It is a known fact that businesses are growing worldwide and are seeking new technologies to simplify their operations. Along with this, companies are concentrating on improving their social media profile. And as a part of this, organizations especially large enterprises are investing in social media tools like Enterprise social software to provide employees with a social networking medium to share information and data internally. Use of enterprise social software would enable companies to maintain transparency within the organization and would also enhance the productivity of organizations.
Enterprise social software would save the time and resources of the organization as the employees can share information in real time and avoid sending e-mails to each and every individual.
This report presents interpretative and easy-to-understand facts on how the current enterprise social software market is segmented based on end-user, verticals, deployment type and geographies. It cuts through several facets of the enterprise social software market such as market size, market share for each segment, the drivers and constraints of enterprise social software marketplace. It also throws light on various verticals where ESS is being rigorously implemented and the deployment type that is being preferred. Report also provides information on the challenges and opportunities that lie ahead for these solutions.
3. Table
of Contents
1. Introduction
1.1. Report Description
1.2. Objective
1.3. Scope of the Research
1.4. Regions Covered
1.5. Key Takeaways
1.6. Key Stakeholders
1.7. Key Terminologies
1.8. List of Abbreviations
2. Executive Summary
2.1. Executive Overview
3. Research and Forecasting
3.1. Research Methodology
3.2. Forecasting Methodology
4. Industry Landscape
4.1. Market Size and Growth
4.2. Competitive Landscape
4.3. Market Share
4.4. Company Classification
4.5. Region Outlook
4.6. Market Metrics
4.7. Porter's Five Forces Model
4.8. Key Drivers Analysis
4.9. Key Constraints Analysis
4.10. Key Opportunities Identified
4.11. Key Challenges Identified
5. Market Segmentation
5.1. Region
5.1.1. Europe
5.1.1.1. Market Size and Forecasting
5.1.1.2. Key Drivers Analysis
5.1.1.3. Key Constraints Analysis
5.1.1.4. Key Opportunities Identified
5.1.1.5. Key Challenges Identified
5.1.1.6. Sub Segments
5.1.1.6.1. Deployment : On-Premise
5.1.1.6.2. Deployment : Cloud
5.1.1.6.3. End User : Enterprise
5.1.1.6.4. End User : Mid-Size
5.1.1.6.5. End User : Small Business
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4. 5.1.1.6.6. Industry : IT & Telecomm
5.1.1.6.7. Industry : E-Commerce
5.1.1.6.8. Industry : Healthcare
5.1.1.6.9. Industry : Financial Services
5.1.1.6.10. Industry : Retail
5.1.1.6.11. Industry : Others
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6. 1. Introduction
1.1. Report Description
It is a known fact that businesses are growing worldwide and are seeking new technologies to simplify their
operations. Along with this, companies are concentrating on improving their social media profile. And as a
part of this, organizations especially large enterprises are investing in social media tools like Enterprise
social software to provide employees with a social networking medium to share information and data
internally. Use of enterprise social software would enable companies to maintain transparency within the
organization and would also enhance the productivity of organizations.
Enterprise social software would save the time and resources of the organization as the employees can
share information in real time and avoid sending e-mails to each and every individual.
This report presents interpretative and easy-to-understand facts on how the current enterprise social
software market is segmented based on end-user, verticals, deployment type and geographies. It cuts
through several facets of the enterprise social software market such as market size, market share for each
segment, the drivers and constraints of enterprise social software marketplace. It also throws light on
various verticals where ESS is being rigorously implemented and the deployment type that is being
preferred. Report also provides information on the challenges and opportunities that lie ahead for these
solutions.
1.2. Objective
1. To understand the enterprise social software market across the globe by addressing the challenges faced
by the industry with regards to the adoption of enterprise social software.
