Gartner’s Market Share Analysis for Content Services (Worldwide, 2020) was just released and the picture it paints is not a pretty one for traditional, on premises content services platforms (CSP). New CSP revenue depends on content rationalization and digital transformation projects. Those types of projects were often put on hold or lost their funding during the pandemic. Buyers wanted projects that could be quickly implemented. This drove an overall decline of 1.7% in CSPs, a rarity in a market that usually benefits from modernization efforts.
The content services software market grew as a whole to $12.6 billion in 2020, but that is a 4.1-point slowdown from 2019. The drag was mostly from COVID-19-influenced spending reductions in the content services platforms submarket.
The report states that “The COVID-19 pandemic tilted the market balance from on-premises to SaaS in 2020. Accordingly, no technology provider offering predominantly on-premises or hosted solutions beat the content services market average revenue growth in 2020.”
Providers needed content collaboration tools in their portfolio to beat the 6.7% average. Content collaboration tools (CCTs) fit the new ways of work that emerged during the pandemic. CCT growth has outpaced CST growth for a while, but for 2020 the spread grew from 17.0 to 21.0 percentage points.
Clients with access can find the full analysis here.