ISYS Has 16,000 Customers. Did I Goof?
November 11, 2011
I covered six vendors of enterprise search systems in my June 2011 The New Landscape of Enterprise Search. An azure chip consulting firm borrowed a key word from my monograph’s title and put out a report covering twice as many vendors.
Today I read “16,000 Organizations Worldwide Now Boost Their Productivity with the ISYS 1-Click FileFinder.” In a write up about AtomicPR’s spam attack on me and the MarkLogic “reinvention of itself as more than a file markup and repository outfit,” I mentioned ISYS Search Software was licensing its connectors, essentially software widgets that allow one system to ingest the files from an incompatible system. So ISYS, ISYS, ISYS.
Years ago I met the founder of ISYS Search Software in Crow’s Nest in a suburb Sydney, Australia. I recall a very interesting lunch in a restaurant that was almost next to the ISYS headquarters. Very interesting those Australian engineers. At the time, I was doing something for some outfit sponsoring the international chief of police conference or some similar intelligence-type event. I was one of the speakers and a guest of the Australian government. In my spare time, I was either watching folks shoot red kangaroos or visiting search and information retrieval experts. After the visit, I did some work for Ian Davies, the founder. His role has changed, and I have lost track of him, his senior sales professional, and the senior engineer whom I met that day. Distance and time I suppose.
I have drifted away from ISYS because I learned that the company–despite a new president, new lines of business like licensing connectors, and introducing file finding utilities—was not hitting my radar with the sort of information I am now tracking. No problem, of course. Quite a few search vendors have changed their spots or at least their marketing pitch faster than a rap star who signs a movie deal. Examples range from Coveo becoming a customer support solution provider to Vivisimo’s puzzling “information optimization.” Other vendors have gone quiet like Dieselpoint, an XML centric search system vendor. Others have found themselves on the receiving end of a dump truck filled with cash. Think InQuira, Autonomy, Endeca, and RightNow to name four vendors who are now happily within giant corporate shells thinking about which island to buy.
My understanding is that ISYS generates about one third of its revenue from the US and the balance from elsewhere. Although the UK is a good market for ISYS, the company’s stronghold is Australia. This raises what I call “the Canadian question.” Ah, you ask, “What’s Canada got to do with Australia and ISYS?”
Here’s my point. When determining how much revenue one of my ventures can generate in Canada, I take the US revenue and then figure that Canada will product 10 percent of that amount. The reason has to do with population, appetite for the sort of products my team produces, and experience. The 10 percent can be five percent, or it could be 15 percent. However, 10 percent is a good rule of thumb.
Therefore, if a company in Australia generates $10 million a year in that country of 23 million people, then it follows that the US with its population of 308 million should produce revenue of about 12 to 13 times the Australian revenue. If we assume that ISYS is generating $10 million from the land down under, I would expect $120 million from the land up above.
I may be off base, but in our research for The New Landscape of Enterprise Search, I did not find data to support that ISYS was generating revenue in this range. Therefore, I decided to exclude the company from my monograph.
The azure chip consulting firm replete with home economics majors, a handful of former journalists, and a couple of failed webmasters sees the world differently. I think the reason is that the azure chip outfit uses its reports as sales collateral. I don’t have any first hand experience with the “real” consultants in enterprise search, but after reading some of these reports, I formed my own opinion. Yours may differ.
To answer the question, “Did I goof by not including ISYS along side Autonomy, Endeca, Exalead, Google, Microsoft, and Vivisimo?,” The answer is, “I don’t think so.”
Hoping a vendor is competing with the likes of Autonomy, Endeca, Exalead, etc. is one thing. Actually beating these firms in major accounts is a different one. Just my opinion, and I look forward to the push back from the “experts” who know more than I, aggrieved company executives who want me to revisit my conclusions about which companies are altering the landscape of search, and the “real” consultants who will swarm over my view point.
Have at it kids. Sales revenues matter. When someone plops down $1.2 billion as Microsoft did for the Fast Search & Technology system or the interesting $10 billion for Autonomy, I will make another pass over the “big six.” Until then, I need to hear first hand about how non US firms cope with my Canadian rule of thumb. I quite like the ISYS technology. But for Landscape, revenues play more of a role than technology.
Stephen E Arnold, November 11, 2011
Sponsored by Pandia.com
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