Software AG will adopt the webMethods name for its Crossvision range of SOA (services oriented architecture) products, executives said Friday, outlining how they will integrate staff and products following the company's acquisition of webMethods.
To eliminate one of the few overlaps in their product lines, Software AG will adopt webMethods' BPM (business process management) offering, and stop selling Fujitsu's Interstage BPM software, which it has distributed since December 2004. However, Software AG will support its existing Interstage customers for at least five years, said Peter Kürpick, board member responsible for research and development.
Another area of overlap is in SOA management and governance, where Kürpick expects to see Software AG's CentraSite SOA registry and repository combined with webMethods' recently acquired Infravio SOA governance tools by the end of the year.
"We are strong in managing metadata, and they are strong in governance policies, rules and regulations," he said.
The combined product will likely retain the CentraSite name, he said.
All other areas of the companies' product lines are complementary, and there will be no need for customers to migrate, Kürpick said.
Kürpick will lead the integration of the companies' product development teams, where he expects managers from both companies will take senior roles.
It won't be like a classic merger where "you own the body but the head and legs are gone," he said.
He sees little need for layoffs as the product development teams are combined: "We already have an R&D force that is 50 percent low-cost, mostly in India, some in Bulgaria, so we already have a good cost structure," he said.
Although there may be little scope for payroll savings, CEO Karl-Heinz Streibich expects earnings to improve this year as the two sales forces -- which will remain separate at least through the end of 2007 -- exploit opportunities to cross-sell the two product ranges. The combined entity's revenue will grow organically by 10 percent over the next 12 to 15 months, he said.