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Cloud, mobile continue to upset applecart in ECM market

As mobile devices, the cloud and collaboration software change the ways that we do business, they're also affecting enterprise content management. Learn more about the ECM market.

Companies are finally making the leap and putting their trust in public cloud services as a way to host critical business applications.

While there used to be some skepticism about moving business applications to the cloud, organizations have come to recognize that having a public cloud provider manage their applications can improve efficiency and reduce costs. That's just one of several trends that continues to disrupt traditional markets for enterprise content management (ECM) and collaboration software tools.

According to data from IDC, cloud infrastructure spending reached nearly 30% of overall IT infrastructure spending in the first quarter of 2015 and is growing much more rapidly than on-premises infrastructure investments.

In this podcast, Peter O'Kelly, an independent collaboration and data consultant for O'Kelly Associates, maps out the trends disrupting the ECM market as well as collaboration software.

Mobile-first mindset in content creation. O'Kelly says mobile devices have made context-aware, mobile-first content a must. "New content tools simply aren't going to suffice anymore if they don't have first-class support for phones, tablets. It used to be an afterthought, and that's no longer acceptable," he explains.

"Users are doing a lot more on mobile devices; it's not just about messaging, and getting notifications. Users want to access content and be able to take action in context," O'Kelly adds.

Public cloud investment grows. According to recent news from Microsoft, Office 365 sales are up almost 70%. And the company's CEO, Satya Nadella, noted that 70% of Fortune 500 companies use at least two public cloud services. Cloud computing was initially seen as financially attractive, but today, companies recognize that the cloud is simplifying management of operations. "Organizations are realizing that they have an opportunity to have fewer moving parts that need to be directly managed," O'Kelly says. "They can focus on addressing specific business needs, not lower-level operations and administration."

Organizations are realizing that they have an opportunity to have fewer moving parts that need to be directly managed.
Peter O'KellyO'Kelly Associates

Social is everywhere, but specialized social tools are going nowhere. "It's a paradox for people who are long-term collaboration or social software advocates," O'Kelly says. "Specialized products that focus on enterprise social networking aren't faring well in the marketplace, but at the same time, basic collaboration capabilities have become increasingly pervasive. People ... just now assume that social actions, such as being able to comment, like or even edit, are platform services that should be available. It's not a separate application that you switch over to."

Office Graph and Watson are changing the way people work. O'Kelly says services like Office Graph and Watson are costly to produce, with only a select few vendors in the ECM market able to develop and support them. The platforms are still having an impact, however.

"The good news is that analytics is being democratized through things like Delve. It's on the public cloud, so you don't need to do the care and feeding of it," he says.

For more, check out the podcast above and also check out the original report on these content and collaboration trends. You can also learn more in Part 2 of this interview with O'Kelly, which focuses on mobility and office 365.

Next Steps

Cloud and mobile are the themes for ECM software

Is ECM going to the cloud?

Trends in ECM software that you need to watch

This was last published in March 2016

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