Recently, one of the “big four” software firms was acquired by a group of investors led by Bain Capital. This is good news as this shows that there is demonstrable health in the IT Sector in that investors are willing to take the risk and purchase a software vendor.
Does this matter to you? It might. It depends on which of that firm’s products are used at your company, if any. However, the acquisition by a private equity firm is unlikely to be permanent. It could eventually lead to a company breakup with the parts sold to separate owners. But, while this could happen, it’s probably not the final outcome.
In the real estate market where someone buys a house, fixes the plumbing, puts in a new heating system and resells the house for a profit, they call it a “flip”. They get rid of the playroom that used to be a garage and return the house to a sellable condition. Anything that prevents a future sale is removed or fixed. However, not a cent is invested that won’t repay short-term dividends. It’s a similar situation when you flip a software company. You trim the fat by removing redundant or overlapping product lines and end-of-life the products that just aren’t profitable. You don’t invest more money in it. This makes for a leaner company – and makes it more profitable for the investors.
No one outside of the new owners knows which products will stay and which will go. In fact, the owners themselves might not even know at this stage of the game. Interestingly enough, this firm recently made news when it said, “Please don’t call us a middleware company”. Well, ok. But, if you are a middleware user and rely on middleware monitoring and management to ensure availability, that proclamation could be troubling. And the outcome may take many months to play out leaving users unsure of the future of the products they use.
A better and safer bet would be to look at Nastel AutoPilot which is a middleware company. It is considered to be the leader in the middleware management space, is often referred to as the MQ Doctor and is used by some of the world’s largest enterprises. Middleware is in Nastel’s DNA and has been since the company was formed eighteen years ago.
AutoPilot provides support for the WebSphere MQ family of products, DataPower, TIBCO RV/EMS and Solace. It provides a unified view across all these middleware products and with its real-time monitoring and predictive analytics can reduce the frequency and duration of incidents. My advice? Make an appointment with the MQ Doctor® and let Nastel show how it can help.