Enterprises must move ahead from the culture of collaboration by email
By Richard Edwards, Principal Analyst, Consumer Impact from it
Ovum publishes set of the enterprise social media market
Ovum believes that it is now time to consider seriously about enterprise social media (ESN) and think about its role within wider enterprise collaboration strategy.
The ESN marketplace is beginning to mature and it is now moving in the introduction phase in to the growth phase. Proper acquisitions happen to be made whatsoever levels, and much more will unquestionably follow.
Ovum’s current assessment from the ESN market signifies that Jive and Yammer would be the two vendors that organisations are most wanting to assess, but other vendors will also be generating significant business and revenues using their choices.
Yammer may be the “next SharePoint”
Broadly reported industry figures claim that IBM’s social media platform, IBM Connections, introduced in $105.4m during 2011, and Ovum estimates the present worth of the ESN market to stay in more than $500m.
Evaluating revenues from traditional software sales with revenues from software-as-a-service (SaaS) companies presents some interesting challenges when attempting to find out share of the market, but Microsoft’s purchase of Yammer for $1.2bn clearly signifies that there’s money to make within this software sector.
Ovum believes it’s a minimum of comparable to those of the organization email market, by which Exchange Server is really a multi-billion-dollar product for Microsoft. If Yammer fulfills its potential it turn into the “next SharePoint” when it comes to revenue generation.
“Freemium” may be the path to prove Return on investment
The company situation for purchase of ESN solutions hasn’t yet proven towards the satisfaction from the general business skeptic, therefore the “freemium” model (whereby fundamental features can be found free of charge and advanced features for any premium) is working for some vendors to show business value and prove roi (Return on investment).
Initially it had been the more youthful worker who had been generally more acquainted with the ability and effectiveness of social media tools, however this demographic is altering. Acting from this “social change” may be the longstanding nature and culture of established organisations where the middle management layer tends toward the “need to know” and “knowledge is power” mantras.
Consequently, Ovum believes the business potential provided by enterprise social systems will most likely simply be unlocked when necessity dictates a company change.
Mobile phone applications and freemium choices are enabling ESN adoption
From the market perspective, enterprise social networks are now well and truly inside the adopter phase, using more than 10% of organisations in established IT markets deploying solutions or registering to services.
Mobile phone applications are more and more getting used to gain access to enterprise social systems – especially “freemium” choices from the kind of Yammer – which is extending the utilization situation for such methods to an extensive audience.
The idea of the items constitutes a company social networking is beginning to change, as solutions mature and develop to encompass greater functionality and, in some instances, make existing collaboration solutions redundant.
Tomorrow’s enterprise social media market might be worth $10bn
The enterprise collaboration technology landscape is full of social software from a number of different vendors. Individuals offering pure-play enterprise social media solutions are in competition with established enterprise collaboration solution providers.
Meanwhile, vendors offering business automation social platforms are attempting to gain traction inside a market that’s also assessing the merits of emerging choices from companies focusing on enterprise applications.
Merger and acquisition activity has elevated markedly over the past six several weeks, which has brought to new entrants appearing around the enterprise collaboration landscape. So, having a market potential with a minimum of $10bn, the enterprise social media marketplace is the brand new battleground for those enterprise collaboration vendors.