Archive for May, 2011

Jive Software buys toolbar developer OffiSync

May 24th, 2011

Jive Software Inc. of the US has acquired toolbar developer OffiSync Ltd. for $30 million, reportedly in shares. Although the acquisition is in shares, it is not bad for OffiSync, especially since Jive is planning an IPO soon.

OffiSync CEO Oudi Antebi and CTO Roy Antebi founded the company in 2008. The company develops toolbars for synchronizing documents on Microsoft Office, Google Docs, and Google Apps environments.

OffiSync’s investors include Vertex Venture Capital, Seattle-based fund GTD Capital LLC, run by former VMware CEO Paul Maritz and Pelephone CEO Eyal Levy, and Trilogy Equity Partners. OffiSync raised $1 million, and investors will make a ten-fold return on investment.

Synchronizing between two different digital work environments is difficult without mediation tools, which is where the importance of OffiSync comes in. The acquisition is also important because OffiSync is not the only player on the field. Google Inc. (Nasdaq: GOOG) launched Google Cloud Connect a few months ago to provide a similar service.

In a YouTube video in February, Oudi Antebi explained the differences between his company’s solution and that of Google. Nonetheless, it is hard to see how these difference add up to a company value of tens of millions of dollars.

Jive Software develops enterprise communication and collaboration software for companies and social networks. Jive CEO Tony Zingale replace Mercury Enterprise Software CEO Amnon Landan in 2005 in the wake of an options backdating scandal. Zingale, who was appointed Jive CEO in February, said that he planned to take the company public this year, when it will have $100 million in sales. The company raised $57 million from Sequoia Capital and Kleiner Perkins Caufield & Byers.

Source:http://www.globes.co.il/serveen/globes/docview.asp?did=1000648163&fid=1725

Software AG with Terracotta looks to ‘build a better cloud’

May 24th, 2011

Software AG’s acquisition of Terracotta could be good news for Java developers, particularly those looking at open PaaS alternatives to the more restrictive offerings of Azure and GAE.

In an open letter to the Terracotta developer community, Terracotta CTO Ari Zilka said that the company’s acquisition by Software AG is the first step to building a better cloud; one that apparently will offer language and framework flexibility, along with scalability and application management.

Call it a stack, a platform, a service, or whatever you like. But rest assured, the enterprise application development community – whether you work in Java, .Net, or C++ – will soon have a powerful and exciting new option for building applications in the cloud.

According to Zilka, Terracotta flagship technologies Ehcache and Quartz will remain open source, and also will benefit from the expanded resources Software AG can provide. Ehcache creator Greg Luck has also written that Ehcache will remain open source, and that he will continue his work as spec lead for JSR 107: The temporary caching API.

Two kinds of assets: Technology and community

Terracotta’s acquisition brings both an enriched technology portfolio and a potentially expanded and diversified developer and community base to the enterprise middleware stalwart, Software AG. According to the Software AG press release, Terracotta’s product portfolio of in-memory and distributed caching technologies will be the foundation for its forthcoming PaaS initiative:

The ability to scale the processing of massive loads of data across flexible, modular, geographically distributed architectures will [...] transform Software AG into a full Platform-as-a-Service (PaaS) provider.

The press release also carefully acknowledges the value of Terracotta’s open source developer community and related enterprise reach.

Building a better cloud … for developers

While momentum has been growing around PaaS for several years, focus has only recently shifted, or tipped, from the needs of enterprise decision makers to those of software developers. Open PaaS alternatives such as Elastic BeanStalk, CloudBees, and Cloud Foundry all are vying for developer buy-in, mainly by offering the flexible tooling most developers prefer, along with the massive scalability enterprises require.

The two-month-old Cloud Foundry supports a growing number of application frameworks and programming languages. Amazon’s Elastic Beanstalk, released early this year, also bets on a customizable application environment. And while CloudBees bills itself as a Java PaaS provider, this company too emphasizes freedom from “restrictions and limitations that make no sense to developers.”

