Today, we're excited to announce that Acquia has closed a $55 million financing round, bringing total investment in the company to $188.6 million. Led by new investor Centerview Capital Technology, the round includes existing investors New Enterprise Associates (NEA) and Split Rock Partners.
We are in the middle of a big technological and economic shift, driven by the web, in how large organizations and industries operate. At Acquia, we have set out to build the best platform for helping organizations run their businesses online, help them invent new ways of doing business, and maximize their digital impact on the world. What Acquia does is not at all easy -- or cheap -- but we've made good strides towards that vision. We have become the backbone for many of the world's most influential digital experiences and continue to grow fast. In the process, we are charting new territory with a very unique business model rooted Drupal and Open Source.
A fundraise like this helps us scale our global operations, sales and marketing as well as the development of our solutions for building, delivering and optimizing digital experiences. It also gives us flexibility. I'm proud of what we have accomplished so far, and I'm excited about the big opportunity ahead of us.
I believe that the "digitalization" of the world is a "megatrend" that will continue for decades. On the one hand, organizations are shifting their businesses online, often inventing new ways to do business. On the other hand, customers are expecting a better and smarter user experience online.
This has led to two important sub-trends: (1) the number of sites an organization is creating and managing is growing at a rapid clip, (2) so is the underlying complexity of each website.
Forrester Research recently surveyed large enterprises about their website portfolio and found that on average they manage 268 properties across various channels. On top of that, each website is becoming more and more advanced. They evolved from simple HTML pages to dynamic websites to digital experience platforms that need to integrate with many other business systems. The combination of these two trends -- increasing number of sites and the growing complexity of each site -- poses real challenges to most organizations.
At Acquia, we are seeing this explosion of websites in the enterprise every day. Many organizations have different websites for different brands and products, want different websites for each country or region they operate in, or offer separate portals for their affiliates, dealers, agents or franchises. We're also seeing organizations, small and large, operate a large number of marketing campaign websites. These organizations aren't focused on scaling back their online properties but rather how best to manage them over time.
I outlined this trend and its challenges almost five years ago (see Acquia product strategy and vision) and most of it is still relevant today, if not more relevant. In this blog post, I want to give you an update and share some lessons learned.
Most larger organizations run many different types of websites. It's not unusual for a small organization to have ten websites and for a large organization to have hundreds of websites. Some of Acquia's largest customers operate thousands of websites.
Most organizations struggle to manage their growing portfolio of digital properties. You'd be surprised how many organizations have more than 20 different content management systems in use. Often this means that different teams are responsible for them and that they are hosted on different hosting environments. It is expensive, creates unnecessary security risks, poses governance challenges, leads to brand inconsistency, makes it difficult to create a unified customer experience, and more. It costs large organizations millions of dollars a year.
Drupal's unfair advantage
When managing many sites, Drupal has an unfair advantage in that it scales from simple to complex easily. That scalability, coupled with a vast ecosystem of modules, elevate Drupal from a single site point solution to a platform on which you can build almost any kind of site: a brand site, a corporate website, a customer support community, a commerce website, an intranet, etc. You name it.
This is in contrast to many of Drupal's competitors that are either point solutions (e.g. SharePoint is mainly used for intranets) or whose complexity and cost don't lend themselves to managing many sites (e.g. Adobe Experience Manager and Sitecore are expensive solutions for a quick marketing campaign site, while WordPress can be challenging for building complex websites). So the first thing people can do is to standardize on Drupal as a platform for all of their site needs.
By standardizing on Drupal, organizations can simplify training, reduce maintenance costs, streamline security and optimize internal resources – all without sacrificing quality or requirements. Standardizing on Drupal certainly doesn't mean every single site needs to be on Drupal. Transitioning from 20 different systems to 3 still translates into dramatic cost savings.
The Acquia advantage
Once an organization decides to standardize on Drupal, the question is how best to manage all these sites? In 2013 we launched Acquia Cloud Site Factory (ACSF), a scalable enterprise-grade multi-site management platform that helps organizations to easily create, deploy and govern all their sites. Today, some of Acquia's biggest customers use ACSF to manage hundreds of sites - in fact on average an ACSF customer is currently managing 170 websites within their Site Factory platform and that number is growing rapidly.
