No More RedDot

This flew a little under the radar today, but CMSWire posted an article today which pretty much speaks for itself, Farewell, RedDot. Viva OpenText Web Solutions. Ok maybe it doesn't speak for itself, Open Text didn't drop the RedDot product offering, but rather rebranded their offerings under a single Open Text umbrella, Open Text Web Solutions. Actually this was a bit of a journey for RedDot who were first acquired by Hummingbird in June of 2005 and then subsequently acquired by Open Text, via Hummingbird, about a year later in August of 2006.

There's a great line in the article where CMSWire asks Open Text's SVP for Corporate Strategy, Daniel Kraft "How and why did the decision to 'shut down' RedDot come about?", and Daniel's response is "First of all, we don’t 'shut down' RedDot." You know he's answered that question internally a million times and it showed in that response, bravo! Actually, I've talked to some RedDot guys at different industry events and this has been in the making for a while, so it's not necessarily new news. But what this says loud and clear is that Open Text has just now, almost two and a half years after acquiring Hummingbird/RedDot, finally has these things working together as part of the bigger ECM suite...note that I said "working together" and not "integrated."

After the Autonomy announcement last month to acquire Interwoven (who actually did a great job in leveraging it's acquisition of Optimost), this certainly doesn't fall into the category of further industry consolidation, but it sure does make things a bit more interesting.

Comments

[Tom Wentworth]

Unfortunately for the new Web Solutions group, the Open Text CEO recently went on record during their analyst call with his perspective on the relative importance of WCM:

"one of the concern areas would be in the web content management where like most managers if someone came to me and said our website is looking a little old. We need to spend $1 million to clean it up. I wouldn’t see that as a must-have. So what we’re seeing is it’s not critical, people are putting off those decisions to upgrade their websites."

From http://seekingalpha.com/article/119467-open-text-corporation-f2q09-qtr-end-12-31-08-earnings-call-transcript?page=6

This read like a CEO with very little interest and worse, understanding, of what drives web content management products. The customers I meet with in my role at Interwoven see WCM playing a far more critical role in how they compete and win in the new economy.

I wish the best for the Open Text web solutions team since it seems they have lots of work to do to get their own executive leadership on board with the importance and value of WCM.

[Christopher Bartik]

I completely agree Tom...and so does Forrester...72% of their respondents said they plan to increase their web content management spending. http://blog.contentmanagement.com/2009/01/wcm-is-growing-forrester-said-its-true-so-it-must-be.html

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