The document discusses market trends in user productivity software, with a focus on collaborative content workspaces (CCW). Key trends include the consumerization of IT, the rise of smartphones and tablets, the growing "social enterprise", the rise of SaaS applications, and increasing demand for integration across content management, portals, search and social collaboration. The CCW market is valued at $12B+ annually, with ECM being the largest segment. Microsoft dominates the market with SharePoint. The document outlines opportunities for SAP to develop an enterprise-ready CCW solution by integrating social capabilities, ECM, BI and business processes.

1. Collaborative Content Workspaces
Market Research
Ohad Levy, PM

2. Market Trends
User Productivity Software is on the Verge of a Big
Leap Forward…

3. © 2011 SAP AG. All rights reserved. 3
Market Trend #1:
Consumerization
“People no longer distinguish between the applications they use at work and those they use
in their personal lives“, Dan Rosenberg, SVP UX, SAP
• Employees bring their private devices to work
(smartphones, tablets, …) and require using
them at work
• Users require applications which are
simultaneously powerful and intuitive to use,
same as their home appliances (Apple,
Facebook, Google…)

4. © 2011 SAP AG. All rights reserved. 4
• Mobile devices provide intuitive experience from anywhere –anytime
• 90MM iPhones sold worldwide. 12MM iPads sold in just 2 Qr’s! (50MM by 2012)
• 80% of Fortune100 deploy or pilot iPad
• Tablets played significant role in CES: iOS, Honeycomb, RIM, WP7, WebOs
Market Trend #2:
Smartphones and Tablets
Source: ZDNet http://www.zdnet.com/blog/hardware/apple-q111-financials-record-maciphoneipad-sales-highest-revenue-earnings-ever/10989
Tablets are about to change data consumption in the enterprise

5. © 2011 SAP AG. All rights reserved. 5
“I used to think, back when I started Salesforce, that why isn’t all enterprise software like Amazon?
Now I’m thinking: Why isn’t all enterprise software like Facebook?” Marc Benioff, CEO, Salesforce.com
• Demand driven by Gen Y employees
• 77% of workers use Facebook during work… causing 1.5% productivity loss…
• 50% of businesses used Enterprise 2.0 software in 2009
• Social networks expected to replace email for 20% of business users by 2014
• Will it replace traditional document management…?
Market Trend #3:
The “Social” Enterprise

6. © 2011 SAP AG. All rights reserved. 6
SaaS applications provide innovative interfaces (Facebook, Google Apps, Zoho…)
High expectations for frequent upgrade cycles
Drivers for adoption:
Pricing matches economic benefits
Reduced complexity and risk
Shifts Capex to Opex
Easier to trial
Problems around security, data ownership and real costs
Market Trend #4:
Software-as-a-Service

7. Collaborative Content
Workspaces Market
"We continue to see buyer demand for greater integration of collaboration, content
management, enterprise portals, and search — whether for intranet, extranet, or
publicly facing applications"
- Al Hilwa,
Program Director at IDC

8. © 2011 SAP AG. All rights reserved. 8
Collaborative Content Workspace (CCW)
=
Content Management + Portals + Search +
Social Collaboration

9. © 2011 SAP AG. All rights reserved. 9
Source: IDC CCW market 2010 http://www.idc.com/research/viewdocsyn`opsis.jsp?containerId=224211&sectionId=null&elementId=null&pageType=SYNOPSIS
$12B+ Potential Market Showing Strong Growth (7.6% YoY)
ECM
47%
Search
24%
Portals
19%
Social
Collab
10%
$9.3B $12.7B
4,118 4,346 4,645 4,983 5,378 5,817
2,111
2,282
2,477
2,697
2,935
3,201
1,650
1,713
1,804
1,919
2,055
2,206
930
987
1,067
1,171
1,309
1,489
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
2009 2010 2011 2012 2013 2014
Revenue($M)
Social Collab
Portals
Search
ECM
ECM is the dominant segment, while Search and Social
grow much faster

10. © 2011 SAP AG. All rights reserved. 10
Worldwide CCW Revenue Distribution
Americas (60%)
EMEA(30%)
APJ (10%)
Total 2009 = $8.8B

11. © 2011 SAP AG. All rights reserved. 11
Enterprise Content Management (ECM) will Remain the Biggest
Segment Until 2014 ($5.7B), with Nice Growth Rates (7-10%)
Strong M&A trend in 2010
More complex content: text, audio, video, web and social content
Vendors seek integration with SharePoint since customers require a single vendor

