Content Management Software Sales to Grow to $3 Billion in 2004

In a recently published report, "Managing the Content Explosion into Content-Based Applications," the Yankee Group projects that sales of content management software will grow to $3 billion in 2004 from the $900 million of sales in 2000. This projected 35 percent compounded annual growth rate is based on the continuing rapid adoption of this Internet application infrastructure software.

While content management systems were initially targeted at media companies seeking to move their content to the Web, traditional brick-and-mortar companies are now adopting them as well, as they integrate the Internet into their business strategy. These new buyers recognize the need for a solid infrastructure to support their Web initiatives and see the value in connecting content creators and Web technicians together.

"The increasing integration of the Internet into the business of all companies has placed great burdens on the technical staff responsible for Web sites," says Rob Perry, a senior analyst for the Yankee Group’s Internet Computing Strategies research and consulting practice. He adds, "Leading technology companies are using content management systems to spread this responsibility across teams that can now create better Web sites more quickly and cost effectively."

However, the value of content management systems goes beyond the efficiency gains from coordinating resources. Web applications are becoming increasingly sophisticated, providing enhanced service by creating personal connections with visitors and users, which ultimately results in growth of the company’s revenues. Content management systems also provide for the categorization and classification that personalization tools use to match users and content.

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