When Vendors Decline to Participate in Analyst Research

In the Master Data Management (MDM) and Product Information Management (PIM) space there are some analyst market reports with vendor rankings used by organizations when doing a tool selection project.

These reports are based on the analyst’s survey at their customers and perhaps other end user organizations as well as the analysts research in corporation with the solution vendor. However, sometimes the latter part does not happen.

One example was the Gartner late 2017 Magic Quadrant for MDM solutions where IBM declined to participate as reported in the post Why IBM Declined to Participate in The Gartner MDM Magic Quadrant.

Another example is the Forrester and Informatica dysfunctional relationship. In the Forrester 2019 MDM Wave it is stated that “Informatica declined to participate in our research. This was also apparent in the Forrester 2018 PIM Wave where Forrester’s placement of Informatica as a Germany-based vendor didn’t reflect movements (and perhaps achievements) since 2012 as told in the post MDM Alternative Facts.

Both Gartner and Forrester have though positioned IBM and Informatica in their plot with the note that the research did not include interaction with the vendor.

Analyst Relationship

Information Difference has taken another approach and does not include nonparticipating vendors as discussed in the post Movements in the MDM Vendor Landscape 2019.

This challenge is a bit close to me as I am running a list of MDM / PIM / DQM vendors where there now also is a ranking service based on individual context, scope and requirements. Here I have chosen to include vendor solutions on the three above analyst reports and the list itself as noted in select your solution step 4.

MDM Vendor Revenues According to Gartner

A recent post on this blog has the title MDM Spending Might be 5 Billion USD per Year.

The 5 B USD figure was a guestimate based on an estimate by Information Difference about the total yearly revenue at 1.6 B USD collected by MDM software vendors.

Prash Chandramohan, who has his daily work at Informatica, made a follow up blog post with the title The Size of the Global Master Data Management Market. In here Prash mentions some of the uncertainties there are when making such a guestimate.

In a Linkedin discussion on that post Ben Rund, who is at Riversand, asks about other sources – Gartner and others.

The latest Gartner MDM Magic Quadrant mentions the 2017 revenues as estimated by Gartner:

MDM market vendors re Gartner

It is worth noticing that Oracle is not a Gartner MDM Magic Quadrant vendor anymore and the Gartner report indicate that Oracle still have an MDM (or is it ADM?) revenue from the installed base resembling the ones of the other mega-vendors being SAP, IBM and Informatica.

Update: The revenues mentioned are assumed to be software license and maintenance. The vendors may then have additional professional services revenue.

The 14 MDM vendors that qualified for inclusion in the latest quadrant constituted, according to Gartner estimates, 84% of the estimated MDM market revenue (software and maintenance) for 2017  – which according to Gartner criteria must be excluding Oracle.

MDM Megavendors vs the Other MDM Vendors

In the latest Gartner Master Data Management Solutions magic quadrant it is stated that “Gartner-estimated 2016 revenues of the four largest vendors commanded over 77% of the market (SAP, IBM, Oracle and Informatica). These four held a Gartner-estimated market share of just over 73% in 2017.”

There seems to be a little decrease in the dominance from the megavendors, though the market according to Gartner is still ruled by the big four. The number of licenses sold by these vendors and those midsize vendors who also are in the quadrant can be found in the post Counting MDM Licenses.

For the future trend it is also worth noticing, that Oracle is not a part of the MDM magic quadrant anymore, as Oracle in the Gartner lingo is not an MDM vendor, but an ADM vendor today. Oracle is not included in the latest Forrester MDM wave either.

Another market distinction is around MDM versus Product Information Management (PIM) solutions. The post Several Sources of Truth about MDM / PIM Solutions examines the positioning by Gartner and Forrester and in that sense the magavendors are better at MDM than PIM.

Any Gartner estimation will be biased towards large vendors having large clients as these are the Gartner clients. In a LinkedIn discussion a big four person suggested that the market is fragmented and there are many MDM-like solutions.

This remark followed the market estimation from a fresh market report from Information Difference. The positioning results from here were shown in the post Movements in the MDM Vendor Landscape 2019. In here the megavendors did not perform so well on the technology axis, which is largely made up by customer satisfaction feedback in the underlying survey.

So, what do you think? Will the megavendors still rule the MDM market or will the midsize and smaller vendors get a larger piece of the cake?

MDM megavendors

For bigger picture click here.

