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Peter Schooff
ebizQ's Business Agility Watch
ebizQ Managing Editor Peter Schooff gives a daily dose of Web happenings for the business technology industry; the industry that builds, powers and ensures business success.

« BPM-BI Convergence | Main | Buy Fever -- IONA/LogicBlaze »

April 11, 2007
Buy Fever -- Software AG/webMethods

Just as the SOA industry stopped reeling from the revelation that Software AG had made plans to acquire webMethods, we were met with more news that IONA was buying LogicBlaze. But let's go one at a time.

ebizQ analysts and friends have had lots to say about the Software AG buy, since it is so squarely in our space and since we've been watching both companies (and their apparently divergent business strategies) for so long.

Our VP Beth Gold-Bernstein said that in light of the Software AG purchase of webMethods, both companies have industry leading next generation technology that has been underappreciated in the market. However, she warns that there are some product overlaps that will have to be reconciled, which are sure to shake things up. Read Beth's analysis here.

Neil Ward-Dutton, on the ebizQ MWD blog, says he was most struck by the fact that the Software AG-webMethods deal was not a behemoth buying a minnow, but just a medium-sized software company buying another medium-sized software company. He also noted "one particular feature of the two companies' income statements which is shared: both companies make more money from software maintenance than they do from selling new product licenses." He points out that the benefit of this buy might be more about the acquisition of customers than about technolody tools. Read Neil's great commentary here.

Sandy Kemsley chalks it all up to competition. Read her always insightful, ever pithy entry here.

Andre Yee, ebizQ's Security Insider blogger, made a few comments because he has some familiarity with Software AG. He sees it as a "bold move," and a clear indication that Germany-based Software AG is staking a claim on the U.S. SOA/BPM marketplace. Read Andre here.

Steve Craggs of Lustratus Research (cohort of our friend Ronan Bradley) goes along the lines of Andre here, indicating that this is the first big foray into SOA for a European vendor. He also does take note that there is lots of product overlap. Steven even goes so far as to suggest that Software AG should take on the webMethods' name. Check out Steve's incisive post here.

I didn't even get to tell you about SOA in Action Blogger/Rock Star Joe McKendrick and this fantastic Tony Baer analysis, because I am in the airport in Amsterdam and can't plug in my laptop, but click on their names to read their pieces. Also, Tony posted a followup last night in response to all of his comments. Here that is.

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