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Master Data Management (MDM) Magic Quadrant 2015 Research has Begun

By Andrew White | May 05, 2015 | 0 Comments

MDMMaster Data ManagementMagic QuadrantMDM of Customer DataMDM of Product Data

It’s official!  As of last night we kicked off the MDM MQ season.  We are working on two magic quadrant’s:

  1. MDM of Customer Data Solutions (technically “party” type data)
  2. MDM of Product Data Solutions (technically “thing” type data)

We have kept these two market views since the majority of our client’s tell us, through how they spend their money, that this is how they still actually implement and organize the work of adopting MDM.  Of course there is a growing number of multidomain conversations – but as it stands – still – this is a conversation and not, for the most part, a serious effort to evaluate and spend across these two complex domains.

Our approach with MDM MQ’s is to cast a wide net.  That is we try to open the invite to as many vendors as possible in order to get a broader view of the market.  You may have received an email from Bill O’Kane.  Even if you don’t quality for inclusion, please replay and send what data you can to Bill.  And ideally try to schedule a briefing also so we get the latest views and information regarding your place in the market.  Even if you are not in the MQ proper you should still get included in the “other vendor” note/section.

If you think you qualify for inclusion (see below for market definition and criteria), send us an email.  We will send you the “package”.

One last tip – please read the documents Bill sent.  We have operated MQ’s for many years now so almost all the questions we know about are answered in those documents.   If not, feel free to reach out.

Definition of the Market (scope) for MDM Product Data (the customer data version is obviously slightly different):

Master data management (MDM) of product data solutions are software products that:

  • Support the global identification, linking and synchronization of product information across heterogeneous data sources through semantic reconciliation of master data
  • Create and manage a central, persisted system of record or index of record for master data
  • Enable delivery of a single product view to all stakeholders, in support of various business initiatives
  • Support ongoing master data stewardship and governance requirements through workflow-based monitoring and corrective action techniques

MDM of product data implementations, and their requirements, vary in terms of:

  • The instantiation of the product master data, ranging from the maintenance of a physical “golden record” to a more virtual, metadata-based, indexing structure
  • The usage and focus of product master data, ranging across use cases for design (information architecture), construction (building the business), operations (running the business) and analytics (reporting the business)
  • Different organizations’ structures, ranging from small, centralized teams through to global, distributed organizations
  • The latency and accessibility of the product master data, ranging from real-time, synchronous reading and writing of the master data in a transactional scenario between systems, to message-based, workflow-oriented scenarios of distributed tasks across the organization, and legacy-style batch interfaces moving master data in bulk file format
  • The complexity of the business environment and hence the use cases they need to satisfy; these need appropriate levels of governance, risk management and controls to be established
  • The complexity of the business environment and hence the use cases they need to satisfy; these need appropriate levels of governance, risk management and controls to be established
  • The physical and logical location of the hub or source of the “golden record” from on-premise, in-memory, or in the cloud.

Note that this year we ARE including cloud-based or hosted “golden record” sources.  Thus we are expanding beyond on-premise to cloud-based MDM hubs.

Inclusion and Exclusion Criteria (again, for MDM of product data):

For inclusion based on market traction and momentum, vendors should have:

  • Generated at least $5* million in total software revenues (licenses and maintenance) related to MDM of Product Data Solutions, primarily supporting operational business processes, in the past four quarters
  • Active sales and support activities globally, that is, in at least 2 of the following geographic regions: Americas, Europe and Middle East, Africa, Asia, and Australasia
  • Active sales, support and customers in multiple industries

* We may increase the revenue inclusion criteria for 2015 due to the growth in the market overall.  Our methodology allows us to evaluate this criteria during the research process.  Thus depending on what we find through the briefing cycle we may consider changing this figure.

Though not part of the inclusion criteria, we also collect and/or estimate additional data to ascertain the level of activity and stability of each vendor in the market.  This includes, but is not limited to:

  • At least 12 live customer references for MDM of Product Data Solution functionality
  • At least 8 new customers for MDM of Product Data Solutions in the past four quarters
  • Sufficient professional services to fulfill customer demand during the next six months
  • Enough cash to fund a year of operations on current burn rate — that is, companies spend their cash reserves if the year of operations is cash-flow-negative

Vendors may have multiple products in the MDM of Product Data Solutions market; and where end users report a notable difference between them, each product will be evaluated separately against these inclusion criteria.

This Magic Quadrant excludes the following vendors and revenue sources because their offerings are tangential to the main focus of MDM programs (mastering data within and across the organization):

  • Vendors that focus solely on analytical (downstream) MDM requirements. We use only revenue from operational MDM implementations for qualification, since this is where the bulk of MDM effort and business benefit originates. We exclude the portion of a vendor’s MDM revenue that we determine was generated by implementations dedicated solely to analytical requirements.
  • Vendors reselling another vendor’s MDM solution without extending its functionality. Likewise, royalties from an OEM or from resale by another vendor are not credited to the provider of the OEM technology; original software revenue from the end-user acquisition is credited to the reselling vendor.
  • Marketing service providers, data aggregators, and other data providers that provide trusted reference data external to the enterprise but do not provide an MDM solution that specifically meets Gartner’s definition for MDM.
  • Application data management tools, which solely perform data management functions for use in a specific business application’s data store, and we exclude them whether or not that business application is sold by the same vendor as the application data management solution. We exclude these tools whatever their implementation infrastructure (e.g. on premise, cloud, in-memory etc.) Some MDM solutions can be configured optionally as application data management tools; we also exclude revenue from these configurations from our analysis.

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