Gartners Top 10 MDM Solutions for 2017
Gartner Group has released its first Magic Quadrant for Master Data Management solutions. The report looks at 10 leading vendors in this space, reviewing their products and market strategies
Gartner Offers Its First Magic Quadrant for MDM Solutions
Gartner has just published its first Magic Quadrant for master data management (MDM) solutions. The research firm will also publish a Critical Capabilities document on this topic. With publication of this Magic Quadrant, Gartner announced that it is retiring the Magic Quadrants for MDM of customer data solutions and product data solutions, and their respective Critical Capabilities documents. The inclusion and exclusion criteria for this new Magic Quadrant address the entire MDM solution market, which is broader and more demanding than ever. Consequently, this Magic Quadrant should in no way be considered a combination or a continuation of the retiring Magic Quadrants, Gartner explained. The revenue requirement for inclusion in this Magic Quadrant is $15 million for MDM implementations in 2015.
Leaders have strong results and strong delivery capabilities, Gartner explains. They typically possess a large, satisfied customer base (relative to the size of the market) and enjoy high visibility in the market. Their size and financial strength enable them to remain viable in a challenging economy. Leaders have mature offerings and track records of successful deployment, even in the most challenging environments, in at least two geographies and in many industries. Leaders have the strategic vision to address evolving client requirements; however, they are not always the best choice. As the market's requirements have shifted to more all-encompassing solutions, vendors have not kept pace at a macro level, resulting in a significant amount of empty space in the top right of the Leaders quadrant.
Informatica is headquartered in Redwood City, California. Informatica MDM v.10.2 entered GA in October 2016, Gartner writes. Informatica Product 360 v.8.0.5 entered GA in June 2016. Informatica Supplier 360 v.10.1 HF1 entered GA in September 2016. Informatica's total estimated MDM software revenue was $157.9 million in 2015. Informatica continues to develop its vision for the Intelligent Data Platform (IDP). It is rationalizing its various MDM offerings, while integrating them with a new semantic offering to provide new composite capabilities. It has released an option for deployment in its private cloud environment. It has invested in the most extensive network of implementation partner firms of any vendor in this Magic Quadrant. Informatica continues to invest substantially in its core multidomain MDM platform and industry solution accelerators. It has released "master-data-fueled applications" to provide 360-degree views of the supplier and customer data domains, so that clients can govern both master and nonmaster data related to these domains. It plans a common administration capability covering its multiple products to support the latest release of its core MDM solution.
Orchestra Networks is headquartered in Paris, France. EBX5 v.5.7.0 entered GA in February 2016, Gartner says. Orchestra's total estimated MDM software revenue was $20.4 million in 2015. Orchestra's revenue grew by 23.6% in 2015 on a constant-currency basis (compared with the market average of 14.3%) the second-highest rate among the vendors in this Magic Quadrant. In real dollars, its revenue grew by 10.9% (compared with the market average of 4.4%) the third-highest rate in this Magic Quadrant. Orchestra's EBX5 is a single, integrated MDM solution that scored strongly in the reference customer survey for most of the elements surveyed. It did so across the broadest spectrum of reference customers, in terms of industries and data domains mastered. Moreover, it achieved the top score for TCO. Orchestra received solid references across a spectrum of data domains. It stands out for its reference customers' responses about competitive selection, based on detailed proofs of concept for multiple data domains, and for its receipt of the highest survey scores for multi-domain support.
Challengers demonstrate a clear understanding of today's MDM solution market, but they have either not demonstrated a clear understanding of its direction or are not well-positioned to capitalize on emerging trends, Gartner explains. They often have a strong presence in other application areas.
SAP is headquartered in Walldorf, Germany. SAP Master Data Governance (MDG) v.9.0 entered GA in September 2016, Gartner says. SAP Hybris Product Content Management (PCM) v.6.2 entered GA in October 2016. SAP's total estimated MDM software revenue was $265.7 million in 2015. SAP has achieved a leading share of the MDM market for three consecutive years. In 2015, it recorded year-over-year growth of 19.5% in constant currency, and revenue growth above the market average in real dollars, on the largest MDM revenue base. Estimated license counts, reference customer survey responses and users of Gartner's client inquiry service indicate deep penetration by SAP MDG across several industries. SAP is estimated to have the highest number of customers managing multiple data domains. In addition, its partner network has begun developing MDG solutions for custom data domains for industries such as retail and oil and gas. SAP MDG can also manage customized data models.
Stibo Systems is headquartered in Aarhus, Denmark. Stibo Enterprise Platform (STEP) Trailblazer v. 8.0 entered GA in April 2016, according to Gartner. Stibo's total estimated MDM software revenue was $68.6 million in 2015. Stibo achieved year-over-year MDM revenue growth in 2015 of 23.6% in constant currency, compared with the market average of 14.3%, and a large market share, despite challenging currency exchange effects. Stibo's STEP Trailblazer has proven itself a capable MDM platform, with a claimed in-memory capability, as well as strengths in multichannel e-commerce and improving multidomain capabilities. Reference customers' scores indicate strength across a broader range of MDM solution capabilities than any other vendor in this Magic Quadrant. Stibo excels in customer satisfaction, although its reference customers were exclusively implementers of MDM of product data. Stibo received the highest scores of any vendor in this Magic Quadrant for its ability to support business initiatives and the number of customers who would personally recommend its MDM solution.
Visionaries display healthy innovation and a strong potential to influence the direction of the MDM solution market, but they are limited in terms of execution or demonstrated track record, Gartner explains. Typically, their products and market presence are not yet complete or established enough to merit Leader status. MDM visions are taking shape along a diverse set of vectors, and many vendors have not kept pace in formulating a cohesive view of the direction in which they and the market are heading. For this reason, there is only a single Visionary in this Magic Quadrant.
