Release HBX as a free tool to compete with Google Analytics

[#1]

Even though SiteCatalyst is the more powerful, preferred web analytics solution, the HBX tool is still a decent tool. There is no reason to completely pull the plug on it. Maybe strip out a few of the features to make it a bit simpler of a tool and then release it as a free web analytics product so it will compete with Google Analytics and the other free offerings out there. This may help Omniture gain some of the overall analytics market share. If a user is using a free product from Omniture, then when their analytics needs increase to the level where they could benefit from a tool like SiteCatalyst, they would be more likely to stay with the brand they have become familiar with.

[#2]

IMHO, I don't think that business model works for an existing paid product in this economy.

A) You risk losing some paying customers who are looking to cut back and realize they can do without some features.

B) You have to move/invest resources in a product line with no revenue potential. I know, open-source yada yada, but it still has to be managed as a product and maintained as a service by someone(s).

C) You're entering an existing (free) marketplace as a serious underdog to Google & Yahoo. If your market is the low-end need, why would a potential user move away from the established free product & brand.

Just my thoughts. Your mileage may vary.

[#3]

Hi NormCloutier,

re: A) You risk losing some paying customers who are looking to cut back and realize they can do without some features.

This is already happening as Google Analytics and other free or lower-cost tools catch up with Omniture's features, and as lower-cost options for training and support (e.g. GA's GAAC eco-system) proliferate.  As more of Omniture's contracts come up for renewal, we will see more defection to free and lower-cost options unless Omniture can drastically change their pricing structure or offer a lower-end product, as VABeachKevin has suggested.

I also further agree with VABeachKevin that offering a free or low-cost option will be a good way for Omniture to acquire new customers -- the cost of supporting a free product can be justified by product upgrades as the company's need evolves, and by "premium" training and consulting services (although the more people within a company use the product, the more likely they will upgrade -- speaking from experience here).  I'm sure the smart quantjocks in Orem have already done the cost/benefit analysis with multiple sensitiivey tests

Lastly I think Omniture should move fast -- IMHO having looked extensively into Google Analytics, Omniture is still a better product, but GA is catching up fast.

Sherry

[#4]

I'll agree with Kevin on this.  I think it makes a lot of sense.