:NetObjects

From 1992 to 1995 the founders of NetObjects had worked at Rae Technology and before that in part at Apple Computer investigating proto-types of web browsers, information navigation and web design tools.

In 1995 NetObjects was founded to market NetObjects Fusion, a new design tool to build web sites. The term "web site", well-known and widespread today, was created by the work of Samir Arora, David Kleinberg, Clement Mok and Sal Arora.{{Citation needed|date=December 2008}} and they were awarded the first web site builder patent as inventors.

Initially NetObjects was as a privately held company with the Series A venture investment led by Rae Technology, Series B by Norwest Venture Partners and Venrock Associates, followed by Novell,{{cite web

| url = http://www.novell.com/news/press/pressroom/presskit/brainshare99/netobjects.html

| title = Novell Makes Equity Investment in NetObjects

| publisher = Novell, Inc. / NetObjects, Inc.

| date = 1998-10-21

| access-date = June 30, 2008

| archive-url = https://web.archive.org/web/20001215152500/http://www.novell.com/news/press/pressroom/presskit/brainshare99/netobjects.html

| archive-date = 2000-12-15

}} Mitsubishi and AT&T Ventures and the last round by Perseus Capital, L.L.C.

In April 1997 IBM invested $100 million to acquire a majority of the company. The deal had a valuation of $150 million.{{cite news

| url = http://sanjose.bizjournals.com/sanjose/stories/1997/05/19/smallb4.html

| first = I. Satya

| last = Sreenivas

| title = NetObjects chooses Big Blue fusion

| work = Silicon Valley / San Jose Business Journal

| access-date = 2008-03-05

| date=May 18, 1997

}}{{cite web

| url = http://www.netobjects.com/company/html/pra16apr97.html

| title = IBM completes investment in NetObjects

| publisher = NetObjects, Inc.

| date = April 16, 1997

| access-date = March 5, 2008

}}{{cite news

| url = http://www-03.ibm.com/ibm/history/history/year_1997.html

| archive-url = https://web.archive.org/web/20041216110616/http://www-03.ibm.com/ibm/history/history/year_1997.html

| url-status = dead

| archive-date = December 16, 2004

| title = IBM Archives 1997

| work = IBM Archives

| publisher = IBM

| access-date = 2009-01-27

}}

NetObjects Fusion 1.0 was released in 1996. As the first complete web design tool it was seen as groundbreaking by technology observers. NetObjects was elected as one of "25 Cool Technology Companies" of 1996 by Fortune.{{cite web

|url = http://www.clementmok.com/onrecord/article.asp?ArticleID=21&d=1990

|title = 1996 25 Cool Technology Companies

|work = ClementMok.com

|publisher = Clement Mok

|access-date = March 5, 2008

|url-status = dead

|archive-url = https://web.archive.org/web/20070927032744/http://www.clementmok.com/onrecord/article.asp?ArticleID=21&d=1990

|archive-date = September 27, 2007

}}

Also in 1996, NetObjects Fusion won PC Magazine's Editors' Choice award. CNET's Builder.com elected Samir Arora one of the Web Innovators of 1997,{{cite web

|url = http://builder.cnet.com/webbuilding/pages/Business/Innovators97/ss03.html

|first = Dan

|last = Shafer

|title = BUILDER.COM - Web Business - The 1st annual Web Innovator Awards - Samir Arora, NetObjects Fusion

|work = CNET Builder.com

|publisher = CNET Networks, Inc.