Riversand is headquartered in Houston, Texas. MDMCenter v.7.8 entered GA in August 2016, Gartner says. Riversand's total estimated MDM software revenue was $23.3 million in 2015. Riversand's leadership team has remained intact since its founding, which has enabled the company to achieve a continuity of vision and purpose. This has proven to be rather exceptional in the MDM market. Riversand is diverging from the incremental innovation that characterizes most of the MDM market. Its MDM 2.0 vision is essentially a fundamental shift from an application-centric approach to an outcome-based, data-centric approach to MDM, providing for discovery, management, governance and analysis of master data through on-premises and cloud delivery options and industry-specific solutions. Riversand recorded the highest rate of MDM revenue growth in 2015 in both real dollars (15.3%) and constant currency (23.7%). Its real-dollar growth rate was almost 11 percentage points above the market average.
The Niche Players
Niche Players either do well in specific segments of the MDM solution market, or have limited ability to innovate or to outperform other vendors, Gartner says. They may be focused on specific functionalities, domains or industries, or they may have gaps in relation to broader functionality requirements. Niche Players may have limited implementation and support services, or they may not have achieved the scale necessary to solidify their market positions.
Magnitude Software is headquartered in Austin, Texas. Kalido MDM v.9.1 SP3 and Magnitude One entered GA in April 2016, Gartner writes. Magnitude's total estimated MDM software revenue was $17.4 million in 2015. Magnitude Kalido MDM customers frequently mention its data model flexibility in support of multidomain MDM implementations. In addition, its workflow and data modeling UIs are often considered friendly enough for business users in implementations of modest complexity and data volume. Magnitude One is a new prepackaged MDM of customer data solution based on Kalido MDM, with a limited subset of functionality targeted at the midmarket. It can be implemented in a private cloud or on-premises. It contains an out-of-the-box integration capability for many common business applications through Scribe Online, and online training for data stewards and administrators.
TIBCO Software is headquartered in Palo Alto, California. TIBCO MDM and Cloud MDM v.9.0.0 entered GA in January 2016, Gartner says. TIBCO's total estimated MDM software revenue was $45.4 million in 2015. TIBCO MDM has solid multidomain capabilities, and Visual MDM is a differentiating feature that directly integrates data quality dashboarding with stewardship. TIBCO has added machine-learning capabilities for improved data matching, and has released the second version of its private cloud MDM software. Reference customers gave TIBCO high scores for its workflow, integration, business service and high-availability capabilities. TIBCO now offers a multidomain MDM solution (encompassing customer and product data) for the retail industry. TIBCO has a large customer base in the application integration and business process management (BPM) markets. It has proven its ability to capitalize on this significant population when marketing TIBCO MDM. Surveyed reference customers and other users reported that TIBCO MDM is a strong solution when coupled with the rest of the TIBCO technology stack, which spans SOA and BPM.
EnterWorks is headquartered in Sterling, Virginia. EnterWorks Enable v.8.1 entered general availability (GA) in March 2016, Gartner says. EnterWorks' total estimated MDM software revenue was $17.4 million in 2015. Continued backing by Black Dragon Capital has enabled further investment in EnterWorks. This is shown, for example, by its hiring of five new senior executives in 2015, several of whom have previous experience of MDM vendors. EnterWorks' understanding of business-to-business-to-consumer scenarios is evidenced by notable reference customers addressing those scenarios. EnterWorks achieved the top survey scores from reference customers for its understanding of the business application of its MDM solution. EnterWorks Enable tied for the highest reference customer survey score for UI and workflow support for its implementation and maintenance across multiple data domains, use cases, implementation styles and integration scenarios. There is a direct correlation between users' satisfaction with an enterprise solution and its rate of adoption.
Oracle is headquartered in Redwood Shores, California. Oracle Product Hub, Oracle Supplier Hub, and Oracle Site Hub v.R12.2.5 entered GA in September 2015, Gartner says. Oracle Product Hub Cloud Service and Oracle Customer Data Management Cloud Service v.R11 entered GA in April 2016. Oracle Customer Hub v.IP2016 entered GA in May 2016. Oracle Data Relationship Management (DRM) v.R22.214.171.124.340 entered GA in April 2016. Oracle's total estimated MDM software revenue was $238.7 million in 2015. Oracle has deep, discrete solution expertise and capabilities in support of the major data domains, as a result of capabilities developed for its E-Business Suite ERP offering and continued investment in Siebel and Hyperion. Oracle effectively positions its domain-specific MDM offerings as part of its larger business application ecosystem, particularly in the areas of customer experience, supply chain management and financial performance management. Coupled with its industry-oriented efforts, this positioning communicates a strong understanding of the business uses of MDM.
IBM is headquartered in Armonk, New York. InfoSphere Master Data Management v.11.5 entered GA in November 2015, Gartner writes. IBM's total estimated MDM software revenue was $177.5 million in 2015. IBM provides an information integration and governance platform that can broadly support an organization's information management strategy. IBM sells MDM offerings both on a stand-alone basis and as bundles of workflow, stewardship and information governance capabilities. It has an extensive and robust network of implementation partners. IBM has deep, discrete solution capabilities in support of the customer/citizen and product/thing master data domains. These include workflow, data quality and data integration capabilities. IBM also has a best-in-class data-matching engine. IBM now offers a monthly subscription pricing option for its on-premises licenses. It also offers the option of privately hosted deployment in its cloud environment, including a significantly simplified tiered pricing model.