Analysis of the Global Dynamic Publishing Solutions Market Proliferation of Digital Assets and Demand for Content Repurposing

Fuels Double-digit Market Growth

NC9B–70

August 2013 See www.frost.com for details of the full report.

Report Summary

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Research Team

Lead Analyst

Strategic Review Committee Leader

and Contributing Analyst

Research Director

Sashankh Kale Industry Analyst

Digital Media

(+91) 44-66814230

sashankhk@frost.com

Avni Rambhia

Industry Manager

Digital Media

(1) 765 418 9229

Avni.rambhia@frost.com

Mukul Krishna

Research Director

Digital Media

(1) 210 247 3850

Mukul.krishna@frost.com

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Executive Summary

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• Dynamic publishing solutions streamline publishing workflows, enhance content quality, and reduce

marketing cycle time for enterprises and creative publishers across industries. During the last 3 years, the

market has achieved an increase in deployments as the heightening awareness of dynamic publishing

solutions leads to greater focus on process and execution.

• As a result, a variety of solutions are available to meet the ever-expanding customer requirements. This

study broadly divides the dynamic publishing solutions market in 2 segments: page layout and design

solutions and XML authoring tools and publishing platforms.

• The rise in multiple new form-factor devices, with operating systems ranging from closed propriety

systems to Android-based, Apple, and Microsoft Windows, creates a need for streamlined publishing to a

variety of output media.

• Frost & Sullivan anticipates that device markets, including mobile handsets, tablets, and e-Readers, will

achieve double-digit growth through 2015 and beyond.

• Estimates indicate that more than 700 million smartphones and around 120 million tablets were shipped

in 2012. This trend will have a direct and positive bearing on the dynamic publishing solutions market.

• When paired with shifting end-user content consumption trends, dynamic publishing solutions will

become increasingly valuable to content creators looking to address the largest audience possible.

Dynamic publishing solutions play an integral role in the growth of enterprise content management

(ECM).

• At a macro level, the content development space continues to evolve, and the need remains the same:

delivering the desired content in the most impactful format to the right people. Clients continue to realize

the importance of making their information more accessible and actionable and, in the process, are

evincing significant interest in these solutions. Source: Frost & Sullivan

Executive Summary

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Compound

Annual

Growth Rate

22.9%

(CAGR, 2012–2017)

Market

Concentration

76.4%

(% of market share by revenue

held by top 3 companies)

Market Stage

Growth

Market

Revenue

$878.4 M

(2012)

Average Price

Per Unit

$140,000

Market Size for

Last Year of

Study Period

$2.46 B

(2017)

Base Year

Market Growth

Rate

18.2%

Customer

Price

Sensitivity

7

(scale:1 [Low] to 10 [High])

Degree of

Technical

Change

7

(scale:1 [Low] to 10 [High])

Total Dynamic Publishing Solutions Market: Global, 2012

Stable Increasing Decreasing

(2012)

Executive Summary—Market Engineering Measurements

Market Overview

Note: All figures are rounded. The base year is 2012. Source: Frost & Sullivan

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Replacement

Rate

2–3

Years (average period of solution

upgrade)

Average Product Development Time

1

Year

Number of

Companies that

Exited*

2

(2012)

Number of

Companies that

Entered*

0

(2012)

Number of

Competitors

More than

40 (active market competitors

In 2012)

Competitor Overview Total Addressable Market

Industry Advancement

Marketing Spend as a Percent of Revenue

20.0%

Average R&D Spend as a Percent of Revenue

20.0%

*Companies with revenue of more than $1.0 M.

Executive Summary—Market Engineering Measurements

(continued)

Stable Increasing Decreasing Note: All figures are rounded. The base year is 2012. Source: Frost & Sullivan

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2

Channel explosion and a heightened emphasis

on a bigger Internet and social presence will

play a role in dynamic publishing solutions,

evolving in terms of feature sets and value.

