Business of acquisitions Zoran Hrustic Director of Sales
Business of acquisitions Zoran Hrustic Director of Sales IBM Software Group CEEMEA
Business of acquisitions • IBM Strategy and why do we do acquisitions • What does it mean to our clients globally from overall solution perspective • What relevance this strategy has to South African Market • Why should you feel good about it
2009 – A Year of Challenge & Opportunity “IBM has also adjusted its M&A strategy to follow suit. Its biggest acquisitions of late – Cognos, File. Net, and Pricewaterhouse. Coopers – have all added to the technology giant’s already formidable data acquisition, analysis, and consulting capabilities. ”
IBM SWG Acquisitions Internal IBM Software Talk April 2008 IBM SWG has made 52 software acquisitions since 2000, including 8 in the first 4 months of 2008. “…. we reach a point where we cannot create certain things. Sometimes there are things that are a little bit outside of our core competency and we leverage acquisitions as a way to bring that competency into IBM, expand the footprint of inventiveness that we have and then thereby increase the portfolio … …clearly we are bringing in a lot of deep technical skills that in their own rights bring strong, inventive characteristics to the table. ” Steve Mills, Senior VP and Group Executive, SWG
IBM’s Strategy Focus on open technologies and high-value solutions Deliver integration and innovation to clients Become the premier Globally Integrated Enterprise
IBM Software Revenue Growth Strategy § Invest in high growth market segments § Leverage IBM’s global reach • Geographic presence • Deep technical skills • Extensive client relationships • Accelerate business through Value Partners § Capitalize on IBM’s unique ability to deliver SOA, Information on Demand, Web 2. 0, Management Services, and Application Development § Selectively acquire software companies to extend the product portfolio
Evolution Towards Middleware Business Processes Applications Middleware Human Information Interaction & Management Collaboration Linux Systems Unix Servers Transactions, Systems Messaging & Management Integration & Security Windows OS/400 Storage Software Development z/OS
Software Solutions Portfolio Situational Applications & Integration Architecture Mgmt Unified Messaging & Communications Change and Release Mgmt Collaboration Social Computing Process and Portfolio Mgmt Content Management Lotus Data Management Content Management Rational Information Management Systems Mgmt Tivoli Storage Mgmt Web. Sphere Information Platform Security Mgmt Business Intelligence Business Application Transaction Integratio Servers Processing n Service Oriented Architecture ( SOA ) Information On Demand ( IOD ) Next Generation Collaboration IT Service Management IT Lifecycle Management & Governance
Major Reasons for IBM Software Group Acquisitions • Strategic • Target high-value, high-growth market segments • Extend portfolio into adjacent market segments • Market consolidation • Technology • Accelerate delivery of capabilities we lack • Skills • Infusion of innovative talent
Augmenting organic growth with strategic acquisitions Bold Market Entry § High profile entry + Complementary (Point) Products § Highly complementary technology buys § Gain time to market + Opportunistic Consolidations § Companies with significant revenue streams § Retain customers and leverage install base § Achieve cost and expense synergies + Market Leadership § Buy market leaders in growth segments § Strong ecosystems § Large customer install bases § Usually command premium valuations
Expanding Our Platform Through Acquisitions Empowering People Lotus (1995) Collaboration & Productivity Databeam (1998) Realtime & Distance Learning Ubique (1998) Instant Messaging & Chat ONEstone (1999) Pathware (1999) Web. Dialogs (2007) Online meeting & collaboration Web based e-Learning Aptrix (2003) Web Content Mgmt Pure. Edge (2005) Net Integration Tech (2008) Secure xml e-Forms Bow. Street (2005) Small business serversolutions Information on Demand Knowledge. X (1998) Trigo (2004) Product Info Mgmt Complex Data Mining Alphablox (2004) IW Manager (1998) BI Analytics & Alerts Query Manager Venetica (2004) Informix (2001) Tarian (2002) Record Management Identity resolution Info access to Mainframe DBs Workflow Ascential (2005) Green Pasture (2003) Service Management Tivoli (1996) Centralized Systems Mgmt Unison (1997) Job Scheduling DBMX (1997) Distributed DB Mgmt Dascom (1999) Security Access Control SANergy (1999) Storage Mgmt Accessible Software (2000) Mainframe Systems Mgmt Metamerge (2002) Directory Integration Trelli. Soft (2002) Storage Mgmt Access 360 (2002) Identity Mgmt Think Dynamics (2003) Automated server provisioning (orchestration) Candle Corp (2004) Systems Mgmt & Monitoring Cyanea (2004) Web Performance Mgmt & Monitoring Isogon (2005) IT Asset Mgmt Collation (2005) App centric views of crosstier IT infrastructure Micromuse (2005) Network Mgmt CIMs Labs (2006) Track usage of resources across virtualized technology environments Compound Document Mgmt Customer Data Integration & Mgmt i. Phrase (2005) Adaptive info delivery & discovery Access/Integrate unstructured info through LAS (2006) Mult-cultural name SQL query recognition Distributed Unix DBs Cross. Access (2003) SRD (2005) Development Tools for Portals DWL (2005) Enterprise Data Integration Unicorn (2006) Enterprise Metadata Mgmt File. Net (2006) Business process & Content Mgmt Data. Mirror (2007) Real-time data integration & data protection Princeton Softech (2007) Database archiving & test data management Cognos (2008) BI & Performance Mgmt Platform Solid Information Tech (2008) Real-time, all-the-time info access Rembo (2006) Automatically install or upgrade OS on multiple systems MRO (2006) Asset & Service Mgmt ISS (2006) Internet Security Systems SW & Services DORANA (2006) SW Asset Mgmt Vallent (2006) Network Performance Monitoring & Service Mgmt for Wireless Consul (2006) Compliance & Security Audit Encentuate (2008) Identity & access management software Business Process Flexibility Object Tech. (1996) Object Technology Open. Orders (2000) Data. Power (2005) Order Management Cross. Worlds (2002) Business Process Integration Holosofx (2002) Business Process Modeling & Monitoring Gluecode (2006) Open source Java Application Infrastructure Secure application-level messaging & xml processing Webify (2006) Industry-specific SOA SW Aptsoft (2008) Business-event processing ILOG (2008) Business rules and cross industry solutions Software Lifecycle Management Rational (2002) Team-based end to end development tools Information Lab (2003) Development tool technology Systemcorp (2004) Project Portfolio Mgmt Build. Forge (2006) Product development teams document what was created, developed & deployed Watchfire (2007) Security & compliance testing Telelogic (2007) Development SW for complex embedded systems
Growth through acquisitions Processes Applications Middleware Environment Ubique ONEstone Pathware Systems Net Objects Environment Lotus Aptrix Bowstreet Pure. Edge Web. Dialogs Net Integration Cross. Worlds Holosofx Gluecode Data. Power Webify Solutions Apt. Soft Info. Dyne ILOG Collaboration Linux Metamerge Micromuse Rembo Vallent DORANA (Ubiquity) Consul Encentuate Trellisoft Access 360 Think Dynamics Candle Cyanea Isogon Tivoli Collation MRO CIMS Lab Files. X Transactions, Information Messaging & Management Integration Systems Management & Security Informix SRD z/OS Tarian DWL Unix Windows Trigo i. Phrase OS/400 Cross. Access File. Net Servers Alphablox Venetica. Storage Data. Mirror Green Pastures Unicorn Software Ascential Princeton Softech Cognos Language Analysis Solid Software Development Rational Information Labs z/OS System. Corp Build. Forge Watchfire Telelogic AB Note: Acquisitions since Jan 2001
Leveraging IBM SWG Collaboration Office Productivity WCM Forms Mashups Business Optimization Enterprise Rules Performance Management Business Spaces Business Intelligence Dynamic Processes Trusted Information SOA Information Integration ESB Structured Data Transactions TSM/HSM Information Infrastructure Protected Storage Tiered Storage
Information Management • Filenet – – 1 sales person 0 engineers 1 business partner Very few customers/1200 users • IBM/Filenet 2009 – – 8 sales specialists 4 engineers, 5 IT architects 4 business partners Dozens of customers/18000 users
Information Management • Cognos – – 5 sales person 6 engineers 7 certified partners 1400 customers • IBM/Cognos 2009 – 7 sales specialists – 11 engineers 6 IT architects – 8 certified partners – About 2000 customers
Information Management • Princeton Softech 2007 – – 0 sales person 0 engineers 2 certified partners Handful of customers • IBM/Optim 2009 – 2 sales specialists – 2 engineers 6 IT architects – 3 certified partners – Dozen customers
Tivoli • Micromuse – – 0 sales people 0 engineers 1 partner 3 customers • IBM/Netcool 2009 – 4 sales specialists – 3 engineers 5 IT architects – 3 certified partners – 12 major customers
Tivoli • MRO – – 0 sales people 0 engineers 1 partner 3 customers • IBM/Maximo 2009 – 1 sales specialists – 1 engineers 2 IT architects – 1 certified partner – 8 customers in SSA
IBM Software Acquisitions: Partners for Growth
Zoran Hrustic zoran@ae. ibm. com
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