Comments on: The murky world of market sizing http://andyonenterprisesoftware.com/2007/08/the-murky-world-of-market-sizing/ Andy Hayler, noted industry expert and founder of Kalido, gives his view on developments in the enterprise software market. Issues covered include data warehousing, master data management, business intelligence and corporate performance management. Wed, 23 Jul 2008 22:50:00 +0000 http://wordpress.org/?v=2.0.3 by: admin http://andyonenterprisesoftware.com/2007/08/the-murky-world-of-market-sizing/#comment-39032 Thu, 06 Sep 2007 15:27:03 +0000 http://andyonenterprisesoftware.com/2007/08/the-murky-world-of-market-sizing/#comment-39032 You are probably right in the sizing of the generic MDM market; I was erring on the side of generosity here as hard figures aer hard to come by. Such generic products have sold quite cheaply in some cases (Razza, now owned and likley dumped by Oracle, was around USD 70k only). In other cases I have seen generic MDM software sell for as much as USD 1 million, though I suspect that USD 200-300k is more the typical range. You are probably right in the sizing of the generic MDM market; I was erring on the side of generosity here as hard figures aer hard to come by. Such generic products have sold quite cheaply in some cases (Razza, now owned and likley dumped by Oracle, was around USD 70k only). In other cases I have seen generic MDM software sell for as much as USD 1 million, though I suspect that USD 200-300k is more the typical range.

]]> by: Shiva http://andyonenterprisesoftware.com/2007/08/the-murky-world-of-market-sizing/#comment-37955 Thu, 23 Aug 2007 06:51:38 +0000 http://andyonenterprisesoftware.com/2007/08/the-murky-world-of-market-sizing/#comment-37955 Andy, I agree with your observations about the fuzziness of this whole estimation thing and market estimates bandied about. I would like to better understand a few of your assumptions behind your calculations, especially the potential Generic MDM sales numbers. How did you size up the "generalist" MDM segment? From your comments, I understand there are a few "generic MDM" players left out there. I believe selling the notion of "generic" approach to managing master data is a very difficult task, as it involves believing in a long-term vision, in the face of so much publicity and pressure to deliver point solutions like CDI and PIM from vendors. From other reports (The CDI Institute), I gather that a typical CDI software license now costs around USD 1.2 million. What price could a generalist vendor hope to sell the product at? I guess it would be much less than the price for the CDI software. So, coupled with all these factors (few generic vendors, lesser prices and slower offtake in deals), I think you are quite generous attributing a figure of USD 100 million per annum, in current situations. Also, Can you share your experiences in positioning the generic MDM solution to organizations, pricing options etc? Best regards Shiva Andy,

I agree with your observations about the fuzziness of this whole estimation thing and market estimates bandied about.

I would like to better understand a few of your assumptions behind your calculations, especially the potential Generic MDM sales numbers.

How did you size up the “generalist” MDM segment? From your comments, I understand there are a few “generic MDM” players left out there. I believe selling the notion of “generic” approach to managing master data is a very difficult task, as it involves believing in a long-term vision, in the face of so much publicity and pressure to deliver point solutions like CDI and PIM from vendors. From other reports (The CDI Institute), I gather that a typical CDI software license now costs around USD 1.2 million. What price could a generalist vendor hope to sell the product at? I guess it would be much less than the price for the CDI software.
So, coupled with all these factors (few generic vendors, lesser prices and slower offtake in deals), I think you are quite generous attributing a figure of USD 100 million per annum, in current situations.

Also, Can you share your experiences in positioning the generic MDM solution to organizations, pricing options etc?

Best regards
Shiva

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