Target Markets and Licensing
TMS vendors target two main buyers when marketing and selling their products. On the one hand, software developer-only companies attract content producers, and sell their offering with no strings attached. On the other hand, software developers can also be Language Service Providers (LSPs), so they offer their language services over their custom-made technological offering for easier customer integration. The latter is commonly referred to as a captive solution, meaning that buyers must use the TMS developer's language services in order to take advantage of their platform. Lionbridge and thebigword are examples of this captive solution.
Content producers with preferred or previous language service agreements to third LSPs may prefer to maintain their independence and purchase software licences only. However, a combined option of technology solution and language services in one package is bound to be more cost effective. Similarly, LSPs may prefer to contact technology vendors who are not part of the competition, offering also language services. Many LSPs got nervous when SDL bought Trados in 2005, becoming the biggest translation technology provider, while still having language services as part of their activities.
Of course, the two above possibilities are only extremes and the market requires more flexible solutions. For instance, the LSP Moravia Worldwide announced in 2007 a partnership with TMS developer Idiom Worldserver to remain independent and still provide added value to their customers. Similarly, Sajan offers different licences to their solution, separating their language and their technology services in different degrees. The Cloudwords solution represents a vendor-agnostic model, focusing solely on the provision of a GMS technology to buy-side clients while enabling languages services to be delivered by LSPs.
Read more about this topic: Globalization Management System
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