|access-date = June 21, 2008

|archive-url = https://web.archive.org/web/20010505054830/http://builder.cnet.com/webbuilding/pages/Business/Innovators97/ss03.html

|archive-date = 2001-05-05

|url-status = dead

}} and in 1998 NetObjects received the prestigious Gold award from the Industrial Designers Society of America (IDSA).{{cite web

| url = http://www.idsa.org/whatsnew/sections/dh/idea_winners_95-99.pdf

| title = Gold Industrial Design Excellence Award (IDEA) Winners 1995–1999

| publisher = Industrial Designers Society of America (IDSA)

| access-date = March 5, 2008

|archive-url = https://web.archive.org/web/20070928095948/http://www.idsa.org/whatsnew/sections/dh/idea_winners_95-99.pdf |archive-date = September 28, 2007}}{{cite web

| url = http://idsa.org/whatis/seewhat/idea98/winners/netobjects.htm

| title = Gold Industrial Design Excellence Award (IDEA) Winners 1995–1999

| publisher = Industrial Designers Society of America (IDSA)

| access-date = June 27, 2008

| archive-url = https://web.archive.org/web/19980519051330/http://idsa.org/whatis/seewhat/idea98/winners/netobjects.htm

| archive-date = 1998-05-19

}}

Eleven U.S. patents were granted for Internet-related technologies (design and utility).{{cite web

| url = http://www.netobjects.com/company/html/pra08aug96.html

| title = NetObjects Files Patent Applications for Innovative Features of NetObjects Fusion Web Site Building Application

| publisher = NetObjects, Inc.

| date = August 8, 1996

| access-date = March 5, 2008

}}{{cite web

| url = https://patents.google.com/patent/US6311196

| title = Patent 6311196: "Method and apparatus for implementing web pages having master borders"

| publisher = Google Patents

| date = October 30, 2001

| access-date = March 5, 2008

}}{{cite web

| url = https://patents.google.com/patent/US5911145

| title = Patent 5911145: "Hierarchical structure editor for web sites"

| publisher = Google Patents

| date = June 8, 1999

| access-date = March 5, 2008

}}{{cite web

| url = https://patents.google.com/patent/US5845299

| title = Patent 5845299: "Draw-based editor for web pages"

| publisher = Google Patents

| date = December 1, 1998

| access-date = March 5, 2008

}}{{cite web

| url = http://patft.uspto.gov/netacgi/nph-Parser?Sect1=PTO2&Sect2=HITOFF&p=1&u=%2Fnetahtml%2FPTO%2Fsearch-bool.html&r=1&f=G&l=50&co1=AND&d=PTXT&s1=%22samir+arora%22&OS=%22samir+arora%22&RS=%22samir+arora%22

| title = Patent 7246307: "Hierarchical drag and drop structure editor for web sites"

| publisher = United States Patent and Trademark Office

| date = October 2, 2007

| access-date = March 5, 2008

}}

Releases 2.0 (1997) and 3.0 (1998) of NetObjects Fusion again gained positive reactions by the PC press as well as commercial success on the market. In 1999 IBM brought NetObjects to the stock exchange with initial public offering while remaining the major shareholder. The initial public offering (IPO) on NASDAQ raised $72 million.

The board of directors consisted of six people: Samir Arora as chairman of the board, chief executive officer and president, and five directors, including John Sculley from Apple Computer, three representatives from IBM and one from Novell.

In the following years numerous product-bundling deals{{cite web

| url = http://groups.google.com/group/netobjects.fusionmx.gen-discuss/browse_thread/thread/66e55632c925a755

| first = Samir

| last = Arora

| title = Bundling discussions

| work = netobjects.fusionmx.gen-discuss

| publisher = Google Groups

| date = July 16–18, 2001

| access-date = March 5, 2008

}}

were made with nearly all the big PC sellers like Dell and HP,{{cite web

| url = http://www.marketwatch.com/News/Story/Story.aspx?guid={A0B9E29C-FF54-4388-A850-B9A4E0D48FAB}

| first = Chris

| last = Kraeuter

| title = H-P, NetObjects to unveil 3-year deal

| work = CBS.MarketWatch.com

| publisher = MarketWatch, Inc.

| date = July 27, 2001

| access-date = July 4, 2008

}} and with Internet service providers like UUNET, Earthlink or 1 & 1 (Germany). The company itself said it licensed the distribution of more than 15 million copies of NetObjects Fusion.{{Needs citation|date=April 2024}}

