Social Business – bigger than a bread basket, and then some
Megan Moyer 110000GJAE firstname.lastname@example.org | | Tags:  social_business idc
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By Don Neely
Analyst Relations, Social Business, IBM Solutions Group
twitter id: @neely / Linked In ID: don-neely
Recently IBM announced that IDC ranked IBM number one in worldwide market share for social platform software for 2009 and 2010.* IDC projected worldwide revenue for all social platforms software of more than $500 million (USD) in 2010, representing growth of 31.9 percent. Further, according to IDC, the market opportunity for social platforms is expected to grow by a factor of two to nearly two billion worldwide by 2014.
"Now that the technology has been created to implement consumer-like experiences in the enterprise world securely, the social platforms market has moved from one of experimentation with social projects to making social business part of strategic corporate discussions," said Erin Traudt, research director for IDC's Enterprise Collaboration and Social Solutions program.
This market segment is relatively new, so you want to choose your vendor carefully for both staying power and maturity in the market. If you would like to read IDC's full report, register here.
What counts? Revenue flowing to the vendors is considered a reasonable measure of the value of a market segment and the vendors' assets, and year to year changes by segment are useful for evaluating trends in overall customer acceptance and progress by the vendor community. So a seasoned methodology and taxonomy in estimating a given segment has value.
IDC defines Social Platforms as providing functions, such as social networking, bookmarking, blogs, microblogs, idea/voting applications, ranking engines, RSS, tags, and wikis with the intent to promote transparent and two-way dialogue that is open, synchronous, and unstructured.
IDC has been in the forecasting and share estimate business for years and has well defined and durable methodology and taxonomy. It is the first firm with such a methodology to estimate the social platforms market segment. Its analysis on social platforms was derived from its IDC Software Market Forecaster, which incorporates information from five sources for further modeling by IDC, as follows:
IBM's 2011 CIO Survey aligns well with IDC's projections, as it found 55 percent of CIOs plan to invest in collaboration and social networking to increase competitiveness over the next few years. Further, more than 35% of Fortune 100 companies have adopted IBM's social software offerings, delivered as on premises or as cloud services.
*Source: IDC, "Worldwide Social Platforms 2010 Vendor Shares," Doc#228808, June 2011