It’s all the rage for the CMS community; OpenText is acquiring Vignette.
What does this mean for clients of the two companies?
RedDot has been the web content management offering from OpenText for the last few years. It’s a pretty basic tool compared to Vignette, but this has distinct advantages: friendly user interface, quicker to implement, generally cheaper to develop basic functionality. I expect that RedDot will continue to be sold, but that there will be minimal product development. It will probably serve as a cheaper basic WCM in the same way as Alterian market Immediacy as a cheaper alternative to Morello.
The big challenge for the new company will be how to consolidate and exploit LiveLink and Vignette’s core content management offering, VCM. The offering that OpenText should be providing is end-to-end content management from documents and business process to web, but it’s going to be a substantial task to provide this through two pieces of software that are so established. LiveLink does the trick with documents and VCM does it with complex web content. But this certainly doesn’t mean that the two fit together neatly.
A significant benefit for OpenText is the acquisition of Vignette portal (VAP). This will enable OpenText to market web applications rather than just content-driven websites. Again, there will probably have to be some significant work done on the API level to LiveLink to turn this into a fully SOA-enabled platform. Nevertheless, if you’re doing business via the web — and surely everyone is these days — then a portal offering is a necessity for any enterprise content management vendor.
OpenText will be able to offer a product suite to match any of its competitors. But it will be a suite, not an integrated platform. Indeed the company has a poor track record in integrating its product suite: Gauss and ObTree anyone? Even RedDot stands pretty much alone from LiveLink. Oracle, despite its many acquisitions, has a far smoother integration of document and web content management, as does Interwoven.
So what does this mean for you if you’re about to buy? You still need to be wary of LiveLink’s web credentials; this is unlikely to improve for some time as the company attempts to make the various products work together smoothly. And if you’re about to buy RedDot, bargain hard, because I think the prices are likely to come down.
A few other thoughts on the acquisition:
