Vendor Selection Matrix™ – Web Experience Management SaaS And Software: The Top 20 Global Vendors 2019 Peter O’Neill Research Director May 2019 © 2019, Research In Action GmbH Reproduction Prohibited 1 Vendor Selection Matrix™ – Web Experience Management: The Top 20 Global Vendors Acquia BloomReach Top 5 (alphabetical order) Episerver SDL Sitecore Adobe Amplience 6 to 10 (alphabetical order) Contentful Crownpeak e-Spirit Progress CoreMedia eZ Systems IBM Kentico Software 121 to 20 (alphabetical order) Magnolia Open Source OpenText Oracle Squiz 1 Two of the evaluated vendors achieved the same © 2019, Research In Action GmbH Reproduction Prohibited 2 score at the 10th postion. The Research In Action GmbH – Vendor Selection Matrix™ Methodology Data Summary: Ø Unique, primarily survey-based methodology for comparative vendor evaluation. Ø At a minimum, 60% of the evaluation results are based on enterprise and SMB buyers’ survey results. Ø Analyst’s opinion accounts for a maximum of 40% of the evaluation results (not close to 100% as in most other vendor evaluations). Ø More than 45,000 data points were collected. Ø Data was collected in Q4 of 2018 and Q1 of 2019, covering 1,500 business and IT managers (with budget responsibilities) in a combined telephone and online survey. Ø The Top 20 vendors of Web Content Management SaaS and Software solutions (selected by the survey respondents) were evaluated. Ø The evaluation results and forecasts are based on customer and vendor feedback, publicly available information, triangulation, as well as the analyst’s opinion. © 2019, Research In Action GmbH Reproduction Prohibited 3 The Research In Action GmbH – Vendor Selection Matrix™ Methodology Survey Instrument: Country breakdown Job title breakdown (Buyer role) Industry breakdown DACH 200 CEO 142 Energy 98 United Kingdom 150 CMO 119 Financial Services 247 France 150 General Manager 113 Government & Non Profit 102 Benelux 50 CTO 114 Healthcare & Chemicals 198 Europe (Rest) 150 VP Sales 108 Manufacturing 303 North America 500 VP Marketing 105 Media & Telecoms 126 The Americas (Rest) 50 Project Manager 100 Consumer Packaged Goods & Retail 123 Australia and New Zealand 30 BU Head 97 Technology & Professional Services 200 Asia Pacific (Rest) 220 Client Engagement Manager 95 Travel & Transportation 103 Total 1.500 BU Marketing Manager 91 Total 1.500 COO 88 Company size breakdown (Revenue more than € 250 million) CIO 85 Headcount below 2.500: 252 IT Manager 83 Headcount 2.500 to 5.000: 312 VP IT 59 Headcount 5.000 to 10.000: 336 Supply Manager 43 Headcount 10.000 to 50.000: 499 CFO 29 Headcount over 50.000: 101 IT Operations Manager 17 Total 1.500 Others 12 Total 1.500 © 2019, Research In Action GmbH Reproduction Prohibited 4 What Tools Do You Use To Create The Vendor Longlist? MQ/VSM Press Peers Vendors Social Media Decision Makers use a mix of traditional and online tools N = 3.000 Business and IT Managers with budget responsibilities © 2019, Research In Action GmbH Reproduction Prohibited 5 Market Definition: Web Experience Management Ø Web Experience Management1 (WEM) is an integrated set of core technologies that support the composition, management, delivery and optimization of contextualized digital experiences on websites. Increasingly, these platforms are deployed to an ever-more complex, extensive and interconnected technology landscape. Businesses now need to deliver highly contextualized experiences beyond the now traditional websites and mobile apps to an increasing variety of interaction channels across the customer journey. Some vendors therefore call their products Digital Experience Management platforms; most of them used to be labeled as vendors of Web Content Management. It is a mature market but under disruption because of the above-named trends. Ø Most WEM vendors have rearchitected their platforms to offer headless and/or decoupled architectures. The descriptor “headless” stands for the separation of content files from the presentation layer, allowing other applications to request content from the WEM using APIs; applications such emails, SMS messages, video screens, augmented or virtual reality, or Internet-of-Things (IoT) devices like wearables. Ø The WEM platforms can also include other components such as analytics, social capabilities, and online forms. Ø WEM applications can play a leading role in eCommerce projects where the buyer experience across a myriad of channels is a critical success factor. Measuring and optimizing the “experience1” is becoming a key business measure of success in consumer marketing as well as both business-to-business (B2B) or business-to-business-to-consumer (B2B2C) capacities. 