Link: WSO2 CEO Tyler Jewell: Ballerina and the End of Middleware

‘About that same time, Quest was getting acquired by Dell. And then Vinny calls up one day. He was starting a venture capital company and asked if I would like to get involved. He owned 30 or 40 percent of Quest, so he made a huge fortune. I’m like “Well, Vinny, that sounds really interesting, but I’ve just decided to start this company Codenvy. We’re really excited about it. We’re gonna go build this Cloud IDE.” And he says, “Great. Come on board as a partner. Manage our dev ops investments, and we’ll make Codenvy one of our investments as well.”

‘And so sure enough, he launches Toba Capital, and he buys back all the investments from Dell. So all the investments that Quest had, Dell didn’t have an investment arm. And so there’s a dozen or so out there, WSO2 and Sauce Labs and a couple others. And he just buys ’em back. And then he starts investing more into these companies. And at that point in time started investing more aggressively in WSO2, and I joined its board. And Toba eventually increased its position over time pretty significantly. And I was involved in about four or five different boards on these dev ops companies while I was running Codenvy from 2012 to 2017.’
Original source: WSO2 CEO Tyler Jewell: Ballerina and the End of Middleware

Link: Yahoo! dismemberment! begins! as! Oath! offloads! Flickr!

“Yahoo! acquired Flickr in 2005 and planned to fold it into the Yahoo! Photos service. But the Flickr brand proved more resilient and Yahoo! ended up running it until now, albeit with Yahoo! as the preferred authentication provider. The service has remained popular with photographers, but trails the likes of Facebook and Google in terms of sheer quantity of images stored.”
Original source: Yahoo! dismemberment! begins! as! Oath! offloads! Flickr!

Link: Yahoo! dismemberment! begins! as! Oath! offloads! Flickr!

“Yahoo! acquired Flickr in 2005 and planned to fold it into the Yahoo! Photos service. But the Flickr brand proved more resilient and Yahoo! ended up running it until now, albeit with Yahoo! as the preferred authentication provider. The service has remained popular with photographers, but trails the likes of Facebook and Google in terms of sheer quantity of images stored.”
Original source: Yahoo! dismemberment! begins! as! Oath! offloads! Flickr!

TIBCO agrees to acquire Cisco’s data virtualization business – 451

The details of the acquisition were not disclosed, but we would be surprised if Cisco made back any of the $180m it paid for Composite Software in 2013. Cisco did at least manage to grow the data virtualization business during its ownership. The company told us in September 2016 that it had 250 paying customers for what was then Cisco Data Virtualization (up from 200 at the time of its acquisition of Composite Software). The deal is expected to close in the coming weeks.

Source: TIBCO agrees to acquire Cisco’s data virtualization business

SUSE to Acquire HPE’s OpenStack, Cloud Foundry Portfolio, Boost Kubernetes Investment, TheNewStack

“We see PaaS as a strategic component of our software-defined infrastructure and application platform strategy,” stated SUSE President of Strategy, Alliances and Marketing Michael Miller, in a note to The New Stack, “and Cloud Foundry as the open source project and technology that brings together the best innovation and industry collaboration. We want to leverage that innovation for the benefit of our customers, and we have a vision for the convergence of CaaS technologies [in SUSE’s case, Containers as a service] like Docker and Kubernetes and PaaS technologies like Cloud Foundry that we think will address the real-world needs of our customers and partners. We will now work with the Cloud Foundry community to develop that vision.”

http://thenewstack.io/suse-add-hpes-openstack-cloud-foundry-portfolio-boost-kubernetes-investment/

The HPE hedging gambit

Some crisp HPE strategy coverage from Chris Evans at El Reg:

HPE is remaining part of the CSC and Micro Focus businesses by having a shareholding in the new organisations. It’s fascinating to think what this might mean going forward. It’s like neither business wants to fully commit to where future revenue for their business may lie. I say this because I can only assume that infrastructure sales will become a dwindling business as companies move to public cloud; it doesn’t seem to be enough that infrastructure alone will keep businesses buying on-site solutions.

