German database and e-commerce software developer Software AG has cut back its commercial relationship with former US subsidiary SAGA Software Inc, limiting the latter to marketing its older generation of products into its existing customer base, while the erstwhile parent will market its new offerings through alternative channels. The changes were made at the beginning […]
German database and e-commerce software developer Software AG has cut back its commercial relationship with former US subsidiary SAGA Software Inc, limiting the latter to marketing its older generation of products into its existing customer base, while the erstwhile parent will market its new offerings through alternative channels.
The changes were made at the beginning of this month and on SAGA’s initiative, the US company, which was spun off in 1996, having come under pressure from Wall St. to alter its status in the market. One of the issues, in this context, was the launch at the end of last month of enterprise integration suite Sagavista, its first product developed in-house.
Sagavista brings the Reston, Virginia-based company its first intellectual property rights, a key requirement from financial analysts if they were to improve their rating of SAGA. Its advent, however, caused other problems, as by the terms of the previous relationship, Software AG would be the distributor for Sagavista in Europe, just as SAGA was for all the German company’s products in the States. That did not sit well with the US company, resulting, say informed observers, to months of long and sometimes acrimonious negotiations with its erstwhile parent.
Andy Joss, chief technologist of the Software AG’s UK subsidiary, denied there had been any bad blood, observing however that both Dan Gillis [SAGA’s CEO] and Erwin Koenigs [his counterpart at Software AG] are tough negotiators.
Under the new arrangement, SAGA is solely responsible for worldwide marketing Sagavista and whatever else it develops, as well as ones it has gained through acquisitions. It will also continue to market Software AG’s flagship Adabas database software, as well as the Natural business application server and, until June 2000, the ebusiness application integrator EntireX, but only to its existing customers in North and South America, Israel and Japan.
In these regions, therefore, Darmstadt-based Software AG immediately becomes responsible for its new range of products, namely the Bolero business application development environment and the Tamino native XML information server. It also takes over responsibility for EntireX from June next year, and is of course responsible for its whole product line in all other countries.
That means striking up new relationships in the States, and indeed, Koenigs spent past of last week in that country, working on such arrangements, said company insiders. The vice president of product marketing at the company, Chris Horak, hinted at the direction in which things were going in September. He spoke of the need for greater visibility for the German company in Silicon Valley, telling told ComputerWire that we will need a portfolio of 10 to 15 partners building on our technology there.