1 Experience Management, see https://en.wikipedia.org/wiki/Experience_management. © 2019, Research In Action GmbH Reproduction Prohibited 6 Market Overview: Market Trends 2019 What is your number one investment area in the Web Experience Management space for 2019? Notes • Most want to modernize or upgrade/migrate their WEM system to SaaS/Cloud • System performance ranks high N = 1.500 Business and IT Managers with budget responsibilities © 2019, Research In Action GmbH Reproduction Prohibited 7 Market Overview: Market Trends 2019 Are you planning to implement or replace your Web Experience Management solution in the next 1-3 years? Notes • Mature market with 95% of companies having a system installed • Majority of users reluctant to change systems but …. • … One third of firms have already decided to switch N = 1.500 Business and IT Managers with budget responsibilities © 2019, Research In Action GmbH Reproduction Prohibited 8 Market Overview: Market Trends 2019 Which new digital channels do you plan to support from your Web Experience Management system (3 answers)? Notes • Over one quarter of companies need to support POS devices • Internet of Things, AR and VR devices are significant requirements now N = 1.500 Business and IT Managers with budget responsibilities © 2019, Research In Action GmbH Reproduction Prohibited 9 Market Overview: Market Trends 2019 What are your top three priorities when considering Web Experience Management system (3 answers)? Notes • As well as having suitable product, vendors must demonstrate business competency and provide local services • SaaS adoption is a major driver for WEM investments N = 1.500 Business and IT Managers with budget responsibilities © 2019, Research In Action GmbH Reproduction Prohibited 10 Market Overview: Macro-Trends Affecting Web Experience Management Projects in 2019/2020 Ø Market size and growth. The over 100 active software and SaaS vendors offering WEM solutions include a multitude of Open Source providers plus vendors active only in their local markets. Across the 2 billion websites worldwide, the overall WEM market- leader is the Open Source WordPress solution at 23% share. But the globally active list of vendors used by businesses is under 30. In 2018, the total global annual software license, maintenance and SaaS revenues for WEM totaled over $ 5 billion, growing annually at around 16%. As in all software markets, there is a clear market-driven trend to Cloud based solutions. Ø WEM platforms are now strategic to companies. Originally a product supporting the appearance of just one or a handful of websites with essentially static content, WEM buyers now need a broader platform to broadcast across many digital channels and render dynamic content on hundreds of websites. Plus integrability to their other marketing systems. Ø Switching vendors is a challenge for many. Most users tend to stay with their vendor as migration costs are perceived to be high if they have been creating web content for several years. Vendors looking to capture new market share must offer migration services and/or focus on new business initiatives where brand new WEM platforms could be deployed. The other opportunity is when a company is committed to a digital transformation, then all platforms are under review. Ø Marketing users will prevail over IT developers. As the web experience becomes the primary business presentation of a company, business users will insist on more ability to control and configure that experience. They know and understand the needs of their customers and prospects better than the IT department or teams of web developers. Even in large companies that have built up resources of web developers, there will be a drive to provide the WEM platform directly to staff in Marketing Operations. This will require some vendors to change their go-to-market language and approach. © 2019, Research In Action GmbH Reproduction Prohibited 11 Market Overview: Web Experience Management Market Predictions Ø Marketing content needs more personalization and context. Advanced marketers want to provide content that is as personal as possible to the target audience. Industry or business-function level content customization will become table-stakes. Marketing buyers will want to leverage personal and/or behavioral data to further target the content used in marketing programs. Ø Marketing attribution becomes a business fundamental. Attribution remains a priority for B2B and B2B2C as the proliferation of available customer touchpoints mount. For companies with significant omni-channel marketing operations, accurate attribution to the worthy communications channel, and associated investment, is an economic priority. Some WEM olution providers will develop truly advanced, multi-touch attribution functions beyond basic attribution like first-touch, last-touch, etc.. Ø Product labeling has