Hyland Software looks set to become an attractive takeover target after building up its profile.

Hyland Software claims that its products are similar to those of its main competitor FileNet. It does not have web content management or digital asset management components, but does not feel this damages its sales prospects, as it has more than 5,000 customers with 730 being added in 2005. Most of its business is conducted through the channel, although around 20% of business is carried out through direct sales. Its solutions are also sold through OEM agreements with other vendors.

The latest version of its product, OnBase (version 5.0), includes records management, email archiving and collaboration. In line with many ECM vendors, Hyland Software has moved towards a solutions approach, targeting specific vertical markets including financial services, government, healthcare providers, life insurance, and process manufacturing.

Hyland Software is a little behind other ECM vendors when it comes to email archiving, in that it can only archive emails from an Exchange Server, whereas most of the other vendors that provide email archiving capabilities can also archive IBM Lotus Notes/Domino emails. However, it does have an extensive search capability, which includes full text searches.

In the records management module, records are managed at the folder level. The system contains sealed and active records. Events can be configured by folder type, and sets of documents can be automatically turned into a sealed business record on the execution of an event. Event-driven disposition schedules are also included.

Hyland Software also has its own certificate-based digital signature capability. This functionality that should be incorporated into ECM solutions, but is something not every ECM vendor has yet done. One interesting feature is the ability for workflow to sign a document.

It is refreshing to see a small regional ECM vendor grow, develop an international presence, and compete against the major ECM vendors. However, as a private company that is backed by investors, it is vulnerable to being sold at some stage in the future, and would make a good investment for any company wishing to move into the ECM space.

Source: OpinionWire by Butler Group (www.butlergroup.com)