IDC forecasts $1.6 billion online community software market by 2013

By | September 16, 2009, 11:35am PDT

Summary: Despite a slow-down in tech spending, IDC forecasts a huge surge in online community software spending

In a report issued this week, research firm IDC reports that demand for online community software solutions in the workplace is growing steadily. According to the study, titled “U.S. Online Community Software 2009-2013 Forecast: Strong Growth Despite Recession,” companies that are not providing these types of solutions for their employees are being trumped by employees who are doing it themselves, thus breeding security and privacy issues. This is not for lack of options — there is a crowded market of online community software providers. It’s due to delays in corporate culture evolving to embrace such communities.

Despite this, and despite a slow-down in technology spending due to recession, IDC forecasts that the U.S. online community software market will grow from $278.4 million last year to $1.6 billion in 2013, at a CAGR of 41.8%. IDC states that dominant vendors in the space reported double-digit growth rates in 2008 and higher than expected growth rates thus far in 2009.

According to the report, online community software came to be a market based on the recognition that customers, employees, partners and suppliers have emerged as the most valuable assets to a company. Online community softare is centered around social networking applications and leverages the interactive functionality of Web 2.0 technology including blogs, discussion forums, wikis, micro-messaging, bookmarking and tagging, creating a competitive market.

IDC expects this market to continue growing due to the following market forces:

  • Web becomes more social and businesses want to participate
  • Consumerization of IT
  • Worker demand for Web 2.0 tools
  • Global competitive pressures to innovate

“The lesson that technology is only as good as its user will be a hard lesson learned for many companies needing to focus more on community strategy and management than on the technology solution,” says Caroline Dangson, IDC research analyst. “Online community software enables new ways of working that require a shift in mindset and culture. IDC finds that traditional corporate culture acts as a major barrier to adoption today, even more so than the economic downturn.”

Download the full report.

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Jennifer Leggio, aka "Mediaphyter," writes about the "social business" side of social media - including enterprise, security and reputation issues.

Disclosure

Jennifer Leggio

Jennifer is employed full-time with Fortinet, a leading network security appliance vendor. She is also actively involved in the network security community and works with the Security Bloggers Network. She co-manages the annual Security Bloggers Meet-UP at RSA Conference.

Jennifer is also involved with Silicon Valley Tweet-Up, a philanthropic networking event that brings people together to raise money for local family-oriented charities.

The blog posts here are solely her opinion and do not represent her employer or any other organization with which she may be affiliated.

Biography

Jennifer Leggio

Jennifer Leggio (@mediaphyter) has been a communications professional for more than 15 years, focusing primarily on enterprise technology and security. She is currently the director of strategic communications for a leading network security vendor. Jennifer is also passionate about all things social media, especially enterprise, security, privacy and reputation issues, which is why she writes about these things for ZDNet.

A well-connected communicator, Jennifer has led or supported interactive social networking efforts for security industry conferences including RSA Conference, Black Hat USA and SOURCE Conference, and founded the Security Twits, a community for network security professionals. She also helps run communications for the Security Bloggers Network.

Finally, Jennifer co-hosts the Quick'n'Dirty social media podcast with Aaron Strout, is a founding member of Technically Women, a communal blog project, and manages marketing and public relations for Silicon Valley Tweet-Up, a networking group that raises money for family-oriented charities. Jennifer was profiled in Silicon Valley San Jose Business Journal's "40 Under 40" edition, as a rising star for 2009.

Talkback Most Recent of 3 Talkback(s)

  • Not in my business.
    Simply put, I will fire the first employee I catch putting company business on a internet site and have made that more than abundantly clear.

    There is no such thing as a secure internet server or service, its just that simple. Even more realistic, users don't think about security and put things on them that should never be there and don't take the needed steps to make the content secure.
    ZDNet Gravatar
    No_Ax_to_Grind
    16th Sep 2009
  • This is corporate controlled software
    I appreciate your honest feedback.

    This forecast covers software the organization secures (with roles and permissions) to communicate internally or externally. It is as secure as email/IM but a one-to-many context.

    The reality is that employees can write about company business on their own personal social networking pages already. That is why companies are updating their codes of conduct to include social media or creating specific social media guidelines.
    ZDNet Gravatar
    CDangson
    16th Sep 2009
  • RE: IDC forecasts $1.6 billion online community software market by 2013
    @CDangson Thank you for sharing this.I really thank you.... :P chanel bag chanel bags chanel replica bags
    ZDNet Gravatar
    just-do-it
    21st Sep

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