Clients continue to demand greater

functionalities at lower prices; therefore, vendors

are challenged to grow profitability while also

growing market share.

3

4

To offset the decline in revenue from traditional

print medium, publishers must focus on powerful

digital publication, providing opportunities for

dynamic publication vendors to profit.

5

Dynamic publishing will play an important role in

driving companies to adopt a single unified

information platform, thus benefiting the entire

array of information management solutions.

1 Increasing demand for multi-format content

repurposing will continue to contribute

significantly to market growth.

Executive Summary—CEO’s Perspective

Source: Frost & Sullivan

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Market Overview

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• This research service is part of Frost & Sullivan’s digital media coverage. Frost & Sullivan analyzes

the digital media value chain for the enterprise and for the media and entertainment industries and

studies the breadth of technologies that enable both ecosystems.

• These technologies span digital content creation and acquisition at one end of the value chain and

continue through to the management, repurposing, delivery, analytics, and engagement of that

content at the other end.

• This research service focuses on the dynamic publishing solutions market. Dynamic publishing is

defined as the value chain of software solutions that enables the creation, repurposing, publication,

and delivery of rich content, which can include text, graphics, and video across a variety of media.

• The complete dynamic publishing solutions ecosystem includes software that enables XML

authoring, content management, and multi-channel publishing.

• Existing technological infrastructure as well as potential use scenarios will dictate if point solutions

or end-to-end publishing solutions are a better fit for a customer’s requirements. Therefore,

countless dynamic publishing footprints exist, and no 2 enterprise deployments are identical.

• This study discusses in detail how evolving content publishing requirements, exponentially growing

data and content management needs, and enterprise preferences toward a dynamic, integrated,

organization-wide experience are translating into new business opportunities for this market.

Market Overview

Source: Frost & Sullivan

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• The availability of point solutions, end-to-end publishing platforms, and authoring tools offers

customers the ability to flexibly customize solutions to meet their unique use requirements and

publish to desired media channels. Pricing of solutions varies based on features and functionalities;

therefore, solutions are accessible to small- and mid-size customers as well as enterprise-level

customers.

• For example, TransPerfect Translations International, Inc. and SDL plc. approach the market with a

variety of translation and end-to-end publishing solutions. Adobe Systems Incorporated and Quark

Software Inc. offer high-impact digital publishing solutions, InDesign and QuarkXPress,

respectively, as well as a wide range of multi-channel publishing tools and technologies. PTC Inc.’s

Arbortext and EMC Corporation’s Documentum offer dynamic publishing tools that cater to

technical publication of structured content and have maintained deeply rooted user communities,

with heavy traction in manufacturing and business verticals.

• Frost & Sullivan recognizes leading factors that contribute to purchase, including solution

scalability, integration capabilities, media output capabilities as well as ease of use. Solutions that

address these key factors will achieve the heaviest adoption throughout the forecast period.

• Shifting content consumption trends and the increasing demand for digitized content for a variety of

media channels continue to support dynamic publishing solution vendors. This is further amplified

by the growing acceptance of XML and Darwin information typing architecture (DITA) as well as

increasing customer interest in single-sourced content and multi-channel publishing. This trend

echoes throughout industry verticals as media publishers and enterprise publishers embrace the

concept of dynamic publishing, realizing its relevance to reach audiences more effectively and

personally.

Market Overview (continued)

Source: Frost & Sullivan

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Life Sciences 10.0%

Financial Services 14.0%

High Tech 14.0%

Manufacturing 13.0%

Retail 11.0%

Government 10.0%

Publishing 18.0%

Others* 10.0%

Key Takeaway: While publishing remains the strongest segment, adoption in other segments

continues to grow.

*Others include aerospace and defense, automotive, chemicals, materials, food and hospitality.