In 2000 the stock price of NETO (ticker symbol) reached its record high of $45 11/16 USD, making NetObjects worth $1.5 billion.{{Needs citation|date=April 2024}}

Revenue had started at $7.2 million in 1997, reached $15 million in 1998, $23.2 million in 1999 and peaked at $34.2 million for fiscal year 2000 (October 1999 - September 2000).{{Needs citation|date=April 2024}}

On March 3, 2000, TheStreet.com's Adam Lashinsky praised NetObject's financial performance and its early adoption of e-business:

"And, more so than many start-ups, NetObjects has managed to deliver on what it has promised. It has slightly beaten the expectations of the friendly analysts who follow it. And quarter by quarter, it has steadily reduced its operating losses. Plus, it got lucky. It was firmly entrenched as a business-to-business software company before the term gained currency and B2B companies took off."{{cite web

| url = http://www.thestreet.com/comment/siliconstreet/904775.html

| last = Lashinsky

| first = Adam

| title = NetObjects Defies Prediction

| work = TheStreet.Com

| date = March 22, 2000

| access-date = September 24, 2006

| archive-url = https://web.archive.org/web/20050307091804/http://www.thestreet.com/comment/siliconstreet/904775.html

| archive-date = 2005-03-07

}}

In 1998 the company had developed and since then distributed NetObjects Authoring Suite{{cite web

| url = http://www.webdevelopersjournal.com/software/netobjects_authoring_suite.html

| first = Ted

| last = Brockwood

| title = NetObjects Authoring Server Suite 3.0

| work = Web Developer's Journal

| date = September 1, 1999

| publisher = Jupitermedia Corporation

| access-date = July 23, 2008}}{{cite web

| url = http://www.intranetjournal.com/reviews/noas30.shtml

| first = Gordon

| last = Gordon Benett

| title = NetObjects Authoring Server & TeamFusion Client 3.0

| work = Intranet Journal

| year = 1999

| publisher = Jupitermedia Corporation

| access-date = July 23, 2008}} and the related "Collage" product,{{cite web

|url = http://www.serena.com/products/collage/index.html

|title = Serena Collage

|work = Serena Software

|publisher = Serena Software, Inc.

|archive-url = https://web.archive.org/web/20071005162234/http://www.serena.com/products/collage/index.html

|archive-date = 2007-10-05

|url-status = dead

}} which as content management solutions were aimed at big businesses and ranged at much higher price levels than NetObjects Fusion.

However, IBM and NetObjects decided that its target market was the sector of small and medium enterprises, so it would focus on its flagship application NetObjects Fusion which would fit within the scope of these customers.{{cite web

|url = http://globalarchive.ft.com/globalarchive/article.html?id=010620001434&query=samir+arora

|first = Mark

|last = Vernon

|title = Eliminating risk is key to SME success: Interview: Samir Arora of NetObjects

|work = FT.com Financial Times

|publisher = The Financial Times Ltd.

|access-date = June 21, 2008

|archive-url = https://web.archive.org/web/20011125052215/http://globalarchive.ft.com/globalarchive/article.html?id=010620001434&query=samir+arora

|archive-date = 2001-11-25

|url-status = dead

}}

In the beginnings of the concept of "software as a service" (SaaS), the company secondly made a bet on its ability to recognize technological trends{{cite web

| url = http://www.isourceonline.com/article.asp?article_id=48

| title = NetObjects' Samir Arora to Speak at Internet World Chicago

| work = iSource Online

| publisher = Vulcan Publishing, Inc.

| access-date = June 26, 2008

| archive-url = https://web.archive.org/web/20010729070843/http://www.isourceonline.com/article.asp?article_id=48

| archive-date = 2001-07-29

}} and coined a strategy shift to a subscription model. To this end NetObjects Matrix{{cite news

| url = http://www.internetnews.com/xSP/article.php/3411_809171

| last = Newcomb

| first = Kevin

| title = IBM Selects NetObjects Matrix

| work = InternetNews.com

| publisher = Jupitermedia Corporation

| date = June 11, 2001

| access-date = 2008-03-05

}} was developed and GoBizGo.com, an e-commerce solution{{cite web

| url = https://www.pcmag.com/article2/0,2704,42537,00.asp

| first = Heath H.

