Some of the hard facts presented in the Gartner Magic Quadrant for Master Data Management (MDM) Solutions is how the vendor licenses are distributed between the various master data domains. You can find these figures from the previous quadrant in the post Counting MDM Licenses.
The latest Gartner Magic Quadrant for Master Data Management (MDM) Solutions was published last month.
There was not much movement in the vendors positioning compared to last year. Only, as told in the post The Latest MDM Magic Quadrant, Informatica went further top-right with their suite of 360 solutions and Semarchy went up and above SAP MDG as the top challenger.
Semarchy was also among the ones with the highest revenue growth, so their Intelligent Data Hub approach seems to work pretty well both technically and commercially.
Some years ago Gartner dropped mentioning other MDM vendors than the ones meeting the quadrant criteria. This year a small section of those has returned as Honorable Mentions. These are Magnitude Software, who recently has returned to branding their MDM offering as Kalido, Software AG, PiLog. Unidata, Boomi – the integration-oriented solution from Dell, and the data quality specialist Syncsort – who has acquired Pitney Bowes’ software and data business.
The market overview section was smaller and less informative this year. In here Gartner confirms that digitalization remains the most significant driver for growth in the MDM market and that privacy regulations also continue to drive exploration of MDM initiatives.
You can, against a minimal of personal info, download the report from Semarchy here.
While the change in positions is limited the change in market share is more significant, if we look at the license and maintenance revenue estimates provided by Gartner. The numbers included in the new quadrant published in January 2020 are 2018 estimates. The figure here compares those numbers to the 2017 numbers included in the previous quadrant published in December 2018.
The trend is that the largest providers are not growing as fast as some of the midsize providers, where Reltio, Ataccama and Semarchy are going in the fast lane.
If any of the solution providers have some 2019 updates, please comment here.
When selecting a solution for Master Data Management (MDM), Product Information Management (PIM) and Data Quality Management (DQM) buyers and their advisers are using the market reports from the acknowledged analyst firms operating in these markets.
The publication schedule from the analyst firms can be unpredictable.
Information Difference is an exception. There have during the years every year been a Data Quality landscape named Q1 and published shortly after that quarter and an MDM landscape named Q2 and published shortly after that quarter. However, these reports are relying on participation from relevant vendors and not all vendors prioritize this scheme.
Forrester is quite unpredictable both with timing and which market segments (MDM, PIM, DQM) to be covered.
Gartner is a bit steadier. However, for example the MDM solution reports have been coming in varying intervals during the latest years. Let us see when the next ones are published and what news they bring.
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.
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.
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.
The latest Gartner MDM Magic Quadrant mentions the 2017 revenues as estimated by 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.
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?
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:
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.
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:
If you want a full copy of the report you can, against providing your personal data, get it from Information Builders here.