Hungry Micro Focus Eats Borland Cadaver (and More)
Published May 7th, 2009 Under News, Software Development | Leave a Comment
Borland Software Corporation announced that Micro Focus International plc and Borland have entered into a definitive agreement under which Micro Focus will acquire all the outstanding shares of Borland in a cash merger transaction. Micro Focus will acquire each outstanding share of common stock of Borland for $1.00 per share, representing a premium of 25% over the closing share price of Borland’s common stock on May 5, 2009 of $0.80 and a premium of approximately 67% over the average thirty trading day closing price of $0.60. The aggregate transaction value is approximately $75 million.
In January, we asked the question “Will Borland Survive Yet Another Crisis?“, now we have the answer. And it is negative. After selling its development tools to Embarcadero in May 2008 and loosing 15% of its workforce and its CEO in January, Borland makes a final step to cancel 26 years of existence as a vendor of software development tools. Best know for its original Cobol product, Microfocus expands with this acquisition its portfolio of software development tools. The same day, it acquired the automated testing products of Compuware.
It remains to be seen what will Micro Focus will do technically with Borland products, that are also mostly the results of former Borland acquisitions, and Compuware solutions. It doesn’t seem to have a lot of overlaps between the new tools and the previous solutions sold by Micro Focus. You could think that Borland and Compuware testing tools are operating on the same market, but most of the Compuware quality offer is targeting the mainframe.
Micro Focus is profitable according to its last detailed financial statements issued in 2008. It is also used to integrate acquisitions as it purchased last year NetManage and Liant in June and July. With these two new purchases, Micro Focus gains access to a new customer portfolio. Consolidating the acquired sales and support organizations with it own staff (or in more crude words: “firing people”), it could achieve what Borland was missing these recent years: profits. The deal could bring short term relief to Borland customers as it lifts uncertainties about the support organization. It remains to be seen if Micro Focus will develop significantly the acquired products or if it will just harvest the revenues from the maintenance fees.
Oracle Buys Sun: What Will Happen Next?
Published April 20th, 2009 Under News, Software Development | Leave a Comment
SANTA CLARA, Calif., April 20, 2009. Sun Microsystems (NASDAQ: JAVA) and Oracle Corporation (NASDAQ: ORCL) announced today they have entered into a definitive agreement under which Oracle will acquire Sun common stock for $9.50 per share in cash. The transaction is valued at approximately $7.4 billion, or $5.6 billion net of Sun’s cash and debt. The price represents a 42 percent premium to Sun’s Friday closing stock price of $6.69. This acquisition came after Sun broke negotiations with IBM, which was offering $9.40 per share.
Sun Press release said “There are substantial long-term strategic customer advantages to Oracle owning two key Sun software assets: Java and Solaris.” I think that this last sentence will reflect the main point of this purchase, as far as software developers are concerned. In his quest for getting a more important share of the software infrastructure of companies, Oracle acquires mainly a programming expertise and operating system that should complement its application and databases solutions. The hardware part should also allow Oracle to offer a complete optimized hardware and software solution to its customers, even if, due to Sun smaller market share, Oracle has to be friendly with its other hardware partners like HP or Dell. Acquiring Sun, Oracle also increase its expertise in the Java middleware area, after the acquisition last year of BEA Systems.
The other fact which is contained in Sun press release sentence, or I should say which is omitted, is MySQL. Sun acquired MySQL in January 2008, as a way to boost its software offer. MySQL has been for a long time an important issue for Oracle, as it was a big competitor in the lower end of the market for databases. With this acquisition, Oracle has the possibility of “quietly” killing the MySQL development process and offer the current MySQL paying customer an opportunity to migrate towards its own database product. I don’t see Oracle maintaining two database product lines, especially if one is mainly “given away” for free. Even if existing Oracle customers may not be tempted by MySQL, this new database was always in consideration for startups. There were also some companies that tried to build upon MySQL the missing tools to bring it close to the power of Oracle products.
We expect a similar fate, silent slow death through lower financial support, for mainly of the other Sun’s technologies: NetBeans, GlassFish, JavaFX or OpenOffice. Oracle always want to get the most of the financial aspect of acquisitions and spending money on open source projects and technology that has low immediate return on investment is not something that it would consider, unless it could be used as a tactical weapon against some of its competitors, like Microsoft or SAP for instance.
Sun Press Release
http://www.sun.com/third-party/global/oracle/index.jsp
Looking for Agile Blogs
Published March 9th, 2009 Under News | Leave a Comment
I have recently created a new web site AgileVoices.com that aggregates for RSS feeds concerning agile software development. If you know about a good blog feed that is missing from the current roster, I would be please to add it. Thanks for your cooperation.
New Videos and Tutorials Directory for Java Developers
Published February 24th, 2009 Under Methods & Tools, News, Videos | Leave a Comment
Java-TV.com is a directory of videos, interviews and tutorials focused on software development activities with the Java programming language.
IBM Rational and WebSphere Strategies
Published February 11th, 2009 Under News, Software Development | Leave a Comment
I attended last week a conference in Geneva where IBM was presenting the strategy for its Rational and WebSphere software development solutions. If you consider IBM as a hardware company, you should realize that today services is the most important revenue sector and software is the most important source of income. Currently, IBM focus is on aligning IT (and software development) with business goals and this objective impact also the strategy of its software development solutions.
For WebSphere, the most important point is the recent acquisition of Ilog by IBM. Ilog has a strong solution for business rules management and the goal of IBM is to push this product to its existing customers and improve the positioning of WebSphere in Business Process Management. As both companies were already partners, there are no specific product integration issues. On the other end of the market, IBM is fighting RedHat’s JBoss with the free WebSphere Application Server Community Edition, pledging to offer competitive support prices for organizations that need it. There was also a presentation of the sMash, a product that allows to create rapidly dynamic web applications using PHP and Groovy running on an optimized java virtual machine. This is the commercial result of the work done at projectzero.org.
On the Rational side, the intention is to provide a native implementation in the new Jazz platform of products like ClearQuest and BuildForge. The next version of the Team Concert product will be improved in terms of enterprise reporting and global project management. The product is still developed using the open commercial concept, where the software is proprietary but the development process is open for customers’ input. As far as Telelogic products are concerned, they will keep their independence and industrial software focus, but they should also get more integrated on the Jazz platform in the longer term. Rational is also introducing a new consulting concept: Measured Capability Improvement Framework (MCIF). The goal of this approach is to check how software development practices are aligned on business objectives.
With the current economic conditions, it could not be easy to sell software development solutions that require large budgets and important modifications of current practices. IBM addresses this challenge by proposing a modular approach that allows a gradual transfer to its Jazz platform and the use of open source solutions in the overall software development toolbox.
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