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MARKET ANALYSIS
Worldwide Enterprise Social Networks and Online
Communities 2015–2019 Forecast and 2014 Vendor Shares
Vanessa Thompson
IDC OPINION
The market for enterprise social networks (ESNs) evolved significantly in 2014. There is an increasing
presence of social workflow capabilities being surfaced inside business applications, but at the same
time, online communities to support customers, employees, partners, and suppliers are growing
rapidly. IDC expects the market for both standalone and embedded ESNs to continue to slow
significantly as many more enterprise applications become social in nature. However, the market for
online communities is growing rapidly. Toward the end of the forecast period, enterprise social
networks may not even be called out as a separate market. In addition:
IDC expects the worldwide enterprise social networks market revenue to grow from $1.46
billion in 2014 to $3.5 billion by 2019, representing a compound annual growth rate (CAGR) of
19.1%.
IDC expects the worldwide online communities market revenue to grow from $392.95 million in
2014 to $1.2 billion by 2019, representing a CAGR of 24.3%.
Connecting to customers, employees, partners, and suppliers has always been a mission-
critical activity. Alongside rapidly shifting expectations, communities have become a broker
between business networks and will only continue to contribute more value to organizations
trying to develop ongoing relationships.
July 2015, IDC #257492
IN THIS STUDY
This study examines the enterprise social networks market for the period from 2010 to 2019, with
vendor revenue trends and market growth forecasts. Worldwide market sizing is provided for 2014,
with trends from 2013. A five-year growth forecast for this market is shown for 2015–2019. Revenue
and market share of the leading vendors in both enterprise social networks and online communities
are provided for 2014.
Methodology
See the Methodology in the Learn More section for a description of the forecasting and analysis
methodology employed in this study.
In addition, please note the following:
The information contained in this study was derived from IDC's Worldwide Semiannual
Software Tracker database as of June 8, 2015.
All numbers in this document may not be exact due to rounding.
For more information on IDC's software definitions and methodology, see IDC's Software
Taxonomy, 2015 (IDC #256767, June 2015).
Enterprise Social Networks Market Definition
Enterprise social networks (ESNs) enable social workflow capabilities to be delivered to users that are
either inside or outside an organization's firewall. Users in non-customer-facing roles are the focus of
these solutions, but customer-facing interactions may also occur. Solution capabilities of enterprise
social networks should include, but are not limited to, activity streams, blogs, wikis, microblogging,
discussion forums, groups (public or private), ideas, profiles, recommendation engines (people,
content, or objects), tagging, bookmarking, and secure communities. An ESN provides a social
workflow or relationship layer in a business that can be an independent or a standalone solution and/or
a set of service-oriented APIs or integrated applications that coexist with other business and
communications applications. Vendors tracked in the enterprise social networks market can offer
discrete solutions supporting one type of social functionality (such as community management,
ideation, or innovation management) or a broad-based platform that encompasses many functionality
traits. A variety of deployment options (on-premises, software as a service [SaaS], hosted application
management, or software appliance) are made available.
Online communities is a subsegment of the enterprise social networks market and includes all online
communities.
Communities enable the collection and incorporation of user-generated feedback (content can include
files and rich media) and may also include capabilities such as blogs, discussion forums, profiles,
tagging, comments, and ratings/ranking. Communities operate on owned digital properties and can be
customer, employee, or partner/supplier based and serve a specific member/community-based
organization. Solutions may also enable aggregation of external social data sources into owned sites
though social log-in, social plug-ins (including proprietary connectors, Web services, or iFrames).
The communities market definition excludes:
©2015 IDC #257492 2
Social analytics functionality included in any of the CRM segments of sales automation,
marketing automation, customer service, or contact center.
Social media publishing capabilities; this also includes social media ad placement.
