451 Group: Future Of Web Content Management - Open Source CMS

Infrastructure Computing for the Enterprise Summit 18 September 2008 • The Mirage Hotel • Las Vegas, Nevada

The Future of Web Content Management… …and the rise of open source

Kathleen Reidy, Senior Analyst, Enterprise Software

June 17, 2009 • Tribeca Grand Hotel • New York City

Infrastructure Computing for the Enterprise Summit 18 September 2008 • The Mirage Hotel • Las Vegas, Nevada

About The 451 Group

•  Independent technology industry analyst company •  Focused on the business of enterprise IT innovation •  700+ customers across

•  Vendors •  Investors (150 VCs and 80 Investment Banks) •  Service-providers (SIs, consulting, etc.) •  End users

•  Offices in New York (HQ), Boston, London, SF •  80+ total employees w/ 35+ analysts

Infrastructure Computing for the Enterprise Summit 18 September 2008 • The Mirage Hotel • Las Vegas, Nevada

451 CAOS Research Service

•  Commercial Adoption of Open Source (CAOS) •  The impact of open source on software vendors, end

users, and investors •  451 CAOS Reports = comprehensive ‘big-idea’ reports •  451 CAOS Analyst Access = advisory interaction with 451 open source

analysts •  451 CAOS Insight Update = e-mail with links to recent 451 open source

research •  451 CAOS Theory = a blog for the enterprise open source community •  451 CAOS podcast = bi-weekly podcast with analysis of key current

marketplace developments •  451 CAOS Links live = latest news and views @caostheory

Infrastructure Computing for the Enterprise Summit 18 September 2008 • The Mirage Hotel • Las Vegas, Nevada

Agenda

• WCM market overview & trends • Open source WCM adoption • What makes open source different? • Recommendations

Infrastructure Computing for the Enterprise Summit 18 September 2008 • The Mirage Hotel • Las Vegas, Nevada

WCM Market

Infrastructure Computing for the Enterprise Summit 18 September 2008 • The Mirage Hotel • Las Vegas, Nevada

WCM Market Today

•  Recent consolidation at the high end • Market is still vibrant… • …though fragmented… • …and distinct from other areas of ECM •  No large vendors dominate • More options than ever – Open source – SaaS

Infrastructure Computing for the Enterprise Summit 18 September 2008 • The Mirage Hotel • Las Vegas, Nevada

WCM Product Trends - Today Expanding definition of “WCM”

Experience management, optimization, analytics, conversion etc. Not a lot of differentiation in core CMS.

More focus on sales to marketers

Finally, some real improvements in usability, more integration, move to “suites.”

Impact of social software

Better support for user-generated content and some community tools – early days.

Focus on easing publishing process

Deployment tools, just-in-time publishing.

Multi-lingual, multi-site

Better support across products, not just specialists.

Infrastructure Computing for the Enterprise Summit 18 September 2008 • The Mirage Hotel • Las Vegas, Nevada

WCM Product Trends - Tomorrow Online marketing suites

More real options, driven in part by market consolidation & organic product growth.

More technical integration

Other content tools (like document output) and other systems – CRM, most notably.

And process alignment

Compliance and information governance, quality, monitoring.

Social software is de facto

Support for user-generated content part of standard feature set. Not revolutionary.

Traditional, on-prem no longer standard

SaaS and open source.

Infrastructure Computing for the Enterprise Summit 18 September 2008 • The Mirage Hotel • Las Vegas, Nevada

WCM Vendor Landscape

High-end, enterprise &

platform plays

Large / upper mid-market

Mass mid-market & SMBs

open source software-as-a-service

Autonomy Interwoven

Vignette FatWire Software Day Software

SDL Tridion

EPiServer

Ektron

Sitecore

Percussion Software

Paperthin

Crownpeak Technologies

Clickability

Microsoft

Oracle

IBM Open Text

Alterian

Ingeniux Hannon Hill

Lyris

Alfresco

eZ Systems Magnolia

Squiz

Jahia

Hippo

Acquia/Drupal

DotNetNuke

Infrastructure Computing for the Enterprise Summit 18 September 2008 • The Mirage Hotel • Las Vegas, Nevada

They’re Coming to America

Squiz 1998 200 - GPL v3/support and services

Sydney NYC (pending)

Infrastructure Computing for the Enterprise Summit 18 September 2008 • The Mirage Hotel • Las Vegas, Nevada

What’s behind this?

