Omniture Inc. has won a multi-year deal to provide America Online Inc. with web site analytics services, and claims the contract is the largest ever in the application service provider space.
CEO Josh James told ComputerWire that the deal, which saw the firm fight off competition from WebSideStory, Coremetrics and WebTrends, is worth north of $5 million a year and will last for more than five years.
Under the deal, Omniture will provide AOL employees with hosted analytics software, delivering reports on subscriber usage patterns collected via tracking cookies installed on AOL web pages. Omniture replaces a homegrown AOL tracking system.
We’re so excited about Omniture winning this deal, because not only is it the biggest in the history of the company, but it’s the biggest in the history of ASPs and the biggest in the history of web analytics, James said.
The exact amount of the deal was not disclosed. Before the deal was finalized, the private company had told us it expected $20 million of revenue this year, so the AOL contract will be very material to Omniture’s financials, at least in the short term.
Jonathan Turner, head of internet banking at Credit Suisse First Boston, said since the bubble burst… to our knowledge, this is the biggest ASP deal. During the internet bubble, some larger non-cash deals may have been signed, he said.
At over $5 million per year, the AOL deal looks to be larger than any signed by well-known ASP Saleforce.com Inc. That company had $96 million in revenue in its last fiscal year, and none of its customers accounted for more than 5% of revenue, or $4.8 million.
According to James, Omniture has been profitable for three quarters. The firm received over $14 million in venture capital funding in May, and so far does not seem to be in a rush to follow rivals like WebSideStory into a public offering.