SITUATION OVERVIEW
The Worldwide Enterprise Social Networks Market in 2014
ESNs continue to become common place in the modern enterprise. Throughout 2014, there was
significant repositioning of the major ESN vendors. IBM continues to focus on IBM Connections as it
supports IBM Verse, the company's new email product. Jive Software has created a focus on
workstyles with a range of new products focused on individual productivity, from calendaring through to
mobile application messaging with Jive Chime. Microsoft is hastily increasing the capabilities and
scope of Office 365 that also includes Yammer, and the focus on Office 365 APIs is encouraging
where other business applications can be connected to the suite. Salesforce.com is aggressively
pushing the Community Cloud, and Chatter is now accounted for as part of the salesforce.com
platform business. Finally, Lithium Technologies is well placed to IPO in the coming year as its
customer base is maturing well.
Performance of Leading Vendors in 2014
Table 1 and Figure 1 display 2012–2014 worldwide revenue and 2014 growth and market share for
enterprise social networks vendors. Year-over-year (YoY) growth for almost all vendors in the market
was in double digits. The continued growth of salesforce.com is on the back of the change in
positioning of Chatter to become a more horizontal support layer to Salesforce1, alongside the addition
of the Community Cloud offerings for sales, marketing, and partner communities.
Table 2 and Figure 2 display 2012–2014 worldwide revenue and 2014 growth and market share for
online communities vendors. Online communities is a subsegment of the enterprise social networks
market and in its most basic form refers to a Web-based destination where people can connect, find
resources, and discuss issues around an industry, an organization, a product, or a set of values.
©2015 IDC #257492 3
TABLE 1
Worldwide Enterprise Social Networks Revenue by Vendor, 2012–2014 ($M)
2013–2014
2012 2013 2014 2014 Share (%) Growth (%)
IBM 142.7 172.7 185.5 12.7 7.4
Jive Software 102.3 130.5 162.2 11.1 24.3
Salesforce.com 29.6 91.2 161.6 11.1 77.2
Microsoft 44.0 76.0 97.2 6.7 27.9
Lithium 52.5 81.5 92.3 6.3 13.2
Zimbra 39.1 47.9 65.3 4.5 36.4
SAP 10.9 34.1 47.1 3.2 38.2
Socialtext 34.6 34.8 35.2 2.4 1.4
Mindjet 17.6 18.6 23.1 1.6 23.9
Get Satisfaction 14.9 18.5 23.0 1.6 24.4
INgage Networks 15.7 17.5 20.6 1.4 18.2
Google – 10.9 16.6 1.1 52.7
Igloo Software 10.4 13.5 16.0 1.1 18.0
TIBCO 10.0 12.2 14.9 1.0 22.2
Zyncro 5.7 9.5 12.6 0.9 32.9
ATOS 7.9 8.6 8.6 0.6 0.1
VMware 4.7 6.6 8.0 0.5 21.7
Cisco 2.0 1.4 1.6 0.1 18.0
TOTVS – 0.1 0.2 0.0 204.6
Subtotal 544.9 785.8 991.6 67.9 26.2
Other 414.1 491.3 468.1 32.1 -4.7
Total 959.0 1,277.1 1,459.7 100.0 14.3
Source: IDC, June 2015
©2015 IDC #257492 4FIGURE 1
Worldwide Enterprise Social Networks Revenue Share by Vendor, 2014
Source: IDC, June 2015
TABLE 2
Worldwide Online Communities Revenue by Vendor, 2012–2014 ($M)
2013–2014
2012 2013 2014 2014 Share (%) Growth (%)
Salesforce.com 29.6 64.8 139.3 35.4 114.8
Lithium 52.5 81.5 92.3 23.5 13.2
Jive Software 26.6 37.8 53.5 13.6 41.5
Zimbra 27.4 33.5 45.7 11.6 36.4
Get Satisfaction 14.9 18.5 23.0 5.9 24.4
Igloo Software 10.4 13.5 16.0 4.1 18.0
TIBCO 10.0 12.2 14.9 3.8 22.2
Google – 5.4 8.3 2.1 52.7
Total 171.4 267.3 393.0 100.0 47.0
Source: IDC, June 2015
©2015 IDC #257492 5FIGURE 2 Worldwide Online Communities Revenue Share by Vendor, 2014 Source: IDC, June 2015 Performance by Geographic Region in 2014 North America makes up the lion's share of revenue in the enterprise social networks market. However, EMEA (Western Europe and CEMA) experienced good growth through 2014, in line with the deployment of cloud-based services in the region. Asia/Pacific (including Japan) (APJ) still represents a small portion of revenue in enterprise social networks as the market is still immature in relation to North America (see Figure 3). FIGURE 3 Worldwide Enterprise Social Networks Revenue Share by Region, 2014 Source: IDC, June 2015 ©2015 IDC #257492 6
FUTURE OUTLOOK
Forecast and Assumptions
The following factors are likely to drive revenue growth in enterprise social networks and online
communities during the forecast period:
Communicating with customers rather than just responding has become a business focus.