And, a nice summing up of the HP master plan:

Effectively Meg Whitman is unravelling some of the bad decisions of the last few years, including the purchase of Autonomy and acquisition of EDS in 2008. There’s more focus on delivering infrastructure to clients, rather than moving revenue to services – remember HPE’s public cloud offering was also culled at the beginning of 2016.

The Register

EMC Documentum divested to OpenText for $1.6bn, 451

Good coverage from 451:

  • “maintenance contracts account for half [of OpenText’s] revenue, and 75% of revenue is recurring.”
  • “EMC ECD is made up of more than 20 acquired product sets, all of which provide support for unstructured data. This technology ranges from records and digital-asset management to e-discovery and beyond. The core platform was in the process of being re-architected over the past few years; it is still a complex and expensive system of record.”
  • The $1.6bn deal size is a 2.8x multiple.
  • “OpenText has now spent $2.4bn on five purchases in 2016 – both numbers are record highs for the company.”

Source: “OpenText does largest acquisition yet with the $1.6bn purchase of EMC’s Documentum.”

HPE Software sold for $8.8bn, to Micro Focus

While HPE is getting $2.5bn in cash, the whole deal value is more like $8.8bn, the non-cash being stock. More details:

The Numbers

  • “Under the deal, HP Enterprise shareholders are expected to end up with Micro Focus shares currently valued at about $6.3 billion. Micro Focus will pay HP Enterprise $2.5 billion in cash.” (WSJ)
  • There’s about 12,000 people in HPE Software. (WSJ)
  • HPE Software revenue: “HPE’s software unit generated $3.6 billion in net revenue in 2015, down from $3.9 billion in 2014.”
  • Put another way, from TBR: “2Q16 software revenue [had a] decline of 18% year-to-year, driven down by a license revenue decline of 28% year-to-year.”
  • HPE has been divesting a lot, getting a hoard of cash: “In earlier transactions, HP Enterprise in May completed a $2.3 billion deal in China to sell a 51% stake in a venture there called H3C that sells networking, server and storage hardware and related services. Later the same month, HP Enterprise announced a deal to spin off a computer services business that employs about 100,000 people—two-thirds of the company’s total head count—and merge it with operations of Computer Sciences Corp.”
  • Also: “The company sold at least 84 percent of its 60.5 percent stake in Indian IT services provider Mphasis Ltd to Blackstone Group for $1.1 billion in April.”

What now for HPE?

Continue reading “HPE Software sold for $8.8bn, to Micro Focus”

Quest and SonicWall to operate independenly once divested from Dell

After Dell Software’s expected sale is completed this fall, its new private-equity owners will separate some of the divisions — including Quest Software and SonicWall — into independent companies.

This is similar to how Novell was divided up under Attachmate.

Related, see this summary of comments around the plans for VMware in Dell Technologies.

Source: Quest Software, One Identity To Operate Separately From SonicWall After Dell Software Sale

Mature Software Is Hard: HPE Looking to Divest?

Rumors are HPE is looking to sell of some older software assets, Autonomy, Mercury, and Vertical. Acquisition prices from Bloomberg:

  • Autonomy: $10.3bn in 2011
  • Mercury: $4.5bn in 2006
  • Vertica: ~$350m in 2011

It’s that bugbear cloud, James over at RedMonk, said back in June in his report on the company’s big conference:

Make no mistake – Cloud is a forcing factor for pretty much all of the issues facing incumbent enterprise suppliers today. Cloud is putting pressure on all enterprise software markets – applications, hardware, networking, security, services, software, storage etc.

That said, I’d theorize that these are all reliable businesses with reliable customer bases. Their revenue may be declining and they may not be all “SaaS-y,” but for the right price PE firms could probably do alright.

Continue reading “Mature Software Is Hard: HPE Looking to Divest?”