Vignette’s industry analyst day was last Thursday and, as Guy Creese notes, these are often interesting because “Vignette personnel vanish and new people turn up to take their place with nary a word, so it’s always fun to figure out who’s missing in action based on last year’s agenda.”

Guy’s having some fun at Vignette’s expense of course, but it’s no secret Vignette has had a lot of executive turnover over the last couple of years and it hasn’t stopped. Execs on last year’s analyst day agenda gone this year include Cathie Frazzini, who led Vignette’s partner efforts for a little more than a year and long-time head of products Leo Brunnick. Dave Dutch, most recently of Level 3 Communications, has just replaced Brunnick to run product management and marketing. And Rob Amor, long-time head of Vignette’s EMEA services org, has taken on the corporate BD role from the UK.

Like Guy, this wasn’t my first Vignette analyst day and he’s also right in noting “Vignette’s Analyst Day is typically heavy with customer testimonials.” And this year was no exception. Four of the six customers that presented (including HBS and Vertrue) were fairly new to Vignette, interesting since Vignette has struggled with new license revenue in recent quarters.

Overall Vignette presented a more upbeat outlook than one might expect given the company’s recent financial results. The company has introduced several new products already this year (yes, some are OEMs and some are just enhancements, but it’s still better than what we’ve seen from Vignette in awhile) and has a few more planned before year end. It also acquired video management play Vidavee, which it claims will be integrated before the end of this quarter.

It will likely be a couple more quarters before Vignette’s largely-revamped field organization can make some hay with these new products. If it’s able to do so, the license numbers might start to turn around. We’ll certainly be watching to see.

We’ve been busy lately increasing our coverage of social software vendors. In the last few weeks we’ve spoken with: Awareness, CollectiveX, Communispace, GroupSwim, HiveLive, Jive Software, Leverage Software, Lithium Technologies, Ringside Networks, Socialtext, Telligent Systems, and Wetpaint. Some of these meetings were triggered by new product launches and others were initiated by us, reaching out to begin coverage of vendors we hadn’t spoken with before. Most (but probably not all) of these have or will soon result in new or updated 451 coverage.

That’s quite a list and it’s only a list of who we’ve spoken with recently, not of all the vendors in this market and it doesn’t happen to include any of the larger players like IBM, Microsoft and Oracle.

So you have to ask, where is the differentiation? I don’t think that’s clear yet. Vendors are coming at this market from a particular area — like forums software or wikis — and tend to be targeting a particular types of implementations (BtoC social media vs. BtoE collaboration) so theoretically competitive products can be quite different under the covers (though often quite similar in marketing).

One thing that seems clear is that many vendors already in the social software realm are busy getting more social. By this I mean grafting on “social” aspects a la Facebook. This can be the ability to have user profiles and the ability to friend people or more sophisticated analysis of who knows what in order to connect users with similar knowledge or expertise.

Just a few recent examples:

Jive Software’s 2.0 release beefs up profiling and social networking capabilties.

The 3.0 release from Socialtext does the same.

Telligent added the ability to track activity data by user in Community Server 2008.

Wetpaint also added more social aspects recently.

Leverage Software has some interesting visualization technology applied to social networks.

Ringside wants to link public networks to business networks.

As vendors originally strong in wikis or forums software, for example, expand social networking and add other features, they’re much more in competition with each other than they once were. And organizations are likely to want to standardize to avoid profile proliferation, if nothing else.

I was talking with someone this morning about how many log-ins one large broadcaster has for its various customer/consumer communities (wikis, message boards etc.) and how it’s a high priority item for that company to fix it. That’s something we’ll no doubt hear more about as more and more products go social.

Tony Byrne picked up on this statement from Mediasurface that “notes the recent share price and announces that it has received a preliminary approach, which may or may not lead to an offer for the Company.”

The statement goes on to say that “The approach has been received from a UK company that does not compete directly with Mediasurface and the Directors expect that regardless of the outcome of these discussions, the services that Mediasurface provides to existing and future customers will be unaffected.”