Source:http://www.javaworld.com/community/?q=node/7708

Hinduja joins hands with Epicor Software Corporation for next-generation ERP solutions

May 24th, 2011

US-based software solutions provider Epicor Software Corporation today said it has joined hands with the Hinduja Group to re-enter the Indian market with the launch of its next-generation enterprise resource planning (ERP) solution Epicor 9.

Epicor is a global leader delivering business software solutions to the manufacturing, distribution, retail and services industries. The company entered the Indian market in 2006, but exited due to unfavourable market conditions.

“Epicor’s next-generation ERP solution is now available here in India and is designed for the way people work today, in dynamic and fast-changing environments,” Epicor Director (Product Marketing) Scott Hays told reporters here.

“Our release is designed to enable customers to target these often competing mandates allowing them to focus on areas of opportunity, helping them to quickly realise tangible and sustainable results in their business on the road to recovery. Quite simply, we believe it is the right release for the right time in the market,” he said.

“We expect to add 25-30 customers across all verticals in the next two years,” Epicor’s Channel Director, India, Rishikesh Trivedi, said.

Epicor 9 redefines the local enterprise business software market by offering an innovative and flexible solution that has been built on a technologically advanced infrastructure.

Epicor’s enterprise business solution is built on a second-generation service-oriented architecture (SOA), Epicor Internet Component Environment (ICE) 2.0.

The backbone of Epicor’s next-generation ERP solutions , Epicor ICE, fuses Web 2.0 technologies with Epicor True SOA to deliver business architecture that offers new levels of flexibility, usability and agility in support of application-to-application integration and business-to-business collaboration.

“We have joined hands with Epicor as we thought the company’s innovative solution is very unique,” Hinduja Automotive Executive Vice-Chairman V Sumantran said.

The company said Hinduja Group will help Epicor to manufacture and marketing its next-generation enterprise resource planning solution Epicor 9.

Sumantran, however, declined to reveal any financial details.

Epicor 9 has been shipped to more than 2,100 businesses in 60 countries, including shipments to more than 900 new customers.

Source:http://economictimes.indiatimes.com/tech/software/hinduja-joins-hands-with-epicor-software-corporation-for-next-generation-erp-solutions/articleshow/8536187.cms

National Instruments buys wireless technology companies for $96 million

May 24th, 2011

National Instruments wants to become a bigger player in providing tools for engineers who design and build wireless equipment. On Monday it announced the acquisition of one California company and the pending purchase of another.

National Instruments will pay $58 million for AWR Corp. of El Segundo, Calif., and already has paid $38 million for Phase Matrix Inc. of San Jose, Calif.

AWR, with more than 100 employees, is a leading developer of engineering software for high-frequency wireless systems; its customers include aerospace, defense, communications and test equipment companies. Phase Matrix, with about 50 workers, makes test and measurement equipment for high-frequency radio and microwave communications equipment.

Both companies will be wholly owned subsidiaries that will provide technical talent and products that the much larger National Instruments can sell. National Instruments, with annual revenue of more than $873 million, is the largest supplier of software-enabled “virtual instruments” used by scientists and engineers in a wide range of markets.

In recent months, the company has made several moves toward accelerating its growth. Last year, Alex Davern was named the company’s first chief operating officer, allowing CEO James Truchard to focus on product strategy and a long-term vision.

Davern said he wanted to install a management structure to help the company grow into “a multibillion-dollar organization.”

Analyst Richard Eastman with R.W. Baird & Co. said the new acquisitions “seem like nice fits.”

“It bolsters their efforts,” he said. “They have been moving fairly aggressively into the RF and microwave space. It adds to their software capabilities on the simulation and design side.”

The acquisitions, Truchard said, underscore the company’s commitment to expanding in the wireless engineering marketplace.

“Wireless is a big part of the test instrumentation market,” Truchard said. “If you want to be in the instrumentation business, wireless and (radio frequency technology) are critical components.”

