{"id":43,"date":"2006-08-15T15:50:08","date_gmt":"2006-08-15T23:50:08","guid":{"rendered":"http:\/\/www.formtek.com\/blog\/?p=43"},"modified":"2006-08-15T15:50:08","modified_gmt":"2006-08-15T23:50:08","slug":"consolidation-in-the-ecm-market","status":"publish","type":"post","link":"https:\/\/formtek.com\/blog\/consolidation-in-the-ecm-market\/","title":{"rendered":"Consolidation in the ECM market"},"content":{"rendered":"<p>A May 2006 report by <a title=\"Gartner\" href=\"http:\/\/www.gartner.com\" target=\"_blank\">Gartner<\/a> shows that OpenText, IBM, FileNet and EMC were market leaders in the <a title=\"Enterprise Content Management\" href=\"http:\/\/en.wikipedia.org\/wiki\/Enterprise_Content_Management\" target=\"_blank\">Enterprise Content Management<\/a> (ECM) marketplace.\u00a0 The report said that the\u00a0&#8220;ECM market is dynamic&#8221; and &#8220;marked by technology consolidation&#8221;.\u00a0 That consolidation is happening at a rapid pace.<\/p>\n<p>In 2003, EMC made its entry into the <a title=\"Enterprise Content Management\" href=\"http:\/\/en.wikipedia.org\/wiki\/Enterprise_Content_Management\" target=\"_blank\">Enterprise Content Management<\/a> (ECM) marketplace by buying <a title=\"EMC's purchase of Documentum\" href=\"http:\/\/www.cmswatch.com\/Trends\/243-EMC-Buys-Documentum\" target=\"_blank\">Documentum<\/a>.\u00a0 Then this past year EMC acquired <a title=\"EMC buys Captiva\" href=\"http:\/\/www.cbronline.com\/article_news.asp?guid=921CF976-9C2A-43FC-ABA4-5C3DEED66A3E\" target=\"_blank\">Captiva<\/a>, buying its way to become the largest vendor in the ECM space.\u00a0 But it looks like their lead has been short-lived.\u00a0 They are about to be eclipsed by IBM.<\/p>\n<p>Last week <a title=\"IBM Corporation\" href=\"http:\/\/www.ibm.com\" target=\"_blank\">IBM<\/a> announced plans to purchase <a title=\"Filenet\" href=\"http:\/\/www.filenet.com\/English\/News\/Global-English\/Current_Press_Releases\/ibm06.asp\" target=\"_blank\">FileNet<\/a> for integration into their &#8220;Information on Demand&#8221; product offering.\u00a0 This follows shortly after other recent IBM acquisition announcements\u00a0that include\u00a0<a title=\"Webify\" href=\"http:\/\/www-03.ibm.com\/press\/us\/en\/pressrelease\/20058.wss\" target=\"_blank\">Webify<\/a>\u00a0(specialized <a title=\"SOA\" href=\"http:\/\/en.wikipedia.org\/wiki\/Service-oriented_architecture\" target=\"_blank\">SOA<\/a> technology) and <a title=\"MRO acquisition\" href=\"http:\/\/www-03.ibm.com\/press\/us\/en\/pressrelease\/20062.wss\" target=\"_blank\">MRO<\/a>\u00a0(Asset Management Software).\u00a0<\/p>\n<p>And this follows up yet other announcements.\u00a0 Stellant is to <a title=\"Stellant acquired SealedMedia and Bitform\" href=\"http:\/\/www.stellent.com\/en\/news\/releases\/corporate\/P88011389\" target=\"_blank\">acquire<\/a> SealedMedia and BitForm.\u00a0 Brocade is to <a title=\"Brocade to acquire McData\" href=\"http:\/\/news.zdnet.co.uk\/business\/0,39020645,39280678,00.htm\" target=\"_blank\">acquire<\/a> McDATA.\u00a0 OpenText is to <a title=\"OpenText to acquire Hummingbird\" href=\"http:\/\/www.contentmanager.net\/magazine\/news_h18575_opentext_corporation_to_acquire_hummingbird_ltd.html\" target=\"_blank\">acquire<\/a> HummingBird.\u00a0 OpenText had lost in a 1999 <a title=\"Hummingbird and OpenText bidding war over PCDocs\" href=\"http:\/\/www.opentext.com\/news\/pr.html?id=111\" target=\"_blank\">bidding war<\/a>\u00a0to Hummingbird over the purchase of PCDocs.\u00a0 OpenText and Oracle also have had a close <a title=\"Oracle and OpenText\" href=\"http:\/\/www.oracle.com\/corporate\/press\/2006_jun\/061406-contentdb-opentext-finalsite.html\" target=\"_blank\">relationship<\/a>.