Market Overview—Segmentation by End–user Verticals

Percent of Revenue Breakdown by End–user Verticals

Total Dynamic Publishing Solutions Market: Global, 2012

Note: All figures are rounded. The base year is 2012. Source: Frost & Sullivan

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Key Takeaway: While North America and Europe are ahead in the adoption curve, the rate of

growth is expected to be higher in APAC and Latin America.

Total Dynamic Publishing Solutions Market: Market Life Cycle Stage by Geographical Region,

Global, 2012

Western Europe

North America Developed APAC

Africa

Maturity Development Growth

Developing APAC

Latin America

Decline

Time

Ma

rket

Va

lue

Central and Eastern Europe

Middle East

Market Overview—Regional Market Life Cycle Analysis

Source: Frost & Sullivan

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External Challenges: Drivers and Restraints—Total

Dynamic Publishing Solutions Market

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Total Dynamic Publishing Solutions Market: Key Market Drivers and Restraints, Global, 2013–2017

Impact: H High M Medium L Low

Ma

rke

t D

rive

rs

1–2 Years 3–4 Years 5th Year

Proliferation of digital and rich assets drives enterprise utility of

dynamic publishing solutions H H H

Repurposing content for multiple media, platforms, and

regions drives adoption of dynamic publishing solutions H H H

Evolving customer comprehension of dynamic publishing

solutions spurs market growth H H M

Channel partnerships with allied technologies help vendors gain

greater market visibility H H M

Government regulatory compliance mandates drive enterprises

to seek dynamic publishing solutions M M H

Adoption of CMS and digital asset management (DAM)

technologies provides growth opportunities for the dynamic

publishing solutions market M M L

Drivers and Restraints

Note: Drivers & Restraints are ranked in order of impact. Source: Frost & Sullivan

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Total Dynamic Publishing Market: Key Market Drivers and Restraints, Global, 2013–2017

1–2 Years 3–4 Years 5th Year

Ma

rket

Re

str

ain

ts

Customers still lack processes required for the successful

deployment of dynamic publishing solutions H H M

High cost of implementations reduces organizational willingness

to deploy a dynamic publishing solution M M L

Economic downturn diverts revenue and resources from the

dynamic publishing solutions market M M L

Long sales cycles and deployment times of dynamic

publishing solutions hinder market growth M M L

Drivers and Restraints (continued)

Impact: H High M Medium L Low Note: Drivers & Restraints are ranked in order of impact. Source: Frost & Sullivan

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Product Analysis—Total Dynamic Publishing

Solutions Market

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Only Adobe and Quark were analyzed as together they control around 70% of the dynamic publishing

solutions market.

Adobe

• InDesign remains the leading tool for page layout, providing professionals with the stylistic

capabilities needed to create high-impact content for use across print, the Internet, and mobile

environments.

• Impressive integration with other products in the Adobe Creative Suite family provides

synergistic benefits to the traditional page layout environment, including exportation of Adobe

Flash for interactive animations or page navigation, improved imaging via Illustrator, and

advanced website design with Adobe Dreamweaver.

• InDesign can be purchased as a stand alone or bundled with the CS Design Standard, Design

Premium, or Master Collection.

• Adobe InDesign Server is a scalable solution for enterprises with multiple users across

geographies. Useful for large organizations that require integration with CMS and partner

dynamic publishing solution vendors, InDesign Server provides build-out capabilities that are

difficult to achieve with traditional desktop installations.

• Adobe’s broad partner network provides flexibility and easy integration with partner vendors that

provide authoring and publishing tools as well as CMS.

Product Analysis—Page Layout and Design Solutions

Segment

Source: Frost & Sullivan

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Quark

• Quark provides a full lineup of software tools and solutions that aid in the complex end-to-end

dynamic publishing workflows of modern enterprises.

• The company’s organizational strategy emphasizes multi-channel publishing, and many products

can be used in conjunction with QuarkXPress to achieve end-to-end automation.

• QuarkXPress Server provides a highly scalable and flexible environment for customers to build

publishing ecosystems on the enterprise level.