12. © 2011 SAP AG. All rights reserved. 12
Enterprise Portals is the Most Mature Segment ($2B Market)
with Slowest Growth Rates (5-6% YoY)
Not yet commoditized, due to emerging technologies:
Enterprise 2.0, Cloud and user experience standards

13. © 2011 SAP AG. All rights reserved. 13
Enterprise Search is a $2-3B Market Growing Rapidly (9-12%).
Offerings Include Software, Hardware Appliances and
SaaS Solutions

14. © 2011 SAP AG. All rights reserved. 14
Social Collaboration is the fastest growing segment with CAGR
of 38% (2009-2014) ; Revenue will surpass $760M in 2011
Jive lacks connection to business content.
Microsoft and IBM still in older collaboration models.
On-demand services (Yammer, Chatter) cover specific business scenarios.

15. © 2011 SAP AG. All rights reserved. 15
Portfolio
Growth
0
MSFT
16%
IBM
13%
OTEX
7%
ORCL
6%EMC
5%
Others
52%
Source: IDC CCW market 2010 http://www.idc.com/research/viewdocsynopsis.jsp?containerId=224211&sectionId=null&elementId=null&pageType=SYNOPSIS
Microsoft Dominates the Market in All Dimensions.
IBM, Oracle, EMC and OpenText are Far Behind
SAP is a niche player (<1%) - mainly around Portals

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• 50% penetration to all organizations
• $1.5B+ revenue in 2010
• 130MM licensed users
• 6-pillars define CCW market
• Microsoft play in the Middleware field
SharePoint, started as a departmental portal tool, has become
the most successful CCW solution

17. © 2011 SAP AG. All rights reserved. 17
Pros
• Low Capex
• Easy installation
• “Swiss-army-knife”
• Good document management
• Better scalability (2010 edition)
Overall, end-users are usually happy with SharePoint
Cons
• High Opex (x4)
• Governance
• Security
• “Walled-garden”
• Departmental silos
• Social media

18. © 2011 SAP AG. All rights reserved. 18
• WebSphere & Lotus in 5% of organizations
• ECM leader (FileNet)
• Losing momentum in other segments
• Complex portfolio makes hard cross-sell vs. SharePoint
• Search being integrated into several products
• Recent acquisitions strengthen governance
• No real social media
Total 2009 = $1.2B
ECM
58%
ES
3%
EP
36%
Social
Collab
3%
Sources: IDC WW CCW market 2010; SAP Marketing Intelligence

19. © 2011 SAP AG. All rights reserved. 19
Total = $580M
• ECM-centric (83%)
• Highly acquisitive strategy strengthened ECM portfolio
• Many deals around compliance with SAP
• Also partners with Microsoft and Oracle
ECM
83%
ES
8%
EP
6%
Social
Collab
3%
Sources: IDC WW CCW market 2010; SAP Marketing Intelligence

20. © 2011 SAP AG. All rights reserved. 20
Total = $550M
• Fusion middleware - ECM and Portals
• WebCenter 11g ECM unifies DM, RM, WCM & DAM
• Search product (SES) is currently independent
• Beehive and WebCenter for Social Collaboration
• Tries leveraging on integration with install-base
ECM
66%
ES
1%
EP
33%
Sources: IDC WW CCW market 2010; SAP Marketing Intelligence

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Sources: IDC WW CCW market 2010; SAP Marketing Intelligence
• Strong ECM with Documentum
• Collaboration with CenterStage (ex. eRoom)
• Recently developed new search engine to replace FAST
• Highly integrable with SharePoint for better UI
Total = $476M
ECM
95%
Social
Collab
5%

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• Adopt gradual approach for shortest TTM
• Fit the right solution to the right audience
• Approach Install-base first
• Utilize existing platforms (Portal, EWS)
• Position new offering as “Social”
• Offer existing On-Demand services (StreamWork, BIOD)
Short-term Strategy

23. © 2011 SAP AG. All rights reserved. 23
Value Proposition
Best-of-breed business processes and BI tightly integrated with
leading ECM and Social Media solutions
Enterprise-ready due to SAP strong governance, security and
scalability (compared to SharePoint)
Modularity allows usage of CCW components according to
specific customer needs
Enterprise 2.0 - enhanced social capabilities wrap ECM, BI, and
Business Processes for enhanced collaboration

