Close
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Development
    • Development

    Middleware Brawl Erupts

    By
    John Mulqueen
    -
    May 7, 2001
    Share
    Facebook
    Twitter
    Linkedin

      Its getting very nasty in the middleware market.

      As competition in the crowded space intensifies, vendors are stepping up their marketing efforts while slinging especially nasty barbs.

      Executives at the companies describe pricing competition as heavy and are clamping down on expenses or cutting staff so they can get to profitability faster.

      CrossWorlds Software is cutting staff by 7 percent and is reducing executives salaries by 10 percent. Mercator Software has cut its payroll by 21 percent. SilverStream Software has cut its work force by 11 percent and plans more cuts. WebMethods has announced a hiring freeze and has cut back on some trade shows.

      Tension among vendors is evident in the snarky comments that executives from CrossWorlds, SeeBeyond Technology and webMethods have made about each others companies and other competitors in recent earnings calls.

      Jim Demetriades, SeeBeyonds chairman and CEO, implied that webMethods and others are trying to undercut SeeBeyond with lowball pricing. Phillip Merrick, webMethods chairman, responded that SeeBeyond is using warrants to buy its stock and win recommendations from systems integrators.

      Alfred Amoroso, president of CrossWorlds, said that he does not believe in doing business by using warrants to win business. In a swipe at Vitria Technology, Amoroso said his firm displaced Vitria in a failed implementation. A Vitria spokesman asked why CrossWorlds chief financial officer resigned at the end of 2000.

      The warrants to buy SeeBeyond stock that Amoroso and Merrick referred to were issued to Accenture, Computer Science Corp. and Electronic Data Systems. SeeBeyond also gave General Motors warrants, but would not discuss that issue.

      Merricks comments may have been provoked by Demetriades remarks about webMethods, but there also seems to be some effort to rein in SeeBeyond. Analysts said that there is a cockiness about the Monrovia, Calif., company, which has had very rapid growth after changing its name from Software Technologies last year and starting a new marketing campaign.

      SeeBeyond executives predict the companys 2001 revenue will grow between 74 percent and 78 percent, to $200 million to $210 million. Thats much faster than other vendors predictions.

      Iona Technologies was the only other vendor to raise its estimates for 2001, and it estimated a growth of almost 50 percent. Ionas stock was the only one of the group to rise steadily following the earnings calls. John McPeake, an analyst at Prudential Securities, said Ionas new Netfish Technologies eXtensible Markup Language product seems to be winning customer acceptance. He raised his estimates for the year from $205 million to $224 million.

      “These guys are very competitive, and this has gotten vitriolic,” said Greg Speicher, securities analyst at Stifel, Nicolaus & Co. “There are few leaders, and the future winners are trying to establish their positions. They will . . . do anything to gain a foothold.”

      Speicher said: “There is no doubt there is discounting going on,” adding its “a little above average.”

      John Mulqueen

      MOST POPULAR ARTICLES

      Big Data and Analytics

      Alteryx’s Suresh Vittal on the Democratization of...

      James Maguire - May 31, 2022 0
      I spoke with Suresh Vittal, Chief Product Officer at Alteryx, about the industry mega-shift toward making data analytics tools accessible to a company’s complete...
      Read more
      Cybersecurity

      Visa’s Michael Jabbara on Cybersecurity and Digital...

      James Maguire - May 17, 2022 0
      I spoke with Michael Jabbara, VP and Global Head of Fraud Services at Visa, about the cybersecurity technology used to ensure the safe transfer...
      Read more
      Big Data and Analytics

      GoodData CEO Roman Stanek on Business Intelligence...

      James Maguire - May 4, 2022 0
      I spoke with Roman Stanek, CEO of GoodData, about business intelligence, data as a service, and the frustration that many executives have with data...
      Read more
      Applications

      Cisco’s Thimaya Subaiya on Customer Experience in...

      James Maguire - May 10, 2022 0
      I spoke with Thimaya Subaiya, SVP and GM of Global Customer Experience at Cisco, about the factors that create good customer experience – and...
      Read more
      Cloud

      Yotascale CEO Asim Razzaq on Controlling Multicloud...

      James Maguire - May 5, 2022 0
      Asim Razzaq, CEO of Yotascale, provides guidance on understanding—and containing—the complex cost structure of multicloud computing. Among the topics we covered:  As you survey the...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2021 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×