• QuarkXPress can be used collaboratively throughout an enterprise and can be used in

conjunction with Quark’s workflow tools to improve the design process and enhance the content

creation experience.

Product Analysis—Page Layout and Design Solutions

Segment

Source: Frost & Sullivan

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• This segment comprises nearly 40 competitive vendors. Of these, only a few vendors provide a

comprehensive publishing platform, while most provide select functional workflow elements such as

XML authoring tools, XML repositories and the publishing server, within the overall dynamic

publishing workflow. A head-to-head comparison across all vendors for this market segment is not

meaningful because of the functionality range of these vendors.

• Publishing platforms are end to end solutions that are capable of automating large quantities of

information for creation content, ranging from bills to highly tailored documents. Many platforms

support third party plug-ins, allowing components from third party vendors to serve as extensions to

the core platform.

o Publishing platforms are provided by key vendors including EMC Document Sciences, PTC,

Quark, and SDL. Elkera also offers some elements of a publishing platform, although their

solution is not as extensive as the larger vendors.

• XML authoring tools allow authors to switch from text to underlying XML, with some mimicking a

traditional word processing environment. Additionally, these tools provide validation functionality,

allowing authors to compare XML documents against their original document type definition (DTD).

o All publishing platforms include authoring tools. Numerous smaller vendors such as Altova;

Aptara; Ephox Corporation; DITA Exchange ApS; JustSystems Corporation; Syncro Soft (makers

of <oxYgen/> XML editor); and Pixware (makers of XMLmind) also compete in this niche.

Product Analysis—XML Authoring Tools and Publishing

Platforms Segment

Source: Frost & Sullivan

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• XML repositories are specialized content management systems (CMSs) which enable organizations

to ingest as well as leverage XML content. These flexible repositories integrate with XML

authoring/translation and publishing platforms, serving as the backbone for XML workflows; they

also typically provide storage and deep indexing that can be queried and leveraged for the creation

of documents across a variety of output media.

o In addition to vendors of publishing platforms (EMC Document Sciences, PTC, Quark and SDL),

other vendors providing XML repositories include IXIASOFT Technologies Inc., MarkLogic

Corporation, Neocore Inc., Vasont Systems, and Pixware (makers of XMLmind).

o In addition to specialized XML repositories, DAM as well as CMS vendors will typically support

XML APIs.

• Renderers are used to drive efficiency in the assembly of content for a variety of channels including

the Internet, print, mobile, and tablet devices. This component, also referred to as a publishing

server, provide the final puzzle piece of converting a content template into the final layout.

o Some rendering capability is included within all dynamic publishing platforms on the market

today. Additionally, rendering functionality is provided by vendors such as Antenna House,

Easypress Technologies, RenderX and Elkera, as well as the DITA Open Toolkit..

Product Analysis—XML Authoring Tools and Publishing

Platforms Segment (continued)

Source: Frost & Sullivan

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Market Share and Competitive Analysis—Total

Dynamic Publishing Solutions Market

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Adobe 38.4%

Quark 32.0%

EMC 6.0%

PTC 5.9%

Others* 17.7%

Key Takeaway: Adobe and Quark remain the market leaders, but the rest of the market is highly

fragmented.

*Others include SDL, MarkLogic, Vasont, Aptara, and Altova.

Competitive Analysis—Market Share

Percent of Revenue

Total Dynamic Publishing Solutions Market: Global, 2012

Note: All figures are rounded. The base year is 2012. Source: Frost & Sullivan

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• The dynamic publishing solutions market consists of more than 40 vendors that offer page layout and

design solutions as well as XML authoring tools and publishing platforms. Dynamic publishing

solution vendors sell solutions directly to customers across NALA, EMEA, and APAC and through

channel partnerships with VARs.

• Although most vendors are headquartered in NALA, there are a significant number with central

offices in EMEA and APAC. Solution sales by vendors headquartered outside the NALA market favor

regional markets; however, many of these vendors still have a significant sales presence in NALA.