This shift signifies that organizations are wanting to drive more awareness of their brand as
well as have an ongoing conversation with customers. This is particularly suited to online
communities where brands can quickly build a trust relationship with customers, employees,
partners, and suppliers.
Social workflow is at the core of how companies can create competitive differentiation and
advantage, but it is far from simply implementing some new software/hardware and
automating processes. It should be inherent in how companies do business, with technology
being the enabler.
The rapidly changing nature of work means that the role of social workflow will become
increasingly important to enable users to get their work done wherever they choose to work.
Business decisions will be made via new outputs (likely mobile based) that integrate analytics
and data with people and systems.
There is an opportunity for online communities to become marketplaces of their own where
partners and suppliers are able to start transacting in the community to help solve other
customer or partner questions.
The following factors are likely to inhibit revenue growth in enterprise social networks during the
forecast period:
The level of deployment of enterprise social networks (the Americas region in particular)
indicates that many organizations have already deployed solutions, and the incremental
increase in revenue for standalone solutions will be nominal.
The IT department will be increasingly involved in deployment and integration to ensure social
solutions meet enterprise requirements for security, compliance, and IP protection.
Worldwide Enterprise Social Networks and Online Communities Forecast,
2015–2019
IDC's estimate of growth of the enterprise social networks and online communities markets through
2019 is presented in Table 3. The enterprise social networks market is expected to reach $3.5 billion
by 2019 at a CAGR of 19.1%. The online communities market is expected to reach $1.2 billion by 2019
at a CAGR of 24.3%.
IDC analysts around the globe supplied regional input and insight into the enterprise social networks
forecast. The worldwide forecast is the aggregation of this regional data. The forecast is for the
Americas region to retain a good growth rate throughout the forecast period, although EMEA and APJ
are expected to grow more aggressively. To date, the Americas region represents a disproportionately
high share of revenue, as the EMEA and Asia/Pacific (including Japan) regions can expect a longer
time frame for change with respect to standalone enterprise social networks and may transition directly
to embedded applications as more enterprise applications assume social workflow. Table 4 shows the
regional share breakdown for 2014 and 2019 and revenue forecast for 2014–2019. Figure 4 shows the
regional revenue data for 2014 and 2019 in graphical form.
©2015 IDC #257492 7TABLE 3
Worldwide Enterprise Social Networks and Online Communities Revenue,
2014–2019 ($M)
2014–2019
2014 2015 2016 2017 2018 2019 CAGR (%)
Enterprise social networks 1,459.7 1,707.2 2,031.7 2,422.3 2,898.4 3,498.7 19.1
Growth (%) 14.3 17.0 19.0 19.2 19.7 20.7
Online communities 393.0 477.7 590.7 736.5 925.5 1,167.2 24.3
Growth (%) 47.0 21.6 23.6 24.7 25.7 26.1
Note: See Table 5 for top 3 assumptions and Table 6 for key forecast assumptions.
