Two years ago, a journal was discovered while excavating in the Trough of Disillusionment of Gartner’s Hype Cycle for Enterprise Content Management (ECM) technologies. The journal told a story of fear, distrust, and desperation.
Today another tome was discovered. Written hastily in the margins of an IDOL manual was the following text. It is estimated that this was written two days after the conclusion of the previously discovered journal (which you should read 1st). The author is unknown.
One year ago, when Dell announced it was buying EMC, I wrote,
If you see Open Text or CA buy the ECD, start lighting the funeral pyres because Documentum would be officially brain dead and waiting for the machines to be turned off.
Well, it happened. OpenText acquired Documentum. This brings to end the Enterprise Content Management (ECM) wars that began almost 20 years ago. Back then, the leaders were FileNet, Documentum, Oracle, and OpenText. FileNet is buried at IBM who is flirting with Box. Oracle is struggling to reestablish itself after bringing on former Documentum leaders but they are fading away.
This morning, OpenText announced their acquisition of Documentum. I was hesitant to predict that OpenText was going to buy Documentum. It was the obvious prediction and I knew that it would be a chunk of change. $1.62 billion was the final price which covers the $600 million OpenText raised in May and another billion of debt commitment provided by Barclays for this transaction.
I suspect that nobody else was willing to pay EMC that much.
First the basics. Open Text has purchase Recommind, a strong player in the eDiscovery space. This is Open Text’s second significant acquisition in the past few months, the other being when Open Text purchased some customer experience software components from HP including Interwoven and MediaBin. We knew more acquisitions were coming after they then announced that they were raising $600 million and are planning to spend upwards of $3 billion on acquisitions over the next five years.
Yep, the old Open Text is back. They are buying Recommind for only $163 million, meaning they have more money. Before we discuss the elephant in the room, let’s look at what this acquisition means for Open Text.
I haven’t blogged in a while for various reasons that I won’t get into in this post but recent news demands that I share some thoughts. It seems that barring a better offer, Dell is going to buy EMC for a LOT of money.
Now the numbers don’t really matter to me as I don’t hold stock in any of the players except perhaps in some retirement mutual fund to which I never really pay attention. What I care about is the fate of the Enterprise Content Division (ECD), the home of Documentum.
The following are excerpts from an explorer hiking the Gartner Hype Cycle for Enterprise Content Management (ECM) technologies.
Today we finally reached the Peak of Inflated Expectations. The view is simply amazing. This technology is going to revolutionize everything. Everyone is excited and teaming up with their friends. Documentum just got some great new equipment from EMC. I suspect that those two will be very happy together for a long time.
Life is good.
Apparently everyone is excited and more and more people are joining us on the Peak. While the view is still lovely, the ground is starting to get muddy from all the people trampling everywhere.
Stellent showed up with their new pal Oracle. Everyone thinks they are a bunch of posers but they are mostly keeping quiet because Oracle has a bit of a temper.
There seems to be a new noise. I’m going to go check it out.
That noise from the other day? That was the beginning of an avalanche that carried the entire group off of the Peak. According to our maps we are in the Trough of Disillusionment. It is hard to validate because nobody can get a clear signal anymore. It is a bit gloomy but some people seem to think we can get out.
OMG! Open Text ate Hummingbird while we were sleeping! They must be panicking already.
Tensions are very high.
In case you missed it, Dropbox has followed the path blazed by Box and has integrated with Microsoft Office. While Box integrated on the desktop, Dropbox is integrating with the Office mobile apps and plans to extend it to the Online Office versions. This is a no-brainer move as anything that simplifies people’s ability to work with content within Dropbox helps keep people using both tools.
On top of all this, Microsoft announced that their Android and iOS versions of Office will now be free. Microsoft is clearly trying to maintain their edge on the office productivity world and Dropbox is aiming to stay in front of people’s eyeballs.
While at the Monktoberfest last week, I had the luck to run into some people from EMC. Not just any folk from EMC, they were from “core”, the storage side of the business. After convincing them that I knew enough about EMC to have a real conversation, we discussed Documentum and the Information Intelligence Group (IIG) where Documentum sits.
The talk quickly turned to why Documentum did not live up to the potential they had when EMC acquired them. While I have many opinions, I thought I’d get their opinion. It was a little surprising.
They didn’t adopt Virtual fast enough.
There have been a lot of missteps over the years, but that wasn’t one of them. I was selling Documentum during the rise of VMWare and I can state this for a fact, I NEVER lost a deal because Documentum didn’t support virtual machines.
You may not know it looking at my last two months of activity, or lack of it, but I’ve been writing, tweeting, and generally being loudly opinionated for the past six years. What started as just a way to vent my opinion over the direction of EMC/Documentum has become a platform for trying to push for change in the industry.
Thing is, the change is here. This June I’m going to pull my best Howard Beale and I’m going lay out why things are changing and why we can’t act as if it isn’t or that we have control.
But before all that, let’s review what has come before.
In my predictions for 2013, I made the following prediction on the future of the traditional “leaders” in the Content Management space.
First Major On-Premises Traditional ECM Vendor will become Obsolete: I know, obvious right? Statistically speaking, one of those vendors will likely still be a market leader in 10 years. In 2013, we’ll see our next elimination for that spot (though they will be in denial). To make this easier to measure, I’ll name the contenders: EMC, IBM, Open Text, and Oracle. Microsoft falls into this category but it won’t be them, at least not in 2013.
Aside from simple statistical probability, I saw a few things this fall that led to this prediction.
What I’ve seen is a scary amount of consistency among the players.
This post has been a long time coming but it really took me a while to come to grips with all the implications of the Synplicity acquisition, and there are many. (Plus there is this whole day-job thing with AIIM). There are really three angles to take when looking at the acquisition.
Without further adieu, let’s dive in and see what we can figure out.
Word of Pie 