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New Contenders in the Editorial Systems Market - Impressed

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<strong>Editorial</strong> <strong>Systems</strong><br />

Nx<strong>Editorial</strong>’s XML<br />

Editor (left) with a Web<br />

page. At <strong>the</strong> bottom<br />

is a collection of<br />

content that has<br />

been associated<br />

with this story and<br />

can be tagged and<br />

used <strong>in</strong> pr<strong>in</strong>t, on <strong>the</strong><br />

Web, etc.<br />

items are still miss<strong>in</strong>g, <strong>in</strong>clud<strong>in</strong>g a switch to an open,<br />

scalable architecture and standard database, a need<br />

that is even more apparent <strong>in</strong> light of <strong>the</strong> new competitors.<br />

Also of concern is <strong>the</strong> lack of a means of extract<strong>in</strong>g<br />

QPS content (as XML-tagged files) for publish<strong>in</strong>g<br />

on <strong>the</strong> Web on a real-time or scheduled basis. QPS customers<br />

have been able to use tools such as Callas Software’s<br />

Autopilot or PCI’s Internet Content Publish<strong>in</strong>g<br />

System (iCPS) to import or export content and metadata<br />

automatically <strong>in</strong>to or out of QPS, but <strong>the</strong>y run as<br />

server products and come from third parties, whereas<br />

<strong>the</strong>y should be <strong>in</strong>tegral parts of QPS.<br />

Also miss<strong>in</strong>g are items such as automated handl<strong>in</strong>g<br />

of jump stories, a browser <strong>in</strong>terface for remote access<br />

and log<strong>in</strong>-based preferences.<br />

Quark is well aware of <strong>the</strong>se shortcom<strong>in</strong>gs and, <strong>in</strong><br />

fact, addresses <strong>the</strong>m <strong>in</strong> QPS Enterprise, but at a much<br />

higher price. Will <strong>the</strong>y be added to QPS Classic later?<br />

That rema<strong>in</strong>s uncerta<strong>in</strong>. If Quark goes ahead with <strong>the</strong><br />

QPS Plus midlevel system, <strong>the</strong>se features could be part<br />

of <strong>the</strong> Plus offer<strong>in</strong>g. So far, Quark has decl<strong>in</strong>ed to discuss<br />

<strong>the</strong> details of <strong>the</strong> future product l<strong>in</strong>e.<br />

To upgrade or not? Upgrad<strong>in</strong>g to QPS Classic 3 has<br />

become controversial as customers weigh <strong>the</strong> benefits<br />

aga<strong>in</strong>st <strong>the</strong> costs. On <strong>the</strong> one hand, <strong>the</strong> benefits,<br />

though modest, are critical for nearly anyone us<strong>in</strong>g <strong>the</strong><br />

system for serious bus<strong>in</strong>ess. One lead<strong>in</strong>g <strong>in</strong>tegrator,<br />

asked about <strong>the</strong> prospects for QPS sales, said he<br />

expected “a breakout” this fall and w<strong>in</strong>ter as customers<br />

upgrade from 2.12 to 3. On <strong>the</strong> o<strong>the</strong>r hand, <strong>the</strong><br />

lack of some important features that are now available<br />

from competitive systems has disappo<strong>in</strong>ted many customers<br />

contemplat<strong>in</strong>g <strong>the</strong> upgrade. This position was<br />

reflected by ano<strong>the</strong>r lead<strong>in</strong>g <strong>in</strong>tegrator, who called <strong>the</strong><br />

Classic 3 release too little, too late. That <strong>in</strong>tegrator<br />

expects a significant migration away from QPS.<br />

Weigh<strong>in</strong>g <strong>the</strong> benefits aga<strong>in</strong>st <strong>the</strong> cost is difficult.<br />

Quark po<strong>in</strong>ts out that it is offer<strong>in</strong>g <strong>the</strong> upgrade free to<br />

customers with whom it has ma<strong>in</strong>tenance contracts.<br />

However, based on what we have been told, we believe<br />

<strong>the</strong> number of customers <strong>in</strong> that category is m<strong>in</strong>imal.<br />

The explanation for this is partly that QPS customers<br />

typically have not opted for ma<strong>in</strong>tenance contracts and<br />

partly that those that did were under contract with<br />

Modulo <strong>Systems</strong>, which held all QPS ma<strong>in</strong>tenance<br />

agreements until January 2003 and has reta<strong>in</strong>ed <strong>the</strong><br />

rights to that list s<strong>in</strong>ce <strong>the</strong>n. As a result, Quark started<br />