What UK company that does not compete directly with Mediasurface might be interested in acquiring it? SDL already took Tridion, a decision it is no doubt happy with given Tridion’s 2007 financial results. Autonomy is the only other company that comes to mind, as a substantial UK-based player in the information management realm, without WCM we might add. WCM doesn’t seem a logical fit for Autonomy’s current portfolio though, which has certainly grown with its 2007 acquisitions of Zantaz and Meridio. These are pretty clear cut compliance / e-discovery related buys without explicit ties to WCM.

So maybe it is an SI or design agency looking to own the delivery technology itself. Mediasurface has checked boxes at the low, mid-market, and high end in WCM, in part by acquiring fellow UK-based WCM play Immediacy in June of last year and Silverbullet out of Holland back in 2005.

Mediasurface may not be the most attractive candidate at the moment, as it had a difficult fiscal 2007 reporting an EBITDA loss of £1.3m on revenues of £11.6m. Losses were blamed on the low-end Pepperio service and market difficulty for the high-end product Morello in the financial services industry and in accounts using Microsoft SharePoint. The company’s stock tumbled on that news to 4p per share, but has been up in April based on acquisition rumors.

Growth in WCM remains strong overall though (451 clients can read analysis of sector growth rates across vendors here) and there are still too many independent players with revenues in the $20m-ish range. More consolidation certainly seems likely.

This blog post led us to GroupSwim, a company we met with the other day. I found GroupSwim to be a particularly interesting example of the value text analysis can lend to content management, something Nick wrote about the other day.

GroupSwim isn’t selling content management software in the classic sense. It’s SaaS offering is for collaboration, either for internal teams or externally-facing communities. It actually reminds me most of Koral, which Salesforce.com acquired a year ago and has since become Salesforce Content.

There’s a bit more meat to what GroupSwim offers though as it uses natural language processing to recommend tags, auto tag content added to this system and recommend related content. We spoke to an early GroupSwim customer yesterday who just raved about the system’s ability to auto-categorize emails and other docs, making it easier to get content into the system in an organized way and to find content on particular topic or customer account (this customer is using the service as a collab tool for sales and marketing).

Applying this sort of text analysis in a group collaboration / social software tool isn’t something I’ve heard much about lately. It will be this sort of thing that will differentiate vendors from the increasingly large pack moving forward. GroupSwim is still tiny and with its service not generally available until this past December, it’s perhaps a little late to this party. It will need to ramp up its own sales and marketing efforts significantly — 451 group clients can expect a full write up on GroupSwim in the coming days.

Fred Wilson has an interesting post about whether or not there is an enterprise market for social software. He acknowledges that some products, particularly wikis, are doing well but questions the fundamental value of social software in enterprise communities that are “hobbled by the needs of the enterprise and cannot get that magical lift that an unbounded community provides.”

I think there are a couple of ways to look at this. Yes, on the public web, the “2.0″ changes are pronounced due to the masses that can participate. Facebook, Flickr, LinkedIn and even Google don’t make much sense without the explicit and implicit contributions of users and this has been a fundamental shift from Web 1.0. Everyone agrees on that point, I think.

But that doesn’t mean social technologies don’t have a role to play in enterprise apps as well. Is Enterprise 2.0 a market? Not really. That doesn’t mean I don’t use the phrase ’social software market.’ But it’s a bit of a catch-all. There are business problems, processes, applications that can and will become more social, the way these apps look, feel and work is evolving. And there are new and old vendors that are enabling that change.

I think where this will the biggest impact in the enterprise is in outwardly facing initiatives - web sites that become more two-way, user communities, more self-service and open product development processes. This is the biggest fundamental shift from the way these sites, processes, apps worked in the past. And that’s probably why this part of the market is mostly populated by start-ups and smaller companies at the moment.

Inside-the-firewall social software is simply an evolution of existing collaboration technologies - some of the social software suites on the market really aren’t hugely different from team collaboration products from a decade ago. Yes, there are different features, yes there is open tagging as opposed to structured taxonomies, yes there is blogging and so forth. But in the grand scheme of things, new features don’t equal a revolution — or a market.

