Software AG to become webMethods?

So, Software AG is buying webMethods. I just hope this isn't going to mean a hangover for users. The big question is: given webMethods is a more recognizable brand in the super-heated SOA market, will Software AG have the guts to take the bold step of renaming itself webMethods?

webMethods has long been a target of acquisition rumours. As the number 3 in the integration space back in the EAI days, it gradually lost pace with TIBCO and IBM, although it has a strong array of products. However, as more players came into what is now the SOA market, with strong moves from companies like Oracle and BEA, webMethods had been slipping further and further back. But the combination with Software AG is interesting to say the least. There is a load of overlap between the products of the two companies, so this will have to be resolved. Software AG made a move once before to get a major US presence with the SAGA initiative, only to back off when it was less than successful. Perhaps this is the major driver behind this move.

The future for end users will depend on the way Software AG jumps. In general, at least some of the webMethods products are superior to their SoftwareAG counterparts, particularly in the non-mainframe integration, process and BAM areas. Then there is the question of the salesforces. webMethods just rolled over a large portion of their sales force over the last 6-12 months, so this could be an area of even more churn.

However, what this does do is establish for arguably the first time a truly major European SOA vendor. Expect a more detailed advisory from Lustratus in the next couple of days or so, but for the moment our advice to users of products from either company is - don't just look for confirmation that your product will continue, look for assurances that the competing product (and there is almost certain to be one given the extent of overlap) will be killed!

Steve

Comments

[Tony Baer]

Your colleague Ronan Bradley alerted me to your analysis.

If I were Software AG, I'd think twice about renaming. Remember Sagavista?

[Michael Kuhbock]

Steve,
The question is will this be a seamless merger or a battle of wills and egos where time is wasted and any synergy is lost? I fear the latter. On paper, despite the overlap, both companies and their clients have much to gain from this union, the critical issue is now how quickly the new entity and offerings can get to market. In the SOA space the majors are working with billion dollar sales and marketing budgets and flooding the marketplace with branding and noise (propagating the general state of confusion if you ask me), thus it will be difficult for any player the size of Software AG + webMethods to effectively get into the game in an meaningful way. Rest assured the new Software AG will try to pony up the vending budget and throw money at the analysts and media to gain some market identity, thus unfortunately they will drown in the sea of the majors branding and messages. This is too bad as bigger is not always better for the customers and not everyone needs to buy everything they require at Wal-Mart.

Just my 2 cents....

[Steve Craggs]

Good comments Tony and Michael. Lustratus will be issuing an advisory Lustratus Insight on Monday 16th April as guidance to Software AG and webMethods users and prospects.

In answer to your point about Sagavista, Tony, I think this is a little different. webMethods has a widely recognized brand in the SOA space already, so the risk is greatly reduced. On Michael's point, everything you say is possible. However I confess I am a bit more optimistic as long as the hard decisions are taken up front.

Steve

[Steve Craggs]

There is now a free Lustratus Insight available from the Lustratus site, www.lustratus.com, that discusses the acquisition of webMethods by Software AG in more detai.