Yahoo Acquires IndexTools
The ongoing industry consolidation continues as Yahoo have acquired IndexTools and it’s potentially an industry changing line in the sand. It’s more than possible that the entire toolset that IndexTools own will like Google Analytics before it be given away to it’s 150,000 customers that run Yahoo accounts. Heartfelt congratulations to all at Indextools, especially Dennis, Charlie and Marton. It couldn’t have happened to a nicer set of blokes!
There is a BIG difference between the GA announcement a couple of years ago and now. Google Analytics in comparison to IndexTools is low end. IndexTools 9 is a powerful solution with excellent segmentation capabilities, good integration and bid management systems.
Rubix the tool which IndexTools have yet to even release comes on the back of years of work and is truly an outstanding offering, the closest I’ve seen to Omnitures Visual Site which I think is the best Analysts tool in the world. If, as I’m speculating, they give this away in the new Yahoo system then they (Yahoo Index - My suggestion for a name!)
would be my first choice of Analytics vendor for the 75% of my current clients.
The way I see it, this acquisition can make web analytics a commodity as Ian Thomas (hat off to him) predicted and I opened up for discussion earlier this year. I never imagined that a system would be given away that was powerful enough to make web analytics a commodity until now.
This could shift the industry towards developing people and process in order to build competence around tools such as IndexTools in the future.
To their credit Omniture at least made a comment but they did play it down with this reaction from Niel Morgan;
¢‚¬Å“This is a very late move by Yahoo! into providing a web analytics offering to its customers which Google and Microsoft have done for over a year. Clearly it will be focused on helping maximise their ad sales, so once again the market has lost an independent web analytics tool and their customers a unbiased way to measure their results. IndexTools always tried to compete as ¢‚¬Ëœgood enough¢‚¬„¢ web analytics at a very low price, so presumably Yahoo! will simply give it away and curtail its development, not great news for IndexTools customers who have been paying for their service. The real question of course is if the Microsoft acquisition of Yahoo! goes through which ¢‚¬Ëœfree¢‚¬„¢ tool will they give away first, IndexTools or Microsoft Gatineau?¢‚¬
The “un-biased” card is a good one. Customers who don’t want their information in the hands of a potential competitor is still a reason to pay someone to keep your information away from them. However it’s short sighted to say Yahoo will “curtail the development”. Did Google? Why then would Yahoo?
I could argue that SiteCatalyst alone is no better for 99% of the functions than IndexTools 9. Yes SC has lots of add-ons like Offermatica, Data wharehouse and has great integration with other tools but all for extra fees and even with the extra stuff IndexTools ctaers for 75-80% of it anyway.
So what will Omniture really do to counter this? they can no longer rely on the “quality” of their base system in my opinion.
This is not good news for Omniture and I feel like Neil has been purposely reacting to bad news as best he can to keep his shareholders and his employees happy. Omniture share price has been dropping for a while now and another 3 dollars were knocked off at one point yesterday after this announcement. Omniture though are in the strongest position financially and technically of all the vendors. At least they have something extra like Visual Site. How do Webtrends and others like CoreMetrics react to this? An open question and I could find no response from any vendor websites.
This in my view is more evidence of two tiers of analytics opening up. Customer analytics and web analytics with web analytics fast becoming a commodity. Vendors who make a living from the tools either need to find a Microsoft, Google or Yahoo which can add value to their current services by including free analytics or get into customer analytics.



A couple of comments:
- What on earth is this Rubix thing? Do you by any chance have any links or something like that?
- If Yahoo Index was released, I’m pretty sure it won’t be based on a FULL version of IndexTools. Rather the free Yahoo analytics package will be a limited version, and then you can perhabs subscribe to additional functionality.
It IS very interested to see what will happen with IndexTools. I myself haven’t decided yet whether I think this is good or bad news.