This trade off is a real big issue in MDM land right now.  In fact it is an old problem – it is the same as the best of breed or niche vendor versus the suite or generalist vendor issue that we have seen played out numerous times in the IT space.  But is MDM land any different to – say – ERP?  Will large suite vendors eventually consume the whole market and will best of breed or niche vendors disappear?  Did ERP destroy SCM, CRM, Manufacturing, Procurement, and PLM markets?  The answer is definitely “no” but such consolidation changes markets.  

Will MDM follow the same pattern?  And if so, over what time frame?  Well, from where I sit, the answer is “probably yes, but over a very long time.”  

Every time I get the chance to take a broad look at the market I see more complexity.  I see more complexity that is defined by the user (not the vendor).  Users are smart people; they find ever more ways to use technology to further their efforts.  As I wrap up a Magic Quadrant analysis for MDM of Product Data I see more complexity; 

• more ways in which users seek to master product data
• more data included in the mastery
• more business processes and stake holders being involved
• more enterprises being involved

And worse, the realities of legacy and brown-field sites means that however effective the dream of vision for MDM (or anything, for that matter), the pathway to get there is very different for EVERY firm and so that in and of itself adds another source of complexity.  

So I think that there is a lot of room in the MDM market (it is not a single market but really it’s a composite of several – but let’s not go there here) is large enough and broad enough that best of breed and generalist have plenty of room to grow.  And if to prove the point, a growing number of users are describing to me (in the last 6 to 9 months) how they are integrating 2 or more MDM systems (including a best of breed and generalist) in an overall MDM strategy!