Source: IDC, June 2015
TABLE 4
Worldwide Enterprise Social Networks Revenue by Region, 2014–2019 ($M)
2014 2019
Share 2014–2019 Share
2014 2015 2016 2017 2018 2019 (%) CAGR (%) (%)
North America 1,046.3 1,138.4 1,245.3 1,347.8 1,452.4 1,550.5 71.7 8.2 44.3
EMEA 346.4 493.9 702.4 979.9 1,339.8 1,829.4 23.7 39.5 52.3
APJ 67.0 74.9 84.0 94.6 106.3 118.7 4.6 12.1 3.4
Total 1,459.7 1,707.2 2,031.7 2,422.3 2,898.4 3,498.7 100.0 19.1 100.0
Note: See Table 5 for top 3 assumptions and Table 6 for key forecast assumptions.
Source: IDC, June 2015
©2015 IDC #257492 8FIGURE 4 Worldwide Enterprise Social Networks Revenue by Region, 2014 and 2019 Source: IDC, June 2015 Assumptions Table 5 shows the top 3 assumptions for the enterprise social networks market, and Table 6 shows the key forecast assumptions underlying this forecast. ©2015 IDC #257492 9
TABLE 5
Top 3 Assumptions for the Worldwide Enterprise Social Networks and
Online Communities Market, 2015–2019
Changes to This
Assumption That Could
Market Force IDC Assumption Significance Affect Current Forecast Comments
Economy Economic A down economy The forecast assumes At present, the fallout
performance has been affects business and that the benefits of from global hot spots
mixed in 2015. Low oil consumer confidence, lower, and stable, remains contained. It
prices have boosted the availability of energy prices will assist would require a
confidence in energy- credit and private growth, and therefore significant and
importing countries investment, and IT spending, in both material geopolitical
like India, and Western internal funding. A industrialized and crisis to have a
Europe has continued global recession developing economies, worldwide price
to show moderate would cause without triggering a erosion on the overall
improvements (despite businesses to delay spike in interest rates. ICT market.
continued uncertainty IT upgrades and Slower growth in China
over Grexit). On the some new projects; a is manageable at
other hand, rising economy does present levels but could
momentum has the opposite. A crisis drag down global GDP
slowed in China and (perhaps triggered by growth should the
Japan, while the U.S. more volatility in situation worsen.
economy was weaker emerging markets)
in the first quarter. We could create a chain
assume that the of events that would
United States will drive tech spending
improve in the second much lower in the
half of the year and near term.
that China will use
policy to stabilize
growth at around 7%.
But with Russia and
Latin America
stuttering, the global
economy will grow by
less than 3%.
©2015 IDC #257492 10TABLE 5
Top 3 Assumptions for the Worldwide Enterprise Social Networks and
Online Communities Market, 2015–2019
Changes to This
Assumption That Could
Market Force IDC Assumption Significance Affect Current Forecast Comments
Enterprise The need to support Collaboration and Upside: Over-the-top It is no longer good
decision making ad hoc decisions personal productivity mobile application enough to just offer
becomes increasingly are rapidly changing, messaging will become APIs to extend existing
critical. Companies will and new features are coupled with ad hoc business processes.
look to native being defined and decision making. The user interface and
collaboration incorporated to meet usability workflow
Downside: Business
applications and other emerging business aspects must also be
processes that are rigid
lightweight SaaS- needs. streamlined so that
in nature will require
based and mobile users have the same
additional user
collaboration tools to experience across any
interaction. This means
support other business device.
that the information to
decisions.
decision process will
take longer.
