Table of Contents
•The global enterprise rights management (ERM) market is in a period of renaissance. Encryption-centric, business-internal solutions are giving way to a new wave of collaboration-centric, analytics-focused solutions designed to improve collaboration and streamline workflows while still protecting information against leakage and protecting companies against non-compliance and intellectual property (IP) theft.
•From a definition perspective, the notion of enterprise rights management is being broadened to information rights management to encompass unstructured data and to secure collaboration to encompass use cases such as cross-company collaboration and the growing use of portable devices outside the firewall to process and view potentially sensitive information.
•Encryption, policy enforcement, identity verification, and integration with enterprise content management systems (ECMs) remain key aspects of ERM solutions. Vendors and customers alike continue to push for as much automation of policy definition, protection, and incident identification as possible, in order to minimize the scope for error and to maximize the efficiency of protection.
•Recent headline-making incidents of document leakage through hackers and individuals, as well as increasingly stringent compliance regulations as they pertain to personally identifiable information (PII) and export-control regulations, are driving demand growth, particularly in North America.
•That said, traditional restraints to adoption continue to hinder uptake. These include the need to install clients or plugins for offline rendering and the use of protected documents, interruptions to everyday workflows, the high initial expense of installation and integration, and mistrust in value proposition. Software-as-a-Service (SaaS) offerings are negatively impacting revenue growth, although they are positively impacting total user counts.
•All things considered, 2014 was a particularly strong year for ERM sales. The prognosis over the 5-year forecast period is strong, with steady year-over-year growth. In terms of competitive landscape, the traditional leaders Microsoft, Adobe, and Fasoo continue to account for over two-thirds of total market revenues.
•Enterprise vendors such as EMC and Oracle, who entered the market by virtue of acquisitions, are beginning to fade in market position as the value of built-in ERM erodes and new technologies and approaches to ERM find stronger favor. Seclore has risen quickly in the ranks of market share; WatchDox and FileOpen also have noteworthy market presence.
•While on-premises deployments of ERM systems remain the mainstay of the market today, SaaS-based revenues are growing quickly. Value-added resellers (VARs) and system integrators (SIs) continue to play a key role in helping vendors grow market share and in helping enterprise customers quickly and productively plan and deploy ERM systems.
Government and intelligence, healthcare, and pharmaceuticals are the fastest-growing verticals, although the value proposition and ROI model for each is distinctly different.
Today’s ERM = encryption + analytics. Full security is needed for internal workflows; access control and tracking are key for externally shipped documents.
Fear, uncertainty, and doubt (FUD)-based marketing is rampant in this market, leading vendors’ need to stay alert and clearly communicate their ongoing relevance.
The standalone value of ERM remains relatively trivial. ERM solutions are nearly x times more valuable when packaged with a broader productivity or collaboration solution.
Consultants, VARs, and SIs continue to play a critical role in growing and maintaining market share. This should be the CEO’s key focus area when considering a growth strategy.
•Enterprise rights management solutions are document control solutions which typically rely on encryption, optionally coupled with usage monitoring and event detection, designed to protect sensitive documents from unauthorized use. Use cases span the protection of intellectual property (IP) from hostile insiders as well as hackers, ensuring that personally identifiable information (PII) is used in conformance with applicable regulations, and controlling/monitoring document use across a variety of business-to-business (B2B) use cases.
•Business-to-consumer (B2C) technologies, such as digital mailbox solutions and eBook protection are not included in this definition. Non-enterprise solutions such as content digital rights management (DRM), simple file encryption, and folder- or file-based access control features in cloud-based storage services are not considered ERM systems. Virtual data room (VDR) SaaS solutions are also not included in our market definition.
•Our definition of ERM revenues is limited to revenue directly accrued from the licensing and maintenance of an on-premises or SaaS offering. Professional services and integration fees, whether accrued by the vendor or by a third-party SI, are not included in market sizing.
