Interwoven deal a 'sobering illustration,' says Ovum
Interwoven deal a 'sobering illustration,' says Ovum
The recent merger between content management provider Interwoven and content management software provider iManage is a "sobering illustration of changed times."
That is according to Alan Pelz Sharp, vice president, software and services at analyst group Ovum, who said the agreement demonstrated how far Interwoven's star had fallen since the dotcom boom a few years ago.
"At the height of the boom, Interwoven could have snapped up a player like iManage from its petty cash drawer. But times have changed and Interwoven, once a star of Silicon Valley, has fallen behind the pack and seen its revenues and importance plummet," said Sharp.
He added: "At the peak of the boom, Interwoven was in the habit of declaring Document Management (DM) to be dead, and prophesying the failure of competitors such as Documentum and FileNet. Just three years on and the tables have turned. Interwoven has spent the last 18 months struggling to reposition itself as a company capable of delivering DM solutions."
Despite the fact that Interwoven has lost some of its sparkle, Sharp feels that the merger is still a good move for iManage, which he says also lost its way a bit after initially reaping the benefits of the boom.
"The last couple of years have seen something of a turnaround and refocus for the company, but the gap between it and the market leaders has become too wide to close.
"So what we have today is two companies that promised the world, gained millions from successful IPO's now merging together to try and gain some weight and substance in a quickly consolidating market.
"Together, on paper at least, they have every chance of becoming a major player again. The technologies make sense together, and the management teams are now sufficiently experienced in working through tough times to make it work."
In the meantime though, Sharp suggests potential customers adopt a wait and see strategy.
"Interwoven is still largely a purveyor of complex, high-end web content management systems - a functional rather than process-centric sell. Nor has Interwoven excelled at vertical-focused solutions. Merging these two philosophies and approaches may be tougher than merging the technologies.
"Our advice to potential customers is to wait a while until the dust settles and we see exactly what direction the new company is planning to go in."
Sharp concluded there are likely to further mergers and acquisitions in the space before the year is out, along with major announcements from some of the larger players in the field.
"It is an exciting time in the industry but also a challenging and confusing period for suppliers and customers alike."
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