User centricity Consumerization of Initiatives from Upside: Increasing User expectations will
the enterprise vendors to launch business pressures and continue to change
continues with social workflow the change in user rapidly, but often this
consumer devices and features as a workstyles have is not in step with the
Web applications complement to created the opportunity enterprise IT buying
brought into the existing collaboration to build and architect cycle, so organizations
workplace as well as applications and applications and will need to become
vendors positioning business workflow will processes directly from more agile and deliver
products/solutions to continue. For user behavior rather experiences to users
increasingly suit user instance, content than delivering mobile that they expect
needs, not IT. repositories and versions of current outside of the work
enterprise social enterprise business context.
networks will become applications.
accessible from inside
Downside: Many
other applications. A
organizations do not
number of enterprise
yet have clarity around
social software
an enterprise mobility
vendors have
strategy and are
launched mobile OS
investing in both mobile
SDKs in support of
device management
this trend.
and mobile application
management. This
creates a significant
spending increase to
manage both devices
and applications.
Source: IDC, June 2015
©2015 IDC #257492 11TABLE 6
Key Forecast Assumptions for the Worldwide Enterprise Social Networks and
Online Communities Market, 2015–2019
Accelerator/
Inhibitor/ Certainty of
Market Force IDC Assumption Impact Neutral Assumption
Macroeconomics
Economy Economic performance has High. A down economy affects
been mixed in 2015. Low oil business and consumer
prices have boosted confidence confidence, the availability of
in energy-importing countries credit and private investment,
like India, and Western Europe and internal funding. A global
has continued to show recession would cause
moderate improvements businesses to delay IT
(despite continued uncertainty upgrades and some new
over Grexit). On the other hand, projects; a rising economy does
momentum has slowed in the opposite. A crisis (perhaps
China and Japan, while the triggered by more volatility in
U.S. economy was weaker in emerging markets) could create
the first quarter. We assume a chain of events that would
that the United States will drive tech spending much lower
improve in the second half of in the near term.
the year and that China will use
policy to stabilize growth at
around 7%. But with Russia
and Latin America stuttering,
the global economy will grow by
less than 3%.
Crisis duration/ Although there is increased High. A crisis in economic
potential relapse uncertainty surrounding the confidence will shake IT
future of Greece in the spending to the core within a
eurozone, the overall European short time frame, as observed
economy appears less likely to in 2009. With modular IT
relapse into crisis than a year spending dominating IT buyer
ago. A debt crisis is possible in strategy, businesses stand
China as the economy ready to delay or postpone
continues to grapple with the capital spending and new
overhand of its response to the projects. On the flip side, this
financial crisis, but we currently creates pent-up demand,
assume that the government especially in emerging markets.
has enough firepower in its
policy arsenal to avert the
worst-case scenarios.
©2015 IDC #257492 12TABLE 6
Key Forecast Assumptions for the Worldwide Enterprise Social Networks and
Online Communities Market, 2015–2019
Accelerator/
Inhibitor/ Certainty of
Market Force IDC Assumption Impact Neutral Assumption
Vertical industries The main drag on IT spending High. A downturn in major
is from the public sector, with contributors to IT revenue (e.g.,
government spending cuts in the financial services sector)
the United States and austerity can have a major impact on IT
measures in most of Europe. spending. Momentum in vertical
Dynamic industries include sectors (e.g., healthcare) can
healthcare, which continues its drive overall IT spending.
pace of modernization to deal Industry-specific solutions are
with aging populations in increasingly a major contributor
mature economies, and the to growth.
services sector. Manufacturing
firms are investing to improve
their global competitiveness,
while telecom operators are
engaged in customer retention
efforts. Industry-specific
solutions will be a major driver
for IT spending.
©2015 IDC #257492 13TABLE 6
Key Forecast Assumptions for the Worldwide Enterprise Social Networks and
Online Communities Market, 2015–2019
Accelerator/
Inhibitor/ Certainty of
Market Force IDC Assumption Impact Neutral Assumption
Global
megatrends
Cloud Cloud is a new paradigm of High. The key advantage to
computing that will shape IT cloud services should be the
spending over the next several ability of IT organizations to
decades — the logical evolution shift IT resources from
of what IDC called "dynamic IT" maintenance to new initiatives.
