Briefing.com on Internet Software
I've decided that this particular Briefing.com analyst, Gregory Jones, is one smart cookie who is interested in the kind of stuff this thread covers. So if threadsters want, I will continue to post his analyses here as I come across them ("if threadsters want" will be decided by ratio of PMs I get in favor vs. against the idea). I also invited him to drop by and post if he so wishes; he said he might if he ever has time.
tekboy/Ares@thispaysmythreadduesbyproxyandentitlesmetofreeadvice.com
AEA IV: Internet Software
[BRIEFING.COM - Gregory A. Jones] The Internet software sector has been on fire lately, and we therefore made a point of visiting some of these companies at the AEA conference in San Diego that concluded on Wednesday. What struck us immediately was the complexity of this sector and the need for a framework to understand the players. Here is the Internet software landscape as we see it.
Among the companies that we saw at the AEA that compete on this broad playing field are Vignette (VIGN), Silknet Software.com (SILK), Interwoven (IWOV), Interleaf (LEAF), Webtrends (WEBT), Intervu (ITVU), and Liberate Technology (LBRT). Though we will attempt to discuss these presentations individually in separate Stock Briefs, we first feel compelled to define their turf.
Within the broad group of Internet software companies, there are many sub-sectors, sub-sub-sectors and so on. And we have oddities such as Interwoven calling Vignette a competitor and Vignette calling Broadvision (BVSN) a competitor, yet Interwoven partners with Broadvision. To place all this in context, we need to view the website as a line beginning with the authoring of content and extending through to distribution and monitoring.
In Back Of The Firewall
At the most basic level of website development we have the authoring and graphics tools. In this space are some of the most familiar names such as Microsoft Office (MSFT), Adobe (ADBE), Macromedia (MACR), and NetObjects (NETO).
After authoring comes the content management phase -- the point at which text is combined with database assets, document versions are assigned, workflow is established, audit trails are left behind, and content is encrypted, replicated, syndicated and ready to be deployed to the website. In this group are Vignette, Interwoven, Inso (INSO), Interleaf (LEAF), portal player Viador (VIAD), and Intranet-oriented players Documentum (DCTM) and FileNet (FILE).
In Front Of The Firewall
After this, we move out of the firewall and onto the Net -- this is the point of customer interaction, and this is where the CRM players come in. Vignette is still a player in this realm, but it is joined by many others. Silknet Software.com, Broadvision (BVSN), and Calico Commerce (CLIC) are among the most dominant players here. But they are joined by Broadbase Software (BBSW), eGain Communications (EGAN), E.piphany (EPNY), Interworld (INTW), Art Technology Group (ARTG), Bluestone Software (BLSW), email specialists Kana Communications (KANA), collaborative filtering company Net Perceptions (NETP), and knowledgebase provider Primus Knowledge (PKSI).
We should also mention business-to-business companies Ariba (ARBA) and Commerce One (CMRC) at this point. Though they get lumped into the B2B sector given their efforts to create B2B marketplaces, their revenues at this point are derived almost entirely from software. They compete primarily with each other and not the companies mentioned above, as they focus on solutions for buyers of goods and services rather than sellers -- a key distinction which sets them apart from BVSN and CLIC.
Security
With the move outside the firewall comes the need for security, which is where companies like Verisign (VRSN), Intertrust (ITRU), Entrust (ENTU), Tumbleweed (TMWD), Watchguard Tech (WGRD), and Cybercash (CYCH) come in.
Distribution
Multimedia content distribution can be handled by Real Networks (RNWK) or Intervu (ITVU).
For companies wishing to distribute their products to the non-PC Internet world, there are solutions from Phone.com (PHCM), Liberate Technology (LBRT), and Spyglass (SPYG).
Monitoring
Finally, there are the companies that will tell you how your site is doing -- Webtrends (WEBT) and Accrue Software (ACRU) offer traffic analysis and other website monitoring tools.
Summing It Up
Perhaps this structure of the Internet software industry can best be viewed schematically. Offered below is the Briefing.com view of the Internet software sector from authoring to site monitoring.
Authoring Content Mngmnt CRM Security Multimedia Distrib. Non-PC Distrib. Site Analysis
MSFT, ADBE, NETO, MACR INSO, IWOV, LEAF, VIAD, VIGN ARTG, BBSW, BLSW, BVSN, CLIC, EGAN, EPNY, INTW, KANA, PKSI, VIGN CYCH, ENTU, ITRU, TMWD, VRSN, WGRD ITVU, RNWK LBRT, PHCM, SPYG ACRU, WEBT
There are of course other niche areas within the Net software sector that don't fit into our authoring-to-monitoring webline. Among these are:
* Push: Backweb (BWEB), Marimba (MRBA)
* Online banking: Digital Insight (DGIN), nFront (NFNT), Online Resources (ORCC), Security First (SONE)
* Voice over IP: Net2Phone (NTOP), Netspeak (NSPK), Vocaltec (VOCL)
* Miscellaneous: Inktomi (INKT), Tibco (TIBX)
This list is not comprehensive -- there are other stocks in this group that we haven't mentioned. But it does provide us with a framework for analyzing the sector going forward. And that's what we will do next...
Greg Jones - gjones@briefing.com |
