Microsoft deal heralds further consolidation

By Martin Courtney

17 Jan 2008

Comment: 1

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Microsoft is to buy Fast for £1.2bn

Microsoft’s planned acquisition of enterprise search engine specialist Fast Search and Transfer (Fast) could prompt further consolidation in a shrinking range of corporate search tools, according to experts.

The software giant will integrate Fast technology into its Office SharePoint Server product when the estimated $1.2bn (£600m) deal closes, expected in the second quarter of 2008.

Further reading

The supplier will need to combine various pieces of Fast code added through acquisitions and open source adoption ­ including Linux cluster technology ­ into SharePoint, as well as taking on up to 3,500 Fast customers.

Microsoft’s enormous size will be central to the success of the takeover, according to Ovum analyst Mike Davies.

“Fast has had some difficulties in the past few years, with misreporting and things, so only an organisation such as Microsoft could take any financial nasties that may come out further down the line,” he said.

Microsoft is not the only major supplier in the enterprise search market ­ significant rivals include Google, Autonomy, IBM and Oracle.

And market leader Autonomy ­ with an estimated 17,000 customers worldwide ­ looks a prime acquisition prospect for vendors such as Oracle and HP with which it already has strategic partnerships.

The implications of market consolidation for users remain to be seen.

“Larger customers like consolidation because they do not like multiple contracts, but if you do not have anything outside the big suppliers then innovation may be stifled,” said Davies.

Reader comments

Yes, more acquisitions are on the way

We'll probably see other acquisitions because all big players are afraid to miss the "next big search thing." In most cases, though, they'll be buying technology based on the same principle - keyword recognition.
Yes, you can add arcane semantic or linguistic algorithms, yes you can invest in taxonomies, but you will still have to give a system an exact definition.
But what if the keyword is misspelled? Will the engine work in this case? Or if you do not know exactly what you are looking for, just have a vague notion?
There are other solutions out there that deal with this problem by imitating the work of human brain (we don't look for keywords, we look for patterns). For example, Brainware possesses a unique, patent-protected technology that sets it apart from other data capture and enterprise search solutions providers.
Its products are powered by the world's only engine that does not rely on exact definitions to rapidly sift through mountains of unstructured data. Brainware's technology allows it to recognize and find data through inexact definitions, patterns and context, mimicking the way the human brain processes and sorts information.
No need for dictionaries that list most common misspellings, no need for inverted indexes, Boolean operators, and taxonomies. Just type in a stream of misspelled consciousness, and the system will find the match.
Such queries will make other search engines go catatonic with confusion, but Brainware just loves them.
Here's a case study showing Brainware in action:
Fulbright & Jaworski: Leading Law Firm Searches And Shares Knowledge Base Smarter, More Accurately
www.brainware.com/brain_case_lawfirm.php

Posted by: Yegor Kuznetsov  17 Jan 2008

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