for years. It entails shared This in turn could lead to new
access to virtualized resources business revenue and
over the Internet. IDC estimates competitiveness as well as
that cloud services spending create new opportunities for IT
will continue to grow at double- vendors in SMB and emerging
digit rates for the next few markets. The benefits will be
years, gradually accounting for offset by cannibalization in the
a larger proportion of all IT short term though, resulting in
spending. In the short term and shorter service engagements,
the medium term, this will have price model disruption, and
a negative impact on IT some hardware
spending, enabling end users commoditization. A stronger
to lower their overall spending economy would see most
on certain solutions. However, organizations shift resources to
in the long term, we believe that new IT development and
cloud will have a positive adoption areas in the long term.
overall impact on industry We see cloud adoption as an IT
growth as more users adopt spending driver overall, despite
more advanced computing these cannibalization effects in
solutions at a faster rate. the next few years.
©2015 IDC #257492 14TABLE 6
Key Forecast Assumptions for the Worldwide Enterprise Social Networks and
Online Communities Market, 2015–2019
Accelerator/
Inhibitor/ Certainty of
Market Force IDC Assumption Impact Neutral Assumption
The digital The impact of the new digital Moderate. Look for faster
marketplace marketplace can be seen in development of the software-
software as a service, the as-a-service model, more
integration of Internet and development of composite
enterprise search and other applications, and more directly
functionality, the concept of competitive products (e.g.,
"cloud computing," and social network application
competition for ad revenue platforms). Also look for rapid
among Microsoft, Google, and growth of Internet advertising
other vendors. The digital revenue in emerging
marketplace will affect content geographies.
delivery, commerce, datacenter
architectures, advertising,
marketing, telecommunications,
and social interactions. It may
also accelerate the
consumption of ICT in
emerging geographies, where
more and more online
populations reside.
Internet of Things The Internet of Things refers to High. The addition of billions of
the proliferation of client devices to the network edge will
devices and end-user or end- drive the need for more
use devices at the network enterprise systems to deploy,
edge. These other devices manage, and make use of
range from smartphones and these devices. It will also shift
networked entertainment the prevailing traffic from the
devices to automobiles, center of the network outward
building automation systems, to edge inward, which will affect
smart meters and thermostats, computing and communications
medical electronics, and architectures.
industrial controllers, not to
mention RFID tags and
sensors. Communicating client
devices will proliferate at 5–10
times the rate of PCs installed.
Devices will both converge
(smartphones with more
functionality) and diverge
(single-use devices, such as
RFID readers and industry-
specific devices).
©2015 IDC #257492 15TABLE 6
Key Forecast Assumptions for the Worldwide Enterprise Social Networks and
Online Communities Market, 2015–2019
Accelerator/
Inhibitor/ Certainty of
Market Force IDC Assumption Impact Neutral Assumption
Specific market
trends
Converged Conferencing and messaging Moderate. Convergence will
modality are becoming more of a drive new competitive
multimodal experience and are dynamics, offer new
being built into social workflow applications and functions to
to meet the needs of the new customers. Applications that
enterprise workspace. have the embedded video
capability enable users to do
different tasks within the same
application.
Enterprise decision The need to support ad hoc Moderate. Collaboration and
making decisions becomes increasingly personal productivity are rapidly
critical. Companies will look to changing, and new features are
native collaboration being defined and incorporated
applications and other to meet emerging business
lightweight SaaS-based and needs.
mobile collaboration tools to
support other business
decisions.
User centricity Consumerization of the High. Initiatives from vendors
enterprise continues with to launch social workflow
consumer devices and Web features as a complement to
applications brought into the existing collaboration
workplace as well as vendors applications and business
positioning products/solutions workflow will continue. For
to increasingly suit user needs, instance, content repositories
not IT. and enterprise social networks
will become accessible from
inside other applications. A
number of enterprise social
software vendors have
launched mobile OS SDKs in
support of this trend.
