Price increases will remain relatively small due to competition from cloud computing
Los Angeles, CA (PRWEB) September 08, 2014
Enterprise content management (ECM) systems have a buyer power score of 3.4 out of 5. This score indicates that buyers will have a slight edge in negotiating discounts or other concessions from providers. Stable prices in the three years to 2014 have benefited buyers; however, demand is expected to increase as the economy improves. According to market research firm IBISWorld, the strengthening economy has boosted the number of businesses as well as IT investments. At the same time, internet traffic volume has surged, indicating an increased volume of data that will require ECM systems to be managed and organized. In response to heightened demand, providers are forecast to raise their prices in the three years to 2017. Buyers should discuss volume discounts with suppliers and seek to lower recurring maintenance and support costs. Current major vendors include EMC, IBM, Microsoft and OpenText Corp.
Buyers also benefit from relatively low market risks. Most ECM system providers are well-established software publishers that are at low risk for bankruptcy. Providers are not dependent on any critical inputs for the development and delivery of their products. Because of these low market risks, buyers do not have to worry that the delivery of ECM systems would be disrupted due to a provider's financial difficulty or inability to obtain critical inputs. This factor is especially important for buyers because they will be dependent on their provider to perform service and maintenance after purchase, says IBISWorld.
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, which hurts buyer power. There are very few substitutes with the same functionality and features of a dedicated ECM system, additionally cutting into buyer power. Switching costs are very high, increasing the risk that the buyer may get locked in with a supplier. 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.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Buying Lead Time
Key RFP Elements
Buyer Power Factors
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.