National Instruments said the combined revenue of the two companies fell in the range of $38 million to $48 million for the past 12 months.

Davern said National Instruments presently has a small share in the wireless instrumentation market, “but there is a lot of opportunity for growth.”

Davern said his company had worked closely with both companies for years and had long been interested in acquiring them.

“Part of the value of the acquired companies,” said Eric Starkloff, vice president of product marketing, “is that they provide more access to the RF engineering community, which buys a lot of test and measurement technology. We believe our products will be able to deliver a lot of value to those customers.”

Source:http://www.statesman.com/business/national-instruments-buys-wireless-technology-companies-for-96-1493980.html

City working kinks out of billing office software

May 24th, 2011

Additional funds are being requested for temporary services for the city’s customer billing department to keep the wait time to a minimum when residents have questions about their utility bills.

Before the city used an outsource company for customer billing services, the average wait time was 21 minutes when people called about their utility bills, which has decreased to 3 minutes 44 seconds in a month, with 989 dropped calls.

City Manager Gary King told the Cape City Council at its workshop meeting Monday that the city is between a rock and a hard place because the software they are using has not performed close to satisfactory since it was installed on June 21, 2011. He said the city holds conversations with the company, AMX, on a weekly basis to discuss details about the software, along with exploring new options.

Since the software is not widely known on the marketplace, it leaves the city in a difficult and frustrating place, King said, because it is a delicate balance of how far they can push the small company.

“I can’t give you any good news, other than we are trying to make some informed decisions of getting out of the swamp,” he said. “The system is not reliable and they have to deal with higher volume of calls.”

King said he thinks the department is still months away from fixing the problem, even though he believes the scope of the problem tends to be smaller. Due to the limited resources the company has exposure to, it is slowing down the process of fixing the problem, he said.

“It is very difficult to predict the end,” King said. “I wish I could be more definitive, but I really can’t.”

The program, which has been “nothing but a disappointment when first put into production,” King said, has yet to perform as advertised.

Councilmember Chris Chulakes-Leetz showed concern about the city paying $24,800 through May 31, when it paid a total of $49,000 over a five-month period.

Councilmember Kevin McGrail stated the same concern. He said although they are looking at a $24,000 patch to fix the software, he believes the issue will not be fixed by that time.

McGrail said the city keeps putting bandages on the wounds instead of solving the problem. He said AMX told them they only have two accounts in the United States that are carrying the software right now, with the city of Cape Coral being one of them.

“It is in their best interest to support us in what we are attempting to do to put the patches in their software and fix the problem,” McGrail said.

He suggested to his fellow council members that they move forward with the issue at hand, by working at getting technical help at a discount.

McGrail said it is in the company’s best interest to make its software work or the company will not have a future. He said he understood that if the city switches horses on this right now it will cost $600,000 and he respects how far down the road they have gone so far with AMX.

The suggestion of providing a “dead date” was brought up during the discussion, so the city would not have to pay any more money for a program they have not had any success with.

Councilmember Marty McClain said the city’s a guinea pig for a program that they were not sure of from the start. He said as a council, they need to come up with a definitive time span that is fair and works in a specific time frame.

“I would prefer saying, Aug. 1, we are done,” he said about working with the current company. “I’m just throwing ideas out there. I don’t want to have this discussion six months from now. I want to give them the benefit of the doubt, but you have to stop throwing money at them.”

McGrail suggested that the city come up with a real number of what it is going to cost the city to use the existing company, which will give them a better idea of a specific “dead date.”

Source:http://www.cape-coral-daily-breeze.com/page/content.detail/id/524523.html?nav=5011

Wipro comes under tax surveillance for ‘Body shopping’ after Infosys

May 23rd, 2011

About six months ago when India’s second-largest software company, Infosys, was slapped with a Rs 450-crore tax demand, the industry felt it was an outrageous decision by revenue authorities who argued that onshore contracts, infamously called body shopping, were not export of software.