2. To estimate the size of present global enterprise social software market and to forecast its future values.
1.3. Scope of the Research
Scope of the research was limited to understanding the market share across segments. Key drivers,
constraints and challenges along with their impact on various business functions in both short term and
long term were addressed. Segmentations and forecasting were done based on:
1. End-user
2. Verticals
3. Deployment Type (on-premise vs cloud)
4. Region based segmentation
1.4. Regions Covered
1. North America (US, Canada and Mexico)
2. Europe (United Kingdom, France, Germany, Italy, Spain)
3. APAC (Australia, India, China, Japan, Singapore and others)
4. South America (Brazil, Argentina and others)
5. RoW (Middle East and Africa, South America, Russia and other countries)
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7. 1.5. Key Takeaways
The research conducted to understand enterprise social software market in different regions of the globe
has revealed some valuable insights. Some of the key take away points involve information given below:
1. North America has the highest market share whereas Europe has the highest growth rate.
2. The market for enterprise social software was USD 2199.91 million in 2014 and is expected to grow at a
CAGR of close to 22.26% till 2019.
Adoption of enterprise social software is more among enterprises who have larger workforce and require
solutions which help them to improve efficiency and productivity.
4. On-premise solutions are more preferred over cloud based as the enterprise businesses want more
control over their data
5. IT & Telecom companies have emerged as the largest consumers of enterprise social software solutions
as they have lot of employees serving at client?s place and would require to co-ordinate with the internal
team during any project management.
1.6. Key Stakeholders
1.Enterprise social software solution and product providers: Enterprise social software solution providers
will be able to gauge the market more accurately as this will assist them in better decision making. Also, the
product developers would be able to develop products according to the requirement of the customers.
2. End-User companies:Report will provide the end-users, a more clear picture on the solution provider
demographics so that they can choose among the best.
3.Global Investors:Those investors who look to fund new and budding enterprise social software provider
startups will get clear picture about the market and its trends.
4.Industry Watchers:Industry and trend watchers are always referred to as trusted advisors who follow
markets. The report would add to their knowledge repository, creating value for their know-how.
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8. 1.7. Key Terminologies
1. Enterprise: Companies with an employee headcount above 1001.
2. Mid-Size: Companies with an employee headcount between 501 ? 1000.
3. Small-Business: Companies with an employee up to 500.
4. North America: North America includes countries ? USA (United States Of America), Mexico and Canada.
5. Europe: Europe includes countries ? UK (United Kingdom), France, Italy, Germany and Spain.
6. APAC (Asia Pacific): Asia Pacific includes countries ? India, China, Japan, Philippines and Australia.
7. RoW (Rest of World): Rest of World includes Africa, Middle East Asia, UAE (United Arab Emirates) and Israel
8. South America: South America includes Brazil, Argentina, Chile and other countries
9. Enterprise Social Software: A networking and collaboration tool used within organizations to
communicate, share and exchange data, information and other resources using intranet.
10. Enterprise Social Network (ESN): refers to use of social networking among the people of an organization
in order to share business related information internally.
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9. 1.8. List of Abbreviations
1. APAC: Asia-Pacific
2. CAGR: Compound Annual Growth Rate
3. USA: United States of America
4. UK: United Kingdom
5. USD: United States Dollar
6. IT: Information Technology
7. ESS: Enterprise Social Software
8. HR: Human Resources
9. R&D: Research and Development
10. ESN: Enterprise Social Network
11. RoW: Rest of World
12. BRICS: Brazil, Russia, India, China and South Africa
13. YoY: Year on Year
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11. 2. Executive Summary
2.1. Executive Overview
In today?s world, businesses are growing smart and seek new technologies to achieve more at optimum use
of resources. It is a known fact that, in order to achieve greater effectiveness, business needs to grow more
productive and more productivity can be achieved only when the organization becomes more transparent
and each and every individual in the company is aware of what exactly are his or her responsibilities and
duties. It has been observed in the past that lack of co-ordination has resulted in businesses suffering both
financially and in terms of reputation. So, it becomes important that there is close co-ordination among
employees and every individual is in sync with the company so that he or she can deliver the best.
