RealTime IT News

Open Text Nabs Artesia for Asset Management

Open Text added another piece to its broadening enterprise content management (ECM) puzzle when it agreed to acquire Artesia Technologies for an undisclosed sum.

Open Text of Waterloo, Ontario, described the transaction close as "imminent" in a statement. Privately held Artesia of Rockville, Md., specializes in managing digital assets, one of the many components experts believe is necessary to make a complete ECM platform.

Open Text spokesman Rich Maganini, who said his employer will retain the Artesia office in Rockville, noted the purchase will go a long way toward helping the company improve its ability to offer content management and collaboration for all kinds of media.

As a leader in the so-called digital asset management (DAM) space, Artesia has more than 120 global customers Open Text can cater to, including HBO, DreamWorks and several government agencies, Maganini told internetnews.com.

Artesia applications drive content reuse and collaboration for digital media content; control over and reuse of the digital media elements used in marketing campaigns; and enhance content management and collaboration by extending search, retrieval, viewing and analysis to digital media content and its metadata.

Open Text will integrate these applications to fill in its LiveLink ECM platform, which it fleshed out earlier this year by acquiring e-mail archiving heavyweight Ixos Software for $250 million.

Analysts say rich media comprises a large and increasing portion of the intellectual capital. Artesia's software should help Open Text better serve companies challenged by compliance requirements, including Sarbanes-Oxley, SEC17a-4 and HIPAA.

In the content and document management market, Open Text ranks fourth behind IBM, FileNet and Documentum/EMC, posting revenues of $80 million in 2003, according to Gartner. The research company said the total market will top $1.7 billion by 2008, due in large part to the growth of unstructured data, such as e-mail files and audio and video clips.

"Most of the information that exists in organizations is unstructured, and there is an ever-growing imperative to manage this unstructured content," said Tom Eid, principal analyst for Gartner. "Over the past two years, there has been greater acceptance of an integrated content and document management suite, and many content and document management vendors are now providing focused solutions."

EMC created a stir in the ECM space earlier this year by acquiring Documentum for $1.7 billion. The storage systems vendor is looking to manage content throughout every step of its lifecycle, which promises to be a lucrative market in light of the government regulations.