Skip to main content

The Upside Potential for Enterprise Social Networks

The time has come to think seriously about enterprise social networking and consider its role within the commercial online collaboration strategy development process, according to the latest market study by Ovum.

In a new report, they say that the enterprise social networking market is starting to mature and is now moving from the introduction phase into the growth phase.

Strategic acquisitions have already been made by start-ups and establish vendors alike. That being said, I'm still left wondering -- are there examples of substantive applications that make the resource investment worthwhile?

"Ovum's current assessment of the enterprise social networking market indicates that Jive and Yammer are the two vendors that organizations are most eager to compare and contrast, but other vendors are generating significant business and revenues from their offerings," said Richard Edwards, analyst at Ovum.

A recent vendor recap suggests that IBM Connections produced $105.4 million in revenue during 2011, and from this performance Ovum believes that the current value of the overall enterprise social networking market to be in excess of $500 million.

Enterprise social networking, from a market perspective, is still in the early-adopter phase, with only around 10 percent of organizations in established IT markets deploying solutions or subscribing to services.

Mobile devices are increasingly being used to access the networks and this is extending the use case for such solutions to a broader audience. New smartphone and media tablet apps will likely help to increase user adoption.

Edwards adds, "As the business case for investment in enterprise social networking solutions has yet to be proven to business skeptics, some vendors are encouraging independent user adoption -- in the hope it will prove business value."

Ovum believes that the commercial potential offered by enterprise social networking will only be unlocked when meaningful necessity dictates a change in mainstream legacy business practices.

Meanwhile, the enterprise collaboration technology landscape has been flooded with "social software" from a variety of different sources. In fact, vendors offering pure-play enterprise social networking solutions are competing against established enterprise collaboration providers.

On the other hand, vendors offering business automation social platforms are trying to gain traction in a market that is also assessing the merits of emerging offerings from companies specializing in enterprise applications.

Ovum says that merger and acquisition activity has increased markedly in the past few months, and this has led to new entrants appearing on the enterprise collaboration landscape.

So, with an upside market potential of at least $10 billion, the enterprise social networking market may become the new battleground for all enterprise collaboration vendors. We'll have to wait and see.

Popular posts from this blog

Why Healthcare and Smart City Apps Drive 5G IoT

Fifth-generation (5G) wireless technology for cellular networks is a successor to fourth-generation (4G) wireless technology. By 2023, Juniper Research anticipates that there will be over 1 billion 5G connections globally. The technology will provide the data infrastructure for the advancement of wireless communications and for new developments in the Internet of Things (IoT) -- including smart cities and healthcare. 5G IoT Market Development According to the latest worldwide market study by Juniper Research, 5G IoT connections will reach 116 million globally by 2026 -- that's increasing from just 17 million connections in 2023. Juniper analysts predict that the healthcare sector applications and government or other smart city services will drive this outstanding 1,100 percent growth over the next three years. Juniper examined 5G adoption across key industry sectors -- such as the automotive, mobile broadband, and smart homes -- and forecasts healthcare and smart cities will accoun

How Savvy Leaders Re-Imagine Work in 2023

As we look to the year ahead, there will be significant challenges and opportunities facing the Chief Human Resource Officer (CHRO) role. In order to be successful, savvy HR leaders must be prepared to take proactive steps that adapt and evolve. "HR leaders have faced an increasingly unpredictable environment amid many organizations mandating a return to office, permanently higher turnover and burnt out employees," said Emily Rose McRae, senior director at Gartner . HR Innovation Market Development One of Gartner's key predictions for 2023 is that the use of artificial intelligence (AI) and automation will continue to increase within the enlightened digital workplace. This transition will require HR leaders to develop new skills and competencies in order to effectively manage and lead teams that are increasingly relying on these enabling technologies. Additionally, HR leaders will need to ensure that their organizations are investing in the necessary infrastructure and re

Top 10 CFO Priorities Require Rethinking Finance

The Chief Financial Officer (CFO) role is essential to digital business growth. While CFOs do not get closely involved in the tactical details of the digital transformation of their functions, they still recognize its strategic importance. According to the latest survey by Gartner, CFOs are faced with the challenge of balancing the need for substantive digital business innovation with financial cost control and risk management. "CFOs will be stretched thinly across many activities in 2023. The survey revealed a wide range of actions CFOs plan to either lead or be significantly involved with," said Marko Horvat, vice president at Gartner. Survey Findings: The Top Ten Priorities Cost Optimization - Cost reduction remains the top priority for CFOs as they look for ways to cut costs and improve efficiency in their operations. This includes identifying cost-saving opportunities through automation, outsourcing, and business process improvement. Business Continuity - The global C