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Interpreting Market Sizings

How to avoid misinterpreting IT market sizing and vendor ranking data

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In almost every area of IT, market sizings and estimates of vendor market shares abound, but the problem for users is that the information can often be misleading. This Insight looks at the common failures of these sizings and recommends measures to avoid misinterpretations and misinformation.

ExtractAudienceCustomer Reviews

Document Extract

When considering embarking on a project in a new or evolving area of IT, a key resource in assessing the maturity of the market and the relative strengths of the vendors is market size and share data provided in reports from the numerous market research companies. This is particularly valuable when dealing with a new product category such as the Enterprise Service Bus or architecture such as SOA. 

Unfortunately, the market data can be misleading if not interpreted correctly and many reports follow two fundamentally flawed approaches:

· Vendor derived market estimates which are inflated in support of vendor marketing strategies.

· Survey-based market estimates with aspirational or ill-defined questions which result in estimates inflated by end-users.

This Insight explores the weaknesses with each approach in order to enable meaningful interpretation of results. The resulting enhanced understanding allows the selection of appropriate reports to purchase and the correct interpretation of information supplied by vendors from such reports.

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