IBM buys Rational

Jeff De Luca's picture

From eWeek. "IBM shook up the software and Web services development world Friday by acquiring Rational Software Corp. in a deal worth $2.1 billion--the company's largest acquisition since buying Lotus Development Corp. in 1995."

"The purchase gives IBM the "broadest support for the largest number of platforms and integrated development environments" in the industry, said Steve Mills, senior vice president and group executive of IBM's Software Group, in Somers, N.Y., during a Friday teleconference." Read the article.

It will be interesting to see what this means for the existing overlaps in IBM and Rational such as Eclipse, WSAD and Visual Studio plugins.

It will be interesting to see what this does to the competitive landscape as well.

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IBM /Rational

With the economy improving and the merger and acquisition market regaining speed, Expect Oracle to acquire Borland and BEA in order to compete with IBM.

Jeff De Luca's picture

Raises the Ante

It certainly raises the ante for them and HP, Sun, BEA and Microsoft.

I'm not sure I like the massive consolidation that's going on in the tools space and I'm certain we've not seen the last of it.

To quote someone I respect enormously: "However you cut it, it is interesting to see "Pacman" at work."


Jeff De Luca's picture

MS to buy Rational or Borland

Here's the latest twist on this one. Rat shares are up on rumours that MS may make a rival bid for them. It was always thought that MS would be the one to buy Rat and IBM buying them really does stymie MS. Their (MS) only model-code solutions come from Rat.

And, of course, the only other major player in that space (Together) was just snapped up by Borland.

Interesting indeed to see Pacman at work Smiling

Read the Reuters article here.