©2015 IDC #257492 16TABLE 6
Key Forecast Assumptions for the Worldwide Enterprise Social Networks and
Online Communities Market, 2015–2019
Accelerator/
Inhibitor/ Certainty of
Market Force IDC Assumption Impact Neutral Assumption
Consumption
Buying sentiment Buying sentiment has High. Buyer sentiment
fluctuated in recent months, in obviously has a major direct
line with stock markets and impact on IT spending.
macroeconomic events/risk Confidence can be volatile from
factors. In the past 12 months, month to month, however, and
CIOs have consistently CIOs have often misjudged
underforecast their own IT their own IT spending. The
spending, reflecting the decentralization of IT budgets
persistent air of caution and risk makes it more difficult to rely on
aversion. If the economy individual polls of buyer intent
remains stable, spending will in order to accurately judge
likely outpace buyer sentiment sentiment. Underlying
polls. If the economy enters sentiment is usually higher than
another downturn, buyer surveys indicate.
confidence could plunge
quickly.
Legend: very low, low, moderate, high, very high
Source: IDC, June 2015
Market Context
A five-year forecast update (2014–2018) was last published for the enterprise social networks market in
Worldwide Enterprise Social Networks 2014–2018 Forecast and 2013 Vendor Shares (IDC #249846,
July 2014). Table 7 compares the forecast published in the previous document with the current
forecast in terms of regional revenue and worldwide annual growth rates. Historical data (2010–2014)
is also included in Table 7 for comparison purposes. Figure 5 displays the same data in graphical form.
IDC expects revenue of standalone enterprise social networks to slow significantly, particularly in the
Americas region, compared with the previous forecast. This is aligned to the social workflow processes
that are enabled by activity streams and the nature of interactions this generates inside organizations.
As the nature of communications in business changes because of the impact of online social
interactions, these new dynamics create an increased level of automation in decision support systems
through ad hoc workflows and increasing urgency from businesses looking to capture market
opportunities created by these new dynamics. This means that the processes inherent in enterprise
social networks, primarily activity streams, messaging, and document repositories, will become
embedded in other applications rather than being provided by standalone applications and move out
into online communities.
©2015 IDC #257492 17TABLE 7
Worldwide Enterprise Social Networks Revenue, 2010–2019: Comparison of
July 2014 and July 2015 Forecasts ($M)
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
July 2015 forecast 569.8 806.8 959.0 1,277.1 1,459.7 1,707.2 2,031.7 2,422.3 2,898.4 3,498.7
Growth (%) NA 41.6 18.9 33.2 14.3 17.0 19.0 19.2 19.7 20.7
July 2014 forecast 569.8 806.8 967.9 1,242.0 1,540.9 1,907.0 2,345.4 2,870.4 3,509.4 NA
Growth (%) 33.7 41.6 20.0 28.3 24.1 23.8 23.0 22.4 22.3 NA
Notes:
See Worldwide Enterprise Social Networks 2014–2018 Forecast and 2013 Vendor Shares (IDC #249846, July 2014) for prior
forecast.
Historical market values presented here are as published in prior IDC documents based on the market taxonomies and current
U.S. dollar exchange rates existing at the time the data was originally published. For more details, see the Methodology in the
Learn More section.
Source: IDC, June 2015
FIGURE 5
Worldwide Enterprise Social Networks Revenue, 2010–2019: Comparison of
July 2014 and July 2015 Forecasts
Source: IDC, June 2015
©2015 IDC #257492 18ESSENTIAL GUIDANCE
IDC expects the deployment of standalone enterprise social networks to continue to slow. However,
the uptake in online communities is encouraging. Over time, enterprise social networks will become
part of the business platform, and vendors like salesforce.com already work in this way. Toward the
end of the forecast period, there will be increasing focus on self-service interactions where
communities become a powerful business tool to support existing business interactions with
customers, employees, partners, and suppliers. In addition:
Online communities will become a place of interaction as well as transaction. As businesses
look beyond customer support as a way to engage users in the community, there are many
opportunities in delivering a comprehensive business platform that can connect to other
business functions. By connecting components of the business and supplier network that may
collaborate through disconnected but shared processes, organizations can start to build an
experience that transcends existing business relationships.
