Microsoft has purchased Ncompass Labs, and in so doing, becomes a major player in the Web content management game. As is typical with Microsoft, innovation goes only so far; often the best way to move into a space is through a friendly buy-out. Microsoft had been recommending Ncompass for CMS functions within the MS Commerce Server 2000 environment. The purchase seems a logical next step.

What will this mean for the CMS marketplace? I expect all the major vendors - Interwoven and Vignette in particular - have to be concerned. The CMS space has typically focused on Fortune 1000 companies; licensing and implementation costs are substantial, and results do not always meet expectations. Ncompass implantation tend to be relatively cheap, starting at around USD $60,000. The bundling of Ncompass with Site Server or MS SQL is a nightmare scenario for the big CMS vendors.