I've been digging into market sizing numbers again because it gives a great window into how people are understanding this market and the speed at which it is evolving. Having tracked some of this information, I'm inspired to comment on the parameters used for sizing our market. It is clear to me that our market is significantly larger than Gartner currently estimates. For example, Sam Lawrence recently posted about the threat our market poses to traditional office software.
Microsoft alone makes over $10B annually with their office suite focused on personal productivity. As the delineation between creating and sharing documents collapses, their market valuations between these two spaces should merge. As Dave mentioned in his original post, analyst Michael Dortch probably summed up this perspective the best:
"Look, the long and the short of it is that everybody in every business collaborates, internally with colleagues and externally with customers, partners, and prospects, yes? So how big is the "collaboration market," however THAT's defined? I'd be brash enough to say that assuming that half of every business dollar is wasted or consumed by unspecified overhead, a conservative estimate of the extended collaboration market would be, say, half the worldwide gross domestic product (GDP) equivalent. Is THAT big enough??
If it's TOO big, let's come at it from the other, even more conservative end of the spectrum. Let's say that no more than five to 10 percent of the worldwide GDP equivalent represents a defensible stand-in for the collaboration market. That's still a LOT more than many IT-centric markets today, isn't it?"
People, like Andrew McAfee, have been working to draw a line around our market and he has contributed immensely to the understanding of the space, but ultimately still falls short of the entire vision. Jive sees this emerging market as " Social Productivity", which fuses social software and office features to create productivity apps that are socially driven. My questions to you are: Where do you draw the line when so many existing solutions have created such large markets and still fallen so short of the promise of Social Productivity? What do you suspect the size of the market to be?