2003 with a formidable challenge <strong>in</strong> build<strong>in</strong>g a new list<br />

from scratch. One <strong>in</strong>tegrator, speculat<strong>in</strong>g on how<br />

many QPS ma<strong>in</strong>tenance contracts Quark might have,<br />

said he “could count [<strong>the</strong>m] on one hand.” Customers<br />

without ma<strong>in</strong>tenance contracts have <strong>the</strong> option of pay<strong>in</strong>g<br />

for <strong>the</strong> upgrade or buy<strong>in</strong>g a ma<strong>in</strong>tenance contract<br />

first and <strong>the</strong>n gett<strong>in</strong>g <strong>the</strong> upgrade free. Customers with<br />

ma<strong>in</strong>tenance contracts through Modulo have to pay<br />

for <strong>the</strong> upgrade.<br />

Some customers might be more <strong>in</strong>cl<strong>in</strong>ed to make<br />

<strong>the</strong> upgrade if <strong>the</strong>y had a better idea of when Quark<br />

would offer some of <strong>the</strong> features that QPS still lacks,<br />

but so far Quark hasn’t announced when additional<br />

functionality will be available or what it will entail.<br />

Besides <strong>the</strong> costs likely to be <strong>in</strong>volved <strong>in</strong> upgrad<strong>in</strong>g<br />

QPS, customers also need to upgrade to Xpress 6 (typically<br />

$200–$250 per seat) and to OS X.<br />

The o<strong>the</strong>r market. For prospective customers not already<br />

us<strong>in</strong>g QPS systems, Classic 3 will be pitted aga<strong>in</strong>st a<br />

grow<strong>in</strong>g band of competitors <strong>in</strong> <strong>the</strong> market for new<br />

sales. Quark decl<strong>in</strong>ed to divulge <strong>the</strong> list price of a new<br />

QPS 3 system, so we asked a few <strong>in</strong>tegrators what <strong>the</strong>y<br />

would charge. The best response came from one lead<strong>in</strong>g<br />

<strong>in</strong>tegrator, who asked to rema<strong>in</strong> anonymous. He<br />

said that typical pric<strong>in</strong>g would be about $25,000 per<br />

server and $1,500 per seat for software, not count<strong>in</strong>g<br />

<strong>in</strong>stallation and service charges, which would br<strong>in</strong>g <strong>the</strong><br />

cost of a 55-seat <strong>in</strong>stallation to between $125,000 and<br />

$170,000.<br />

Net-l<strong>in</strong>x Teams with Se<strong>in</strong>et for <strong>New</strong> System<br />

Although <strong>the</strong> system shown at its Nexpo debut wasn’t<br />

brand-new, Net-l<strong>in</strong>x’s appearance at <strong>the</strong> show reflected<br />

a change almost as significant as a new system: a rejuvenated<br />

product l<strong>in</strong>e based on technology obta<strong>in</strong>ed<br />

through an agreement <strong>in</strong> January with Se<strong>in</strong>et of Spa<strong>in</strong>.<br />

As a result of <strong>the</strong> agreement, Se<strong>in</strong>et’s Xtent editorial<br />

system technology has become <strong>the</strong> heart of Net-l<strong>in</strong>x’s<br />

editorial offer<strong>in</strong>g, and Net-l<strong>in</strong>x has taken over responsibility<br />

for <strong>the</strong> development and distribution of Xtent<br />

<strong>in</strong> <strong>the</strong> <strong>in</strong>ternational newspaper market.<br />

The current system, which Net-l<strong>in</strong>x is call<strong>in</strong>g<br />

nx<strong>Editorial</strong> (tak<strong>in</strong>g its position opposite nxAdvertis<strong>in</strong>g),<br />

is essentially Xtent with some enhancements<br />

taken from Net-l<strong>in</strong>x’s earlier Insiight system, which has<br />

been replaced <strong>in</strong> <strong>the</strong> product l<strong>in</strong>e. However, Net-l<strong>in</strong>x<br />

said that this isn’t merely a case of resell<strong>in</strong>g an exist<strong>in</strong>g<br />

product. Over time, it will serve as <strong>the</strong> start<strong>in</strong>g po<strong>in</strong>t of<br />

a new J2EE-based development project. Net-l<strong>in</strong>x has<br />

hired new programmers to work on this technology,<br />

16 October 6, 2004 • The Seybold Report • Analyz<strong>in</strong>g Publish<strong>in</strong>g Technologies

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