Microsoft wants it all in ECM

Open Text’s announcement this week that it will work with Microsoft to create services that sit on top of the latter’s SharePoint Server is a classic example of the realpolitik that currently characterises enterprise content management (ECM).

SharePoint has created a seismic shift in the category to the extent that ECM heavyweights realise that it makes more sense to make nice with the software giant than to try and stare it down. Open Text is not alone in realising this, and firms like Documentum, Interwoven, Vignette and others have done much the same. Fair enough, but the catch here is that Microsoft has a long history of turning the tables on its erstwhile partners.

The SharePoint strategy is straight out of the Microsoft playbook.

Step One: start out with a product that integrates with other Microsoft programs, and looks and feels just like them, even if it is a little rough around the edges.

Step Two: Create licensing that provides the illusion that the program is free or very low-cost.

Step Three: Get channel partners to work with the product in order to create traction.

Step Four: Adopt the marketing message that “this is [insert product cartegory name here] for the rest of us”.

Step Five: When traction has been gained, build up capabilities over subsequent versions to challenge, and usually beat, specialists.

Microsoft has pulled off this trick in server operating systems, systems management and many other areas. The likes of Open Text can argue for a while that SharePoint won’t scale, isn’t appropriate for certain verticals, doesn’t have top-end sophistication and so on. But when Microsoft enters a market it wants it all and software history is strewn with the names of companies that learned that the hard way.