NetObjects: Difference between revisions

Revision as of 15:29, 19 June 2012

Revision as of 07:33, 12 October 2012

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{{Infobox company

{{Infobox_Company

| company_name = NetObjects, Inc.

| company_logo = [[Image:NETO logo.png]]

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In 1995 NetObjects was founded to market NetObjects Fusion, a new design tool to build [[web site]]s. The term "[[web site]]", well-known and widespread today, was then still on the rise and is connected with the work of [[Samir Arora]], David Kleinberg, [[Clement Mok]] and Sal Arora.{{Citation needed|date=December 2008}}

Initially NetObjects was as a privately held company with the Series A venture investment led by Rae Technology, Series B by [[Norwest Venture Partners]] and [[Venrock Associates]], followed by [[Novell]],<ref name="NOVELL">{{cite web

| url = http://www.novell.com/news/press/pressroom/presskit/brainshare99/netobjects.html

| title = Novell Makes Equity Investment in NetObjects

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| archiveurl = http://web.archive.org/web/20001215152500/http://www.novell.com/news/press/pressroom/presskit/brainshare99/netobjects.html

| archivedate = 2000-12-15

}}</ref>, [[Mitsubishi]] and [[AT&T]] Ventures and the last round by Perseus Capital, L.L.C.

In April 1997 [[IBM]] invested $100 million to acquire a majority of the company. The deal had a valuation of $150 million.<ref name="sreenivas">{{cite news

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}}</ref><ref name="netobj-ibm">{{cite web

| url = http://www.netobjects.com/company/html/pra16apr97.html

| title = "IBM completes investment in NetObjects"

| publisher = NetObjects, Inc.

| date = April 16, 1997

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Key positions in the company were as follows:

* [[Chair (official)|Chairman]] and [[Chief Executive Officer]] (CEO): [[Samir Arora]],<ref name="arora_bio">{{cite web

| url = http://www.samirarora.com/html/bio.html

| title = "Bio: Samir Arora"

| work = SamirArora.com

| publisher = Samir Arora

| accessdate = March 5, 2008

|archiveurl = http://web.archive.org/web/20071028011721/http://www.samirarora.com/html/bio.html <!-- Bot retrieved archive --> |archivedate = October 28, 2007}}</ref>, who held executive positions at Apple Computer and Rae Technology.

* [[Executive Vice President]], Products and Marketing: David Kleinberg, who co-founded Rae Technology with Samir Arora.

* [[Chief Creative Officer]]: [[Clement Mok]],<ref name="Mok_1">{{cite web

| url = http://www.clementmok.com/career/company.asp?offset=5&CoID=6

| title = "Clement Mok: Career: NetObjects"

| work = ClementMok.com

| publisher = Clement Mok

| accessdate = March 5, 2008

}}</ref>, well known as an [[interactivity]] [[designer]].

* Vice President of Product Development and Chief Technology Architect: Sal Arora, who was the lead engineer at [[Rae Technology]].

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* [[Vice President]], North American Sales: [[Dominic Renda]], who was instrumental in the establishment and viability of NetObjects Enterprise Division and the achievement of strategic revenue, alliance and account objectives.

* Director of [[Product design|Product Design]]: Victor Zauderer,<ref name="Zaud">{{cite web

| url = http://www.zaudhaus.com/team/profile.asp?Person=Zaud

| title = "Victor Zaud"

| work = Zaudhaus.com

| publisher = Zaudhaus LLC

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| archiveurl = http://web.archive.org/web/20051218033408/http://www.zaudhaus.com/team/profile.asp?Person=Zaud

| archivedate = 2005-12-18

}}</ref>, who had been focusing on developing and designing online systems solutions.

