Acquisitions Reshaping Web Analytics Market

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Analyst firm Real Story Group recommends buyer caution

Web Analytics Report

but the larger acquirer may position web analytics to promote other more lucrative services -- that’s definitely happened with Yahoo! and Google, and could happen again with IBM’s Coremetrics acquisition.

Web Analytics technology customers should carefully assess their options as acquisitions in the marketplace shift vendor focus, according to new research released this week by the independent analyst firm, The Real Story Group (formerly CMS Watch).

Last month, IBM announced its acquisition of Coremetrics (pending regulatory approval), following Adobe’s purchase of Omniture the year before. Yahoo! and Google acquired independent web analytics vendors previously. The latest announcement leaves only privately-held Nedstat and Webtrends as the major remaining independent Web Analytics services, along with Unica, a publicly-traded e-marketing suite vendor.

This week The Real Story Group released version 5.0 of its Web Analytics research, evaluating 21 vendors head to head, including 20-page reviews of the seven leading vendors above.

Real Story Group President Tony Byrne disagrees with mainstream assessments that these acquisitions are good for the web analytics industry. “Sometimes you see benefits for investors in these deals, but for customers, not so much,” Byrne said today.

Customers may also see a change in vendor focus at a time when all the major web analytics services are struggling to adequately keep up with demands for new features like social media measurement.

“Customers want vendors to continue to focus on their core competencies,” notes Real Story Group contributing analyst Phil Kemelor, “but the larger acquirer may position web analytics to promote other more lucrative services -- that’s definitely happened with Yahoo! and Google, and could happen again with IBM’s Coremetrics acquisition.”

According to Byrne, customers and prospective customers should carefully weigh their options and investigate niche suppliers for specialized metrics. “Vendors will make long-term roadmap promises, but you’ll want to keep a closer eye on workaday operational metrics like support and performance,” he advises.

The evaluations are available as a one-time download or an ongoing subscription with regular updates, from http://www.realstorygroup.com.

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