| last = Herel

| title = GoBizGo

| work = Reviews by PC Magazine

| publisher = Ziff Davis Publishing Holdings Inc.

| date = October 17, 2000

| access-date = August 22, 2008

}} was started. Subscribing web and online services would help small businesses keep pace with the Internet. To finance this shift of strategy, the NetObjects Enterprise Division with 40 employees along with two applications, Collage and NetObjects Authoring Suite, was sold for $18 million to UK-based Merant{{cite news

| url = http://www.internetnews.com/xSP/article.php/559791

| last = Newcomb

| first = Kevin

| title = MERANT to Acquire NetObjects Division

| work = InternetNews.com

| publisher = Jupitermedia Corporation

| date = January 12, 2001

| access-date = 2008-03-05

}}{{cite web

|url = http://home.zdnet.com/zdnn/stories/news/0,4586,2674069,00.html

|last = Holland

|first = Roberta

|title = Merant to acquire NetObjects division

|work = ZDNet News - Technology News Now

|publisher = ZD Inc.

|access-date = June 23, 2008

|archive-url = https://web.archive.org/web/20010221052100/http://home.zdnet.com/zdnn/stories/news/0,4586,2674069,00.html

|archive-date = 2001-02-21

|url-status = dead

}} (merged in 2004 with Serena Software Inc., based in San Mateo, California).

High hopes were based on the NetObjects Matrix platform and its possibilities to position NetObjects as a "Business Service Provider". A version for Mac was announced,{{cite web

| url = http://www.internetnews.com/xSP/article.php/3411_784291

| last = Newcomb

| first = Kevin

| title = NetObjects To Support Mac OS X

| work = InternetNews.com

| publisher = Jupitermedia Corporation

| date = June 12, 2001

| access-date = July 6, 2008

}} and a cooperation with IBM Global Services was forged.{{cite web

| url = http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BB9227F21-D9C9-498F-A2EA-C9694C0B6322%7D&source=blq%2Fyhoo&dist=yhoo&siteid=yhoo

| first = Mike

| last = Tarsala

| title = NetObjects climbs on IBM deal

| work = CBS.MarketWatch.com

| publisher = MarketWatch, Inc.

| date = June 11, 2001

| access-date = July 6, 2008

}}

However, several factors led NetObjects to a crisis starting in 2000.{{cite web

| url = http://www.prnewswire.co.uk/cgi/news/release?id=57873

| title = NetObjects, Inc. announces fourth quarter and fiscal year-end 2000 results

| publisher = PR Newswire Europe Ltd.

| access-date = March 5, 2008

}} Tough competition from Microsoft, Macromedia and Adobe put pressure on market share and falling prices of web-design applications affected revenues.{{cite web

| url = http://www.zdnet.com/zdnn/content/pcwk/1410/pcwk0039.html

| last = Tristram

| first = Claire

| title = Crowded House

| work = ZDNet

| publisher = Ziff-Davis Publishing Company

| date = March 10, 1997

| access-date = June 28, 2008

| archive-url = https://web.archive.org/web/19991007050446/http://www.zdnet.com/zdnn/content/pcwk/1410/pcwk0039.html

| archive-date = 1999-10-07

}} Also, long-term revenue effects of bundling deals in the software industry are controversial. NetObjects slashed prices for NetObjects Fusion from release 1.0 to release 4.0 by more than 50%. Older versions stayed in distribution for even lower prices. Technical demands for large business web sites changed and required direct access of programmers to HTML code — which NetObjects Fusion was not designed for.{{cite web

| url = http://groups.google.de/group/netobjects.fusion30.gen-discussion-windows/browse_thread/thread/da47321c078354c2/b9212481a8bd5853

| title = 'Another' Upgrade?

| work = netobjects.fusion30.gen-discuss

| publisher = Google Groups

| date = December 9–21, 1998

| access-date = March 5, 2008

}} Its target market were designers who need complete control over page layout and a similar user interface as desktop publishing applications.

