It slipped my attention that Forrester are saying the US corporate social software market is worth $300M and is set to increase 5-fold over the next 5 years - remaining equally split between internal & external applications.
Points of interest:
- $300 million is not a lot of money in the grand scheme of things. But given the prevalence of open-source software in this area, is it worthwhile comparing spending on web 2.0 stuff with spending on, say, ERP?
- The equal split the internal & external uses (E2.0 has been getting more noise of late but still little compared to commercial world uses).
- The lion's share of the $ is being spent on social networking software. Which comes as a bit of a surprise. With most people I talk to, it's wikis, wikis, wikis for internal experiments. I'm guessing the social networking spend is being driven by external applications & marketing budgets!?!
UPDATE: A little information may be a dangerous thing. Check out the comments section regarding what the figures actually refer to.
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4 comments:
It could simply be that the "real" E2.0 spend is so far under the research company's radar that it's not picked up. They just don't have the instruments to pick up the way this money is being spent (small pieces loosely joined).
Hi Patrick - I don't have a clue how they came to that figure so you may be right. Normally you would look at both buyer and vendor data and try to reconcile the two (what are the revenues for Facebook again?)
Hi Matt - thanks for picking up that stat. It's from our US online marketing forecast, so it's just the amount of money being spent on *marketing* on social media sites. Clearly, spending on social technologies by companies far exceeds that, especially if you include collaborative software.
Hello Charlene - welcome to Engineerswithoutfears.
So can you clarify what the $317 million in Oliver's report refers to without me having to fork out a couple of days pay for the teleconference? The slides by themselves talk about "market" rather than "marketing".
Who is spending this (vendors, corporates, etc)? For example what does the $4 million assigned to tagging in 2007 refer to?
And what does in the internal vs. external thing refer to?
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