Enterprise social software or ESS is one such solution that is emerging as the new innovative tool to improve
co-ordination among employees. ESS is an extended version of collaborative tools that existed from a long
time. ESS is now being integrated with traditional e-mail and other communication tools existing in the
organization. The problem with having only e-mail as a networking medium is that, it reaches only a few in
the organization and if one does not have access to e-mail or accidentally misses the e-mail, he or she can
never know what is being conveyed. In case of ESS, those who have subscribed get the message real time
and the recipient can immediately respond back which gets conveyed to everybody in the group without
any delays.
With more and more businesses inclined towards social media tools like social networking sites, blogs,
content sharing websites, the overall usage of ESS is set to grow in the coming years and the end-user
companies are expected to adopt these solutions in more numbers.
Europe and APAC are emerging as show stealers
No doubt, North America still holds the larger market share and most of the customers are still from this
region. But, in terms of combined annual growth rate, both Europe and APAC are ahead of North America.
This is obvious because, in North America, most of the businesses have already been using enterprise social
software and the ESS market here is mature. Whereas, in Europe and APAC, the adoption is picking up and
the same trend is expected to continue at least till 2019. Businesses in both these regions are growing and
expanding their presence and in this scenario, they are likely to invest in smarter IT tools like ESS to improve
the collaboration and productivity.
Enterprises are the major users; IT and Telecom industry are the prime adopters
Enterprises generally consist of larger workforce and their employees are spread across the globe serving
clients in different parts of the world. In this case, both the internal employees and those serving outside
require to co-ordinate and collaborate more frequently for better execution of projects. Thus, enterprises
are going for those solutions which are not just a collaborative tool but also a solution where employees can
share their ideas and responses.
Among the verticals, the IT andTelecom companies have emerged as the largest consumers of these
solutions. The main reason being that most of the employees in this industry serve at the client?s place and
require to interact with their companies on a daily basis. This has prompted them to adopt ESS. Other than
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12. these, ESS is finding its place even in healthcare, manufacturing, e-commerce and others. Going forward, it
is expected that ESS will see a comprehensive adoption irrespective of the industry or the business nature.
On-premise adoption rate is high, but cloud catching up
As of now, use of on-premise enterprise social software is high and this segment contributes more to the
market share when compared to the cloud based solution. As enterprises form the larger end-user group of
this solution, they prefer more control on their data and information and hence we see more use of on-
premise enterprise social software. But, going forward, it is expected that the cloud based adoption will
start overtaking the on-premise solutions. This is because, all enterprises, mid-size and small companies
will start adopting these solutions to enjoy greater cost advantage.
Challenges
Although enterprise social software is being implemented across developed economies, the level of
knowledge about the solution in other developing and under-developed countries is still low. The service
providers are faced with the task of educating businesses about the benefits of such solutions. Moreover,
businesses here are not keen to adopt such solutions and see them just as an extra investment. They also
have limited themselves to usage of old techniques and are reluctant to switch to new technologies. Added
to this, the employees where these solutions are implemented avoid usage of this solution as they feel that
their privacy and data integrity would be at stake. Overcoming of these challenges would enable the growth
of ESS in the coming years.
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14. 3.1. Research Methodology
Base Year: 2014
Forecasting Period: 2015 - 2019
3.1.1. Sampling
The leading suppliers of each end-user product categories that were chosen to provide a larger
representative sample.
Purposive unit sampling was adopted for every service segment such as verticals, regions, end-users and
others. This was resorted to, in order to elicit the appropriate inputs with regard to the qualitative growth
aspects of the market.
3.1.2. Secondary Research
The research methodology that was carried out was desk research through various journals, association
reports, and in house database to build a knowledge base on various market service segments, product
categories and industry trends.
Various fact based data was analyzed. Some of the sources included:
a. ResearchFox Knowledge Base:
Previous data on the market has been put through a rigorous and comprehensive analysis to analyze
the current state.
b. Desk Research:
Industry reports, annual reports, press releases, webinars, journals and publication, independent rating
agencies and government statistics.