For the taxman, it was export of manpower, a claim that shocked the IT industry and sparked queries in Parliament. The debate is unlikely to end in a hurry. Wipro, the country’s third-largest software exporter, has now come under tax scrutiny for the same reasons.

Tax authorities have not yet made a claim on Wipro, but have sent the company a ’scrutiny notice’ seeking details of services provided to clients for the assessment year 2008-09. “The contention is the same, that the companies are exporting manpower not services,” said a tax official aware of the matter and the communication sent to Wipro.

Wipro’s IT business is over $5 billion in revenues. Wipro, Infosys and other software companies have been claiming benefits under Section 10A of the Income Tax Act, which deals with benefits for software export income. Replying to an ET query, Wipro said, “We do not respond to assessment proceedings.”

So far, besides Infosys, the Income-Tax Department has sent notice to a smaller IT firm, iGate, asking it to pay Rs 11 crore for exemption claimed earlier for these services. The other point the department has put forward to buttress its argument in one of the notices is that Section 10A/10AA relates to tax-free income arising out of exports while deputing software professionals overseas cannot be done within software technology parks (STPs), export-oriented units, or special economic zones (SEZs).

Onshore development refers to the practice of IT companies sending their staff to work in overseas markets, including the US and Europe. Under such arrangements, the foreign company pays the Indian firm for the services of each professional while the domestic company pays a daily allowance over and above the salary paid to them. Software firms currently pay no tax on this income, claiming deduction under Section 10A of the Income Tax Act.

The I-T Department has argued that such contracts involve export of manpower and not export of software as the professionals are under the control and supervision of the company abroad that also owns the services they render or products they develop. In case of Infosys, the department has also challenged what it calls the dual benefits claimed by IT companies.

It wants them to reduce the expenses incurred in foreign exchange to pay professionals sent abroad from the total export turnover. Infosys CFO V Balakrishnan had earlier told ET, “Most of our onsite work has a linkage with our offshore work… We are a company which complies with law, both in substance and form, in all jurisdictions where we operate.”

In a report released earlier this year, analyst James E Friedman with brokerage Susquehanna International Group said, “Infosys had an onshore income of $2.01 billion in FY08, for which it has been charged $89 million, or an incremental tax rate of 4.4%. We estimate that applying a similar levy to Wipro would reduce EPS to $0.41 from $0.47 (effectively zero growth).”

Source:http://economictimes.indiatimes.com/tech/software/wipro-comes-under-tax-surveillance-for-body-shopping-after-infosys/articleshow/8518135.cms

Softjourn Earns High Marks Among Software Outsourcing Providers for Western and Eastern Europe

May 23rd, 2011

Softjourn, a software engineering services provider headquartered in Fremont, with operations also in Ukraine, today announced that it has been ranked as one of the top 20 “Rising Star” outsourcing firms serving the Western European market and one of the best 10 companies serving Eastern Europe. The ranking was put together by the International Association of Outsourcing Professionals’® (IAOP®) 2011 Global Outsourcing 100® List (http://www.iaop.org/content/23/152/2041/).

The list is compiled by the International Association of Outsourcing Professionals® (IAOP®) and features the world’s established leaders as well as emerging companies to watch. The judging process takes a look at an applicant’s size and growth, as well as the customer experience and references, employee development and management expertise.

“Softjourn measures its success by our client’s success, therefore we are extremely pleased to have received outstanding recognition for our client references,” according to Emmy B. Gengler, CEO of Softjourn. “The Global Outsourcing List is an important recognition for Softjourn as they take an intensive look at many areas of the service provider relationship which are very important to us including; the customer relationship, employee acquisition and development processes, and management leadership and development”.

“The companies on The Global Outsourcing 100 and The World’s Best Outsourcing Advisors lists are proven leaders and rising stars,” said IAOP Chairman Michael Corbett, also chair of the judges’ panel. “They are the companies you want to partner with to achieve success and better outsourcing outcomes.”

Source:http://www.theopenpress.com/index.php?a=press&id=105346

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