Autonomy Thrives Where Others Starve

January 24, 2009

Information Age here ran an article with an arresting heading: “Autonomy Post 47% Revenue Growth.” According to the article by JJ Robinson:

The company, which produces high-end search software used by companies to sift through ever increasing volumes of unstructured data, saw revenues for the year to 31 December surge to $503.2 million from $343.4 million in 2007. Adjusted net profits almost doubled, rising from $77.2 million to $148.0 million.

Each day I get information about the impact of the financial ecosystem on search and content processing companies. Conferences devoted to search seem to be struggling. Even some high profile consulting firms have sent signals that clients are cutting back. Autonomy has found a way to thrive where others starve. Investors responded with strong support for the company. Its market cap nosed into the $2.2 billion range. Autonomy’s next challenge will be to sustain the strong performance. Other search firms may want to relocate to Cambridge, England. The River Cam’s elixir may impart strength to Autonomy challengers.

Stephen Arnold, January 23, 2009


3 Responses to “Autonomy Thrives Where Others Starve”

  1. Chris Wildgoose on January 24th, 2009 8:35 pm

    The companies recent purchase if Interwoven signals the trend toward the merging of Content Management and Enterprise Search. This is a logical union, that will certainly ensure growth, through acquisition, for the next year.

  2. Stephen E. Arnold on January 26th, 2009 6:57 pm

    Chris Wildgoose,

    I love the name, by the way. I don’t agree. I think bits is bits. The consolidation has just begun. Certain information functions are natural monopolies. There is no such thing and content management. There is no such thing as search. You have people who need to create, find, access, and repurpose information. Skip the buzzwords and I will be happier. Autonomy is trying to position itself to avoid getting crushed by superplatforms. So far Autonomy is doing okay.

    Stephen Arnold, January 26, 2009

  3. Chris Wildgoose on January 28th, 2009 10:43 pm

    I think that Autonomy will also need to acquire (or be acquired by) a company that offers a more comprehensive portal product. FAST is now part of the Sharepoint platform, but Autonomy can’t put its name on a portal. It is interesting to note that as this continued consolidation occurs, the customer will essentially be locked into the full suite of product offerings.

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