Capturing influence, relevance, and expertise across a business or community remains a
complex challenge. As organizations look to target future potential touch points of customers
and partners, it will be essential to deliver context to these touch points with quick reference to
relevant expertise across all business stakeholders.
To enable the core features of enterprise social networks to be surfaced inside enterprise
workflow, open APIs need to be provided to enable information assets to become productized,
syndicated, and distributed as callable IP assets via an API. Streamlined user interface
connectivity also needs to be included to deliver seamless user connectivity between apps.
LEARN MORE
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Methodology
Historical Market Values and Exchange Rates
Historical market values presented here are as published in prior IDC documents based on the market
taxonomies and current U.S. dollar exchange rates existing at the time the data was originally
published. For markets other than the United States, these as-published values are therefore based on
a different exchange rate each year.
Because many individual countries contribute to regional totals, it is difficult to give precise differences
between current and constant currency values in this document. However, the scale of the difference
can be understood from the movement of the U.S. dollar against major regional currencies. Customers
©2015 IDC #257492 19should consider multiplying regional historical market values for each year by the change in value of
the U.S. dollar against representative currencies in the region as shown in Table 8. This will provide a
better approximation of local market growth. For example, to restate 2012 eurozone values into 2014
dollars, one would adjust the 2012 value upward by 3% (because the dollar weakened slightly against
the euro between 2012 and 2014).
Please refer to IDC's regional research studies containing historical forecasts for multiple countries for
more accurate regional growth in local currencies. Note that this discussion applies only to historical
values prior to 2014. 2014 and all future years are forecast at a constant exchange rate.
TABLE 8
Exchange Rates, 2006–2014 (%)
2006 2007 2008 2009 2010 2011 2012 2013 2014
Euro 106 97 91 95 100 95 103 100 100
Pound 89 82 90 106 107 103 104 105 100
Yen 110 111 98 88 83 75 75 92 100
Canadian dollar 103 97 97 103 93 90 91 93 100
Mexico peso 82 82 84 102 95 94 99 96 100
Brazilian real 93 83 78 85 75 71 83 92 100
Note: To restate prior-year U.S. dollars, multiply historical market values by the percentage indicated in the table.
Source: IDC, January 2015
Synopsis
This IDC study examines vendor revenue performance in the enterprise social networks market for
2012–2014 and presents a forecast of the market for 2015–2019. It also includes vendor revenue share
and forecast data in the same periods for the online communities segment of the enterprise social
networks market.
"The nature of business interactions is moving toward ongoing communication and building
relationships and away from prescriptive and responsive interactions," says Vanessa Thompson,
research director for IDC's Enterprise Social Networks and Collaborative Technologies. "Organizations
will focus on driving brand awareness as well as having ongoing conversations with customers. This is
particularly suited to online communities where brands can quickly build a trust relationship with
customers, employees, partners, and suppliers."
©2015 IDC #257492 20About IDC International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact- based decisions on technology purchases and business strategy. More than 1,100 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries worldwide. For 50 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. Global Headquarters 5 Speen Street Framingham, MA 01701 USA 508.872.8200 Twitter: @IDC idc-insights-community.com www.idc.com Copyright Notice This IDC research document was published as part of an IDC continuous intelligence service, providing written research, analyst interactions, telebriefings, and conferences. Visit www.idc.com to learn more about IDC subscription and consulting services. To view a list of IDC offices worldwide, visit www.idc.com/offices. Please contact the IDC Hotline at 800.343.4952, ext. 7988 (or +1.508.988.7988) or sales@idc.com for information on applying the price of this document toward the purchase of an IDC service or for information on additional copies or Web rights. Copyright 2015 IDC. Reproduction is forbidden unless authorized. All rights reserved.
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