Objects in Motion and The Omniture/Visual Sciences Deal
According to Isaac Newton’s Naturalis Prinicipia Mathematica, there are three laws which define motion, momentum, velocity, and force (at least with respect to the known gravity of earth). These are the simple principles which often comprise the first 10 minutes of any self-respecting introduction to physics. Many people recite them though they rarely think of the source, much less the value of their broad application.
Briefly stated, the three laws are:
- An object in motion will remain in motion unless acted upon by a net force, and an object at rest will remain at rest unless acted upon by a net force; this is also known as inertia.
- Force equals mass multiplied by acceleration.
- For every action there is an equal and opposite reaction. 1
Recently, I read about a merger between two web analytics commercial reporting and services providers.
Omniture is a behemoth. It boasts 2,200 clients based on a recent write up in Forbes.2 This was mentioned along side major players like AOL/TW, Wal-Mart and General Motors and about 3 inches beneath a table which stated their market capital currently exceeds $2 billion. Oh, did I mention that they also serve up analytics reports for the single most used online shopping system in the world – eBay. This, in sooth, was actually where I first became aware of them. When I got to CableOrganizer, I was reintroduced to their more complete SiteCatalyst tool as well as the other platforms. So, yeah, Omniture was big before they started gobbling up service and solution providers around the planet.
On a personal note with respect to the company and its co-founders: I actually sat and talked with John Pestana at the Summit in Salt Lake City this spring, while en route to a stand-up performance by Frank Caliendo. It was surprising how accessible and personable a man he was. That was before Discover 2.0, the TouchClarity and Offermatica acquisitions, and certainly long before Visual Sciences was a dancing partner. That was also just prior to Mr. Pestana’s announcement of his resigning his post, but remaining on the board.3 Congratulations to John and Mr. James on gracefully handling some big moves. May the force be with them….alright…back to work.
Considering all that has been kicked around in that arena, its interesting to see how Omniture is building its machine. In previous acquisitions and deals, there was a clear purpose. Offermatica brought an important piece of the testing puzzle into the statistical mix. TouchClarity produced a bridge to an entity structured on behavioral targeting. That particular area I find fascinating in scope, application, and potential. The Instadia deal was clearly a stake in foreign markets. So, what is the real deal with Visual Sciences.
As I see it, this acquisition, should it be approved by the FTA and SEC, is the web analytics industry equivalent of an object in motion. The snowball started rolling and its just picking up everything that is in its path. There does not appear to be a ‘net force’ out there which exists to impede its momentum except for possibility of the alphabet agencies raining on their parade, or the apocalypse.
In this instance, Omniture doubled its customer base and sliced its viable competitors in half. Earlier this year, Visual Sciences was acquired by Web Side Story (WSSI). In a few months, the Web Side nameplate was traded in for the Visual Sciences (changing their stock symbol to VCSN) moniker.4 I thought that was a good move considering the ‘Broadway Drama’ allusion to a Leonard Bernstein musical didn’t really illicit the image of a sophisticated, analytical software provider. Now, of those three companies eager to set the pace for the next stage of analytics practice, only Omniture exists.
Once the ball rolls through Visual Sciences it remains to be seen what is on the horizon for analytics practitioners. Omniture, of course, having brought all these major aspects of interest to an analyst into a single venue, has the greatest potential to become a company efficiently empowering the “numbers-geeks” (like me) out there, or to ultimately become the next black shroud in the evil empire of IT conglomerates. The snowball continues gains mass, and acceleration.
With the complete web analytics package, you have to wonder what other worlds there are out there to conquer. Should MicroStrategy, Business Objects, and Cognos be keeping a close eye yet? I think so. I think integration is the next great frontier before this thing gets way out of control. Depending on your revenue model, you either view web analytics as a single science practiced independently of BI, or, you view web analytics as a proportion of a comprehensive business intelligent suite. If I had to hedge a bet on the next big move, I would look to see one of the companies above start to ready resources to counter and contain Omniture or to befriend them in hopes of meeting the recipe for their best-of-breed acquisition model.
Equal and Opposite Reaction
The reaction to Omniture is ultimately in the hands of the people out in
As it stands right now, Omniture has had trouble meeting all the demands we (myself, Paul, and others at CableOrganizer.com) have put on them. Granted we’re an impetuous group absolutely obsessed with knowing and growing. But if they can’t roll with us now, how are they going to service their contracts when they absorb only a portion of what Visual Sciences can bring in with respect to live help. Even if they counted every employee from VSCN7, as well as existing employees, it only adds up to just over 800 employees. This moves the ratio back to 1:5. Still, this is difficult to manage while accounts continue and the level of practice sophistication is elevated.
When the approval is through, the snowball will have reached critical mass. Josh James, co-founder of Omniture with Pestana, mentioned in the press release that a main goal of this purchase (merger/acquisition/whathaveyou) was to help “accelerate…investments in advanced solutions that drive customer success as well as create further opportunities to cross-sell (their) growing portfolio of products.8 That is going to take a huge effort to back up as well as maintain. My hope is, IF it clears approval, they’re up to the task and can find the right amalgam of services to blend and offer to those of us on either side of this deal. Further, I hope whatever the name of this monster, it stays friendly and helpful.
Sources:
1.
(http://en.wikipedia.org/wiki/Newton%27s_laws_of_motion) (30 October 2007)
2. Associated Press: Forbes.com, Visual Sciences, Omniture Surge on Deal, published 26 October 2007, available: 30 October 2007. http://www.forbes.com/feeds/ap/2007/10/26/ap4269064.html
3. Omniture Press, Omniture Press Detail: Omniture Co-Founder John Pestana to Resign Position ,omniture.com, Posted:
Available 30 October 2007, http://www.omniture.com/press/333
4. Watson, Frank ; Omniture Buying Visual Sciences, SearchEngineWatch.com
Available 30 October 2007, http://blog.searchenginewatch.com/blog/071025-172520
5. Wikipedia: Omniture, Wikipedia, the Free Encyclopedia.
Available: 30 October 2007, http://en.wikipedia.org/wiki/Omniture
6. Yahoo! Finance, OMTR: Profile for OMNITURE, Inc. , Finance.Yahoo.com
Available: 30 October 2007, http://finance.yahoo.com/q/pr?s=OMTR
7. Yahoo! Finance, VCSN: Profile for VISUAL SCIENCES INC, finance.yahoo.com
Available: 30 October 2007, http://finance.yahoo.com/q/pr?s=VSCN
8. Omniture Press, Omniture Press Detail: Omniture to Acquire Visual Sciences, omniture.comPosted:
Available 30 October 2007, http://www.omniture.com/press/417