Additionally, [[Susan Kare]], who had built many of the interface elements of the Apple [[Macintosh]], was a [[consultant]] to help design the [[user interface]] of NetObjects Fusion.<ref name="NetObj-Team">{{cite web

| url = http://www.netobjects.com/company/html/pra27jan97b.html

| title = "NetObjects Enhances Unique, World-Class Design Team"

| publisher = NetObjects, Inc.

| date = January 27, 1997

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== Launch of NetObjects Fusion and IPO ==

NetObjects Fusion 1.0 was released in 1996. As the first complete web design tool it was seen as groundbreaking by technology observers. NetObjects was elected as one of "25 Cool Technology Companies" of 1996 by ''[[Fortune (magazine)|Fortune]]''.<ref name="Mok_2">{{cite web

| url = http://www.clementmok.com/onrecord/article.asp?ArticleID=21&d=1990

| title = "1996 25 Cool Technology Companies"

| work = ClementMok.com

| publisher = Clement Mok

| accessdate = March 5, 2008

}}</ref>.

Also in 1996, NetObjects Fusion won ''[[PC Magazine]]'''s Editors' Choice award. [[CNET]]'s Builder.com elected Samir Arora one of the Web Innovators of 1997,<ref name="INNOVATOR">{{cite web

| url = http://builder.cnet.com/webbuilding/pages/Business/Innovators97/ss03.html

| first = Dan

| last = Shafer

| title = "BUILDER.COM - Web Business - The 1st annual Web Innovator Awards - Samir Arora, NetObjects Fusion"

| work = CNET Builder.com

| publisher = CNET Networks, Inc.

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| archiveurl = http://web.archive.org/web/20010505054830/builder.cnet.com/webbuilding/pages/Business/Innovators97/ss03.html

| archivedate = 1998-12-12

}}</ref>, and in 1998 NetObjects received the prestigious Gold award from the [[Industrial Designers Society of America]] (IDSA).<ref name="IDSA">{{cite web

| url = http://www.idsa.org/whatsnew/sections/dh/idea_winners_95-99.pdf

|format=PDF| title = "Gold Industrial Design Excellence Award (IDEA) Winners 1995–1999"

| publisher = [[Industrial Designers Society of America]] (IDSA)

| accessdate = March 5, 2008

|archiveurl = http://web.archive.org/web/20070928095948/http://www.idsa.org/whatsnew/sections/dh/idea_winners_95-99.pdf <!-- Bot retrieved archive --> |archivedate = September 28, 2007}}</ref><ref name="IDSA_1">{{cite web

| url = http://idsa.org/whatis/seewhat/idea98/winners/netobjects.htm

| title = "Gold Industrial Design Excellence Award (IDEA) Winners 1995–1999"

| publisher = [[Industrial Designers Society of America]] (IDSA)

| accessdate = June 27, 2008

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| first = Samir

| last = Arora

| title = "Bundling discussions"

| work = netobjects.fusionmx.gen-discuss

| publisher = Google Groups

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| accessdate = March 5, 2008

}}</ref>

were made with nearly all the big [[Personal computer|PC]] sellers like [[Dell]] and [[HP]],<ref name="HP">{{cite web

| url = http://www.marketwatch.com/News/Story/Story.aspx?guid={A0B9E29C-FF54-4388-A850-B9A4E0D48FAB}

| first = Chris

| last = Kraeuter

| title = "H-P, NetObjects to unveil 3-year deal"

| work = CBS.MarketWatch.com

| publisher = MarketWatch, Inc.

| date = July 27, 2001

| accessdate = July 4, 2008

}}</ref>, and with [[Internet service provider]]s like [[UUNET]], [[Earthlink]] or 1 & 1 ([[Germany]]). The company itself said it licensed the [[Distribution (business)|distribution]] of more than 15 million copies of NetObjects Fusion. In addition, the company sold over 500,000 copies of NetObjects Fusion directly through retail. In 2001 a number of 5 million users worldwide was published.

In 2000 the [[stock]] price of NETO ([[ticker symbol]]) reached its record high of $45 11/16 USD, making NetObjects worth $1.5 billion.

