New York – Two recently released reports from the Aite Group, LLC, an industry consulting firm focused on the financial industry, size the markets for research management and ‘mashup’ technology, which allows users to combine data from two or more sources to derive a mini-application. The firm expects spending on both capabilities to grow at cumulative average annual growth rate of 39% through 2012, expanding from US$40.2 million currently to US$148.3 million in 2012.
Aite includes three types of solutions in its research management forecast: research management systems, search-driven platforms and mashup platforms, which leverage Web services, Really Simple Syndication (RSS) feeds, blogs, and a myriad of other data sources to essentially link disconnected, yet related data. Research management firms identified by Aite include Advent Software (acquired Tamale), Code Red , Connotate, Exession Group, First Coverage, FirstRain and JackBe. Mashup providers identified by Aite are Connotate, IBM, Serena Software and Salesforce.com. We believe that there are additional providers that are being used by asset managers and hedge funds, over and above those profiled by Aite.
TowerGroup, another research firm focused on the financial services industry, has a broader definition of research management services, including commission management systems such as Eze Castle or Cogent, research performance measurement such as StarMine or Investars, alpha networks such as Factset’s AlphaNetwork, research management services, such as those covered by Aite, and research advisory, such as Integrity Research. TowerGroup’s 2006 estimate projected that global spending on research management capabilities would grow at a rate of 22% from $488 million (USD) in 2006 to $1.07 billion by 2010.
Aite’s forecast seems aggressive in the current environment. The premise is that the buy side will spend on research management systems to improve productivity and reduce research related costs. In the case of mashup technology, Aite argues that mashup technology can support many top objectives in risk management, as well as myriad business processes deemed too small for a full-blown technology project. Aite expects many firms will face budget constraints in 2009, forecasting spending on mashup technology at US$35 million.
The summary of the most recent report, released December 17th, can be found at: http://www.aitegroup.com/reports/200812172.php