Acquia commissioned Forrester Research to analyze the benefits to organizations who have unified their sites on a single platform. Forrester found that moving to a single platform dramatically reduced site development and support costs, conserved IT and marketing resources, and improved standardization, governance and scalability — all while accelerating time-to-market and the delivery of better digital experiences.
One of the things we've learned is that a complete multi-site management solution needs to include advanced tools for both developers and content managers. The following image illustrates the different layers of a complete multi-site management solution:
Let's go through these individually from the bottom up.
Consider an organization that currently has 50 websites, and plans to add 10-15 more sites every year. With ACSF these sites run on a platform that is scalable, secure and highly reliable. This infrastructure also allows hardware resources to be logically isolated based on the site's needs as well as scaled up or down to meet any ad-hoc traffic spikes. These capabilities enable organizations to simplify multi-site management efforts and eliminate operational headaches.
If this organization with 50 sites had individual codebases for each site, that would be 50 disparate codebases to manage. With ACSF, the underlying code can be shared and managed in one central place but the content, configuration, and creative look-and-feel can be catered to each individual sites' needs. ACSF also enable developers to easily add or remove features from their codebases for individual sites. ACSF also comes with tools to automate the process of rolling out updates across all their sites.
Organizations with many sites also need efficient ways to manage and govern them effectively; from developer tools such as Git, Travis, or Behat that enable them to build, test and maintain sites, to tools for non-developers to quickly clone and spin up sites using site templates defined by a brand manager or a digital design team. ACSF enables customers to effortlessly manage all their sites from a single intuitive dashboard. Developers can create groups of users as well as sites allowing certain users to manage their dedicated domain of sites without stepping over other sites. Non-technical content managers can quickly spin up new sites by cloning existing ones they have access to and updating their configuration, content and look-and-feel. These features allow organizations to launch sites at unprecedented speed inherently improving their overall time to market.
Finally, I should mention personalization. For a few years now we have been developing Acquia Lift. Acquia Lift builds unified customer profiles across all your websites, and uses that information to deliver real-time, contextual, and personalized experiences. For instance, if the organization in the above example had 50 websites for each of their 50 different products, Acquia Lift can present relevant content to its users as they browse across these different sites. This enables organizations to convert anonymous site visitors into known customers and establish a meaningful engagement between them.
I believe that the "multi-sites era" will continue to accelerate; not only will we see more sites, but every site will become increasingly complex. Organizations need to think about how to efficiently manage their website portfolio. If you're not thinking ahead, you're falling behind.
It's not easy to build an Open Source software company.
Canonical recently has made a change to its intellectual property policy. The new policy prevents developers from distributing altered binary versions of Ubuntu. Users are still allowed to distribute unaltered Ubuntu freely, but if they make changes to Ubuntu, Canonical wants developers to either go through a review process or remove all references to Canonical trademarks, Canonical logos, and proprietary software and recompile the Ubuntu archive without any of those.
This change has caused friction with the Open Source community; many are not happy with these restrictions as it goes against the culture of Open Source sharing and collaboration. After all, Ubuntu itself is built on top of the work of hundreds of thousands of Open Source developers, and now Ubuntu is making it difficult for others to do the same.
Canonical's stated intention is to protect its trademarks and reputation; they don't want anyone to call something "Ubuntu" when it's not actually "Ubuntu". I understand that. That aside, many understand that the unstated goal is to make money from licensing deals. The changes affect organizations that base their custom distributions on Ubuntu; it's easier to buy a license from Canonical than to figure how to remove all the trademarks, proprietary software, logos, etc.
Jono Bacon, Canonical's former community manager, wrote a balanced post about the situation.
My thoughts? I understand Canonical has to find ways to make money. Most companies are downright greedy, but not Canonical or Mark Shuttleworth. I find the Open Source community "penny wise and pound foolish" about the situation.
I can relate because Canonical, like Acquia, is among a small group of Open Source companies that try to do good and do well at scale. We invest millions of dollars each year contributing to Open Source: from engineering, to marketing, to sponsoring community events and initiatives. It is not easy to build a software company on Open Source, and we all struggle to find the right balance between giving back and making money. This is further complicated when competitors choose to give back less or don't give back at all. Companies like Canonical and Acquia are good for Open Source, and helping them find that balance is key. Don't forget to support those that give back.