3.1.3. Primary Research
Primary interviews were conducted among various stakeholders:
Product and service companies
Members of associations and alliances
Subject Matter Experts and Evangelists
Consultants and Strategists
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15. 3.1.4. Industry Information
It was essential to understand the current industry landscape, market dynamics, security ecosystem and
competitor metrics. To estimate the global market, Chief Experience Officers (CXOs), Marketing Heads, Sales
Managers and product stakeholders were interviewed.
3.1.5. Technical Information
In addition to the interviews with leading participants for industry-related information, ResearchFox
conducted interviews with Research and Development (R&D) and Design and Development teams to
understand the current usage of the products by service type and also to find out the emerging trends.
Finally, interviews with suppliers were conducted to cross check the validity of information and also to
understand the emerging trends in the end-user segment.
The detailed methodology for primary research is outlined below.
3.1.6. Primary Interview Questionnaire Design
ResearchFox developed a detailed questionnaire, which was used by the analysts as a guide for their
discussions. This process ensured the collection of all necessary data. The questionnaire was designed to
elicit unbiased industry level data (market size, production, sales, and others), that had check points
(questions such as company level information and their position in the industry acted as check points) to
ensure accuracy of the data. The questionnaire included the following sections:
1. Industry level information
2. Characteristics and Dynamics
3. Company-specific information
4. Market segmentation data
3.1.7. Interview Questionnaire Test and Validation
Following the design of the questionnaire, ResearchFox carried out some initial interviews to verify that the
appropriate market and technology data was generated. After the final design of the questionnaire,
ResearchFox began full scale primary research. Specific companies targeted for primary research interviews
were selected based upon market participation. Higher was the entity's profile, more attractive was the
entity.
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16. 3.1.8. Interview Process
As participants respond in the course of an interview, ResearchFox analysts are trained to move from lower
priority and/ or sensitive topics to increasingly key and/or sensitive topics in response to the interviewee's
behavior. This responsive and reflective interview process, combined with the analysts' ability to discuss the
industry and technical issues in an open and sharing environment, allows ResearchFox to probe for key
data, operations, and competitive information. Multiple contacts within a single organization and with an
individual are often planned and/or staged in order to optimize and complete the information gathering
process.
3.1.9. Research Validation
At a point, when 20 percent of the research interviews and/or data collection had been completed,
ResearchFox consultants evaluated the preliminary findings to assure that up-to-date results are in line with
project objectives. The analyst team analyzed the information from the interviews and information was
validated through a combination of the following validation techniques:
Cross checking with other primary data and previously developed in-house research
Review of secondary information, such as trade journals, annual reports and industry directories
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17. 3.2. Forecasting Methodology
3.2.1. Step-by-Step Methodology for Market Estimation and Forecasting
Market Estimation and Forecast Methodology, 2015
Step Method
1
Understand the market mechanism for the market through structured, systematic and theoretically established
norms of analyzing, designing, introducing and quality assurance of the market estimation
2 Measuring the various market drivers, constraints, opportunities and challenges at regular intervals of time
3 Integrate expert-opinion of discussions in consultation with the ResearchFox Analyst team
4 Market estimation and forecast calculation
5 Delphi method and Causal Analysis used as and when required
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Rigorous quality check with heads of Research Team, Subject Matter Experts and Consultants before final
publication
Source: ResearchFox
Significance and Importance of the Market Forecast, 2015
Sr. No. Significance and Importance
1 Helps revisit on the company's R&D investments
2 Keeps the Sales and Marketing team posted on the market prospects
3 Strategize investment and expansion plans
4 Improve business planning
5 Helps create business aims and set sales figures within the company
6 Aware of the current market competition
7 Support plans for Merger and Acquisition (M&A)
Source: ResearchFox
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18. About ResearchFox
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endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue
to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular
situation.
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