Adobe Flexes Its Online Muscle and Acquires Omniture

John Lovett [Posted by John Lovett]

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Adobe announced today its intention to acquire Omniture for $1.8 billion dollars. Many industry insiders and practitioners alike are asking why this deal makes sense. Here is Forrester’s take on what it means:

  • Measurement becomes embedded within Interactive media. This acquisition has the potential to embed measurement technologies into a burgeoning landscape of interactive media. Adobe’s content creation tools are widespread and this acquisition now provides the opportunity for both developers and content creators to use a measurement tool that is inherent to the development platform.

  • Web content management solutions have a new challenger. Adobe has a strong workflow and process management background that is typically disjointed from the online optimization efforts. Bringing these companies together creates the potential for enabling native tagging during content creation; coupled with run time delivery; followed by optimization tactics for continuous improvement.      
  • Advertising and onsite measurement potentially share a roof. Advertisers and publishers use disparate tools to measure and reconcile visitors and impressions. Publishers need help monetizing content by understanding how it is consumed by visitors; while advertisers struggle to place relevant as in front of a targeted audience. If these two entities begin to share a common platform for measurement, then analysis and optimization align.  
  • Adobe gains a recurring revenue stream. The revenue models for these organizations are different. Adobe largely sells licensed software, which was down 30% this quarter and hurting from the current economy. While Omniture delivers software as a service, thus Adobe gains a SaaS based recurring revenue model.  

We welcome your comments and thoughts on this acquisition news and how it affects Customer Intelligence professionals. Please look for a much more detailed analysis in our syndicated research coming soon.

  

Comments

re: Adobe Flexes Its Online Muscle and Acquires Omniture

I'd add one more from a purely selfish perspective:Improved ease of implementation for developers. Adobe has done wonders in the past with doing whatever it could to make life easier for the folks in the cubes pounding out the code.Take that with the great folks at Omniture and you could have the best web analytic tool out there combined with true developer buy in to the implementation process. I am thrilled at the idea!-Rudi

re: Adobe Flexes Its Online Muscle and Acquires Omniture

Adobe also gets a good SaaS platform as part of this. If they can come up with a hosted/SaaS model using this platform and their Livecycle platform, it could be a strong offering for customers who want a hosted eforms/doc services solution.

re: Adobe Flexes Its Online Muscle and Acquires Omniture

@Rudi - While I too see great possibilities...Don't assume that this is a free meal ticket for developers. Web analytics implementations, particularly Omniture's, are complex. The opportunity to make that easier now exists, but significant integration and potentially re-architecture of their solution may be required.@apoorv - The SaaS model is a possible benefit, but be careful what you wish for. While Omniture has an extensive infrastructure, they are not impervious to issues. This was exemplified in service delays back in February of this year. Supporting Adobe products in a hosted environment would also require beefing up their existing infrastructure.There are still many unanswered questions with regards to this acquisition. These thoughts expand on the possibilities, yet the real work lies ahead for both Adobe and Omniture.

re: Adobe Flexes Its Online Muscle and Acquires Omniture

One missing piece in any web analytics tool (like Omniture)functionality that I always hear is the actual analytical part. Many of my clients use web analytics tools to track and manage clickstream data, but then resort to other tools for true analysis. Do you think Adobe will take the next step and acquire/build richer BI (Business Intelligence) functionality?

re: Adobe Flexes Its Online Muscle and Acquires Omniture

Great post and I'd be interested to hear your thoughts on the post at http://www.AtlantaAnalytics.com - there just doesn't seem to be a lot of present value to this acquisition.I agree with Rudi about ease of implementation, but building that integration is going to be a tall task, and even if the tags are automatically placed, there are still the standard-issue page naming, channel-naming, prop and eVar populating tasks that need to be filled out by someone with both technical and business understanding.Very interested to hear your thoughts.