Message for Mr. Ranadive

It appears that webMethods tried to certify its integration suite against Tibco EMS (JMS provider), but Tibco did not co-operate...

Heard a Tibco guy confirming that they won't.

Message for Mr. Ranadive is... you have always challanged status-quo, then why this?

Post Oracle-Sun, outlook for Tibco and Software AG

Post Oracle acquiring Sun, it will be an interesting but polarized market. People will gravitate between IBM, Oracle and Microsoft... of all... in such scenario, there is need for additional consolidation. In terms of Integration tools, Tibco and Software AG have a great match. Tibco's bus technology with Software AG's webMethods Integration Server can create best of the breed integration tool that will be a good competition against IBM's MQ and related tools, Oracle's Fusion and Microsoft's BizTalk.

Oracle XPI Issues

For some people who do not know what is XPI or WSG, here is a primer:

Long time ago, J D Edwards tied up with a company called as ActiveWorks for providing Integration Tool for their ERP. This tool was called as J D Edwards XPI - an OEM product from ActiveWorks for J D Edwards.

Later, ActiveWorks was purchased by webMethods and the relationship between J D Edwards and webMethods continued.

Soon after, J D Edwards was purchased by PeopleSoft. The relationship continued. The tool was renamed to PeopleSoft Enterprise XPI.

In the aftermath of Oracle's acquisition of PeopleSoft, the tool came to Oracle fold. It took Oracle few years to build a technology to integrate with J D Edwards, as a result, Oracle had to continue providing a lifeline to XPI. Only change it could do was that, it renamed the tool to PeopleSoft Enterprise Web Service Gateway (WSG) and would provide limited support (no patches are issued, only suggestion to what can be done provided).

Now, webMethods has become part of Software AG. Adding more complications in the MIX.

Oracle is almost ready with components that can be used as part of Integration - so called - Oracle Fusion.

Latest version of XPI/WSG is 6.1. This is based on webMethods's Integration Server 6.1 platform. The webMethods Integration Server platform has advanced. There are service packs and 100's of patches for the bugs that existed in the product. But none of them are available thru Oracle.

So if you are using XPI for developing integration for your J D Edwards, you are out of luck.

What you should do?

1. If you have already invested in developing a solution around XPI, best thing would be to go with a regular webMethods license. That way you would have access to latest patches and service packs from them. On a flip side, you will spend money on integration license.
2. If you are starting to develop an integration with J D Edwards, look to Oracle Fusion. That is what Oracle wants you to use and will continue to enhance. It is still like getting a beta software and you will have a roller coaster ride, but that's what Integration is supposed to be. Isn't it?

webMethods after Software AG

I have been having offline and online discussions with people about Software AG's acquisition of webMethods. Some of the concerns that we have discussed are:

• Combined Company has multiple overlapping products: Products from Software AG, webMethods and Infravio overlap in SOA Registry area. They would have to identify how they want to position these products.
• webMethods' History of Combining different finished products is not so great. They spent a hugh amount of time developing products such as Modeler, Workflow etc and took a long time to merge them.
• webMethods' History of Product Upgrade is not great either: Customers who upgraded from ActiveWorks/webMethods Version 4 Solution to their Version 5 and then Version 6 would tell you nightmares they have had trying to do the upgrade. Now the customers face a similar issue upgrading from Workflow to the new modeling tool.
• A foreign company: webMethods has had large Federal Accounts: DoD, Military using webMethods for EDI etc. Would they want to buy same software from a non-american company? It is not a fair world out there.
• Open Source: webMethods has been using Open Source Tools into its products for a long time now. It built first version of webMethods Manager and Optimize on Tomcat, Hybernate etc. It used embedded Tomcat Server for variety of purpose. But it has not been so great in contributing to Open Source. Now it faces increasing compitition from open source world itself. Without having partners in that arena, it faces a great challange in small and medium enterprises.
• Losing F2000 Customers: webMethods positioned itself as a solution provider in Fortune 2000 arena. That is a highly crowded space. Integration Tools from SAP and Oracle when bundled with respective ERP solutions promise a better value proposition to the Fortune 2000 companies. Fortune 2000 companies also find that their IT Teams tooled in Java and Java Servers are able to adapt to SAP and Oracle's J2EE solution easily compared to a non-J2EE webMethods (this is also being seen as a way to lower TCO by not requiring specialized webMethods skillset).

There are more things to discuss... will wait to hear comments.

Integration Space, Who remains?

After webMethods's aquisition, 0nly pure play ESB/Integration ISV that remains in the market are TIBCO (going strong and moving into other areas such as AJAX), IONA (which has developed a decent open source strategy as well as has a legacy of CORBA Servers to sustain on 2005 –ve, 2006 +ve) and Vitria (already burning money ;-ve net income in last two years). See the graph comparing their fortunes from Google Finance.

There are other integration tools such as Sterling Commerce (very strong in EDI and SupplyChain Space) from AT&T stable, and Seebeyond (now part of Sun), We have to wait and see how they grow.

Software AG to Aquire webMethods

Also see http://www.softwareag.com/Corporate/Company/latestnews/20070405_WebMethods_page.asp.

Why?
First Thoughts:

• I think all the 3rd Party ISV Integration Tools are losing market share (new license revenue as well as from existing customer accounts).
• Fortune 2000 companies are moving away from Home Grown Legacy applications to off-the-shelf Enterprise Applications.
• Off-the-shelf Enterprise Applications are promising better integration capabilities, as a result, clientsforesee a reduced need to perform internal integrations using Integration Tools.
• Proliferation of SAP XI and Oracle Fusion bundled with ERP Rollout has reduced size of market for ISV integration tools.
• webMethods' lack of footprint in J2EE space makes it less attractive (say compared against a JBoss, webSphere or webLogic based Integration Tool)
• Its investment in SOA Space (in terms of money spent in acquisitions of about 6 companies in last 4 years) did not pay off very well (compared to pure play SOA companies such as Cape Clear).