The pace of acquisition in the network management market is picking up, fuelled in part by the burgeoning interest in network services such as wireless communications and voice-over-Internet protocol (VoIP).
Systems management stalwart Computer Associates (CA) agreed a $300 million deal for network service management vendor Concord Communications. While Concord has been treading water of late, with a string of disappointing financial results, the acquisition gives CA a much-needed foothold in network fault and performance management. It also strengthens CA’s portfolio in the voice-over-IP (VoIP) and wireless networking markets.
The purchase will assist CA to compete more directly with technology giant Hewlett-Packard (HP), which has increasingly encroached on CA’s systems management revenues. HP’s OpenView systems and network management line has gained significant traction in the telecoms industry, and CA will look to the Concord deal to help it claw back market share. Concord had long suffered from limited routes to market, however, it will now have access to CA’s extensive channel of resellers and systems integration companies.
Further activity in the wireless market saw service management company Micromuse buy network performance monitoring software maker Quallaby for $33 million in cash. The acquisition fleshes out Micromuse’s range of business service management software, extending its capabilities in wireless and IP-based networks.
Elsewhere, there were signs of life in the thin-client market after years of relative dormancy. Private equity company Garnett and Helfrich Capital bought a controlling stake in thin-client specialist Wyse Technology for $35 million. And rival Neoware Systems spent e3 million on thin-client software maker Qualystem Technology. Qualystem specialises in software that streams Windows operating systems and applications to thin clients on a pay-per-use basis. Neoware recently bought TeleVideo‘s thin-client business and a Linux thin-client maker.
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