Open Text Vignette: Canadian Omelet
May 6, 2009
A happy quack to the reader who alerted me to this big buck ($300 million plus) deal for Open Text to purchase the financially challenged content management vendor Vignette. You can read the Canadian press take on the announcement here. This story is hosted by Google, so it may disappear after a short time. I recall seeing a story by Matt Asay in August 2008 here that the two companies were talking. Well, the deal appears to be done. Open Text is a vendor with a collection of search systems, including Tim Bray’s SGML engine, Information Dimension’s BASIS, the mainframe centric BRS search, the Fulcrum system, and some built in query systems that came with acquisitions. Vignette, on the other hand, is complex and expensive content platform. The company has some who love it and some like me who think that it is a pretty messy bowl of clam linguini. The question is, “What will Open Text do with Vignette”?” Autonomy snagged Interwoven, snagged some up sell prospects, and fattened its eDiscovery calf. Open Text has systems that can manage content. Can Open Text manage the money losing Vignette? Autonomy in my opinion is pressuring Open Text. Open Text now has to manage the Vignette system and marshal its forces against the aggressive Autonomy. Joining me on the skepticism skateboard is ZDNet’s Stephen Powers. He wrote “Can Open Text Turn the Page on Vignette’s Recent History?” here. He wrote:
The other interesting question raised by this announcement: what to do about the Vignette brand? The press release states that Vignette will be run as a wholly-owned subsidiary. But will Open Text continue to invest in what some argue is a damaged brand? Or will they eventually go through a rebranding, as they did with their other ECM acquisitions, and retire the purple logo? Time will tell.
Mr. Powers is gentle. I think the complexity of the Vignette system, its money losing 2008, and the push back some of its licensees have directed at the company. Does Open Text have the management skill and the resources to deal with integration, support, and product stability issues? Will Open Text customers grasp the difference between Open Text’s overlapping product lines?
My hunch is that this deal is viewed by Autonomy as an opportunity, not a barrier.
Stephen Arnold, June 6, 2009
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