April 14, 2006 9:52 AM PDT
BEA pitches to the business crowd
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The infrastructure software company later this year will deliver tools aimed at technically savvy business people and system architects who need to create business software, said Paul Patrick, chief architect of BEA's AquaLogic product family.
That's a switch for BEA, which typically markets to high-end Java programmers. The bulk of the company's revenue still comes from its Java server middleware and tools, which are used for writing and running business applications.
With its AquaLogic product line--and its Composer tool, specifically--BEA is trying to cater to a different audience, namely technically literate business analysts and enterprise architects who design systems.
BEA's strategy underscores an ongoing shift in technology purchasing at large companies: Unlike in years past, when IT departments had final say on buying decisions, business people are increasingly involved in choosing technology, giving them more purchasing clout over IT budgets.
"Money used to be in IT departments. Now it's in the business--they're funding IT," said Patrick. "Business people are driving transformation inside companies."
Selling to these new tech decision makers is a tactic other software makers are actively pursuing.
Microsoft, for example, launched a marketing campaign explicitly aimed at CEOs and other "business leaders." Even its developer-oriented tools, such as Visual Studio Team System, are being designed with connections to so-called portfolio management software, which project managers or chief information officers use.
IBM, too, seeks to sell to both technical and business managers, and the company is investing in its business consulting group in an effort to drive more outsourcing revenue.
BEA's expanded product line, which company executives say is selling well, is meant to stimulate sales at the company, which has seen revenue climb recently after a string of declines last year.
But analysts note that the new products don't fully insulate BEA from competition from larger companies--Microsoft, IBM, Oracle and SAP--or open-source upstarts, notably JBoss. All middleware software providers are vying for money spent on upgrading corporate technology to a services-oriented architecture (SOA), a more modern, modular system design.
BEA's AquaLogic Composer products, which will be rolled out in the next six to 12 months, will fill a hole in the existing AquaLogic product lineup, which the company first introduced last year, Patrick said.
The Composer suite is designed to let people assemble applications by connecting different systems using prewritten components, with no need to write code, he said. That's in sharp contrast to BEA's Java-heavy WebLogic development tools and infrastructure software.
Using an urban planning analogy, Patrick said WebLogic Java software is for building buildings, whereas the AquaLogic products are for designing cities. Instead of writing standalone programs--the buildings in this analogy--architects and business analysts consider other issues, such as dependencies between applications, having adequate hardware, performance and policies for governing use of applications.
In addition, AquaLogic is a deliberate break with BEA's focus on Java as the primary programming language and Java 2 Enterprise Edition application (J2EE) servers to run them.
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