Presentation on The Future of Web Content Management including the rise of Open Source CMS by Kathleen Reidy, Senior Analyst, Enterprise Software for The 451 Group.

1. 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

2. 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

3. 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

4. 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

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

6. 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

7. WCM Product Trends - Today
Expanding definition Experience management, optimization, analytics,
of “WCM” conversion etc. Not a lot of differentiation in core
CMS.
More focus on sales Finally, some real improvements in usability, more
to marketers integration, move to “suites.”
Impact of social Better support for user-generated content and some
software community tools – early days.
Focus on easing Deployment tools, just-in-time publishing.
publishing process
Multi-lingual, multi- Better support across products, not just specialists.
site
Infrastructure Computing for the Enterprise Summit
18 September 2008 • The Mirage Hotel • Las Vegas, Nevada

8. WCM Product Trends - Tomorrow
Online marketing More real options, driven in part by market
suites consolidation & organic product growth.
More technical Other content tools (like document output) and
integration other systems – CRM, most notably.
And process Compliance and information governance, quality,
alignment monitoring.
Social software is de Support for user-generated content part of
facto standard feature set. Not revolutionary.
Traditional, on-prem SaaS and open source.
no longer standard
Infrastructure Computing for the Enterprise Summit
18 September 2008 • The Mirage Hotel • Las Vegas, Nevada

9. WCM Vendor Landscape
Autonomy Interwoven Oracle
High-end,
enterprise & Vignette FatWire Software
platform plays Day Software
Clickability IBM Jahia Alfresco
Open Text
SDL Tridion eZ Systems Squiz
Microsoft Alterian Magnolia
Hippo
Large / upper Percussion Software
mid-market
EPiServer Sitecore DotNetNuke
Paperthin
Ektron
Acquia/Drupal
Crownpeak Technologies
Mass mid-market Lyris
& SMBs
Ingeniux Hannon Hill
open source
Infrastructure Computing for the Enterprise Summit
software-as-a-service
18 September 2008 • The Mirage Hotel • Las Vegas, Nevada

10. They’re Coming to America
Squiz 1998 200 - GPL v3/support Sydney NYC
and services (pending)
Infrastructure Computing for the Enterprise Summit
18 September 2008 • The Mirage Hotel • Las Vegas, Nevada

11. 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

12. 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

13. Open Source – is it CAOS?
Infrastructure Computing for the Enterprise Summit
18 September 2008 • The Mirage Hotel • Las Vegas, Nevada

14. 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

15. 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

16. 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

17. “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

18. 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

19. 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

20. 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

21. What this means
Infrastructure Computing for the Enterprise Summit
18 September 2008 • The Mirage Hotel • Las Vegas, Nevada

22. 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

23. 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

24. 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/
Infrastructure Computing for the Enterprise Summit
18 September 2008 • The Mirage Hotel • Las Vegas, Nevada