Any acquisition (and there have been quite a few of them lately) in the content management industry usually makes a splash. Today, it was Day's day to stir up the media, analysts, bloggers, twitterati and industry watchers; provoking pontifications around the announced US$ 240 mil. acquisition by Adobe.

Here’s the first look at what the industry was buzzing about and what some of the possible implications of the deal might be -- for Day, for Adobe, for the market.

Good Day, Good Half (Or the History Repeats Itself)

Ever since Day Software started going through major upper echelon organizational changes about two years ago, it became increasingly clear that the company being groomed for something,  something larger, perhaps an acquisition.

On the product management side, we saw the birth of new products like Social Collaboration, and new activity around the existing CQ DAM and CQ5 Web CMS, after fairly significant periods of silence from Basel.

On the financial side, Day also cleaned-up the house and produced stronger results quarter after quarter, half a year after another half a year.

Today, yet again, Day reported revenues of 25.1 million Swiss francs (US$ 23.7 million) for H1 2010 -- a whopping 47% increase. Net income for the period was 3.7 million Swiss francs (US$ 3.5 million).

In conversation today, Day CTO David Nüscheler told us the acquisition has been regarded as validation of Day’s innovation, growth rates and financial performance. Additionally, the two companies are a great technical fit, with a shared belief in the same guiding principles, Nüscheler added.

Erik Larson, senior director of product management for Adobe, echoed the statement with "It doesn’t get much better than [Day’s] H1 numbers."

Open Source and Standards

There are some iconic figures on Day’s team in regards to the world of open source and standards. Day's leading lights have contributed heavily to HTTP, CMIS, REST and Apache Sling, Apache Jackrabbit and JSR-170, Apache Felix and OSGi, JCR 2.0 and JSR-283, The Apache Software Foundation, The Java Community Process – just to mention a few odds 'n ends.

Day’s Chief Scientist Roy Fielding, CTO David Nüscheler and many others on the team (the majority of R&D, in fact) are long-standing and frequent contributors to various Apache Software Foundation projects. Some initial reactions to the acquisition were positive, hoping for a boost of activity around Apache Jackrabbit, which is the foundation of Day’s Java Content Repository.

But understandably, others were concerned with the emphasis on Adobe’s proprietary technologies and whether Adobe will support Day’s commitment to open source. The spark was caused by Adobe’s press release that didn’t specifically point out this very important side of Day’s culture, causing concern in the open source and standards army of devotees.

Industry insider Seth Gottlieb expressed his initial disappointment about the acquisition:

While Adobe has contributed several technologies that lowered barriers to entry, I think the overall net impact has been negative. Yes, we have more content on the web thanks to Adobe, but much of that content is locked in Adobe’s PDF and Flash formats where it is less accessible...

Day’s Jukka Zitting reacted positively to the acquisition and its impact on Day’s involvement in open source and standards development. He is optimistic that innovation will continue as it was something that attracted Adobe to Day in the first place. 

First and foremost I’m looking forward to continuing the open and standards-based development of our key technologies like Apache Jackrabbit and Apache Sling. There’s no way we’d be able to maintain the current level of innovation and productivity in these key parts of our product infrastructure without our symbiotic relationship with the open source community.

Tony White of analyst firm Ars Logica noted Adobe's relative lack of success with backend technologies saying:

Adobe's unrivaled prowess in front-end design has been matched over the years -- and in nearly equal measure -- by seeming ineptitude on the back end. While there have been a few joint successes in the company's history, they have come mostly from partnerships with infrastructure vendors such as BEA.

By contrast, Day Software has excelled first and foremost at the nitty-gritty, application-integration level. Much of the success of this acquisition depends on how the companies integrate themselves and their products, but the potential exists for a good match between the industry-leading front end and an exceptionally flexible back end.

In this spirit, we do feel cautious hope that Day's exceptional engineers and their culture of open source and standards will serve to improve Adobe as a whole. Potential exists for the Day culture and experience to go beyond the CQ5 and CRX worlds to, for example, influence Adobe projects like XMP.

Adobe was quick to clarify and re-iterate their intent to continue supporting Day in its open source and standards endeavors. When we spoke today with Adobe's Erik Larson, their Senior Director of Product Management, he said the company plans to continue investing in platforms to support any open source/standards principles that Day has pioneered.

The DAM Side of Things

In terms of DAM, the timing of the acquisition couldn’t be better. I was recently discussing some of the issues around DAM and WEM, putting a stake in the ground and saying that most organizations and DAM vendors are missing out on the potential WEM + DAM love.

And here we have heavy digital asset management needs coming from llustrator, Photoshop, Flash, PDF on Adobe’s side, and a flexible DAM solution on Day’s side. Day likes Adobe’s AIR, Flash, Flex and has been promoting not just mere storage of static Flash files in a content management system, but full direct access to a Content Repository.

DAM is critical to Web Engagement Management. The Day Software team is fully aware of this, and is being pro-active about it.