OpenText Acquisition Puzzles Analysts - InformationWeek
IoT
IoT
Software // Information Management
Commentary
5/7/2009
04:44 PM
Connect Directly
LinkedIn
Google+
Twitter
RSS
E-Mail
50%
50%

OpenText Acquisition Puzzles Analysts

Analysts didn't have many good things to say about the recent announcement that ECM vendor OpenText will acquire Vignette, a maker of Web content management software, for $310 million.

Analysts didn't have many good things to say about the recent announcement that ECM vendor OpenText will acquire Vignette, a maker of Web content management software, for $310 million.The purchase doesn't fill any significant holes in OpenText's product line; OpenText already has WCM software via RedDot, the result of an earlier acquisition.

Integration isn't likely either. "Vignette only adds another layer to-it in no way reconciles-Open Text's crazy quilt of technologies," writes CMSWatch analyst Kas Thomas in a blog post. He notes that OpenText's product lines are built around .Net. C++ and Java, while Vignette runs on J2EE.

At the 451 Group, Kathleen Reidy predicts internal conflict. "There will undoubtedly be some Vignette vs. RedDot struggles at Open Text over which is the WCM line of choice," she writes in a blog.

With OpenText and Vignette the last of the two major independent content management vendors (Autonomy completed its acquisition of Interwoven in March), the buy appears to be about bulking up against competitors such as EMC, IBM and Oracle.

OpenText certainly hopes to upsell to Vignette's customer base. "Vignette's customers represent some of the world's most powerful online brands and we are excited about the opportunity to expand the relationship with these customers and partners," said OpenText President and CEO John Shackleton in a press release announcing the acquisition.

But OpenText has to do more than hope. Vignette's first quarter revenues were down 24 percent from last year.

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
How Enterprises Are Attacking the IT Security Enterprise
How Enterprises Are Attacking the IT Security Enterprise
To learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Register for InformationWeek Newsletters
White Papers
Current Issue
2017 State of the Cloud Report
As the use of public cloud becomes a given, IT leaders must navigate the transition and advocate for management tools or architectures that allow them to realize the benefits they seek. Download this report to explore the issues and how to best leverage the cloud moving forward.
Video
Slideshows
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
Join us for a roundup of the top stories on InformationWeek.com for the week of November 6, 2016. We'll be talking with the InformationWeek.com editors and correspondents who brought you the top stories of the week to get the "story behind the story."
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Flash Poll