Conversely, venders headquartered in NALA rely on local and international direct sales, partnerships

with VARs, and channel partners.

• The competitive landscape has changed over the last 2 years as vendors in this market acquired

other emerging dynamic publishing solutions vendors as well as companies with complementary

solutions. For example, in 2012, Quark acquired Mobile IQ, a company specializing in developing

cloud–based tools for mobile apps, and in 2013, SDL plc. took over bemoko, a vendor that offers

mobile-based web solutions for improving the end-user experience across mobile devices.

• Key competitive factors that play a role in the purchase decision for dynamic publishing solutions

include integration capabilities, scalability, cost, and deployment cycle. Additionally, enterprise buying

decisions are determined on the basis of solution scalability, pricing, and ease of use.

• Integration with existing technological infrastructure is essential as many enterprises currently have

an existing content management technology in place. To this end, the trend of consolidation and

acquisitions with an eye toward broadening product portfolios enables vendors to better serve

existing and emerging market needs.

Competitive Structure Analysis

Source: Frost & Sullivan

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Key Takeaway: 2012 had solid growth for many vendors, and even though Adobe continues to

surpass its competitors, Quark is quickly catching up.

Total Dynamic Publishing Solutions Market: Competitive Landscape, Global, 2012

Adobe

Altova Aptara

SDL

EasyPress

Antenna House

NeoCore xms Pixware

JustSolutions Elkera

IXIASOFT

Quark

PTC

EMC

Vasont

Syncro Soft

MarkLogic

Pro

du

ct

Lin

e a

nd

Co

mp

eti

tive

Str

ate

gy

for

the D

yn

am

ic P

ub

lis

hin

g S

olu

tio

ns

M

ark

et

Market Penetration

Competitive Landscape

Source: Frost & Sullivan

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Challenger

• Quark’s approach to dynamic publishing solutions stems from its deeply rooted page layout and

design solutions expertise. However, achieving the evolution of static to dynamic publishing

solutions, Quark made a power play by introducing new products year after year to expand its

portfolio.

• Workflow software tools such as Quark Publishing Platform can be used in conjunction with point

solutions such as Quark XML Author, App Studio, QuarkXPress and Adobe InDesign as well as a

variety of third party CMSs and rendering engines, allowing customers to generate high-impact

content for a variety of media channels.

• Quark benefitted from acquiring Mobile IQ to strengthen its publishing solutions for mobile delivery.

Quark scores high on geographic penetration through direct presence and continued strengthening

of the distribution network and customer base expansion.

• In 2012, Quark’s market share was 32%, which was an increase of approximately 2% over 2011.

Contenders

• Two vendors, EMC and PTC, are currently recognized as contenders in this market.

• EMC Documentum and Document Sciences, a strong standing industry solution, has long aided

companies with technical publication and content management needs.

• PTC’s Arbortext suite of products is particularly effective as a publication platform for multi-lingual

product documentation and educational applications.

Market Challenger and Contenders

Source: Frost & Sullivan

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Frost & Sullivan’s competitive landscape map shows the present position of companies within a market,

taking into consideration metrics such as market penetration, strength of the product line, customer

base, product expansion strategies, mergers and acquisitions, ventures into newer geographies, and

growth strategy.

The position on the x-axis represents market strength, while the position on the y-axis indicates product

line and competitive strategy success. The size of each company’s orb is reflective of its market size.

Following are the factors that were considered:

• Product line: Companies with products tailored toward the needs of this market.

• Customer base: Companies that have a current sizeable customer base or those that are

acquiring new customers at a rapid rate across a wide range of verticals.

• Merger and acquisition activities: Mergers and acquisition activities that occurred in the base

year.

• Product expansion: Companies that are constantly launching new products or upgrades for

existing products. Certain solutions are directed at particular verticals and end users with specific

budgets.

• Geographical reach. Vendors in this market are constantly seeking to expand their global

presence.

