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Monday, June 11, 2007

IBM Buys Telelogic

Just arrived in Australia to see IBM announcing the acquisition of Telelogic. An interesting buy – while many see it as a complementary purchase to Rational – it is much beyond that. Telelogic is a leading vendor in the areas of business requirements management and IT (object-oriented analysis and design) modeling and code generation with tools such as DOORS, TAU, Telelogic Modeler and Rhapsody. Quite recently, Telelogic acquired a leading BPA tool in Popkin's System Architect and has been integrating it into its portfolio in support of enterprise architecture and application development.
Few quarters back, Telelogic announced the release of Telelogic Modeler, a free-of-charge UML design environment for engineers, designers and developers of embedded, real-time and enterprise IT applications. Telelogic Modeler has the potential to foster follow-on complementary sales for Telelogic's other model-driven development and application life cycle management tools, such as Tau, Rhapsody, Doors and Synergy. A study of these tools make interesting reading :

System Architect (SA) and Telelogic's other tools appeal to the architect category of buyers. SA also appeals to the BP and BPMS modeler categories of buyers. The requirements management capabilities of DOORS, coupled with the ability to feed models from SA to TAU or other leading IT modeling tools and BPM tools is a testimony to its versatility. SA was also known for its strong simulation capabilities that are instrumented for BAM feeds among all three BPA categories of buyers Recent estimates suggest that it had a little less than 10 % share of market revenue. Telelogic is seen as a good players and is seen as a visionary compared to several of it BPA peers. This continues the tradition of IBM cherrypicking good candidates from emerging spaces - Filenet, Maximo etc. With this acquisition, a reasonably priced one at that, I see IBM has armed itself well to storm into the BPA space with this acquisition. Other players like Ultimus, TIBCO and the like now have a formidable competitor to reckon with.

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