth of more than 50% pa, Ovum now has offices in London, Boston, Melbourne and Buenos Aires. Our 300 staff are dedicated to delivering authoritative analysis, tailored consulting and customer support to over 10,000 senior executives around the world.

Note to editors:

A white paper offering further information on the report's findings is available to accredited members of the press only by visiting our website at www.ovum.com and accessing press packs. If you do not have password access to the Press Room, please register online. Your request will be processed and access will be granted to all accredited journalists.

Interviews by telephone or email are also possible with Alan Pelz-Sharpe.