Nine New Vendors Join Gartner's E-Commerce Magic Quadrant Report

Now halfway through its second decade, the world of e-commerce continues to evolve, at least according to the newly expanded parameters used by research firm Gartner in its Magic Quadrant for E-Commerce. A whopping nine new companies join the field this year, a result that report author Gene Alvarez, who is also the firm's vice president of e-commerce and CRM, credits to the inclusion of companies offering software-as-a-service and the increasing “consumerization” of B2B e-commerce offerings.

“More business users want a business-to-consumer type of experience,” Alvarez says. “They see that consumers can get product reviews and visualization tools to see the product from different angles. They want the same tools for B2B.”

Companies doing the best job of providing that level of interaction -- and listed as Leaders in the Magic Quadrant -- were IBM WebSphere Commerce and ATG. IBM’s e-commerce offering -- slightly outpacing ATG in terms of its ability to execute anf the completeness of its vision -- provides a wide variety of capabilities out of the box, Alvarez says, as well as extended capabilities and Web 2.0 features. The product also offers multisite management capability that many firms are seeking.

ATG consistently appears on clients’ shortlists, according to Alvarez. The company closes deals because it has shown it can deliver an e-commerce solution with strong personalization, shopping-cart management, product catalogue, and other core operational e-commerce components.

While IBM and ATG are repeat performers, several vendors are making their first appearance in the report this year, including the following companies grouped in Gartner's Niche Players quadrant:

  • Access Commerce;
  • Hybris;
  • iCongo;
  • MarketLive; and
  • Vcommerce.

Those vendors join other Niche Players in this year's report:

  • BroadVision;
  • Click Commerce;
  • Intershop; and
  • Macrovision Solutions.

Another newcomer, GSI Commerce, landed in the Challengers segment along with these other vendors, some of which are CRM industry heavyweights:

  • Digital River;
  • Microsoft;
  • Oracle;
  • SAP; and
  • Sterling Commerce (which acquired -- and takes the place of -- Comergent Technologies).

The final three new companies this year make up the full complement of Gartner's Visionaries quadrant:

  • Demandware;
  • NetSuite; and
  • Venda.

All nine new vendors demonstrated active market participation or have garnered interest from Gartner clients through inquiries and inclusions on long- or shortlists of vendors engaged in requests for information or proposals. They also had to have more than 40 production customers for e-commerce functionality, and more than 1,000 transactions. Companies also had to have better product/service performance than a year ago, with the minimum qualification for entry shifting from "standard" performance to "high" -- a reflection, Alvarez says, of the fact that e-commerce client requirements for quality and capability (and their expectations of new functions) have risen.

There are about 100 companies serving this market, according to Alvarez -- which means there could be another new group of companies next year. However, in order to make the cut, they’ll likely have to meet a new set of criteria in terms of transactions, customers, and product functionality. Alvarez says he would soon be devising the formula for qualifying companies for next year’s report.

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.

CRM Covers
for qualified subscribers
Subscribe Now Current Issue Past Issues

Related Articles

Dressing in Augmented Reality

New solution for online retailers brings the dressing room into the consumer's own home.

6 Ways E-Commerce Survived the Recession

Shop.org Annual Summit '09: A record number of attendees gather to learn strategies for the changing e-commerce landscape.

Retailers Better Buy In to Social Media

eTail West '09: Companies are either wallowing in uncertainty or else diving aimlessly into unknown waters -- either way, the brand takes a hit.

Online Retailers Actually Had a Holly, Jolly Christmas

eTail West '09: With revenue down, retailers are having to rely more on analytics than ever before.

NetSuite Retails a New Offering

The popular on-demand ERP and CRM provider announces a version for the retail industry, and has its first profitable quarter.

NetSuite Saps a Competitor and Shows Growth

The popular on-demand CRM and ERP provider takes a bite out of yet another company's customer base.

Making (More) Money in Online Stores

eTail East '08: Provide your customers with relevant cross-sells and upsells -- it's a win-win situation.

Online Shopping Picks Up Steam

While overall satisfaction with e-commerce continues its upsurge, the online travel industry is feeling the competitive pressure from airline and hotel sites, and travel search engines.

ATG Seasons Its E-Commerce and Service Functionality

The bulk of the enhancements focuses on personalized responses, speedier resolution, and strengthened revenue generation capabilities.

E for Excellence

Other industries could stand to learn a few things as e-commerce continues to deliver outstanding customer satisfaction.

GSI Commerce Acquires e-Dialog

The $157 million deal unites a key online retailer and a marketing specialist, putting e-commerce and email marketing under one roof.

RightNow Partners for a Mashup

The Bozeman bunch signs partnerships with Demandware and Cast Iron Systems to expand its e-commerce and integration capabilities.

Ready, Set, e-Commerce!

A new award recognizing innovative e-commerce solutions hopes to motivate "fresh and unusual" ideas.

KANA Leads Forrester's E-Service Suite Wave

The e-service specialist earns high marks for the breadth and depth of its offerings, but the company must continue to improve how it works.

E-Commerce Gets Some Satisfaction

Not all sectors of online business are seeing substantial uptake in adoption and satisfaction, but the channel continues to gain traction for its accessibility and ease of use.

E-commerce Best Practices Make Perfect

CRM magazine presents what some of the best minds in the industry have to say.

Wise Guides Confer at ATG's Insight Live 2006

The conference covers info about online business strategies and previews of new e-marketing, sales, and customer service offerings.

ATG Will Acquire eStara

The company will beef up its on-demand initiatives through the acquisition with capabilities that are particularly attractive to retailers.

Gartner Combines Two Magic Quadrants

Magic Quadrant for E-Commerce '06: ATG and IBM WebSphere Commerce top the new quadrant, an examination of vendors delivering B2B and B2C e-commerce offerings.

NetSuite Moves Up the E-Commerce Ladder

The company releases enhancements to its e-commerce engine, with improvements that are tailored for a potentially untapped midmarket, according to one analyst.

Market Focus: E-Retail: Buying Into the Customer Experience

The retailers that focus on delivering a seamless customer experience have a markedly stronger chance of cultivating customer loyalty.

The 5 Pain Points of E-Commerce

At Shop.org's Annual Summit, one speaker rebuts the conventional wisdom that e-commerce has peaked, and reveals the "truths" about online marketing and how to fix them.

Consumers to Marketers: Get Real

eTail East '08: Consumers just want to buy from someone they can relate to.