Vertical Segment Definitions
Government and Intelligence (G&I): This includes the use of ERM by military, defense, government, and intelligence agencies for the purposes of protecting classified documents and military technological documentation against espionage, public disclosure (“leakage”), and other forms of compromise. Military-grade resistance to hacking and breaches is a critical requirement for this segment.
Business and Professional Services (BPS): This includes use of ERM to protect internal, potentially sensitive, documents against unintentional disclosure, as well as intentional theft by employees. ERM systems are also used to discontinue access once an employee leaves the organization or once collaboration with an external consultant has ended. Often this class of customers produces documents as products—in this case, deliverables (typically in PowerPoint, Excel, or PDF format)—which are secured by ERM to protect the organization’s revenue by minimizing piracy of the documents and maximizing visibility into where and how the protected documents are being accessed and used. Transparency and ease of use is paramount in this sector; often customers will be willing to sacrifice protection for end-user satisfaction.
Education and Training (E&T): Whether K-12, university, or professional training institutions, often proprietary material—typically in PDF format—is created at considerable expense and yet is subject to piracy and sharing. ERM is used to protect investments in training materials and to maximize student engagement. It should be noted that ERM is distinct from eBook protection or video DRM; ERM is primarily used in B2B scenarios tying document rights to specific identities, while eBook security is primarily a B2C technology tied to consumer devices and PCs. Here, also, usability is paramount.
Manufacturing (MFG): The manufacturing sector most often uses ERM to control access to sensitive, proprietary documents, typically related to patent-pending or trade secret material. This sector also often uses ERM to revoke access to old versions of documentation, thus ensuring that only the most recent documentation is used by support personnel globally. Typically, targets of protection include not only PDF documents but also EDA/CAD/CAM designs.
Publishing (PUB): The use of ERM is widespread in the publishing industry to protect manuscripts and works in progress, typically in PDF format. Recipients of protected documents may include distributors and outsourced personnel. Again, this use case is distinct from eBook protection.
Oil and Gas (O&G): Oil and gas exploration companies leverage ERM to protect highly sensitive documents and designs against unauthorized leakage. Similar to the manufacturing use case, a wide variety of target formats need to be supported by ERM systems serving this vertical. Shared collaboration spaces, or so-called Virtual Secure Work Spaces, compete with pure ERM-based approaches to serve this vertical. For the purposes of this analysis, these types of services, which are often built using a pure-play ERM core, are treated as de-facto value-added resellers.
Pharmaceuticals (Pharma): An emerging vertical for ERM, pharma companies are increasingly relying on ERM systems as the final layer of defense for sensitive research and clinical trial documents that are inevitably under continuous attack from hackers and espionage teams. Security is a critical requirement, as is ongoing tracking and monitoring. Document formats are most typically Microsoft Office or PDF.
Banking, Financial Services, and Insurance (BFSI): Also an emerging vertical, BFSI is using ERM to not only protect PII while outsourcing and internally storing documents, but also for secure distribution and monitoring of confidential company information during, for example, IPO and M&A events.
Healthcare: Health insurance companies, hospitals, and similar healthcare institutions leverage ERM to secure internal documents in compliance with HIPAA and other privacy regulations.
Other: This captures all other segments, including general corporations using ERM for the protection of internal structured and unstructured documents (such as email and Microsoft Office/PDF documents) and also includes, for example, legal services who protect case files to comply with applicable laws and client agreements; and retail who seek to protect PII during internal processing and external outsourcing.
Key Questions This Study Will Answer
Is the market growing? How long will it continue to grow and at what rate?
Are the existing competitors structured correctly to meet customer needs?
Is this an industry or a market? Will these companies/products/services continue to exist or will they be acquired by other companies? Will these products/services become features in other markets?
What are the current pricing trends in the market, and how are competitors continuing to provide value-priced products?
What technical trends, including encoding technologies, are shaping the marketplace today? What trends are on the horizon, and what does this mean for future product strategy?
What factors are customers considering when choosing new equipment and timing upgrades, and what does this mean for global growth strategies for vendors?
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