Looking at The Data Quality Tool World with Different Metrics

The latest market report on data quality tools from Information Difference is out. In the introduction to the data quality landscape Q1 2019 this example of the consequences of  a data quality issue is mentioned: “Christopher Columbus accidentally landed in America when he based his route on calculations using the shorter 4,856 foot Roman mile rather than the 7,091 foot Arabic mile of the Persian geographer that he was relying on.”.

Information Difference has the vendors on the market plotted this way:

Information Difference DQ Landscape Q1 2019

As reported in the post Data Quality Tools are Vital for Digital Transformation also Gartner recently published a market report with vendor positions. The two reports are, in terms on evaluating vendors, like Roman and Arabic miles. Same same but different and may bring you to a different place depending on which one you choose to use.

Vendors evaluated by Information Difference but not Gartner are veteran solution providers Melissa and Datactics. On the other side Gartner has evaluated for example Talend, Information Builders and Ataccama. Gartner has a more spread out evaluation than Information Difference, where most vendors are equal.

PS: If you need any help in your journey across the data quality world, here are some Popular Offerings.

Data Quality Tools are Vital for Digital Transformation

The Gartner Magic Quadrant for Data Quality Tools 2019 is out. It will take you 43 minutes to read through, so let me provide a short overview.

Gartner says that “data quality tools are vital for digital business transformation, especially now that many have emerging features like automation, machine learning, business-centric workflows and cloud deployment models.”

The data quality software tools market was at 1.61 billion USD in 2017 which was an increase of 11.6% compared to 2016.

Gartner sees that end-user demand is shifting toward having broader capabilities spanning data management and information governance. Therefore, the data quality tool market continues to interact closely with the markets for data integration tools and for Master Data Management (MDM) products.

Among the capabilities mentioned is multidomain support meaning capabilities covering all the specific data subject areas, such as customer, product, asset and location. Interestingly Gartner continues to focus on customer as the one of several party data domains out there. In my experience, there are the same data quality challenges with vendor and other business partner data as well as with employee data.

According to Gartner, data quality tool vendors are competing to address shifting market requirements by introducing an array of new technologies, such as machine learning, interactive visualization and predictive/prescriptive analytics, all of which they are embedding in data quality tools. They are, according to Gartner, also offering new pricing models, based on open source and subscriptions.

The vendors included in the quadrant are positioned as seen below:

Gartner DQ 2019

If you want a full copy of the report you can, against providing your personal data, get it from Information Builders here.

Several Sources of Truth about MDM / PIM Solutions

The previous post on this blog was about Forrester vs Gartner on MDM/PIM. This post was about who is recognized as a major Master Data Management (MDM) / Product Information Management (PIM) solution vendor by the analyst firm Forrester versus who is recognized as a major MDM solution provider by the analyst firm Gartner.

MDM Truths

Now, let us have a look into how the individual solution providers are ranked in either the same way or differently by these major analyst firms spiced with my humble take on where this will be going. In the cause of brevity, I will focus on vendors positioned by Forrester as an MDM /PIM leader or strong performer or by Gartner as an MDM leader, visionary or challenger.

Informatica is an MDM leader both with Forrester and Gartner. When it comes to PIM Forrester has Informatica a little behind the leaders and back in the days when Gartner had specific customer MDM and product MDM quadrants, Informatica did better in customer MDM versus product MDM. Informatica has strengthened their grip on customer MDM with the recent AllSight acquisition. Will be interesting to see what moves Informatica will take to catching up on the product MDM / PIM battle ground and thus consolidating their multidomain MDM leadership.

Orchestra Networks who was recently acquired by Tibco is a leader in the eyes of Gartner but a bit less prominent positioned as a strong performer in the eyes of Forrester. The question asked on the market is if Tibco, against how earlier acquisitions turned out, will be able uphold Orchestra’s position as examined in the post Tibco, Orchestra and Netrics.

Reltio is a leader in the Forrester wave but still a niche player in the Gartner quadrant. This may say more about Forrester versus Gartner than about Reltio. Forrester seems to focus more on where the market is going while Gartner emphasizes on where the market has gone.

Riversand is a strong MDM and PIM performer at Forrester and a visionary in the Gartner quadrant. Perhaps Gartner sees a bit more on the vision side and Forrester a bit more on the offering side, but all in all the two analyst firms seems to be in agreement about Riversand. I think Riversand is on a good track.

SAP is a strong performer in the Forrester wave and a strong challenger according to Gartner. A lot of SAP ECC clients have and will choose the SAP MDG offering based on IT landscape simplification considerations. The Forrester PIM wave has SAP trailing the other solutions, which corresponds with my impression, which is that the SAP Hybris offering is struggling with really being a PIM solution.

