Still No Masters in Gartner's 'MDM for Product Data' Magic Quadrant
The latest assessment of master data management for product data covers 11 vendors -- and reveals no leaders. Is product data that much harder than customer data?
Posted Sep 3, 2008
Page 1

Further complicating matters in the battle between customer data and product data, Gartner’s new Master Data Management of Product Data Magic Quadrant suggests that no true market leader on the product data side has yet to emerge. (In fact, Gartner places no vendors in the top half of its report, comprising the Challengers quadrant as well as the Leaders quadrant.) The report does indicate, however, that the largest companies are expected to dominate the sector within three years -- a period in which Gartner predicts this market will see strong growth, exceeding $1 billion in revenue by 2011. By then, according to the report, major application vendors IBM, Oracle, and SAP will command more than half of the license revenue generated by MDM product data software.

IBM could already be leading the market if not for a change it made in its strategy a couple of years ago, says Andrew White, author of the report. Two years ago, IBM was in the Visionary quadrant and heading toward the Leader quadrant, according to White, but then the company announced it would no longer invest in its WebSphere product center application, instead concentrating all of its efforts on its WebSphere customer center application.

“They were re-architecting and trying to expand the functionality of their customer center product,” White explains. “But the complexities are very different. It’s like taking a CRM application and trying to use it for procurement.” The product application was all about workflows, while the customer center application had time, names, addresses, and other people-specific information. The two applications weren’t meant to be one, White says.

So when IBM chose to stop investing in the development of the product application, it moved from the Visionary quadrant to the Challenger quadrant. However, customers eventually convinced IBM that a dual-application approach (with integration capabilities) was the better option. The company now invests in the development of both, which have been renamed Infosphere MDM server and Infosphere MDM server for PIM. As a result, the refocused company is back in the Visionary quadrant along with Oracle (on the border of the Visionary and Niche Player quadrants), Tibco Software, and Riversand.

If IBM doesn’t emerge as a leader, SAP and Oracle are the most likely other candidates, according to White. Those three companies are the ones that have the breadth and depth in order to lead the market, he adds.

In the Niche Players’ quadrant are:

  • SAP;
  • Heiler Software;
  • Hybris;
  • Stibo -- a new quadrant member in this report;
  • GXS;
  • Enterworks; and
  • QAD (FullTilt Solutions).

With the exception of IBM and Stibo (which improved its sales to the point where it qualified for the report), the positioning of the companies is little changed from last year, according to White. There are numerous other smaller players, particularly in Europe, he added.

News relevant to the customer relationship management industry is posted several times a day on destinationCRM.com, in addition to the news section Insight that appears every month in the pages of CRM magazine. You may leave a public comment regarding this article by clicking on "Comments" at the top; to contact the editors, please email editor@destinationCRM.com.

Page 1
To contact the editors, please email editor@destinationCRM.com
Every month, CRM magazine covers the customer relationship management industry and beyond. To subscribe, please visit http://www.destinationCRM.com/subscribe/.
Learn more about the companies mentioned in this article in the destinationCRM Buyer's Guide:
Related Articles
As unified data hubs go mainstream, here are six broad strokes to help you master the art of master data management.
As master data management moves out of the early-adoption phase, Forrester Research forecasts trends for the year, reasons for failure, and recommendations for future success.
Magic Quadrant for Data Quality Tools '08: Business Objects, IBM, Informatica, and Harte-Hanks' Trillium Software join the SAS Institute unit in the top box.
Two recent reports throw a bit of cold water on master data management, despite significant benefits and business process gains.
Magic Quadrant for Data Mining '08: Packaged applications are all the rage -- but as the pair atop the list remains the same, a Visionary emerges overseas.
In addition to those two vendors, Dun & Bradstreet's Purisma and Oracle UCM remain near the top of the research firm's latest report.
Purisma's new Data Hub product focuses on improving data accuracy while reducing implementation times, which one analyst says increases these types of solutions' value.
The BI vendor releases a new product- and region-focused data cleansing solution as it continues to expand its Enterprise Information Management line beyond customer data.
The company continues to build out its data integration offerings, but lags behind the competition in broader data quality initiatives, according to one analyst.
A review of product announcements from the Gartner conferences in Hollywood, Fla., last week.
New Sage offering provides productivity and business intelligence improvements; one industry analyst suggests the new version closes the gap between contact management and SFA.
Version 8 of the company's flagship product introduces new, prebuilt Accelerators that assist customers in overcoming common data challenges associated with making the transition to MDM and CDI.
Studies and service offerings point to the need for better information herding.
Big Blue becomes the first vendor to land in the leaders circle of a CDI hub quadrant, but must improve its ability to execute.
A series of keynote speakers at the Gartner MDM Summit outline why the time is right for master data management; Gartner reveals its 7 Building Blocks of MDM.
The vendor unveils the first of a series of point solutions designed to provide organizations with a point of entry into MDM initiatives, according to an industry analyst; version 3 of its flagship product arrives.
As the market for these tools continue to evolve, vendors continue to push towards a consolidated solution set.
CRM's real truth requires enterprises to clean up -- reorganize -- customer information with data integration solutions, Web-services technology that integrates data applications.
A study finds businesses are turning to master data management solutions to improve their business intelligence results; data governance best practices are still key.
The scope of master data management widens -- and Gartner alters its report name to reflect the change.
A new Forrester report points to more emphasis on real-time data warehousing -- and outlines five ways to go about it.
Putting master data management into practice.
Data Integration Magic Quadrant '08: Informatica and SAP-Business Objects join Big Blue as the leading integrators.
The MDM vendor releases a new application to empower business issues with data management.
Gartner Magic Quadrant for MDM for Customer Data '09: As vendors continue to invest in master data management initiatives, Initiate Systems joins IBM and Oracle in this year's top segment.
Big Red squeezes onto the Leaders Quadrant and an open-source player joins the evaluation for the first time.
After weeks of rampant speculation -- and just six days after Informatica and Siperian dashed to the altar -- IBM and Initiate finally tie the knot, adding yet another variety of master data management to Big Blue's arsenal, and extending its reach into the healthcare and public sectors.
Popular Articles

Home | Get CRM Magazine | CRM eWeekly | CRM Topic Centers | CRM Industry Solutions | CRM News | Viewpoints | Web Events | Events Calendar
DestinationCRM.com RSS Feeds RSS Feeds | About destinationCRM | Advertise | Getting Covered | Report Problems | Contact Us