Demand For Master Data Management Software Is Timid But Growing Steadily Through 2010

Master data management's (MDM's) license and service revenue from software vendors and systems integrators (SIs) will grow from $1.1 billion in 2006 to more than $6.6 billion in 2010. Service revenues will drive early growth; license revenue will pick up once the products transition from today's integration-focused ordeal for information and knowledge management professionals to a slightly more self-supporting model over the next five years. While the overall market size today remains significant enough to validate that MDM is more reality than hype, services still make up 68% of the total. The packaged software part of the equation is still in its infancy. Pure-play customer data integration (CDI) and product information management (PIM) solutions will account for the majority of software growth, with key vendors looking to bridge these disparate products into offerings that cross multiple master data domains, including customer, product, asset, supplier, employee, and beyond.