Portal Market Has Plenty of Room to Grow

Increasing number of enterprises seeing portals as "must-have" systems, META reports

Increasing number of enterprises seeing portals as "must-have" systems, META reports

Stamford, CT — November 7, 2003 — As enterprise portals become more ingrained in customer and employee business processes, the percentage of organizations that treat portals as "must-have" technology will more than triple by 2007, according to a new study from technology consultancy META Group.

In its report, "Enterprise Portal Frameworks METAspectrum," META projects that the percentage of enterprises viewing portals as core (non-discretionary) systems will rise from less than 10 percent currently to 15 percent by 2004, ultimately reaching 35 percent by 2007.

"The portal market has garnered a great deal of attention, yet is only 40 percent penetrated at this point," said Craig Roth, vice president with META Group's Technology Research Services and lead author of the report. "By year-end 2004, 85 percent of Global 2000 organizations will have selected an enterprise portal framework. As a result, we expect over 150 percent revenue growth for the portal market in 2004."

The field of leading players contracted by 26 percent since last year — from 19 to 14 players — due to vendors either being acquired or retreating to defensible positions outside the standalone portal market.

META believes that over the next year another 20 percent of the players will exit the portal market. This market maturity has proven a boon for purchasers of enterprise portals, since highly viable vendors now offer products that are technologically competitive with smaller standalone vendors, according to the consultancy.

The META report evaluates the 14 vendors in this market and is based on products as they stood in June. The report predicts that portal vendors will now offer advanced collaboration capabilities, a non-programmatic portlet development environment, customer-facing as well as employee portal capabilities, and a long-term vision that ensures continuing commitment to the portal market.

The analysis cites IBM (representing platform players), SAP (representing enterprise application vendors) and Plumtree (representing standalone vendors) as leaders in this market. Challengers for market leadership include, among others, Vignette and CA, according to META, while the consultancy believes that Sybase slipped into the follower territory as expectations for technology and market presence have increased.

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