Vignette has a acquired a video publishing capability with the purchase of Vidavee for approximately US$6.6 million in cash.
Vidavee enables Web publishers to upload, share, analyse and monetise Internet video content.
The strategic acquisition and integration of Vidavee's video publishing technology will provide Vignette with video management and publishing capabilities to help advertisers and publishers generate new traffic, improve customer engagement and increase revenues.
Vignette CEO and president, Mike Aviles, said video and user-generated content are a top priority for organisations wanting to improve their Web experience, and Vidavee has assembled one of the strongest video management offerings in the industry.
"By adding video capabilities to our Web Experience Platform, we will be able to provide customers a powerful solution for engaging users across multiple mediums," he said.
Vidavee leverages heat maps to help organisations analyse viewer interaction and enable these companies to improve impressions and drive additional revenues by taking the most popular sections of a video stream and dynamically inserting advertising and other rich content.
Additional video tagging capabilities allow users to identify sections of interest from a video and share the content to increase views and attract additional users.
Upon completion of the acquisition, Vignette will immediately offer Vidavee's unique video publishing technologies through a Software as a Service (SaaS) model.
Aviles said the integration with Vignette's Digital Services Hub will provide organisations with a single unified framework for content monetisation and delivery needs.
By extending the integration to its Community product line, he said the company can offer customers additional features and support for creating and managing user-generated content.
As a result of the acquisition, Vignette will become one of the first vendors to provide enhanced capabilities to ingest, manage, transcode and deliver video and other Web content through a single workflow and user interface.
Vivadee CEO, Mark Brenner, said with this acquisition, Vignette can deliver the unprecedented ability to use the same publishing platform for content, advanced video and other rich media.
"Video is a key component for organisations looking to reach an expanded audience, generate more traffic and increase user time spent on site," Brenner said.
"This acquisition breaks down the silos of video publishing and rich media management, giving organisations the ability, for the first time, to manage all their content from the same console," he added.
Local organisations are embracing the Software as a Service (SaaS) model which is growing at a compound annual growth rate of 65 per cent.
Revenues for hosted software is set to top $506 million in the Australian market by 2010, according to Springboard Research.