Originally posted by vs prapoorna:
Our client has given us options only of these two IDEs.
By Gavin Clarke
WebGain Inc is selling its TopLink Java/database connectivity business to
application server wannabe Oracle Corp in a deal that also sees the Java IDE
leader exit the tools market.
A WebGain company source told ComputerWire a deal would be announced during the
next few days which would see Redwood Shores, California-based Oracle buy
TopLink along with 90 engineering, sales and support staff.
TopLink maps between Enterprise Java Beans (EJBs) and relational databases,
speeding both application server performance and increasing developer
productivity. The source did not disclose the deal's value but said: "We made a
lot of money."
The deal will also means webGain will halt all development and sales of its
market-leading IDEs Visual Caf� and WebGain Studio - the latest version of
which is currently in beta. WebGain hopes the IDEs will be picked-up by the
open source community, carrying the product forward.
WebGain will instead support existing versions of its IDEs and live off
licensing and intellectual property, the source said.
The company has judged competition in the Java tools market to be too fierce,
generating low margins, to continue in-house development. More than half of
revenues were ploughed into research and development - manned by 120 staff.
"We are going to stop R&D and give that to the developer community. We will
continue to license and support contracts and make some money on that. The
operation will become a license business," he said.
"It was more efficient to give the IDE away and sell the base product rather
than run a 120-person engineering group who weren't doing anything better than
WebGain has approximately 100,000 users and led the market for Java IDEs in
2000. The company had 22% market share in 2000, $44.7m in revenue, placing it
ahead of number two Borland Software Corp on 19% market share and $40m
according to IDC. The analyst said it would release new figures for 2001 during
the next 60 days.
The news threatens to hurt some partners, especially San Jose, California-based
BEA Systems Inc. webGain has partnered on WebLogic Workshop, due in July, and
supports WebLogic Application Server providing an end-to-end development
environment boasting Java Server Page support, Unified Modeling Language, XML
authoring and quality testing in WebStudio 4.5.2. BEA was unable to comment.
WebGain is believed to have been in internal discussion for several months over
how to carry its business forward. The company modeled approximately 40
scenarios but - like all Java tools vendors - has been squeezed by reduced
corporate spending power. The source said webGain was in danger of becoming
split as an IDE and runtime business - with TopLink - while the majority of
research and development went into IDEs.
WebGain's Oracle deal developed after the database giant approached the ISV
about a TopLink reseller deal some six months ago. WebGain felt its long-term
future was threatened by such a deal, as Oracle was expected to develop its own
competitor to TopLink and edge webGain out of the market.
An Oracle spokesperson said she was unaware of any deal and webGain was
unavailable for contact at time of going to press.
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