SA`s first Web content management systems analysis and forecast indicates that the local Web content management (WCM) systems market is worth about R59 million a year, but should grow to R290 million by 2007.
The report, commissioned by Internet software company Cambrient, says the strongest growth in the Web hosting market is expected to come from the complex managed hosting category.
The report says a noticeable trend over the past 18 months has been the use of Web sites as an alternative sales channel. Companies are also making their Web sites more sophisticated and integrating them with core business functions such as improved customer service, enabling financial transactions and providing up-to-date, relevant information to internal and external clients.
Cambrient MD Kevin Lourens says that while his company felt the market was growing, it was surprised by the extent of this growth. "Content management is one of the only sectors of software growing both locally and internationally, even in spite of the dot-com collapse and loss of faith in IT providers."
In its analysis, the report says the SA market is experiencing cost pressures and reduced spending on IT applications and services. As a result, Web content management vendors have to demonstrate a real return on investment (ROI).
Local content management systems are reportedly being chosen over international systems because of the exchange rate, local support and suitability of local products to local conditions. Lourens says this is likely to translate into growth for local vendors and an increase in the number of local players in the WCM field over the next few years.
The report says the growth of the local market will be driven by the growing number of companies with Web sites and intranets, as well as the drop in hosting costs.
Vendors who were surveyed said inhibiting factors include the cost of international products, a lack of understanding by end-users of what WCM is and a corporate perception that WCM comes with high costs and implementation difficulties.
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