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Technology Stocks : Open Market (OMKT)

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To: steve poon who wrote (1134)2/21/1999 11:16:00 AM
From: John F Beule  Read Replies (1) of 2004
 
How the Vignette role works to OMKT's advantage: From OMKT's website.

Vignette Corporation
Product Name: StoryServer 4, Vignette Syndication Server (VSS)
Comprehensive solutions for Web site ad management, electronic commerce, and personalization.
Vignette Corporation, a leader in the category of Internet Relationship Management, provides enterprise solutions for companies that are building successful businesses online. Vignette's products and services, which include industry-leading StoryServer 4, allow businesses to use the Web as a new channel for customer acquisition and retention. More than 100 premier companies, including National Semiconductor, PNC Bank, Bay Networks, Ziff-Davis' ZDNet and CNET, use StoryServer to serve a combined 30 million page views per day. Vignette's numerous industry awards includes the Herring 100's Best Overall Private Company in 1998 and the 1998 Best Product Award for StoryServer, as well as UPSIDE Magazine's "Hot Private Company in the Net Infrastructure Category." Vignette partners with 20 leading vendors in ad management, electronic commerce and personalization to provide comprehensive solutions for its customers. Headquartered in Austin, Texas, Vignette Corporation is on the World Wide Web at vignette.com.

Vignette's core competency is in offering complete, "out of the box" solutions to current web development and maintenance challenges:

StoryServer 4 is the industry's leading Web application system for managing relationships throughout the online customer lifecycle. Leveraging the strength of its content management system, StoryServer 4 also delivers a unique combination of personalization, profiling and reporting services to efficiently create superior user experiences that attract, engage and retain the connected customer.
Vignette Syndication Server (VSS) is the leading syndication platform for businesses looking to increase market share online. Using VSS, companies can expand their market reach, get their products and services in front of new customers and create barriers to entry for competitors.
Vignette Personalization technology allows you to respond to new or repeat visitors with fresh, personalized content and data.
Vignette Professional Services ties all these products together with unique technical "know how" to speed your site on its way.
Vignette's StoryServer and the Open Market Commerce Products are in use today in a variety of commercial sites. The combination of content management, dynamic delivery and commercial transactions offer our joint customers a complete set of products and services to embrace Internet Relationship Management and Internet Commerce to a degree only imagined previously. Now, Vignette/Open Market customers can enjoy a content-rich, personalized shopping or "transactional" experience that will virtually guarantee multiple return visits!
URL: vignette.com

Now, the competitive landscape inperspective:

Vignette vs. BroadVision
The Take
February 19, 1999
by Phil Harvey

There's no hotter investment category than Internet companies that make money on Web growth. Investors are eagerly watching Vignette Corp. (VIGN) and BroadVision Inc. (BVSN) slug it out in the public markets.

Vignette's initial public offering on Friday gives the startup an exposure advantage. On its first day of trading, the company's stock rose 23 11/16 to 42 11/16, which should keep it in the financial headlines. For its part, however, BroadVision dropped 7/8 to 40 on Friday.

Vignette's public debut offers investors a difficult choice. Vignette is growing twice as fast as BroadVision, but its stock will likely be three times as expensive, says Matthew Luckett, SoundView Financial Group's e-commerce analyst.

Luckett says Vignette is sacrificing profitability for immediate branding and growth, while BroadVision, which is profitable, is taking a slow, steady approach to expansion. Based on their stock prices now, Luckett says, Vignette is priced at about 30 times expected fiscal 1999 revenue and BroadVision is priced at about 12 times its anticipated 1999 returns.

SoundView maintains a "buy" rating on BroadVision, Luckett says. But why should investors care about two companies that aren't nearly as high-profile as Amazon.com or Yahoo Inc.? Ted Dintersmith, a principal at Charles River Ventures, a firm that's put about $5 million into funding Vignette, says investors must recognize that these companies will become the platform businesses will use to move to the Web.

Traditional businesses, such as The Gap or Levi's, are so-called second-movers into e-commerce. They have strong branding in the offline world and are aggressively pursuing the Web audience--but they don't want to develop in-house technology expertise. These companies will turn to Vignette and BroadVision, says Luckett.

Phil Harvey writes for Upside Today and welcomes your comments. Please send correspondence via e-mail (pharvey@upside.com) using plain text with no attached files.
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