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IBM received Lotus utility returned in 1995 for $3.5 billion. or not it's now divesting the technology, together with six different one-time cornerstone business purposes.
There changed into a time when Lotus Notes and Domino have been the cornerstones of IBM's utility portfolio, enabling commercial enterprise collaboration and productivity. these days are actually in the past, as IBM is divesting those property, along with a number of other applications, to HCL applied sciences.
HCL applied sciences can pay IBM $1.eight billion, with the deal expected to close in mid-2019. apart from Notes and Domino, HCL is acquiring a number of different enterprise purposes, together with: Appscan for secure utility building, BigFix for secure machine management, Unica (on-premises) for advertising automation, Commerce (on-premises) for omni-channel eCommerce, Portal (on-premises) for digital adventure, and Connections for workstream collaboration.
"We trust the time is correct to divest these select collaboration, advertising and commerce software assets, which are increasingly delivered as standalone products," John Kelly, IBM senior vp, Cognitive options and research, wrote in a media advisory. " on the identical time, we agree with these items are a strong strategic fit for HCL, and that HCL is well placed to drive innovation and increase for their customers."
IBM has more and more been entering into cloud and artificial intelligence over the last 4 years, and has developed up different assets that it is going to center of attention on.applications
lots of the applications being offered to HCL have been at first bought by means of IBM from other companies.
IBM obtained Lotus utility, maker of Notes and Domino, in 1995 for $three.5 billion, although the Lotus manufacturer wasn't dropped by using IBM except 2012.
AppScan which is now being bought to HCL, become once the cornerstone of the IBM Rational application portfolio. IBM obtained the AppScan product portfolio as a part of the acquisition of protection seller Watchfire in June 2007.
BigFix became acquired by means of IBM to become part of its Tivoli operations division in July 2010, whereas Unica was bought via IBM in August 2010 for $480 million.HCL applied sciences
HCL applied sciences is based in Noida, India, and positions itself as a digital transformation company. HCL and IBM had already been partnering on many of the got utility property.
"We continue to look incredible alternatives in the market to boost our Mode-3 (products and platforms) offerings," C Vijayakumar, President & CEO, HCL technologies, wrote in a media advisory. "The items that we're buying are in significant starting to be market areas like security, advertising and Commerce, which can be strategic segments for HCL. a lot of these products are smartly considered by using customers and positioned in the right quadrant by way of business analysts."
Sean Michael Kerner is a senior editor at EnterpriseAppsToday and InternetNews.com. comply with him on Twitter @TechJournalist.
HCL applied sciences has got chosen IBM application corporations — together with some traditional Lotus Notes, Domino and Tivoli items — for $1.8 billion.
The deal highlights IBM CEO Ginni Rometty’s effort to increase the enterprise’s earnings mix — specifically as the business prepares to digest pink Hat for greater than $34 billion.
nevertheless, the HCL deal also highlights IBM’s failure to navigate the shift from client-server to SaaS business fashions on varied products in dissimilar market segments.
The IBM application asset income to HCL consist of:
HCL and IBM have an ongoing IP Partnership for five of those products, both groups talked about.IBM software history: Hits and Misses
IBM acquired Lotus for $3.52 billion in 1995 and Tivoli for $743 million in 1996. Lotus Notes and Domino ranked among the many excellent customer-server groupware and e-mail methods within the 1990s — competing head-on in opposition t Microsoft change. but while Microsoft made a a success transition to office 365 within the cloud, Notes and Domino mostly ignored the cloud period.
Tivoli, in the meantime, ranked among the huge 4 IT administration application providers — competing head-on towards CA applied sciences, BMC and HP within the Nineties and early 2000s. every of these corporations stumbled a bit as world 2000 businesses pursued simplified IT management structures in fresh years — opening the door for ServiceNow to disrupt main parts of the market.IBM enterprise Evolution
Even because it sheds some software belongings, IBM is doubling down on the application market in different areas. The enterprise’s pending pink Hat buyout, valued at around $34 billion, potentially offers IBM a robust application footprint in on-premises data centers and third-birthday party clouds.
Some media insurance suggests that the IBM-purple Hat combo will compete head-on in opposition t Amazon net functions (AWS) and Microsoft Azure. but that isn’t totally correct. pink Hat does not have a huge IaaS or SaaS business. quite, red Hat’s application typically runs on third-birthday celebration public clouds — together with AWS, Azure and certainly IBM Cloud. It’s also greatly deployed on-premises, which capability IBM may benefit a powerful hybrid cloud story.
still, the IBM-red Hat deal also highlight’s IBM’s urgent should shake up its personal business as more and more purchasers shift workloads to AWS, Azure and to a degree Google Cloud Platform.