Semarchy just made a high jump into the Gartner MDM quadrant challenger zone and according to Forrester they have the strongest MDM strategy possible. No doubt about that Semarchy is going in the fast track.

Profisee just moved up from niche player to challenger in the latest Gartner MDM quadrant. However, they were not included in the Forrester MDM wave. In my eyes, Profisee belongs among the major MDM solution providers.

Stibo Sytems is a challenger in the Gartner MDM quadrant. Forrester has Stibo Systems as a PIM leader but less prominent as an MDM contender. Stibo Systems has been on the same track as Riversand going from being a PIM vendor to become a multidomain MDM vendor. Perhaps because they are self-funded, versus Riversand being funded from outside, their tracks seem different.

IBM hangs on as a challenger in the Gartner MDM quadrant. Forrester only have IBM as a contender both for MDM and PIM. Nevertheless, large companies, not at least in the financial sector, will continue to rely on IBM also when it comes to MDM.

EnterWorks is a PIM leader and also an MDM leader according to Forrester. According to Gartner they are still a niche player in MDM. Recently EnterWorks joined forces with WinShuttle as told in the post The Recent Coupling on the MDM Market. It is not unlikely, that the Forrester view and the Gartner view will be aligned in the future.

Pitney Bowes is a strong performer in the latest Forrester wave sliding a bit from being a leader two years ago. They are not included in the Gartner quadrant. Pitney Bowes need to promote themselves as an MDM vendor and come up with new stuff to remain a major player on the MDM market.

Magnitude Software, who’s MDM solution was formerly known as Kalido, has moved up from contender to be a strong performer in the Forrester Wave. They are not included in the Gartner quadrant. Will be exciting to see if Magnitude Software can reignite the momentum Kalido had back in the first MDM years. Agility Multichannel is a part of Magnitude Software and a strong PIM performer at Forrester – and in my eyes too.

Contentserv is a PIM leader on the Forrester wave. Contentserv is also an MDM niche player on the Gartner quadrant. inRiver and Salsify are strong PIM performers on the Forrester wave but not big enough (and perhaps not MDM focussed enough) to be on the Gartner MDM quadrant.

PS: You can learn more about many of solutions mentioned here – and some more – on The Disruptive Master Data Management Solutions List.

MDM Use Case Status

As reported in the post Counting MDM Licenses there is movement in the MDM landscape when it comes to the offerings for the various use cases we have been working with the last 15 years and those we will be working with in the future.

Borrowing from the Gartner lingo, we can sketch the MDM use case overview this way:

  • Party MDM, meaning handling master data about persons and companies interacting with your company. Their role may be as employee, partner, supplier/vendor and customer. With the customer role we can make a distinction between:
    • MDM of B2C (Business-to-Consumer) customer data, meaning handling master data about persons in their private roles as consumers, citizens, patients, students and more. This may also cover how persons are part of a household.
    • MDM of B2B (Business-to-Business) customer data, meaning handling master data about organizations with a customer role in your company. This may also cover the hierarchy these organizations form (typically company family trees) and the persons who are your contacts at these organizations.
  • Product MDM, meaning handling data about product models and their item variants as well as each instance of a product as an asset. This can be divided into:
    • MDM of buy-side product data covering the procurement and Supply Chain Management (SCM) view of products going into your company from suppliers.
    • MDM of sell-side product data covering the sales and marketing view of products being sold directly to customers or through partners.
  • Multidomain MDM being combining product and party master data possibly with other domains as locations, general ledger accounts and specific master data domains in your industry.
  • Multivector MDM being a special Gartner term meaning use case split into multiple domains (as mentioned above), multiple industries, operational/analytical usage scenarios, organizational structures and implementation styles (registry, consolidation, coexistence, centralized).
  • Multienterprise MDM being handling master data in collaboration with your business partners as told in this post about Multienterprise MDM.

In the latest Gartner MDM quadrant, the status of the use cases is:

  • Customer MDM and Product MDM continue to climb the Slope of Enlightenment toward the Plateau of Productivity in Gartner’s Hype Cycle for Information Governance and Master Data Management.
  • Multidomain MDM solutions are sliding toward the bottom of the Trough of Disillusionment, while Multivector MDM solutions continue their climb toward the Peak of Inflated Expectations in the Hype Cycle.
  • Multienterprise MDM is near the Peak of Inflated Expectations on the Hype Cycle as well as mentioned in the post MDM Hype Cycle, GDSN, Data Quality, Multienterprise MDM and Product Data Syndication. In the Gartner MDM quadrant 2018 multienterprise MDM was only mentioned as a strength at one of the included vendors – Enterworks.