In 2001 revenue decreased sharply,{{cite web

| url = http://www.prnewswire.co.uk/cgi/news/release?id=62055

| title = NetObjects, Inc. announces financial results for its first quarter of FY2001

| publisher = PR Newswire Europe Ltd.

| access-date = March 5, 2008

}}

a result of changing markets, price cuts, strategy shift to Software as a Service. Subscription fees from NetObjects Matrix started coming in but the company faced losses: total revenues for the first three quarters of FY 2001 were $4.22 million, whilst costs were $7.67 million.{{cite web

| url = http://www.secinfo.com/dsvNq.4f8Nc.htm

| title = Netobjects Inc · 10-Q · For 6/30/01

| publisher = Securities and Exchange Commission, Washington, D.C.

| date = August 14, 2001

| access-date = March 5, 2008

}}

NetObjects started to raise $50 million in a private placement with Deutsche Bank. But IBM, which controlled the NetObjects Board, did not approve the placement. In the summer of 2001, the markets plummeted with the bursting of the dot-com bubble. And ultimately IBM as the majority shareholder decided to sell NetObjects.{{Needs citation|date=April 2024}}

NetObjects Fusion, NetObjects Matrix including the MatrixBuilder, BizGoBiz and other assets were sold to Website Pros (now Web.com), a web design and services company based in Jacksonville, Florida{{cite web

| url = http://www.secinfo.com/dsvNq.4f8q2.htm

| title = Netobjects Inc · PRE 14C · For 9/30/01

| publisher = Securities and Exchange Commission, Washington, D.C.

| date = October 22, 2001

| access-date = March 5, 2008

}}

Additionally a portfolio of seven patents was sold to Macromedia (now Adobe), the distributor of Dreamweaver, the long-term main competitor of NetObjects Fusion.

Website Pros (WSP) (now Web.com) went on developing and distributing future versions of NetObjects Fusion{{cite web

| url = http://www.nof-club.de/werner/interview/wsp/

| title = NOF-Club Interview mit Stephen M. Raubenstine

| work = Das große Interview

| publisher = NOF-Club Deutschland (NetObjects Fusion Userclub)

| access-date = July 7, 2009

| archive-url = https://web.archive.org/web/20031128171754/http://www.nof-club.de/werner/interview/wsp/

| archive-date = 2003-11-28

|language=de}} and offering subscription services based on this application, representing the mixed business model that was invented at NetObjects.

License revenue from sales of NetObjects Fusion reached nearly $3.58 million in 2006, $2.4 million in 2007,{{cite web

| url = http://ir.websitepros.com/releasedetail.cfm?ReleaseID=293601

| title = Website Pros Reports Fourth Quarter and Full-Year 2007 Financial Results

| work = Investor Relations

| publisher = Website Pros

| date = February 12, 2008

| access-date = March 5, 2008

}} and $2.5 million in 2008.{{cite web

| url = http://ir.web.com/releasedetail.cfm?ReleaseID=364546

| title = Web.com Reports Fourth Quarter and Full Year 2008 Financial Results

| work = Investor Relations

| publisher = Web.com

| date = February 10, 2008

| access-date = February 23, 2009

}} In May 2009 NetObjects Fusion was sold.{{cite web

| url = http://ir.web.com/secfiling.cfm?filingID=1144204-09-40519

| title = Web.com Quarterly Report for the quarterly period ended June 30, 2009

| work = SEC

| publisher = Web.com

| date = August 5, 2009

| access-date = August 14, 2009

}}

In May 2009 NetObjects Inc. was re-established as an independent company. It acquired the NetObjects Fusion product line from Web.com. A smaller part of the amount was transferred instantly, while $3.0 million remained payable from future revenue of NetObjects Fusion sales until 2013.