\u00a0 And there have been many more announcements over the past few years.<\/p>\n<p>The obvious question is what does all this consolidation in the ECM market mean?\u00a0<\/p>\n<p>Of course there isn&#8217;t a single explanation to that question.\u00a0 For example, in the case of the IBM purchase of FileNet, it is more likely\u00a0that they&#8217;ve initiated the FileNet purchase\u00a0because of the customers and dominant marketshare that IBM would gain.\u00a0 But because of the significant overlap of IBM and FileNet products in the <a title=\"Business Process Management\" href=\"http:\/\/en.wikipedia.org\/wiki\/Business_Process_Management\" target=\"_blank\">BPM<\/a> and ECM space, IBM may not really be gaining much in the way of technology with this move.<\/p>\n<p>There can be dangers associated with these huge acquisitions too.\u00a0 Sometimes the bumps associated with dual or multi-product integrations last only a few months, but othertimes problems can linger for years.\u00a0<\/p>\n<p>Frequently the behemoth companies created from\u00a0a merger\u00a0or acquisition will have difficulty in integrating multiple competing solutions and in\u00a0presenting a consistent product strategy.\u00a0 Sales people\u00a0may\u00a0not be sure of or have difficulty in articulating and recommending the preferred company solution, and the overall product direction can become disjointed.<\/p>\n<p>But one clear\u00a0over-reaching reason why consolidation is happening\u00a0now is that document management, content management\u00a0and knowledge management are capabilities that are being seen more and more as key components\u00a0in any enterprise-wide software solution. Rather than departmental solutions, it makes sense to provide access to both structured and unstructured data across the entire enterprise.<\/p>\n<p>Also as mentioned here in previous <a title=\"Previous Formtek Blogs\" href=\"http:\/\/www.formtek.com\/blog\/?p=28\" target=\"_blank\">blogs<\/a>, compliance has been a big driver in the upping of the importance of document and content management to enterprise-wide IT solutions, especially <a title=\"Sarbanes-Oxley\" href=\"http:\/\/en.wikipedia.org\/wiki\/Sarbanes-Oxley\" target=\"_blank\">Sarbanes-Oxley<\/a>\u00a0and <a title=\"HIPPA\" href=\"http:\/\/en.wikipedia.org\/wiki\/HIPPA\" target=\"_blank\">HIPPA<\/a>.<\/p>\n<p>How is <a title=\"Formtek, Inc.\" href=\"http:\/\/www.formtek.com\" target=\"_blank\">Formtek<\/a> managing in this space?\u00a0 As a smaller and more nimble player in the world of ECM,\u00a0Formtek competes by providing very\u00a0focused attention to our customers, something that is often lost by the bigger players.\u00a0 Formtek\u00a0has a very consistent track record for creating\u00a0high-value high-ROI mission-critical enterprise-wide applications.<!--29fa631f1b82fcdbc2328525708a4f16--><\/p>\n<div class=\"lightsocial_container\"><div class=\"lightsocial_element\"><a class=\"lightsocial_a\" href=\"http:\/\/digg.com\/submit?url=https%3A%2F%2Fformtek.com%2Fblog%2Fconsolidation-in-the-ecm-market%2F&amp;title=\" target=\"_blank\"><img decoding=\"async\" class=\"lightsocial_img\" src=\"https:\/\/formtek.com\/blog\/wp-content\/plugins\/light-social\/digg.png\" alt=\"Digg This\" title=\"Digg This\" \/><\/a><\/div><div class=\"lightsocial_element\"><a class=\"lightsocial_a\" href=\"http:\/\/www.reddit.com\/submit?url=https%3A%2F%2Fformtek.com%2Fblog%2Fconsolidation-in-the-ecm-market%2F&amp;title=\" target=\"_blank\"><img decoding=\"async\" class=\"lightsocial_img\" src=\"https:\/\/formtek.com\/blog\/wp-content\/plugins\/light-social\/reddit.png\" alt=\"Reddit This\" title=\"Reddit This\" 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