LOGIN | REGISTER NOW | SUBSCRIBE
 
print Printable version 
Most Read Latest News Blog Resources
Does Windows cost Microsoft opportunities?
Microsoft's decision to focus .NET on Windows is stifling innovation due to the specter of...

Mono brings .NET to Android
At Microsoft MIX, Mono will unveil the ability to port .NET applications to the Android op...

OSBC focus turns to best practices for open-source adoption
Businesses are no longer asking why they should adopt, but how do they use open source leg...

Digg!  Digg
Reddit  Reddit
Slashdot  Slashdot
Share on facebook  Facebook
Share on Twitter  Twitter

IBM Extends ALM With Acquisition of Telelogic


US$745 million purchase adds embedded tools

By Jeff Feinman
July 1, 2007 — 
With IBM’s expected acquisition of development tool maker Telelogic for US$745 million, one industry expert said that IBM Rational might be taking steps to redefine ALM. At the same time, executives at competing companies said the acquisition is a way for IBM to strengthen parts of its ALM offering.

IBM is making a long-term bet that the requirements of the embedded world are going to converge with those of the traditional IT space. Telelogic’s product line covers a broad range of software used in developing complex embedded systems such as aircraft radar and antilock braking systems. Those tools include the Doors requirements management family, the Rhapsody systems engineering environment, the Synergy change and configuration management suite, and the Tau modeling environment.

Upon the close of the acquisition, Telelogic will become part of the IBM Rational business unit, according to Danny Sabbah, general manager of IBM Rational. IBM has stated that it will retain Telelogic’s products, employees and prior acquisitions, including the most recent Popkin Software and I-Logix purchases. The main motivation behind IBM’s purchase of Telelogic is to penetrate the embedded systems market, which Sabbah described as a growth area.

One market that IBM has set its sights on is the recently coined “System-of-Systems,” which focuses on the orchestration of command-and-control, communications and information systems and is being looked into for the areas of defense, space exploration and transportation.

“Embedded systems is an integral part of not only the development of products, but also this whole notion of System-of-Systems, which we believe is growing,” Sabbah said.

WHAT ABOUT OVERLAP?
Theresa Lanowitz, founder of analyst firm Voke, said that Telelogic would fit well into the IBM Rational brand, as it extends IBM Rational’s idea of a software life cycle into the embedded space. Even though there is a significant amount of overlap, IBM Rational will have the opportunity to pick and choose the better tools from Telelogic and its own product line, she added.

IBM was criticized by some in the industry for the way in which it handled the acquisition of Rational, as it took quite some time for the merged product lines to line up properly. According to Lanowitz, many of the complications with that acquisition had to do with the assimilation of a new brand. In contrast, she believes that the Telelogic offerings will fit into the Rational brand, particularly in areas such as requirements management and testing.

Kevin Parker, vice president of market development for Serena, claimed that with its attention focused on the Jazz collaborative development project, IBM has lost focus on some of its ALM product lines. As a result, companies like Serena and Telelogic have been able to pull ahead, and the only way for IBM to catch up was through acquisitions, he argued.

Parker shared Lanowitz’s feeling that the acquisition will boost IBM Rational’s requirements management lineup.

“In the requirements management space, there are really only three vendors—Serena, IBM/Telelogic, and Borland—and IBM was starting to slip in that space, so they had to do something,” he said.

Now that IBM Rational has grown by removing a significant competitor in the ALM market, other players in the space seemed cautiously enthusiastic. Borland Software’s Marc Brown, vice president of product marketing, said that in the long term, an acquisition such as this removes straightforward ALM companies and leaves customers with no option but to deal with industry juggernauts such as IBM. At the same time, the deal opens opportunities for “neutral” ALM players such as Borland and Serena to gain customers.


Share this link: http://www.sdtimes.com/link/30852
 

Add comment


Name*
Email*  
Country     


  • Comment
  • Preview
Loading



 
 
 
 
News on Monday
more>>
SharePoint Tech Report
more>>


   

 
 
Download Current Issue
ISSUE 3/15/2010 PDF

Need Back Issues?
DOWNLOAD HERE

Receive the print Edition?


 
blogs tab
Google Code turns 5
Google Code Turns 5, and adds a Paxos Algorithm to make the system more stable and reliable.
03/17/2010 11:16 AM EST

Test your Visual Studio 2010 know-how
Microsoft is offering free beta certification exams for Visual Studio 2010.
03/17/2010 11:08 AM EST

Microsoft lifts the hood on IE9
Microsoft is previewing IE9.
03/16/2010 01:10 PM EST

 

Events calendar tab
EclipseCon
3/22/2010 to 3/25/2010
Santa Clara, Calif.
The Eclipse Foundation

DevConnections
4/12/2010 to 4/14/2010
Las Vegas
Penton Media

MySQL Conf. and Expo
4/12/2010 to 4/15/2010
Santa Clara, Calif.
O'Reilly Media

High Performance Computing Linux Financial Markets
4/19/2010
New York City
Flagg Management

Informix User Conf.
4/25/2010 to 4/28/2010
Overland Park, Kans.
IIUG