Hyland Executives Provide Overview of Content Services Roadmap
The content services business is booming for Hyland Software. The company added 1,800 clients last year – 750 won organically, the rest by acquisition, according to senior management – and the wave of acquisitions is expected to continue.
Hyland’s two biggest acquisitions were Nuxeo in April and Alfresco in October 2020. While they were competitors, “they weren’t as competitive as you might think,” said Ed McQuiston, Hyland’s commercial director. , in a briefing before next week’s Hyland CommunityLive. Virtual User Conference 2021.
Indeed, with their open source roots, Nuxeo and Alfresco users were more do-it-yourselfers than Hyland’s corporate clients in verticals such as healthcare, which were looking for more turnkey software, McQuiston said. Hyland plans to support established customers of Nuxeo and Alfresco “as far as we can see it in the future,” he said.
Hyland President and CEO Bill Priemer added that the company increased the percentage of revenue invested in R&D from 15% to 19% in 2021 as it developed the Hyland Experience Platform. So far, the platform includes an application for scanning, classifying and extracting data from documents on the web.
“We are not resting,” Priemer said. “We work with a sense of urgency. [There are] a lot of areas where we are accelerating and improving. “
It also means more acquisitions are likely, as Hyland has made it clear that this is their plan for growth, said Alan Pelz-Sharpe, founder of Deep Analysis. Hyland will likely make two types of acquisitions to meet its growth goals: lower-cost deals to quickly add AI, machine learning and automation capabilities to its platform – such as acquiring a another robotic process automation Monday in 2020 – and a higher transaction cost to acquire customers.
“These higher priced deals will likely focus on vertical sectors where they already have a large footprint – such as healthcare and education – and take them into new sectors such as supply chain and science. of life, ”said Pelz-Sharpe.
When discussing potential acquisitions, Hyland’s chief product officer John Phelan did not identify specific target companies. But he said Hyland can go further in medical imaging, add more natural language processing capabilities and potentially tackle new verticals such as real estate, life sciences and transportation logistics.
Ed mcquistonCommercial Director, Hyland Software
Phelan added that Europe is Hyland’s fastest growing segment, which could lead to the acquisition of a French, German or Nordic company to serve users in those geographies – which he has qualified as “very parochial” markets.
“We’ve been a little less aggressive in finding the next one, but as you can imagine there is a whole variety of companies that we’re talking to,” said Phelan. “We don’t buy big software companies because they have excellent [profit and loss statement]. While our portfolio is certainly bigger and broader today than it has ever been before, it still focuses on solving content and process issues for our clients. “
Content services for vertical industries will continue to be a priority, McQuiston said. Specifically, Hyland plans to provide customers with tools they can deploy quickly, tailored to their industries, as well as develop a customer-centric product roadmap for cloud-native content services, going forward. . While this may be the standard rate for many technology vendors, Hyland’s customer base includes many government and educational customers who use its software on-premises.
“We don’t intend to force migrations. But when they’re ready, we’ll have this next-gen platform for them and – along the way – start leveraging microservices,” McQuiston said.
Don Fluckinger covers enterprise content management, CRM, marketing automation, e-commerce, customer service, and enabling technologies for TechTarget.