This explains why the vendors that are likely to equip the most enterprises with inside-the-firewall social software are the same vendors that have been selling collaboration software for ages: Microsoft and IBM. As SharePoint gets better social networking, improved wikis and blogs, and perhaps, if we’re lucky, improved RSS support in the next release, it will become the de facto “enterprise social software” tool for all those many organizations using SharePoint. IBM will stay in the fight with Lotus Connections and Lotus Quickr, though it will likely be hard to stop the SharePoint juggernaut.

Interwoven and Vignette both released Q1 numbers in the last two days and their numbers highlight the different paths these long-time competitors are now on.

Vignette announced disappointing results. Vignette’s total revenue for the quarter was $44.8 million, a 6% decrease from Q1 2007, with a net loss of $0.8 million, compared with a $4.8m profit a year ago. Particularly disappointing for Vignette was license revenue which declined 36% to $9.7m. Vignette warned three weeks its results would be weaker than expected so the news wasn’t a surprise but the mood of the call was still somber.

Interwoven, on the other hand, announced a 17% increase in revenue to $61.5m with a 12% increase in license revenue and net income of $6.1m. Interwoven has always been a fairly conservative company but even so, one of the execs on the call said something along the lines of “we’re not claiming our earnings are recession proof but…” They were downright cheerful — and with good reason.

I’ve noted before that I sort of wear two hats at The 451 Group, covering both content management and collaborative technologies. They’re related surely and perhaps more so every day, but traditionally have been rather separate. In any event, I have the benefit of looking at most things through (at least) two sets of lenses and am not so far in the weeds in one market that I miss related implications.

For example, Infovark has an interesting post about emergent systems and as I was looking specifically at their table, it struck me how much their definition of “explicit” (rules-based, top down, centralized, push) defines what most WCM vendors are trying to do today with targeted content delivery. But “emergent” technologies are the opposite (outcome-based, bottom up, decentralized, pull).

In short, it’s the difference between content targeting and user-generated content. There seems to me to be a real gap between those vendors doing the former and those supporting the latter.

We’ve been spending a lot of time with vendors in the customer community realm of late, while still keeping a close eye on WCM marketplace. The relationship between these two seems quite obvious to me, though we’re only starting to see bits of it in the market. There is some partnering going on and at least one OEM I know of though have been asked not to publicize yet. I suspect we’ll see more of this in the coming months.

When I started picking up our coverage of the social software market about 18 months ago, I focused mostly on the bigger names, keeping tabs on what the likes of IBM and Microsoft are doing in social software. I also got up to speed on many of the point tools for wikis, blogs and bookmarking.

More recently, and especially since Anne Nielsen joined us as a research associate recently, we’ve been looking more at software and services for customer-facing communities.

Many of the companies in this area come from backgrounds in customer support or forums software, though there are some new start-ups here as well. There’s a lot of SaaS in this sector and these are sometimes these are called ‘white-label’ social networking providers, to differentiate from social networking sites like Facebook or even Ning.

What we’re most interested in is how and what these vendors or SaaS providers sell to enterprises that want to deploy communities for customer support and/or marketing. The following is a list of the vendors we’re currently tracking in this market. I’m sure this isn’t comprehensive as there are a lot of providers out there that fit into this market in some way.

Awareness - formerly known as iUpload, Awareness got its start in blogging services and citizen-run journalism sites and has since expanded its SaaS offering to include more services.

Communispace - haven’t met with this company yet but, founded in 1999, comes from the community management realm.

HiveLive - start-up that added $5.6m in VC funding in February. Offers a SaaS platform where ‘hives’ or communities can be customized to include different functions.

Jive Software - just revved its product and renamed the version specifically for external communities to Clearspace Community. Jive Forums is a popular forums software package for developer and support sites.

KickApps - sells mostly to media companies, a SaaS offering to let users network around a particular media property. CEO Alex Blum is an ex-AOLer and has been rumored to be in acquisition talks with AOL.

Leverage Software - another from the community management realm, we’re scheduled to update coverage on this company in the coming weeks.

