Which Vendors Own the Enterprise Social Software Market?
According to IDC the enterprise social software market was just shy of $800 million in 2011 which represented a growth of 40% when compare to the previous year and a growth of 100% when compared to 2009. In this case, enterprise social software offerings were referred to as companies that: “bring enhanced social collaboration capabilities to users who are either inside or outside an organization’s firewall.” Meaning this included vendors who offer both employee and customer facing collaboration solutions.
Considering annual revenues are predicted to break $4.5 billion by 2016 (even higher by some estimates) this really shows how early we are in this industry. We’re looking at less then 20% (around 17-18%) of revenue today. It’s interesting to compare this to the Innovation/Technology Adoption Cycle below which puts us just around the “early adopters” category (based on revenue). I spend a lot of time in the world of collaboration and based on what I’m seeing I’d say that this sounds about right
IDC also looked at how much market share various vendors have in the enterprise social software space, now again keep in mind this includes vendors that offer solutions for either/both employees and customers. Before reading on though, who do you think has the most market share?
The top 3 vendors based on market share are:
- IBM (13.7%)
- Jive Software (8.5%)
- Communispace (7.8%)
What’s particularly interesting about this chart is that currently, the vast majority of the enterprise social software space is not being dominated by big players, instead it’s being dominated by the smaller and perhaps lesser known players. We haven’t broken the billion dollar mark yet so we’re not exactly talking about large sums of money here but around $340 million dollars is sitting with the smaller guys.
When I look at something like this I see a few things. The first s that there is still a tremendous amount of opportunity in the enterprise social software space, we haven’t even cracked 20% of where we are going to be in just 3-4 short years. The second things this tells me is that we can expect to see plenty of other acquisitions from the larger companies who are looking to grow their market share in this space.
Many companies that I and Chess Media Group work with and speak with today are either investing or strongly considering investing in collaborative strategies and tools today. In fact enterprise social software has already received quite a lot of attention and is already being considered as a top priority for executives around the world. I look at that and think of what things will be like in 2016 and it gets me very excited for the future.
The future of work and management is changing forever and it’s going to be an exciting ride…for the smart and innovative companies.
Principal and co-founder of Chess Media Group, a management consulting and strategic advisory firm on employee, customer, and partner collaboration. Author of "The Collaborative Organization," the first comprehensive strategy guide to emergent collaboration in the workplace- endorsed by executives such as the former CIO of the USA, CMO of SAP, CEO of Unisys, CMO of Dell, and dozens of others, ...
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