The largest fight within the heritage of the channel harkens returned to the way Microsoft basically destroyed Lotus building Corp., with the aid of first bundling productiveness purposes together in Microsoft workplace after which tightly coupling its Microsoft Outlook client with the Microsoft trade messaging platform.
the first circulate almost eradicated the viability of the Lotus 1-2-three spreadsheet as Microsoft Excel received supremacy as part of Microsoft office. The 2d onslaught laid waste to the cc:Mail and Lotus Notes franchises, which in consequence drove Lotus into the arms of IBM. Later, Microsoft would set up the identical playbook towards Netscape, which in turn led to the branch of Justice antitrust case towards Microsoft.
on account that then IBM has been incessantly nursing the Lotus Notes franchise lower back to health and for the first time in more than 10 years it’s starting to seem like Lotus Notes could truly be going on the offensive in terms of competing with Microsoft.
IBM is claiming that it is now signing up roughly 200 Microsoft companions a month to sell the latest iteration of the Notes franchise, which today is referred to as Lotus Foundations. The possibility that IBM is attempting to make the most is twofold. the primary considerations missteps made by way of Microsoft that has left partners with nothing to sell while they stay up for windows 7 and the advent of Microsoft change 2010. valued clientele have summarily rejected home windows Vista, which leaves little possibility to promote a Microsoft workplace upgrade. and nobody really wants to upgrade their messaging platform when they all be aware of that Microsoft exchange 2010 can be out someday in the subsequent six months. Taken together, this creates a window of possibility for IBM to as a minimum get a hearing about promoting Lotus Foundations on proper of a brand new self-managing Linux server implementation.
The self-managing means of Lotus Foundations is cornerstone on which IBM is resting the second point of it renewed offensive against Microsoft. Lotus Foundations is based on Linux server know-how that IBM picked up when it got web Integration applied sciences (Netix) in early 2008. Netix constructed a Linux distribution that came built-in with a bunch of autonomic equipment that made the platform self-curative. Any time there is an issue with the server, the entire system simply reboots itself and restores all the original settings instantly. in a similar way, every time a patch is delivered, the gadget reboots an entire new illustration of the operating gadget, versus attempting to layer in a patch on suitable of a operating utility.
In impact, what IBM has performed is created the premiere platform for supplying managed services that can not best be remotely managed, but requires little or no technical guide because the device heals itself. Little technical aid equals greater profitability for the partners.
IBM bundles its Symphony suite of productiveness functions with Lotus Foundations, but customers can opt to continue using Microsoft office on their valued clientele along side the Lotus Foundations messaging platform. in the future, IBM is anticipated to bundle unified communications applications with Lotus Foundations as well and don’t be shocked when IBM starts to make use of Lotus Foundations as a platform for delivering different utility offerings, similar to its Tivoli choices, via the Lotus Foundations equipment mannequin.
purchasers can also decide to install digital computing device utility from VMware on correct of the Linux server, which then allows them to installation windows server and related functions on correct of the extra reliable Linux server platform created through IBM.
IBM claims that a Lotus Foundations is the manifestation of a brand new enterprise mannequin in the channel that is not according to offering technical services for when windows software fails. as an alternative, IBM is arguing that self-curative application will allow partners to assist extra valued clientele than they could today because no longer only do they now not have to roll vehicles to consumer areas to fix things when they inevitably smash, they could also preserve a plenty higher percentage of their functions income as pure earnings.
while IBM has captured the consideration of the channel with Lotus Foundations, they certainly have a protracted means to go when it comes to regaining momentum with purchasers. but with colossal numbers of hungry partners looking to sell valued clientele an providing it is handy to manage that contains a developed-in habitual salary mannequin round managed features, don’t be too stunned when IBM starts reporting to a couple huge market share positive factors in 2010.
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March 25, 2019 Alex Woodie
IBM gives customers plenty of options when it comes to its Rational Host Access Transformation software, including several modes of operation, different runtime options, and support for different operating systems in screen modernization engagements. With last week’s launch of HATS version 9.7, the development and deployment options got even wider.
Regardless of which downstream options a HATS customer ultimately chooses, it all starts out basically the same on the front side of the sausage machine: Customers come to HATS because they have a 5250 (or 3270 or VT100) application that they want to transform, but they don’t want to go through the hassle, expense, and risk of modifying the IBM i, z/OS, or Unix application’s source code.
HATS customers start out by running the host application through the HATS rules-based transformation engine. From there, customers have two main options for what to generate: a GUI screen for a human to use, or a Web services program that can be called by humans or machines.
