Enterprise Content Management Systems Procurement Category Market Research Report Now Available from IBISWorld

Favorable pricing trends in the enterprise content management systems market boost buyer negotiation power, while a negative market structure limits this power. For these reasons and to help procurement professionals make better buying decisions faster, business intelligence firm IBISWorld has added a report on the procurement of enterprise content management systems to its growing collection of procurement category market research reports.

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IBISWorld industry market research
Prices increases will accelerate slightly due to increased demand but will still remain relatively small due to the increased use of cloud computing and open source software

Los Angeles, CA (PRWEB) April 02, 2014

Enterprise content management (ECM) systems have a buyer power score of 3.5 out of 5.0. This score reflects positive but somewhat limited negotiation power for buyers. “Favorable pricing trends and low market risks help increase this score, while a negative market structure limits it,” says IBISWorld procurement analyst Andrew Yang.

Pricing trends have been fairly favorable for buyers because prices have remained fairly stable in the three years to 2013. Demand has increased in response to the economic recovery. “Businesses are being created and investments in software have increased,” says Yang. In addition, internet traffic volume has surged, indicating an increased volume of data that will require enterprise content management systems to manage and organize, but the developments in cloud computing and open source software have moderated price increases. This has lowered barriers to entry, increasing competition in the market and placing pressure on suppliers to keep prices low. These trends are expected to continue, helping keep prices stable in the three years to 2016.

Buyers also benefit from relatively low market risks. Most ECM system providers are well-established software publishers with very low financial risks. In addition, providers are not dependent on any critical inputs for the development and delivery of their products. These low market risks indicate that buyers can expect that delivery of ECM systems will not be disrupted by providers undergoing financial difficulty or providers unable to obtain critical inputs. This factor is especially for important for buyers because they will be dependent on their provider to perform service and maintenance after purchase.

A negative market structure significantly lowers the buyer power score. ECM systems are very complex software systems that require significant technical expertise, manpower and financial resources to develop and deliver. As a result, it is a very specialized product with a relatively small number of suppliers that can deliver the product. There are very few substitutes with the same functionality and features of a dedicated ECM system. Switching costs are very high, increasing the risk that the buyer may get locked in with a supplier. Major suppliers include International Business Machines Corporation, OpenText Corporation, EMC and Microsoft Corporation.

For more information, visit IBISWorld’s Enterprise Content Management Systems procurement category market research report page.

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IBISWorld Procurement Report Key Topics

This report is intended to help buyers of enterprise content management (ECM) systems. ECM systems help businesses store, manage and access their unstructured content, which includes emails, documents, media and records. ECM systems help businesses lower costs and increase efficiency by consolidating and organizing their information and data. This report excludes web content management systems and database software.
Executive Summary
Pricing Environment
Price Fundamentals
Benchmark Price
Pricing Model
Price Drivers
Recent Price Trend
Price Forecast
Product Characteristics
Product Life Cycle
Total Cost of Ownership
Product Specialization
Substitute Goods
Regulation
Quality Control
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Imports
Competitive Environment
Market Share Concentration
Market Profitability
Switching Costs
Purchasing Process
Buying Basics
Buying Lead Time
Selection Process
Key RFP Elements
Negotiation Questions
Buyer Power Factors
Key Statistics

About IBISWorld Inc.
IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.


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