I'm excited to announce that starting today, Acquia is announcing we're ready to fully support our customers with Drupal 8. This means our professional services, our support, our product engineering, our cloud services … the entire company is ready to help anyone with Drupal 8 starting today.
While Drupal 8 is not yet released (as it has always been said, Drupal 8 will be "ready when it's ready"), the list of release blockers is dwindling ever closer to zero, and a beta-to-beta upgrade path will soon be provided in core. These factors, along with Acquia's amazing team of more than 150 Drupal experts (including a dedicated Drupal 8 engineering team that has contributed to fixing more than 1,200 Drupal 8 issues), gives us full confidence that we can make our customers successful with Drupal 8 starting today.
In the process of working with customers on their Drupal 8 projects, we will contribute Drupal 8 core patches, port modules, help improve Drupal 8's performance and more.
I'm excited about this milestone, as Drupal 8 will be a truly ground-breaking release. I'm most excited about the architectural enhancements that strongly position Drupal 8 for what I've called the Big reverse of the Web. For the web to reach its full potential, it will go through a massive re-platforming. From Flipboard to the upcoming release of Apple News, it's clear that the web is advancing into the “post-browser” era, where more and more content is "pushed" to you by smart aggregators. In this world, the traditional end-point of the browser and website become less relevant, requiring a new approach that increases the importance of structured content, metadata and advanced caching. With Drupal 8, we've built an API-driven architecture that is well suited to this new “content as a service” approach, and Drupal 8 is ahead of competitive offerings that still treat content as pages. Check out my DrupalCon Los Angeles keynote for more details.
A little over a year ago we launched the Acquia Certification Program for Drupal. We ended up the first year with close to 1,000 exams taken, which exceeded our goal of 300-600. Today, I'm pleased to announce that the Acquia Certification Program passed another major milestone with over 1,000 exams passed (not just taken).
People have debated the pros and cons of software certifications for years (including myself) so I want to give an update on our certification program and some of the lessons learned.
Acquia's certification program has been a big success. A lot of Drupal users require Acquia Certification; from the Australian government to Johnson & Johnson. We also see many of our agency partners use the program as a tool in the hiring process. While a certification exam can not guarantee someone will be great at their job (e.g. we only test for technical expertise, not for attitude), it does give a frame of reference to work from. The feedback we have heard time and again is how the Acquia Certification Program is tough, but fair; validating skills and knowledge that are important to both customers and partners.
We also made the Certification Magazine Salary Survey as having one of the most desired credentials to obtain. To be a first year program identified among certification leaders like Cisco and Red Hat speaks volumes on the respect our program has established.
Creating a global certification program is resource intensive. We've learned that it requires the commitment of a team of Drupal experts to work on each and every exam. We now have four different exams: developer, front-end specialist, backend specialist and site builder. It roughly takes 40 work days for the initial development of one exam, and about 12 to 18 work days for each exam update. We update all four of our exams several times per year. In addition to creating and maintaining the certification programs, there is also the day-to-day operations for running the program, which includes providing support to participants and ensuring the exams are in place for testing around the globe, both on-line and at test centers. However, we believe that effort is worth it, given the overall positive effect on our community.
We also learned that benefits are an important part to participants and that we need to raise the profile of someone who achieves these credentials, especially those with the new Acquia Certified Grand Master credential (those who passed all three developer exams). We have a special Grand Master Registry and look to create a platform for these Grand Masters to help share their expertise and thoughts. We do believe that if you have a Grand Master working on a project, you have a tremendous asset working in your favor.
At DrupalCon LA, the Acquia Certification Program offered a test center at the event, and we ended up having 12 new Grand Masters by the end of the conference. We saw several companies stepping up to challenge their best people to achieve Grand Master status. We plan to offer the testing at DrupalCon Barcelona, so take advantage of the convenience of the on-site test center and the opportunity to meet and talk with Peter Manijak, who developed and leads our certification efforts, myself and an Acquia Certified Grand Master or two about Acquia Certification and how it can help you in your career!