Thursday, February 16, 2006

Borland to exit IDE market, focus on ALM

Borland Software plans to sell off its struggling Java development tools business to focus instead on selling services and products for managing software development, the company announced last week.
Borland is seeking a buyer for its IDE (integrated development environment) business, which includes its Delphi and JBuilder products. The move will allow it to focus on growing its business in the area of application lifecycle management, or ALM, it said.
As part of the ALM focus, Borland also announced that it has agreed to buy Segue Software, which makes software quality and testing products, in a transaction valued at about US$100 million.
Long known for its development tools, Borland has struggled to hold its footing in the IDE market amid tough competition – particularly from Eclipse, an open-source Java IDE with similar functionality to Borland's JBuilder.
Revenue from its IDE products accounted for just 7 percent of total revenue in the third quarter of 2005, down from 15 percent in the same quarter a year earlier, it said in a US regulatory filing in November.


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