Based on prior technology trends (like the relational database and the operating system before that), a period of wide-open innovation, product creation, and market growth will almost certainly lead toward commoditization and specialization.

Companies like BEA and Silverstream [recently acquired by Novell] will not be able to continue charging outrageously high prices for value-added application server features, while companies like Oracle, IBM, and Microsoft build these same capabilities into their core platforms (Oracle 9i AS, WebSphere, and Windows .NET Server, respectively). They will be forced to either pursue being acquired or find specific markets for products. (Witness the continuing success of NCR’s TeraData in the RDBMS market as a high-end, high-volume provider.)

[an error occurred while processing this directive]

480.html">recently acquired by Novell] will not be able to continue charging outrageously high prices for value-added application server features, while companies like Oracle, IBM, and Microsoft build these same capabilities into their core platforms (Oracle 9i AS, WebSphere, and Windows .NET Server, respectively). They will be forced to either pursue being acquired or find specific markets for products. (Witness the continuing success of NCR’s TeraData in the RDBMS market as a high-end, high-volume provider.)

In fact, we’ve already seen some of this taking place. IBM is repackaging the WebSphere product line for small-to-midsize businesses with templates and development guidance. SilverStream has released Extend for RosettaNet, a customized, lower-cost version of their flagship application server targeted for companies who do business in the electronic supply chain or public and private trading networks.

The companies who are the most vulnerable are those who have no tie to the front end (client development tools) or the back end (databases or operating systems) and must stand alone in the middle, such as BEA and ATG. The companies with the best chance of survival have their feet in all four spaces: development tools, application services, databases, and operating systems.
TechRepublic provides insight, advice, and technical information written by IT professionals for IT professionals.
Have the top IT experts by your side today--FREE!

Previous page |   1 2 3 4	| Next page

[an error occurred while processing this directive]

[an error occurred while processing this directive]