The Web services options are pretty straightforward: SOAP or RESTful web service. Owing to the widespread popularity of the REST method these days, most clients would choose that route. With version 9.7, IBM is support JAX-RS 2.0 standard, which provides a standard Java API for creating REST web Services.
If the customer is into GUIs (and really, who isn’t?), HATS gives them two main options: a Web page or a rich client interface. If they want a Web page, they can instruct HATS to generate one of three outputs: a straight HTML Web page, a JSR 168/JSR 286 portlet, or a WebFacing element composed of JavaServer Pages (JSPs) and XML. (HATS and WebFacing started life as separate beings, but IBM has been selling them as a single bundle for the past decade.)
Depending on the type of Web screen the customer chooses, HATS will require various incarnations of the WebSphere Application Sever, the WebSphere Portal Server, WebSphere Liberty Profile (Geronimo), the IBM Cloud server, Oracle‘s WebLogic, or even the Integrated Web Application Server for i. The HATS software comes with all the necessary runtimes (HATS Web, Portlet, and WebFacing) that customers need for any of these options.
If the customer is into rich client interfaces that functions more like a standard installed program than a Web page, they will use the HATS Rich Client runtime. This piece of code, which is also referred to as the “Eclipse runtime environment,” will render a rich client in one of several targets, including the Eclipse SDK version 4.7 environment and higher, Lotus Notes version 9.0.1 and higher, and Lotus Expeditor version 6.2.3 and future fix packs and higher. (Lotus tooling has been merged with Eclipse, hence the name.)
That brings us to the HATS Toolkit. The HATS Toolkit is used to modify and customize the GUI screens that emerge from the HATS transformation engine. The software is integrated with Eclipse IDEs, and works with GUIs generated for HTML, portlet, rich client, and mobile devices.
The HATS Toolkit lets your developers build all sorts of nifty objects into the GUI, including drop-down lists and navigation buttons. It also lets developers change the layout of the GUI, including hiding unnecessary elements and organizing data into tables.
With HATS version 9.7, the HATS Toolkit now runs on MacOSX, giving developers who prefer Mac desktops and laptops the capability to work in their favored environment. Previously, it only ran on Windows.
IBM has been steadily adding support for MacOS over the years. In 2016 it added support for MacOS with Rational Developer for IBM i (RDi). And with the advent of Access Client Solutions (ACS), the company has a Java-based client that can run anywhere.
There are several other new features in HATS 9.7, which shipped March 20, including support for the version 9.7 releases of Rational Application Developer for WebSphere Software and Rational Software Architect for WebSphere Software.
The last new feature is support for larger screen size terminals. With this release, HATS supports screens up to 62 inches x 160 inches. (It’s unclear what sort of IBM i application would require a screen that’s more than 13 feet wide, but it’s likely impressive.)
The version 9.7 releases of HATS for Multiplatforms, HATS for 5250 Applications on i, and HATS for 5250 Applications on Multiplatforms shipped last Wednesday. For more information, see IBM United States Software Announcement 219-163.RELATED STORIES
IBM Updates Rational Developer With Mac OS, Other Goodies
HATS Finds A RESTful ‘Swagger’
HATS Now Hooked Into BlueMix Cloud
IBM Updates HATS to Support Rational 9 Tools
IBM Delivers New Mobile Development Tooling With RDi 9.0
Correction: WebFacing Lives On, in HIS and HATS
IBM acquired Lotus Software back in 1995 for $3.5 billion. It's now divesting the technology, along with six other one-time cornerstone enterprise applications.
There was a time when Lotus Notes and Domino were the cornerstones of IBM's software portfolio, enabling enterprise collaboration and productivity. Those days are now in the past, as IBM is divesting those assets, along with a number of other applications, to HCL Technologies.
HCL Technologies will pay IBM $1.8 billion, with the deal expected to close in mid-2019. In addition to Notes and Domino, HCL is acquiring several other enterprise applications, including: Appscan for secure application development, BigFix for secure device management, Unica (on-premises) for marketing automation, Commerce (on-premises) for omni-channel eCommerce, Portal (on-premises) for digital experience, and Connections for workstream collaboration.
"We believe the time is right to divest these select collaboration, marketing and commerce software assets, which are increasingly delivered as standalone products," John Kelly, IBM senior vice president, Cognitive Solutions and Research, wrote in a media advisory. " At the same time, we believe these products are a strong strategic fit for HCL, and that HCL is well positioned to drive innovation and growth for their customers."