Stay tuned on this blog for more news about Multienterprise MDM as how it looks like from standing on the peak.

mdm hype cycle
Based on Gartner sources

Counting MDM Licenses

The Gartner Magic Quadrant for Master Data Management (MDM) Solutions 2018 was published last month.

Some of the numbers in the market that were revealed in the report was the number and distribution of MDM licenses from the included vendors. These covered their top-three master data domains and estimated license counts as well as the number of customers managing multiple domains:

mdm licenses

One should of course be aware of the data quality issues related to comparing these numbers, as they in some degree are estimates based on different perceptions at the included vendors. So, let me just highlight these observations:

  • The overall number of MDM licenses and unique MDM customers (at the included vendors) is not high. Under 10,000 organizations world-wide is running such a solution. The potential new market out there for the salesforce at the MDM vendors is huge.
  • If you find an existing MDM solution user organization, they probably have a solution from SAP or Informatica – or maybe IBM. To be complete, Oracle has been dropped from the MDM quadrant, they practically do not promote their MDM solutions anymore, but there are still existing solutions operating out there.
  • The reign of Customer MDM is over. Product MDM is selling and multidomain is becoming the norm. Several MDM vendors are making their way into the quadrant from a Product Information Management (PIM) base as reported in the post The Road from PIM to Multidomain MDM.

PS: If you, as an end customer organization or a MDM and PIM vendor, want to work with me on the consequences for MDM solutions, here are some Popular Offerings for you.

The Road from PIM to Multidomain MDM

The previous post on this blog was about the recent Gartner Magic Quadrant for Master Data Management Solutions. The post was called Who Will Make the Next Disruption on the MDM Market?

In a comment to this post Nadim observes that this Gartner quadrant is mixing up pure MDM players and PIM players.

That is true. It has always been a discussion point if one should combine or separate solutions for Master Data Management (MDM) and Product Information Management (PIM). This is a question to be asked by end user organizations and it is certainly a question the vendors on the market(s) ask themselves.

If we look at the vendors included in the 2018 Magic Quadrant the PIM part is represented in some different ways.

I would say that two of the newcomers, Viamedici and Contentserv (yellow dots in below figure), are mostly PIM players today. This is also mentioned as a caution by Gartner and is a reason for the current left-bottom’ish placement in the quadrant. But both companies want to be more multidomain MDM’ish.

PIM to MDM vendors

8 years ago, I was engaged at Stibo Systems as part of their first steps on the route from PIM to multidomain MDM. Enterworks and Riversand (the orange dots in above figure) is on the same road.

Informatica has taken a different path towards the same destination as they back in 2012 bought the PIM player Heiler. Gartner has some cautions about how well the MDM and PIM components makes up a whole in the Informatica offerings and similar cautions was expressed around the Forrester PIM Wave as seen in the comments to the post There is no PIM quadrant, but there is a PIM wave.

Who Will Make the Next Disruption on the MDM Market?

As reported in the previous post on this blog, there were some Movements in the Gartner MDM Magic Quadrant 2018.

But there was also a good deal of steadiness. Informatica still holds pole position in the race for going towards the top-right corner. Orchestra EBX, now disguised as Tibco EBX, is trailing them in the leaders quadrant. Old challengers as IBM, SAP and Stibo is watching them among the newcomers in the challengers quadrant and still as the only visionary – according to Gartner – we have Riversand.

In the niche players quadrant, we also still have Ataccama and Enterworks.

But there is still lot of free space in the top-right corner. There is still room for disruption. Gartner mentions some traditional forces still on the move being the good old 360 degree view on party data (customer, patient and the bit US biased provider) as well as Product Information Management (PIM) maybe in new wrappings as PCM or PXM.

Gartner still promotes this stuff as Application Data Management (ADM).

Else Gartner focuses on these tracks to disruption:

  • Subscription pricing – both for on-promise and cloud
  • The need for professional services – still a lot of money goes into that pit
  • Cloud based deployment – going up from 19% last year to 24 % this year among Gartner’s respondents
  • Machine Learning (ML) and Artificial Intelligence (AI)

Informatica is one of the vendors who – against your registration – offers a free copy of the 2018 Gartner MDM Quadrant.

If you like our personal data to be in the hands of Profisee, here is their free copy of the 2018 Gartner MDM Quadrant.

Another option is to get it from Riversand. Here is their free copy of the 2018 Gartner MDM Quadrant.

MDM 2018 Disruption