24. © 2011 SAP AG. All rights reserved. 24
How Could SAP Solution Look Like?
Web-based Framework
BI/ Analytics
Content Management
Document Management
Portal Content Management
Portal Integration iViews
Desktop interface email, office
Workflows decisions, approvals
Archiving (basic)
Content Gallery
Bus Suite
Assets
Portal
Content
External
Sources
Analytics Dashboards
Profile
Teams Blogs
Feeds
Social
Doc Mgt
Social Search
Mobile Access (iOS, Android, RIM…)
Social Media
Business Processes
Enterprise Search
Documents, Records, Web
Wikis

25. © 2011 SAP AG. All rights reserved. 25
A Look into the Future…
CCW 2 = iPad + Social + SaaS
Social Document Management
Social Decisions / Feeds
Social Search
BI On-demand

26. © 2011 SAP AG. All rights reserved. 26
Total Available Market*
500+
Employees
10-500 Employees
LE
SMB
<10 Employees
SOHO
Rev.
$B
FTE’s
#
Firms
#
50%80-85%2,200
(55%)
56M
(50%)
17K
(0.3%)
50%10-15%1,400
(36%)
44M
(39%)
1.2M
(24%)
340 (9%)12M
(11%)
3.7M
(75%)
SMBLE
Employ 40% of workforce and draw 36% of total revenueConstitute only 0.3% of US firms but employ 50% of
workforce and draw 55% of total revenues
Agile, risk takers, quickly adapt to changes, less prudent
about data, more open to new technologies and On-
demand services.
Conservative, prefer longer cycles, data-protective,
slowly scale, less prone to move to On-demand but may
consider hybrid OD/OP solutions
SharePoint dominancy (50%). SAP much softer (10-15%).
SharePoint expending from SMB to LE
SAP realm (85% of Fortune 500). SharePoint expends
quickly. Peaceful co-existence at the moment.
* US only. Source: Statistics about Business Size , US Census Bureau, 2004 http://www.census.gov/epcd/www/smallbus.html

27. © 2011 SAP AG. All rights reserved. 27
Total Available Market (LE)
SAP
(80% of LE)
Portal
(20% of SAP)
CCW Solution
(>50% of SAP)
Total Addressable Market

28. © 2011 SAP AG. All rights reserved. 28
User Segmentation
Expected
performance
10-15% 10%
70-80%
Manager
CXOBusiness User
Power User
High
Access frequency
High
2-3%
Reports
Decision workflows
Search
Doc mgt & sharing
UI-sensitive
Personalization
BI to some extent
Desktop oriented
Transactional work
Reports
Governance awareness
Social networks
Search
Doc mgt & sharing
WCM
UI-sensitive
Personalization
BI - key factor
Cockpits & dashboards
Reports
Governance awareness
OP
OD

29. © 2011 SAP AG. All rights reserved. 29
Sources
1.IDC CCW market 2010
http://www.idc.com/research/viewdocsynopsis.jsp?containerId=224211&sectionId=null&elementId=null&pageType=SYNOPSIS
2.Gartner MQ ECM 2009 http://bexhuff.com/2009/10/oracle-ecm-rated-a-leader-in-gartner-magic-quadrant
3.Gartner MQ EP 2009 http://imagesrv.gartner.com/media-products/pdf/reprints/ibm/external/volume4/article18.pdf
4.Gartner MQ ECM 2010 http://www.hyland.com/hyland-software/media-room/analyst-coverage/magic-quadrant-2010.aspx
5.http://searchsap.techtarget.com/news/2240024578/SAP-hopes-to-make-users-work-easier-with-better-UI-designs
6.http://intranetblog.blogware.com/blog/_archives/2008/11/4/3961991.html
7.http://www.cmswire.com/cms/enterprise-20/what-is-sharepoint-2010-vision-and-reality-007513.php
8.http://www.prescientdigital.com/articles/sharepoint/sharepoint-the-swiss-army-knife-of-portals/
9.http://kalsing.blogspot.com/2008/08/sharepoint-versus-netweaver-portal.html
10.Statistics about Business Size , US Census Bureau, 2004 http://www.census.gov/epcd/www/smallbus.html
11.https://partner.microsoft.com/US/program/competencies/compportalsandcollaboration
12. Forrester Research, The Enterprise 2.0 Buyer Profile: 2009
http://www.forrester.com/rb/Research/enterprise_20_buyer_profile_2009/q/id/54277/t/2
13. http://www.gartner.com/it/page.jsp?id=1467313
14. http://www.gartner.com/it/page.jsp?id=1497215
15. http://www.computerworld.com/s/article/9135795/Study_Facebook_use_cuts_productivity_at_work