Andy,

Do you have any idea of the size of the enterprise software and hardware markets? I’m especially interested in the amounts purchased by firms in the mid-market ($20MM – $2B).
Would appreciate it if you could share your opinion.

- Andrei

Do you mean related to MDM, or the total market size for all software and hardware globally?

Andy,

Let me try to be more precise. Ideally, I’m trying to get a rough sense of the following market:
- enterprise software and hardware of all kinds (business intelligence, analytics, security, servers, etc, etc)
- sold to SMB’s: companies between $10MM and $1B in revenue
- in the US and Canada

If you have stats for something close to this, but not exactly on the dot, that’s fine too.

Thanks,

Andrei

This is going to be hard to get. Analyst firms like IDC and others will certainly have such numbers but they will charge a lot for such reports (usually a thousand dollars or more unless you have a company subscription). Sometimes snippets of numbers are quoted e.g.

“The overall global enterprise software market was USD 142 billion in size in 2005 according to Ovum.”

and

AMR reckon that “The SMB market is the fastest growing sector with a total IT market worth in excess of $200 billion” which would include hardware and consulting, though there is no universal definition of what is a mid market company. Your definition probably differs from each analyst firm’s definition.

Moreover I have noticed that different analyst firms estimates vary widely for particular markets, depending on what they include and presumably depending on their methodology. IDC have the best reputation for solid reearch, and I would trust their numbers more than others, followed by Dataquest. When I was running Kalido these were the only companies that ever contacted me for company data, which makes me wonder how the other firms come up with their estimates other than by using a dartboard.

Sorry I can’t be of more help.

[...] Defining a software segment’s market size is a tricky thing, partly because is all about what you include and what you exclude. Take MDM as an example. A much quoted IDC figure reckoned the MDM market would be USD 10 billion in 2009, implying a USD 5 billion market size in 2005 given compound growth of 14%. Such figures are regularly bandied about by the computer press, but mean little unless you qualify such statements by explaining what is included or excluded. For example this figure includes an estimate for services business associated with MDM. This is itself hard to pin down, but in my experience an MDM project where the software costs X will spend about 3X on services to implement it. Hence that USD 5 billion market size actually only has about USD 1.6 billion of software sales. Then MDM itself is a broad church, including CDI and PIM as well as a generalist MDM solutions such as those from Orchestra Networks and Kalido. I was still puzzled as to why even this USD 1.6 billion figure number was so large, but by deduction I think that the IDC figure was including data quality within the picture also. Fair enough, but it needs to be explicitly stated to make sense of the market, and as we will see still does not explain the gap. [...]

Is there a component of services in the MDM space and what percentage of the total spend is usually services (ie. data cleaning, process documentation, data governance and definition)? I have not been able to find too many articles that talk about service market for MDM.

Hello Andy,

Would you have information on Manufacturing Enterprise Software market for Canada? I’m particularly interested in core MES applications such as WIP tracking, Production Management, Scheduling, etc.

Thanks and have a nice day!

Elmer