When Autonomy was negotiating a sale to an end user, but couldn’t close the sale by quarter’s end, Egan would approach the resellers on or near the last day of the quarter, saying the deal was nearly done. Egan coaxed the resellers to buy Autonomy software by paying them hefty commissions. The resellers could then sell the software to a specified end user – but Autonomy maintained control of the deals and handled negotiations with the end user without the resellers’ aid. There’s no way these transactions could be revenue.
In the case of HP and Mercury, the slow-down was particularly unfortunate because the acquisition came just as enterprise application development was moving from proprietary protocols and GUIs to web applications talking HTTP. Mercury’s powerful and extremely customisable products were arguably overkill for simple web applications, and a new generation of tools was beginning to emerge that was dedicated for that purpose. Given its singular focus on testing, and based on what I know of the company culture pre-acquisition, I am quite certain that an independent Mercury would have addressed the challenge head on and remade itself for that new world. After all, Mercury was fully aware of web applications, offering services that would simulate user access from locations around the world to have a continuous view on sites’ performance as experienced around the world. Continue reading Mercury’s decline in HPE
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.
No one really knows what the deal with “private cloud” is. There seems to be a coffin, but as we discuss, it’s unclear how far we are from the final nail. We also discuss HP splitting, HP shutting down their private cloud, a slew of small acquisitions, and Matt Ray’s take on the recent OpenStack Summit in Tokyo.
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I don’t think anyone expects new entrants into the public cloud market, right? Seems locked with AWS, Azure, MSFT. All others are “managed cloud”/enterprise cloud gambits. Oracle not doing so – Don’t forget IBM!
“cut another 30,000 jobs” – shedding droves of people happens at big tech companies a lot. I always wonder how their system got so inefficient that they hired this many extra people. It’s a strange problem once you start thinking through it: each of those hires was thought to be needed to be profitable, and now all the sudden they’re not needed…?
“With this agreement, ActiveState loses the product it’s best known for. Copeland wrote that ActiveState will continue as a company, focusing on other products including ActivePerl, ActivePython, AvtiveTcl and Komodo IDE. He will stay with ActiveState rather than join HP. ”