IBM buys Platform Solutions, ending dueling lawsuits    
July 03, 2008
Source: ET

SAN FRANCISCO: IBM announced on Wednesday that it has bought Platform Solutions Inc, acquiring its California rival's technology and ending lawsuits which the firms had filed against each other. 

PSI workers and intellectual property will be melded into IBM's "long-term mainframe product engineering cycles" and future product plans, according to the computer industry behemoth. 

"This acquisition makes the most sense for our companies," PSI chief executive Michael Maulick said in a release. "To collaborate on future technology offerings." 

Financial details of the deal were not disclosed. PSI and IBM were suing one another in federal court in New York state, where IBM is based. 

IBM accused PSI of violating its patented technology in plug-in mainframe computers. PSI counter-sued, accusing IBM of trying to lock-up the market by refusing to license critical software to other companies. 

A condition of the acquisition deal is that IBM and PSI drop their respective lawsuits. 

The Computer & Communications Industry Association condemned the tie-up as a move by IBM to "foreclose competition in the mainframe marketplace, protecting IBM's cash cow at the expense of consumers." 

"This is a black hole acquisition," said CCIA president Ed Black. "It sucks the life out of the market and destroys the matter -- transforming a market with latent potential for competition and innovation into a sector with little prospects for anything but complete domination by IBM." 

More than 80 percent of the world's government and corporate data is stored on computer mainframes, with 95 percent of Fortune 1000 companies using IBM hardware for the job, according to the CCIA. 

Black called on government regulators in the United States and Europe to scrutinize the acquisition even though it does not meet standards for mandatory review. 

"More commercial transactions are processed on mainframes than on any other platform," Black said. 

"And yet, the mainframe market is completely dominated by one company -- IBM -- with well over 90 percent market share. Antitrust authorities must pay attention."

Microsoft to sell Office, PC security software by subscription    
July 03, 2008
Source: ET

SEATTLE: Microsoft Corp. will begin selling its Office programs to consumers on a subscription basis starting mid-July, in a bid to reach thrifty PC buyers who would otherwise pass on productivity software. 

The software bundle, which also includes Microsoft's Live OneCare computer security software, will be sold at nearly 700 Circuit City stores for $ 70 per year. 

Bryson Gordon, a group product manager for the Office group, said in an interview that the agreement with Circuit City Stores Inc. is not exclusive, and that the bundle will be available at other retailers and on PCs sold by the likes of Dell Inc. in the future. 

Subscription pricing for software has become commonplace in businesses but is a relatively new concept for consumers. The Microsoft Equipt bundle - formerly code-named "Albany" - includes Word, Excel, PowerPoint and OneNote, plus OneCare and a handful of existing free Windows Live applications. 

Buying those programs the traditional way would cost about $ 200; consumers who want to replace Office 2007 with "Office 14," rumoured to be set for a 2009 release, would have to pay full price. 

Under the subscription model, upgrading to a new version is included in the annual cost. 

Gordon said Equipt is aimed at people who wouldn't ordinarily buy Office at the same time they purchase a new computer. Instead, they'd repurpose their old Office disks or pirate a friend's copy, he said. 

But those same folks are willing to spend extra on security software, Gordon said, and that's why Equipt's $ 70 price tag falls between the high and low end of popular security programs from vendors such as McAfee Inc. and Symantec Corp.

SemanticSpace Group acquires Prolifics Arsin Corp      
July 03, 2008
SOURCE: PTI

HYDERABAD: City-based SemanticSpace, a leading global software solutions company, on Wednesday acquired 100 per cent or Prolifics, a distinguished systems integrator specialising in IBM techonologies for $40 million in all cash deal with an upfront payment of $26 million and the rest in the form of earn-out over two years. 

SematicSpace also fully acquired the subsidiary of Prolifics Arsin Corporation testing solutions compnay for $ 1.5 million. 

Prolifics complements SemanticSpace's offering with its high-value services focussed around the IBM brand-making the combined entity in truly global organisation with a strong and balanced presence across the US, Europe and Asia Pacific. 

Together Prolifics, SemanticSpace Technologies, and Arsin Corporation will operate as SemanticSpace Group, creating a new overall oranisation of 1,500 employees with more than $ 100 million in revenue on a proforma basis, Satya Bolli, CEO, SemanticSpace and Nicolas Jabbour CEO Prolifics jointly told mediapersons here. 

Prolifics will play a strategic role in realising the group's vision-providing leadership, as well as management of sales and marketing. 

Post acquisition Prolifics' IBM focus will not only remain unchanged, but Prolifics will be the largest systems integrator specialising exclusively on the IBM Software Platform. 

The 300 person, privately owned company based in New York City will grow, under Prolifics' current CEO leadership, to a 900 dedicated practitioners in the newly formed group and will continue its growth both organically and by acquisition.