• Momentum in the base year: Notwithstanding the global economic climate, certain companies

have succeeded in performing better than the overall market.

Competitive Factors and Assessment

Source: Frost & Sullivan

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2

Rising maturity in the APAC and EMEA regions will fuel market growth, and

nascent verticals such as healthcare, retail, and government will grow

faster than established verticals such as publishing, finance, and

manufacturing.

1 As number of formats, devices, and operating systems multiply, vendors

will need to customize their solutions to a higher degree, while keeping the

costs from escalating.

3 Dynamic publishing solutions will be used largely for content marketing as

companies seek to further strengthen their Internet presence.

The Last Word—Predictions

Source: Frost & Sullivan

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Appendix

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One of Frost & Sullivan’s core deliverables

is its Market Engineering studies. They

are based on our proprietary Market

Engineering Methodology. This approach,

developed across the 50 years of

experience assessing global markets,

applies engineering rigor to the often

nebulous art of market forecasting and

interpretation.

A detailed description of the methodology

can be found here.

Market Engineering Methodology

Source: Frost & Sullivan

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MEASUREMENT NAME MEASUREMENT TREND

Market Stage Growth —

Market Revenue (2012) $878.4 M ▲

Average Price per Unit (2012) $140,000 ▲

Market Size for Last Year of Study Period (2017) $2.46 B ▲

Base Year Market Growth Rate (2012) 18.2% —

Compound Annual Growth Rate (CAGR, 2012–2017) 22.9% —

Customer Price Sensitivity 7 ●

Degree of Technical Change (scale of 1 to 10, Low to High) 7 ●

Degree of Technical Change (scale of 1 to 10, Low to High) 9 ●

Market Concentration (% of base year market controlled by top three competitors) 76.4% ▲

Total Dynamic Publishing Solutions Market: Market Engineering Measurements, Global, 2012

TREND Decreasing Stable Increasing

▼ ● ▲

Market Engineering Measurements

Note: All figures are rounded. The base year is 2012. Source: Frost & Sullivan

Market Overview

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Replacement Rate (average period of unit replacement) 2–3 Years ●

MEASUREMENT NAME MEASUREMENT TREND

Number of Competitors (active market competitors in 2012) 40+ ▲

Number of Companies that Exited* (2012) 2 ▲

Number of Companies that Entered* (2012) 0 ▲

TREND1 Decreasing Stable Increasing

▼ ● ▲

Competitor Overview

Total Addressable Market

*Companies with more than $1.0 M revenue.

Average product development time 1 Year ▼

Average R&D Spend as a Percent of Revenue 20% ▲

Marketing Spend as a Percent of Revenue 20% ▲

Industry Advancement

Market Engineering Measurements (continued)

Note: All figures are rounded. The base year is 2012. Source: Frost & Sullivan

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Published Research studies from the Frost & Sullivan Digital Media Research Service:

• NC00 Global Enterprise Content Management Market (2013)

• N9AE Global Marketing Process Optimization Solutions Market (2012)

• N939 World Marketing Automation Software Market (2011)

Upcoming research studies from the Frost & Sullivan Digital Media Research Service:

• Marketing Process Optimization Solutions (August 2013)

• Marketing Automation Solutions (November 2013)

Related Research Services

Source: Frost & Sullivan

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APAC Asia-Pacific

ASP Average Selling Price

CMS Content Management Systems

CPU Central Processing Unit

CRM Content Relationship Management

DAM Digital Asset Management

DITA Darwin Information Typing Architecture

DTD Document Type Definition

ECM Enterprise Content Management

EMEA Europe, the Middle East, and Africa

FDA Food and Drug Administration

HL7 Health Level Seven

MPOS Marketing Process Optimization Solutions

NALA North America and Latin America

ROI Return on Investment

SaaS Software as a Service

SPL Structured Product Labeling

VAR Value-added Reseller

Table of Acronyms Used

Source: Frost & Sullivan

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