When I started as an industry analyst 20 years ago covering the web content and experience management (WCM) market, I marveled at the plethora and diversity of vendor start-ups. Well, some elder analysts clapped my shoulders and intoned, “Yeah, but how many will be around in five years? The market will consolidate, so you need to pick winners.” No doubt they were extrapolating from their experience with other industries — notably ERP, but maybe CRM too — where vendor oligopolies did emerge.
Yet, the story of the WCM market, and the marketing tech space more generally, is that consolidation by and large has not happened. If you follow the progression of Scott Brinker’s famous logo chart you’ll note not just the expansion of categories, but also the almost vertigo-inducing number of logos within each particular box. What’s going on? And how should you the enterprise marketing tech leader respond to a world of highly fragmented marketplaces?
I can think of at least six reasons why “industry consolidation” has been less the norm in the martech world. Read more.