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However, several factors led NetObjects to a [[crisis]] starting in 2000.<ref name="NetObj-FY2000">{{cite web

| url = http://www.prnewswire.co.uk/cgi/news/release?id=57873

| title = "NetObjects, Inc. announces fourth quarter and fiscal year-end 2000 results"

| publisher = PR Newswire Europe Ltd.

| accessdate = March 5, 2008

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Technical demands for large business web sites changed and required direct access of [[programmer]]s to [[HTML]] [[Source code|code]] — which NetObjects Fusion was not designed for.<ref name="Another-upgrade">{{cite web

| url = http://groups.google.de/group/netobjects.fusion30.gen-discussion-windows/browse_thread/thread/da47321c078354c2/b9212481a8bd5853

| title = "'Another' Upgrade?"

| work = netobjects.fusion30.gen-discuss

| publisher = Google Groups

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| date = (1999)

| publisher = Jupitermedia Corporation

| accessdate = July 23, 2008}}</ref> and the related "Collage" product,<ref name="Collage">{{cite web

| url = http://www.serena.com/products/collage/index.html

| title = Serena Collage

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| archiveurl = http://web.archive.org/web/20071005162234/www.serena.com/products/collage/index.html

| archivedate = 2007-10-05

}}</ref>, which as [[Content management system|content management solutions]] were aimed at big businesses and ranged at much higher price levels than NetObjects Fusion.

However, IBM and NetObjects decided that its target market was the sector of [[small and medium enterprises]], so it would focus on its flagship application NetObjects Fusion which would fit within the scope of these customers.<ref name="FT">{{cite web

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| last = Newcomb

| first = Kevin

| title = "MERANT to Acquire NetObjects Division"

| work = InternetNews.com

| publisher = Jupitermedia Corporation

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| last = Holland

| first = Roberta

| title = "Merant to acquire NetObjects division"

| work = ZDNet News - Technology News Now

| publisher = ZD Inc.

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}}</ref> (merged in 2004 with [[Serena Software]] Inc., based in [[San Mateo, California]]).

High hopes were based on the NetObjects Matrix platform and its possibilities to position NetObjects as a "Business Service Provider". A version for Mac was announced,<ref name="Newcomb3">{{cite web

| url = http://www.internetnews.com/xSP/article.php/3411_784291

| last = Newcomb

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| date = June 12, 2001

| accessdate = July 6, 2008

}}</ref>, and a cooperation with IBM Global Services was forged.<ref name="Newcomb2"/>. The share price, which already had fallen below 1 US$, doubled on the news of the IBM deal.<ref name="IBM">{{cite web

| url = http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BB9227F21-D9C9-498F-A2EA-C9694C0B6322%7D&source=blq%2Fyhoo&dist=yhoo&siteid=yhoo

| first = Mike

| last = Tarsala

| title = "NetObjects climbs on IBM deal"

| work = CBS.MarketWatch.com

| publisher = MarketWatch, Inc.

| date = June 11, 2001

| accessdate = July 6, 2008

}}</ref>.

== IBM decisions and sale of NetObjects ==

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In 2001 revenue streams decreased sharply,<ref name=PR>{{cite web

| url = http://www.prnewswire.co.uk/cgi/news/release?id=62055

| title = "NetObjects, Inc. announces financial results for its first quarter of FY2001"

| publisher = PR Newswire Europe Ltd.

| accessdate = March 5, 2008

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a result of changing markets, price cuts, strategy shift, and absent Authoring Suite / Collage sales. Subscription fees from NetObjects Matrix started coming in but the company had to face losses. Total revenues for the first three quarters of FY 2001 were only as much as $4.22 million opposed to total costs of $7.67 million.<ref name="SEC-NetObj-Jun01">{{cite web

| url = http://www.secinfo.com/dsvNq.4f8Nc.htm

| title = "Netobjects Inc · 10-Q · For 6/30/01"

| publisher = Securities and Exchange Commission, Washington, D.C.

| date = August 14, 2001

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| first = Samir

| last = Arora

| title = "NetObjects Fusion users"

| work = netobjects.fusionmx.gen-discuss

| publisher = Google Groups

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NetObjects Fusion, NetObjects Matrix including the MatrixBuilder, BizGoBiz and other assets were sold to Website Pros (now [[Web.com]]), a web design and services company based in [[Jacksonville, Florida]], for an estimated amount of $4 million, including instant payments as well as fees from future revenues from NetObjects applications and services within three years. (The sum of $4 million was based on assumptions about sales in this three-year period. Depending on real sales the price could in fact be lower or higher up to a limit of $10 million.)<ref name="SEC-NetObj-Sep01">{{cite web

| url = http://www.secinfo.com/dsvNq.4f8q2.htm

| title = "Netobjects Inc · PRE 14C · For 9/30/01"

| publisher = Securities and Exchange Commission, Washington, D.C.

