Analysts having been projecting major consolidation in the enterprise search marketplace for a couple of years. What is interesting to me is how slowly this is evolving. For every merger or acquisition, whether small or large (acquisition of Mondosoft by SurfRay or FAST by Microsoft), other companies emerge or evolve with diverse and potentially competitive technologies (e.g. Attivio, Connotate, Expert System, EyeAlike, Truevert, Temis).
We have seen companies like Exalead, ISYS, and Vivisimo gain on former leaders. Microsoft is often listed as an industry leader because it acquired former leader FAST while companies with solid products for verticals, like Recommind in law and financial services, are often overlooked because they lack the total company revenues of a Microsoft that sells a lot more software than enterprise search.
This past week two industry news items caused me to reflect on the potential impact of announcements that, while not surprising, can upset the plans of buyers of search technology. The first was the announcement that Autonomy is planning to procure Interwoven. That Interwoven is being acquired is no surprise, since the company was being groomed for acquisition. However, this appears to be the first instance of a “search” company acquiring a “content management/document management” company. The norm has been that search companies get bought to fill a need by ECM or CMS vendors. For anyone planning to procure Interwoven because of its embedded Vivisimo Velocity for Universal search in its Worksite product, this does put a wrinkle in the fabric. What a shame because it is going to be a while before the actual impact is really known and could slow sales. The cost to buyers having to accept Autonomy’s IDOL instead of Velocity could be significant. The effect could be on both licensing and deployment because Velocity has been an efficient install for most enterprises. Autonomy has got a big ramp up to shift from being a search company to becoming an ECM supplier and some will take a wait and see attitude, regardless of the Idol reputation.
The second big announcement, of course, is the departure from Microsoft of John Marcus Lervik, a co-founder of FAST and recently named Executive VP in a newly created position for Enterprise Search at Microsoft. I’m sure you’ll be seeing plenty about the reasons elsewhere. However, the difficulty for those buyers who are depending on FAST’s search technology to be integrated sooner rather than later in Microsoft’s offerings has just been made more complicated as one of the original leaders of FAST is leaving the team.
Two years ago I commented to FAST executives about the need for vendors on a rapid growth path to make the buying, business and support experience for customers a priority, beyond technology enhancements; so, I take little consolation in seeing this turmoil. If you are a buyer, take a good hard look behind the technology to see what else you will be dealing with as you make plans to acquire software.