One Less Web Analytics Vendor?

Microsoft announced that it is no longer going to pursue the web analytics market with its adCenter Analytics product.  It’s probably the right thing to do as organically trying to grow this business could take a very long time and they still may not achieve the number 1 or number 2 spot in the market.

Google Analytics has done a great job of commodiziting the low-end of the market while inching up the value chain.  This leaves Omniture and the like hunting down higher and higher value business applications or niche markets in order to justify their licencing fees.  Microsoft is smart not to focus at the bottom of the market and to focus on, or acquire their way into, a higher value slice instead.