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Battle
Royal for Legacy Capital
(with links below)
by
Anura Guruge
April 18th’s very unexpected, but symbiotic
merging of WRQ and Attachmate, as well as the less
dramatic, but very astute acquisition of
SofTouch by SEAGULL, galvanized what had been
a lackluster, stagnating marketplace. With 3 of the big names
involved, two extremely well known (and liked), this was obviously
major news. But it would be remiss to forget that $15M NEON
acquired ClientSoft (another market favorite) in mid-December
last year, while in January the $500M Software AG (that
specializes in application modernization) snapped up the
little-known, but influential, Israel-based Sabratec – with
its proven and versatile host integration technology.
So we have now had considerable and genuinely
meaningful vendor consolidation commensurate with the maturity and
the dynamics of this 24 year old market (kicked off in
1982 with
Frank Pitts creation of
Attachmate).
But this vendor consolidation does not in any
way affect or impact actual market demand.
The pie (which we will henceforth refer to as the
blueberry pie
to highlight its “blue” content) is still the same. It just means
that there is now less folks vying for a piece of it. Yes, this
means that you might be able to get bigger slices – but the pie is
still the pie. We should never lose sight of this.
What everybody wants to know is when the new
cross-over to EAI will start to occur. I, for one, don’t think it
will be this year. There is a very simple reason for that. We are
still looking, desperately, for the killer apps. to make this a
reality. No wonder there is so much sleep being lost in Seattle.
It is kind of “Sleepless in Seattle – Pinning for EIA”. The yet
again placid U.S. economy, spooked by the specter of inflation and
chastened by rising interest rates, is not helping matters. The
growth in corporate portals alone, despite their increasing
sophistication, is no longer sufficient to denote an upward spike in
market demand. We really do need a whole new genre of SOA-based
applications to adequately fulfill today’s pent up hopes for EAI –
that exploits legacy capital.
► Read
the original, April 20, 2005:
"Mega Consolidation in Host Access & Web-to-Host Article"
► Read
Part I
of the Battle Royal for Legacy Capital
► Read
Part II
of the Battle Royal for Legacy Capital
► Read
about SEAGULL's acquisition of Oak Grove on June
13th, 2005
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