July 11, 2003

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Today's Top Stories
1. Sun expands Unix license with SCO
2. SAP, Red Hat to form Linux partnership
3. Update: PeopleSoft customers ally against Oracle; states step up review of deal; no white knight
4. Infosys Q1 profit jumps 28%
5. SunGard offers $105M for Sherwood

Also Noted: TODAY'S SPOTLIGHT... Shareholder lawsuit against Siebel; DoCoMo inks deal with SEVEN for corporate email; Oracle plans to double workforce in India; Metric: 57% of users don't encrypt their handheld data; Zeacom launches screen pop component for Microsoft CRM

Deals: EMC keeps consolidation train on track

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1. Sun expands Unix license with SCO

Turns out leading Unix server seller Sun Microsystems, not Microsoft, was the first company to sign on with SCO Group's new Unix licensing plan, the companies announced yesterday. The contract, signed earlier this year, expands Unix licensing rights originally acquired by Sun in 1994 for use in its Solaris operating system. The deal also grants Sun the option to buy more than 200,000 shares of SCO at $1.83 per share. Financial terms of the licensing agreement were not disclosed, and Sun refused to comment on the option to take a stake in SCO.

- check out this CNET story for more on the deal


2. SAP, Red Hat to form Linux partnership

German business software giant SAP and top Linux vendor Red Hat in September plan to announce a partnership to jointly develop and market open-source applications produced in SAP's LinuxLab. SAP did not offer any specifics on the deal, but said "We are very confident that we will have something to sign before TechEd," one of SAP's annual conferences in September. "They're a certified distributor for SAP, and we want to put that in a stable framework." Worldwide installations of SAP applications on Linux doubled last year to about 1,000, and many other vendors are backing the open-source operating system as it continues to slowly pick away at Microsoft's market share in the enterprise.

- for more on the implications of the deal, see this TechTarget story


3. Update: PeopleSoft customers ally against Oracle; states step up review of deal; no white knight

Oracle's biggest trouble in acquiring PeopleSoft could come from the customers of its takeover target, according to this piece from CNET. Most of them have no love for Oracle CEO Larry Ellison, who proclaimed his intention to discontinue the PeopleSoft products on which they spent lots of time and money to install. Oracle has since promised to support PeopleSoft's products for at least 10 years; but the public relations damage has already been done, and many PeopleSoft customers think their collective stance against the deal could prove important to the antitrust dispute that's sure to come.

Speaking of which, about 30 state attorneys general are ramping up their reviews of the deal, signing confidentially agreements with each other and the U.S. Department of Justice to share information on Oracle, PeopleSoft, and J.D. Edwards and determine whether or not they want to file antitrust lawsuits against the deal.

- check out this CNET article for more on this angle

As for that white knight some people speculated might come along to rescue PeopleSoft with its own bid, research firm Gartner says there isn't one. "After examining the opportunities for these other vendors, we believe PeopleSoft and JD Edwards prospects and users should consider a 'white knight' scenario as a low probability when considering their options," said the firm.

- see CRM Forum for more on Gartner's thoughts


4. Infosys Q1 profit jumps 28%

Infosys Technologies did its part yesterday to quell any suggestion that India's IT outsourcing market was faltering by posting a 28 percent jump in first-quarter profit. The company also raised its full-year outlook, saying earnings per share would be up 17 percent. For the first quarter, Infosys posted a profit of 2.78 billion rupees (up from 2.17 billion rupees last year) on sales of 10.8 billion rupees, an increase of 41.4 percent from a year ago.

- for more on Infosys' Q1 results, see this Reuters article


5. SunGard offers $105M for Sherwood

SunGard Data Systems has offered to acquire U.K.-based insurance software firm Sherwood International for about $105 million. SunGard, which provides IT integration help to the financial services industry, has offered 140 pence per share and hopes to close the deal in about two months. SunGard was reticent on further details of the deal, citing provisions in the UK Takeover Code.