Steve Raubenstine, who was vice president of the NetObjects Fusion division at Web.com (former Website Pros), serves as president and CEO of the new NetObjects Inc.{{Needs citation|date=April 2024}}

• NetObjects Fusion: Web design tool created in 1996. Sold to Website Pros (now Newfold Digital) in 2001. In 2009 a management buyout of the NetObjects Fusion division of Website Pros created the second coming of an independent NetObjects. Fusion was the main part of what management bought. NetObjects still distributes Fusion. The latest release is Version 15, Update #1. NetObjects released Update #1 in March 2015.

{{

Cite web

| url=http://www.netobjects.com/html/downloads.html

| url-status=live

| title=Product Updates and Downloads

| publisher=NetObjects

| archive-url=https://web.archive.org/web/20210421044729/http://www.netobjects.com/html/downloads.html

| archive-date=2021-04-21

| access-date=2021-05-20

}}

• NetObjects Authoring Server: Collaborative Web development and content management solution. Created in 1999. Sold to UK-based Merant in 2000. After Merant's merger with Serena Software in 2004, distributed as "Collage". Discontinued in 2008.{{cite web

| url = http://www.cmswatch.com/Trends/1179-Serena-Collage-to-go-off-into-the-sunset

| first = Tony

| last = Byrne

| title = Serena Collage to go off into the sunset

| work = Trendwatch Blog

| publisher = CMSWorks, Inc.

| date = March 12, 2008

| access-date = April 15, 2009

}} The predecessor of Authoring Server was NetObjects Team Fusion, introduced as a client–server application in 1998.

• NetObjects MatrixBuilder: Online Web Page and Web Service builder, first released in 2000. Sold to Website Pros (now Newfold Digital) in 2001. Website Pros sold MatrixBuilder licenses directly to customers.

{{

Cite web

| url=http://files.shareholder.com/downloads/WSPI/351433097x0x189105/BED273D3-F558-48EF-9A1B-4248CFBEBEF8/Annual%20Report%20for%20Web.pdf

| url-status=dead

| title=Website Pros 2007 Annual Report

| date=2008-04-17

| publisher=Website Pros (Predecessor to Newfold Digital)

| via=Internet Archive

| at=Page 11 as printed on page (Page 21 as stored in PDF)

| archive-url=https://web.archive.org/web/20160303172548if_/http://files.shareholder.com/downloads/WSPI/351433097x0x189105/BED273D3-F558-48EF-9A1B-4248CFBEBEF8/Annual%20Report%20for%20Web.pdf

| archive-date=2016-03-03

| access-date=2021-05-19

}}

Website Pros also used MatrixBuilder internally to develop websites for customers.

{{

Cite web

| url=http://files.shareholder.com/downloads/WSPI/351433097x0x189105/BED273D3-F558-48EF-9A1B-4248CFBEBEF8/Annual%20Report%20for%20Web.pdf

| url-status=dead

| title=Website Pros 2007 Annual Report

| date=2008-04-17

| publisher=Website Pros (Predecessor to Newfold Digital)

| via=Internet Archive

| at=Page 5 as printed on page (Page 15 as stored in PDF)

| archive-url=https://web.archive.org/web/20160303172548if_/http://files.shareholder.com/downloads/WSPI/351433097x0x189105/BED273D3-F558-48EF-9A1B-4248CFBEBEF8/Annual%20Report%20for%20Web.pdf

| archive-date=2016-03-03

| access-date=2021-05-19

}}

{{Reflist|25em}}

{{DEFAULTSORT:Netobjects}}

Category:Software companies based in California

Category:Software companies based in Pennsylvania

Category:Software companies established in 1995

Category:Software companies disestablished in 2001

Category:Defunct software companies of the United States

Category:1995 establishments in California

Category:2001 disestablishments in California

Category:Re-established companies

Category:Software companies established in 2009

Category:2009 establishments in Pennsylvania