Lithium Technologies - spin-off from gaming company Gamers.com in 2001, Lithium has built a fairly impressive customer list, mostly running customer support sites. Took a $9m Series A a year ago.

Prospero - has a long history in community software, dating back to the forum software used by Delphi Internet in the early 1990s. Prospero itself was formed in 2000 and acquired by Mzinga earlier this year.

Pluck - acquired by Demand Media in March, Pluck has mostly served media companies but the focus has been expanding.
LiveWorlds

Ringside Networks - brand-new start-up with a ‘social application server‘ in beta. founded by ex-JBoss and Bluestone Software execs so it’s definitely a middlware-based approach.

Telligent - founded in 2004 by ex-Microsoft folks, the Telligent Community Server is used more for external communities but has intranet customers as well.

WetPaint - hosts free consumer wikis but has been getting more into branded wiki sites (i.e., not white label) for companies, like this one for HP.

Our coverage map of companies in this area is a work in progress and is an area we’ll be focusing on a lot in the coming months. We would love to hear who else should be on it.

This is a question I remember tossing around eight or nine years ago when I was an analyst tracking the enterprise portal market at Giga Information Group.

Those from the application integration world tended to see portals as empty frameworks (with authentication and customization services) into which apps or data sources could be plugged. But those (like me) that came from from the search and information access world saw a portal as encompassing more functionality in and of itself for collaboration, search and information access. So is the portal an entry point or a destination?

This question hasn’t reared its head in awhile since portal products were mostly subsumed into the application platforms of IBM, BEA and Oracle — as pretty generic portal frameworks. Even SAP’s portal has been mostly a UI to SAP’s apps as opposed to one itself.

But with the advent of social computing, the question seems to be returning. I met with open source portal play Liferay this week, a vendor that is busy adding social software capabilities to its portal. Liferay notes many customers, particularly in Europe, still looking for traditional portal framework capabilities, for the portal to serve as an aggregation point for accessing other apps.

Here in the US, Liferay is seeing more requests for integrated collaboration capabilities, like profiles, wikis, blogs and discussion forums, that are delivered to end users in the portal itself. The company is even toying with out how best to refer to its product in this new world. Is it still a portal?

Liferay isn’t the only portal vendor taking such steps. The BEA AquaLogic User Interaction group (the horribly named result of BEA’s 2005 Plumtree acquisition) has been busy adding social capabilities as well, packaged up in a new 6.5 release announced this week. It’s hard to know what to make of this, given the Oracle acquisition — Mike Gotta goes so far as to ask “Should I Pay Attention to BEA?” and Janus Boye is equally pessimistic about the prospects for BEA’s two portal products. But the AquaLogic group has done a nice job enhancing that portal and Pathways is one of the only enterprise tagging tools on the market (Connectbeam has another).

BEA’s portals aren’t likely to fair well post acquisition because Oracle already has two of its own. But Oracle WebCenter is the one getting the social software enhancements and the one likely to be Oracle’s main pick going forward. SAP and Microsoft are others making portals more social.

What will be interesting to watch is how these portal-based approaches make out in the nascent market for enterprise social software. They’re potentially up against SaaS offerings and on-premise tools that don’t require the portal overhead.

A good example of this is the Clearspace product from Jive Software, which also revved this week to a 2.0 version (and incidentally added customizable start pages to which users can add widgets…sound like the start of a portal?). With these new products, are we eliminating the services of the portal framework - authentication/single sign-on, customization, integration? Or maybe just the portal name?

It’s been a long week in the Reidy household…coughing, pink eye…anyone with little kids knows the drill. I’m finally catching up on some feed reading and there’s been some interesting dialogue this week about SharePoint. Is it possible to post about content management or social software these days without involving SharePoint?

• Collaborative Thinking: Microsoft Continues To Fill SharePoint Social Gaps

  Be sure the read all the comments on this one.

• SharePoint altering ECM landscape, survey says - Network World

  Newsflash!!

• eRoom Users Call to Action « Big Men On Content

  A worthwhile thread for anyone with an eye on EMC’s plans in the collaboration market - note the comment by EMC’s Lance Shaw.