IBM has increasingly been moving into cloud and artificial intelligence over the past four years, and has built up other assets that it will focus on.Applications
Many of the applications being sold to HCL were originally acquired by IBM from other vendors.
IBM acquired Lotus Software, maker of Notes and Domino, in 1995 for $3.5 billion, though the Lotus brand wasn't dropped by IBM until 2012.
AppScan which is now being sold to HCL, was once the cornerstone of the IBM Rational software portfolio. IBM acquired the AppScan product portfolio as part of the acquisition of security vendor Watchfire in June 2007.
BigFix was acquired by IBM to become part of its Tivoli operations division in July 2010, while Unica was acquired by IBM in August 2010 for $480 million.HCL Technologies
HCL Technologies is based in Noida, India, and positions itself as a digital transformation company. HCL and IBM had already been partnering on most of the acquired software assets.
"We continue to see great opportunities in the market to enhance our Mode-3 (Products and Platforms) offerings," C Vijayakumar, President & CEO, HCL Technologies, wrote in a media advisory. "The products that we are acquiring are in large growing market areas like Security, Marketing and Commerce, which are strategic segments for HCL. Many of these products are well regarded by clients and positioned in the top quadrant by industry analysts."
Sean Michael Kerner is a senior editor at EnterpriseAppsToday and InternetNews.com. Follow him on Twitter @TechJournalist.
Earlier this month, IBM and HCL announced a deal worth $1.8 billion, in which HCL will buy a bunch of IBM software products. The transaction, expected to close by mid-2019, addresses a potential market of more than $50 billion. The products include:
HCL and IBM have existing partnerships for five of these products, two of which are core to the a number of enterprise digital workplaces that have invested in Notes, Domino and Connections. The ecommerce offering is also a key application for many. “The products we are acquiring are in large growing market areas like security, marketing and commerce, which are strategic segments for HCL. Many of these products are well regarded by clients and positioned in the top quadrant by industry analysts,” HCL president and CEO C Vijayakumar said in a statement. “The large-scale deployments of these products provide us with a great opportunity to reach and serve thousands of global enterprises across a wide range of industries and markets."
However, the question everyone is asking is why did IBM sell, given that over the past five years it has never missed an opportunity to flaunt its software credentials? The sale was announced not long after Big Blue bought Red Hat for an extraordinary $34 billion, leaving many to wonder if the HCL deal might be a way to cover a tiny part of the cost. Perhaps, but that doesn’t address the major problems and upheaval that IBM has been facing over the last three years.
Related Article: 6 Things to Know About IBM's $34B Acquisition of Red HatSelling Legacy Software
Tony Byrne, analyst and founder of Real Story Group, has been watching and writing about many of these tools for the past 15 years. In his company blog, he outlined four take-aways from the deal:
MarketsandMarkets, a revenue impact research and advisory firm focused on high-growth niche markets, pointed out that HCL’s aim is to move away from a labor-intensive software services business to an intellectual property (IP)-driven business using the IBM products. The result is that IBM’s old revenue mix has become HCL’s new revenue mix.
However, HCL management has a big task ahead proving it can turn the acquired products of IBM into a lucrative investment for its stakeholders.
Related Article: How Will the $34B IBM Acquisition Affect Red Hat Users?Declining Revenues
Francois Koutchouk is one of the original members of the Lotus Notes engineering team formed in 1989. As a groupware evangelist, product manager and technology partner recruiter, he had direct visibility into most large organizations adopting Notes. Koutchouk stayed with IBM as a consultant after the acquisition, he then moved on to help companies get off Lotus Notes.
Koutchouk said one unique advantage of Lotus Notes is its resiliency: servers and clients run unattended for years. As a result, many customers simply opted to stop paying IBM for upgrades and support fees. Most also froze development of Notes apps, drying out associated revenues for outside consultants like IBM Global Services and IBM Partners.
For well over 10 years most large organizations have feverishly tried to move away from Notes. From an estimated 10 million apps at its peak, the first seven years saw a reduction to 2 million or so apps — mostly through attrition and easy migrations to Microsoft SharePoint. The remaining apps are the most valuable, more complex and harder to migrate due to the unique and proprietary technology powering Notes. “What IBM did not tell HCL is that the last few years have seen the apparition of new platforms better suited to migrate Lotus Notes apps and its users, such as Salesforce and Microsoft PowerApps,” he said. “This, combined with new technologies to automate migrations, is dropping the count (and cost) of remaining apps at an unprecedented rate. IBM is offloading Lotus Notes because $1.8 billion is a lot of money for an installed base racing to zero revenues in a few years."
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