Connectix CEO Weighs Companys Future

After selling its VM technology to Microsoft, Connectix is left with two products-both heading toward obsolescence.

Connectix Corp., which this week sold its client and server Virtual Machine technology to Microsoft Corp., is evaluating its future given that it is now left with just two products that are heading toward obsolescence.

In an interview with eWEEK on Wednesday afternoon, Roy McDonald, the CEO and president of Connectix, said his firm has developed Macintosh technologies since the launch of its first product in January 1989.

While the company still has Macintosh products in the market today that are not based on Virtual Machines—DoubleTalk, which allows Mac-PC networking from within the familiar Mac interface and not in a Windows environment, and the RAM Doubler, which was discontinued last month but is supported until September—both of those products are "heading towards obsolescence" as they are not Mac OS 10 compatible.

"The Microsoft deal has created a significant change in our product roadmap, and so we are going to have to do an evaluation and reset. We dont have any firm plans, but closing the company and starting a new venture is also possible," he said.

The Connectix management team reinvented the firm as an enterprise software company a few years ago as it saw this as an opportunity for bigger growth, McDonald said. It also believed that VM technology had a higher value in that space.

More than a year ago, McDonald started looking at how he was going to fund this undertaking, as VMs have such a wide range of possible applications. But, as the company got further into that market, it realized that it also needed access to enterprise software channels as it moved away from its focus on consumer software.

"As such, we began to talk to Microsoft, which could help with both. So, while the deal is an acquisition by Microsoft, its also our way of getting an enormous channel for our technology. The company has now split into two pieces, with the technology team largely going to Microsoft and the sales and support team remaining here to sell the VM product.