Cloud pushes out on-premise in enterprise content management market

TechNavio, the tech-focused global research firm has forecast healthy growth for the global SaaS-based enterprise content management (ECM) market. The company is projecting a CAGR of 31.11% from 2013-2018.

While on-premise ECM held a 90.73% share in the global ECM market in 2013, its share is expected to decrease by 2018, says TechNavio. The traditional advantage of on-premise software is that it gives businesses complete control over their critical data, as opposed to SaaS-based models where the solution is hosted in the cloud, deployed and managed by cloud service providers, and accessed over the web on a pay-per-use model.

Source: TechNavio.

But the growing need to access data more easily and reduce the total cost of ownership will start to drive enterprises towards adopting SaaS-based models over the projected period, say lead TechNavio analysts.

“SaaS-based ECM provides all the benefits of on-premise ECM systems in a trouble-free environment so that customers can focus on their core business activities while achieving a significant reduction in the total cost of ownership,” says Faisal Ghaus, Vice President of TechNavio research.

"With the cloud-based model, the risk and resource requirements associated with the responsibility for continuous operation, backups, updates, and infrastructure maintenance are shifted from internal IT departments to vendors or service providers.”