•  Following customers •  Fueled by growth in Europe •  Some outside funding • More acceptance of open source generally •  And in content management specifically – The Alfresco effect – More commercial options – Less “about” open source – just competitive

Infrastructure Computing for the Enterprise Summit 18 September 2008 • The Mirage Hotel • Las Vegas, Nevada

Opportunities for WCM OSS in US

• More acceptance / options in WCM than other areas of ECM

•  Perceived cost savings •  Commercial vendors in US • Market consolidation • Multi-site / multi-lingual • …but maybe not .NET shops…

Infrastructure Computing for the Enterprise Summit 18 September 2008 • The Mirage Hotel • Las Vegas, Nevada

Open Source – is it CAOS?

Infrastructure Computing for the Enterprise Summit 18 September 2008 • The Mirage Hotel • Las Vegas, Nevada

Open source today

• It’s everywhere! • Disruptive force in the software industry • Knowledge and comfort-level expansion • Adoption is increasing dramatically • It’s still largely a cost-reduction story • But not the only one…

Infrastructure Computing for the Enterprise Summit 18 September 2008 • The Mirage Hotel • Las Vegas, Nevada

Open source adoption drivers

Source: The 451 Group. Cost Conscious: A practical guide for understanding and calculating the financial benefits of open source for enterprise IT projects

Infrastructure Computing for the Enterprise Summit 18 September 2008 • The Mirage Hotel • Las Vegas, Nevada

Open source adoption drivers

Source: The 451 Group. Cost Conscious: A practical guide for understanding and calculating the financial benefits of open source for enterprise IT projects

Infrastructure Computing for the Enterprise Summit 18 September 2008 • The Mirage Hotel • Las Vegas, Nevada

“Open source” is not a business model

How do vendors generate revenue from open source software?

Published: October 2008

Infrastructure Computing for the Enterprise Summit 18 September 2008 • The Mirage Hotel • Las Vegas, Nevada

OSS is a business tactic

•  There is no single business model that defines open source vendors

•  Most vendors are taking a hybrid approach to development and/or licensing

•  Vendors use both open source and proprietary development and licensing models to maximize opportunities for revenue and profit

•  Open source is a business tactic, not a business model

Infrastructure Computing for the Enterprise Summit 18 September 2008 • The Mirage Hotel • Las Vegas, Nevada

Open source vendor revenue strategies

Source: The 451 Group. Open Source is Not a Business Model: How Vendors Generate Revenue from Open Source Software

Infrastructure Computing for the Enterprise Summit 18 September 2008 • The Mirage Hotel • Las Vegas, Nevada

Categorizing open source

Software license choice •  Terms and restrictions of open source license

•  Development model •  Vendor vs. community

•  Vendor licensing strategy •  Commercial vs. open source • Dual license

•  Revenue triggers • How does the vendor make $$?

Infrastructure Computing for the Enterprise Summit 18 September 2008 • The Mirage Hotel • Las Vegas, Nevada

What this means

Infrastructure Computing for the Enterprise Summit 18 September 2008 • The Mirage Hotel • Las Vegas, Nevada

Open source in WCM

•  Big difference between open source projects and companies

•  Active community vs. active vendor – Pros and cons – Project fit

•  Understand the model – Open source core vs. dual license etc. – And the revenue trigger – support vs. services

Infrastructure Computing for the Enterprise Summit 18 September 2008 • The Mirage Hotel • Las Vegas, Nevada

Recommendations

• WCM is vibrant – not a subset of ECM •  Lots of vendors innovating •  Open source is part of that •  Viable option in WCM •  Understand the differences, pros & cons

Infrastructure Computing for the Enterprise Summit 18 September 2008 • The Mirage Hotel • Las Vegas, Nevada

Thank you!

Kathleen Reidy Senior Analyst, Enterprise Software

Email: kathleen.reidy@the451group.com Phone: 617-261-0655 Twitter: @kreidy @caostheory Web: http://www.the451group.com/ Blogs: http://blogs.the451group.com/

information_management/ http://blogs.the451group.com/opensource/