A Matter of Focus

By eweek  |  Posted 2006-11-14 Print this article Print

What kinds of offers did you get? Nielsen: There was certainly no lack of interest from potential investors—both other vendors and from the private equity and VC community. We had at least five serious bidders who were involved in the due diligence process. Unfortunately, I cant say much more than that given confidentiality agreements.
How does this move prepare Borland to better go after the Application Lifecycle Management market?
Very well. Its really a matter of focus. By forming CodeGear as a separate independent business—with its own brand, management team, board, operating structure and so on—it gives Borland the ability to focus on and accelerate the significant progress were already seeing in ALM. I dont think theres one person who will split time now between Borland and CodeGear once the separation is complete later this year. That kind of singular focus goes a long way, and people internally are really jazzed about the opportunities ahead for both groups. If you look at the ALM revenue growth we announced today—90 percent annual growth from Q3 last year—I think that shows you what we can do even amidst an enormous amount of change. Explain the relationship between the two entities? Nielsen: Borland will own CodeGear from a legal and financial standpoint, but for all intents and purposes these are going to be run as two separate companies. To read more about Borlands plans for CodeGear, click here. CodeGear will now have its own brand, its own management team, its R&D organization, its own sales and marketing strategy, you get the picture. I look at it kind of like the relationship between Filemaker and Apple. Although Filemaker is a wholly owned subsidiary of Apple, they are very much a separate company with a separate brand. We will continue to work closely though when it comes to serving our customers. We will absolutely continue to move forward on the integrations that exist between CodeGears IDE and Borlands ALM products. These integrations add value to both product lines and we dont intend to lose that value. And at the same time, we may also seek other relevant integrations that our customers want. For example, CodeGear may choose to integrate with open source products where we may choose to tighten integrations with both open source frameworks and other IDEs such as Visual Studio. Next Page: Geared up.


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