- see this internetnews.com article for more


ALSO NOTED

TODAY'S SPOTLIGHT... Shareholder lawsuit against Siebel
A California judge has ruled that Siebel Systems CEO Tom Siebel and other members of the board may be held liable if a shareholder lawsuit against the company is successful. Article

> NTT DoCoMo plans to launch a new corporate email service using software from SEVEN that's compatible with both Lotus and Microsoft Exchange. Article

> Oracle plans to double its workforce in India to more than 6,000. Story

> Metric: 57% of users do not encrypt their handheld data, which poses a problem for CIOs and IT managers struggling with ways to secure the devices in the enterprise. Article

> Zeacom launches screen pop component for Microsoft CRM. Story

And finally... Duck and cover: Apparently New York's newly published household preparedness manual recommends hiding under a desk, a la 1950s nuclear air raid drills, should disaster strike the city. Story


DEALS: EMC keeps consolidation train on track

DEAL WATCH

WHO

WITH

WHAT

SCOOP

EMC

Legato Systems

EMC has agreed to acquire Legato for $1.2 billion in stock.

The deal builds on EMC's previous acquisitions in the space, including Astrum Software in April and BMC Software's storage line (see below). EMC plans to integrate Legato's data management technology, including backup and recovery tools, into its own architecture.

Veritas Software

Precise Software Solutions

Veritas closed its acquisition of Precise for $609 million in cash and stock.

The deal to acquire Precise was first announced in December 2001 at $537 million; since then shares of Veritas have climbed 77 percent, raising the value of the deal considerably.

EMC

BMC Software

EMC acquired the storage management product line of BMC; financial terms of the deal were not disclosed.

EMC plans to discontinue BMC's PATROL Storage Manager software and migrate customers to its own ControlCenter line of storage management products; BMC will then resell ControlCenter as its exclusive storage resource management offering.

Symphony Technology Group, Tennenbaum Capital Partners

Information Resources

Symphony and Tennenbaum agreed to buyout IRI agreed to buyout IRI for $3.30 per share (about $100 million).

Symphony plans to combine IRI's data collection and analysis tools with its performance management software for inventory and supply chain management.

Hewlett-Packard

Baltimore Technologies

HP will acquire Baltimore's SelectAccess identity management software; financial terms were not disclosed.

HP will add SelectAccess to its Adaptive Enterprise platform to provide more secure access to enterprise networks and applications.

SAP

Sharp

SAP and Sharp will jointly develop and market mobile applications, initially targeting the enterprise market in Japan.

Sharp will develop software and handheld devices compatible with SAP software allowing for packaged solutions.

Fujitsu

Nokia

Fujitsu and Nokia will develop and market mobile applications targeted at the European enterprise market.

The companies will develop services and mobile application packages using Nokia's handsets and platforms through Fujitsu's IT consulting sales channels.

Epicor Software

ROI Systems

Epicor completed its $20.7 million all-cash acquisition of ROI Systems.

The merger gives Epicor about 6,500 new manufacturing customers in 35 countries.

Pogo Linux

MySQL

The companies will build an open-source server product employing MySQL's open-source database.

The DataWare 2600 Server is designed to run Web hosting and other operations at financial institutions and comes pre-configured, allowing it to be deployed upon arrival.

Sun Microsystems

Deloitte Consulting

Sun and Deloitte expanded their services partnership.

The Rightsizing Consolidation Program combines Sun's hardware with Deloitte's consulting services.

Pumatech

Loudfire

Pumatech acquired substantially all the assets of Loudfire; financial terms were not disclosed.

Pumatech plans to start marketing Loudfire's LoudPC software, which provides real-time access to email and personal data in either Microsoft Outlook or Outlook Express through an Internet browser or Web-enabled phone.

Salesforce.com

WebSideStory

The companies will provide an integrated, analytics-focused marketing platform to their customers.

Salesforce.com's S3 clients and WebSideStory's HitBox Enterprise customers will be able to link their systems and marketing campaigns together, using data from both products to manage and monitor the effectiveness of the campaigns.

Agile

M2

PLM specialist Agile acquired M2 at no cost.

"We didn't pay for it, they gave it to us. They had very few options, weren't profitable, and we were a place for them to satisfy customer responsibilities," said Agile.

 


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> Why should Europe be your next market opportunity? - July 21, Palo Alto, CA

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