Features

Borland Does the IDE-to-ALM Segue

By Dilip Thomas

It's time for strategic change at Borland. With open source tools cutting into Borland's traditional business, the company is selling out its developer tools business and acquiring testing company Segue software. The tools that will see a change of guard include: Delphi, C++Builder, C#Builder as well as the JBuilder IDE. Borland has retained Bear, Stearns & Co. Inc. to manage the process of seeking a buyer for Borland’s IDE assets.

According to Tod Nielsen, president and chief executive officer of Borland, the decision to sell out its developer tools business is inline with its strategy to focus on its Application Lifecycle Management (ALM) product line. ALM solutions provides large software organisations with tools and principles to ensure quality in their output. IDC forecasts the ALM market to grow to USD 3.3 billion in 2009, achieving a 9.2% compound annual growth rate (CAGR) for 2004–2009. The current ALM product line at Borland provides solutions for Requirements Management (Borland CaliberRM), Configuration Management (Borland StarTeam), Lifecycle (Borland Core SDP), and productivity through Borland services, mentorship and technology.

“Developers will always play an important role in the application lifecycle, but the ALM and IDE markets are very different - requiring distinct business models, different operational and marketing structures and a focused R&D team,” said Nielsen. “Both markets are important, but Borland can no longer give both the resources and attention they require. Therefore, Borland has chosen to focus wholly on its ALM business, while acting in the best interests of the development community. Our intention is to create a standalone business focused on advancing individual developer productivity.”

The decision to snap up Lexington, Mass., based Segue software, for USD 100 mln in cash, is expected to strengthen Borland's existing ALM product line. "Segue's quality optimization products and services will add significantly to our growing portfolio of application lifecycle management solutions," said Tod Nielsen. "This is a natural extension of our focus in helping customers move beyond development and into successful delivery of business value via critical software initiatives."


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