by Angela Guess
A recent article by Derek Harris discusses the challenges facing a successful MDM project: “MDM requires a substantial investment in software, hardware, professional services and integration services. At the core, MDM is a huge data integration project. The investment in professional services and integration services is many times the actual cost of software licenses for the typical implementation. The ratio between the software and the services in fact suggests that MDM is primarily a services and integration offering. Many of the consultants involved would immediately agree. In fact, there are many costs which are often not captured that relate just to the many meetings, communications and organizational dialog both to gather necessary knowledge and reach consensus as to the plan of action. MDM is certainly an organization-wide dialog that impacts every IT component, both centralized and distributed, in information technology and within the individual lines of business.”
Harris continues, “In 2007, the market for master data management was predicted by one analyst to be “over $5 billion by 2011.” Yet, in 2010 the market reached a far different place. Past projections for growth and size were missed by very substantial margins. These are the predictions of three different top industry analysts in 2010 about the MDM market: ‘Estimated to be $2.2 billion this year.’ (2010) ‘MDM is projected to top $2 billion by 2012.’ ‘PIM and customer master software revenues potentially exceeding $2 billion in 2012.’ The question that immediately comes to mind is, “What happened?” What slowed this market down? Where is this market today?”
For more on this topic, see the original post.