| date = October 22, 2001

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Website Pros (WSP) (now [[Web.com]]) went on developing and distributing future versions of NetObjects Fusion<ref name="NOF-Club">{{de icon}} {{cite web

| url = http://www.nof-club.de/werner/interview/wsp/

| title = "NOF-Club Interview mit Stephen M. Raubenstine"

| work = Das große Interview

| publisher = NOF-Club Deutschland (NetObjects Fusion Userclub)

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License revenue from sales of NetObjects Fusion reached nearly $3.58 million in 2006, $2.4 million in 2007,<ref name="WSP_2008">{{cite web

| url = http://ir.websitepros.com/releasedetail.cfm?ReleaseID=293601

| title = "Website Pros Reports Fourth Quarter and Full-Year 2007 Financial Results"

| work = Investor Relations

| publisher = Website Pros

| date = February 12, 2008

| accessdate = March 5, 2008

}}</ref> and $2.5 million in 2008.<ref name="WEB.COM_IR_364546">{{cite web

| url = http://ir.web.com/releasedetail.cfm?ReleaseID=364546

| title = "Web.com Reports Fourth Quarter and Full Year 2008 Financial Results"

| work = Investor Relations

| publisher = Web.com

| date = February 10, 2008

| accessdate = February 23, 2009

}}</ref>. In May 2009 NetObjects Fusion was sold. In the first six months of 2009 "revenue generated by the NetObjects Fusion software business" reached only $428 thousand compared to $1.5 million in the first six months of 2008. Net income for this period was $228 thousand compared to $302 thousand.<ref name="WEB.COM_SEC_2_2009">{{cite web

| url = http://ir.web.com/secfiling.cfm?filingID=1144204-09-40519

| title = "Web.com Quarterly Report for the quarterly period ended June 30, 2009"

| work = SEC

| publisher = Web.com

| date = August 5, 2009

| accessdate = August 14, 2009

}}</ref>.

== NetObjects as a re-established company ==

In May 2009 NetObjects Inc. was re-established as an independent company. It acquired the NetObjects Fusion product line for "approximately $4.0 million" from Web.com. A smaller part of the amount was transferred instantly, while $3.0 million remained payable from future revenue of NetObjects Fusion sales until 2013.<ref name="WEB.COM_SEC_2_2009" /> $4.0 million was the same price that was agreed upon between IBM and Website Pros in 2001.<ref name="SEC-NetObj-Sep01" />.

In terms of management and staff, there are no overlapping between the old and new companies with the same name. Steve Raubenstine, who was vice president of the NetObjects Fusion division at Web.com (former Website Pros), serves as President and CEO of the new NetObjects Inc.

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* NetObjects Fusion: web design tool created in 1996, sold to Website Pros (now [[Web.com]]) in 2001, re-purchased by the new established NetObjects, Inc. in 2009, still distributed. The latest release is version 12, released in December 2010.

* NetObjects Authoring Server, a collaborative Web development and [[content management system|content management solution]], created in 1999, sold to UK-based Merant in 2000, after Merant's merge in 2004 with Serena Software distributed as "Collage" and discontinued in 2008.<ref name="TRENDS">{{cite web

| url = http://www.cmswatch.com/Trends/1179-Serena-Collage-to-go-off-into-the-sunset

| first = Tony

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| date = March 12, 2008

| accessdate = April 15, 2009

}}</ref>. The predecessor of this was NetObjects Team Fusion, introduced as a [[client–server]] application in 1998.

* NetObjects Matrix, an online Web builder and Web services tool, invented in 2000, sold to Website Pros in 2001. Website Pros, now [[Web.com]], relied their website building process for customers on the NetObjects MatrixBuilder platform.<ref name=ANNUAL_5>{{cite web | url = http://files.shareholder.com/downloads/WSPI/351433097x0x189105/BED273D3-F558-48EF-9A1B-4248CFBEBEF8/Annual%20Report%20for%20Web.pdf|format=PDF| title = Website Pros Annual Report 2007, pgs. 15, 21 | publisher = Website Pros | accessdate = July 4, 2008}}</ref>.

== References ==