Database, application development and XML software vendor Software AG [SOWG.F] is offering customers a complete platform for integration based on its XML technology. It will also launch new suites of products targeted at particular integration problems early in the New Year.
Software AG has had a tough time recently with slumping sales and a dip into the red in the face of constrained IT budgets and failings in its own execution.
However, after a series of job cuts and other cost-cutting measures, the company is back in the black. Its latest quarter saw earnings of E3.9 million ($4.49 million), although sales were down 13% at E99.5 million ($114.6 million).
The company has undergone a structural reorganization, which has seen its operations streamlined into four operations: southern and western Europe; northern Europe; Asia/Pacific and South Africa; central and eastern Europe; and the Americas.
As it sells broader integration services projects, rather than just standalone software products, its services revenue may increase as a percentage of total sales.
But it will remain a products company with a services element, rather than becoming a services company that happens to have some software products. Services currently account for 30% of sales.
The other challenge facing Software AG is getting its integration infrastructure platform message across to CIO-level decision-makers, when historically it has sold predominantly to application developers and database administrators.
This article was based on material originally published by ComputerWire.