In Brave New World by Aldous Huxley set in AD 2540 a new world order has emerged while older, lower castes struggle to find their identity. I cite this book and author because for the past 18 months or so I have been blogging and speaking at conferences about the need for the digital content industry, to embrace major strategic change of direction at a vendor level – essentially to find their own “brave new world”.
At Docville in 2016 and again earlier this year, I spoke about “What Is Your Next Best Action?” and “Building a Growth Strategy” in my keynotes speeches and in our UNDRSTND Group blog I have called attention to the echo chamber in which we seem to live and our indecisiveness as an industry but finally I really do believe that things are getting better and that we are now quickly moving beyond the “green shoots” of a new industry narrative and strategy for Enterprise Content Management. The brave new world is upon us and its exciting.
Some recent events have caught my eye and really give me hope:
- Upland Software’s acquisition strategy is well documented but their recent $24.4mn acquisition of Waterfall, a cloud-based mobile messaging platform, to fuel their customer engagement solutions strategy shows a more creative use of digital content technologies than some of their other acquisitions. This also makes Upland a $100mn revenue per annum player in what they call the “Enterprise Work Management” market.
- Ephesoft became a VC darling recently with a $15mn raise from Mercato Partners that will allow them to attack the cloud-based document capture market with new vigor. Founded in 2010 by ex-Kofax executives you might expect Ephesoft to be suffering from the same challenges as the former independent document capture industry leader, but instead they are charging ahead and posting significant growth while others decline.
- Nuxeo, founded in the early 2000’s in France raised $20mn from Goldman Sachs in September 2016 to help them expand into North America. This alone would have you ranking them as a vendor to watch but then recently they hired both Chris McLaughlin and Danny Pidutti – former FileNet and Documentum talents that have a strong reputation for leading transformative change in product and marketing strategy. No doubt some creative solutions and go-to-market strategies will follow!
- M-Files, a Finnish company, raised €33mn in 2016 to juice up international growth and are now making big in-roads into the SME solutions space for digital content solutions and not just in accounts payable! They have a broad range of solutions templates on offer to speed the deployment of content management for customers and partners alike.
- Hyland’s acquisition of Perceptive and the Brainware suite looks to be a smart move to re-energize their business and certainly makes them a force to be reckoned with globally. It’s great to see a private equity investor, in this case Thoma Bravo the long-time backers of Hyland, stepping in to help fuel growth not just look for synergies, efficiencies and cost savings.
These vendors each have a vision and are putting financial resources behind that vision and seeing positive results – this is not status quo, consolidation stuff! These examples help me to believe there is a strong case for growth in the ECM and related solutions space. The larger vendors who consolidated the market in the mid-2000’s (IBM, EMC, Oracle) have other priorities these days but customers still have a serious need to move information to where it is needed and allow their customers, employees and business partners to make better decisions faster. They see value in these types of solutions and modifying standard products to specific business processes is the way to gain market advantage in an increasingly competitive world.
I am looking forward to my upcoming client workshops and speaking engagements and I feel that I can confidently share that growth is back in the digital content and process solutions space – assuming you are living in the Brave New World and not on the Islands that is! 😊