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Another One Bites The Dust

Compuware said Wednesday it has agreed to acquire Web application management vendor Gomez for US$295 million. The transaction is expected to close in November. I read this piece of news with mixed feelings. Despite false statements of Compuware about HP's lack of capabilities in SaaS space, HP SaaS is one of the pioneers in providing application management solutions as SaaS. We have been in business for 10 years, but... we haven't always been part of HP. In the past HP SaaS has been known as Mercury Interactive ActiveTest and ActiveWatch, and we came to HP as part of Mercury acquisition in 2006. We have 600+ customers and about 50% of our revenue comes from our application management solutions - HP Business Availability Center and HP SiteSeer.

I have to tip my hat to Gomez - it was a worthy competitor. This small company was very focused and their technology is very different from ours. I love the idea of test and monitoring agents running from "ordinary people" desktops. I love the business model of paying a small sum via PayPal if one's computer is chosen for monitoring or load testing. I definitely don't love the legal issues involved or possible security breaches in this solution. In any case, Gomez definitely had a good run... while it lasted. Now, it's part of a much larger company. I had a bet with a few of my coworkers as to who will buy Gomez, because it is clear to us at HP that SaaS business worldwide is expected to grow, and a lot of our competitors want to be where we are today. They want to have a strong SaaS offering with significant customer base and recurring revenue stream. I admit that Compuware was not on my list of candidates. The company has just sold its testing business to buy another testing business? It just doesn't compute unless Gomez testing line is pretty much doomed. Well, I won't be complaining as it opens a lot of opportunities of HP Software SaaS solutions in quality management.

As someone who has been through acquisition, I want to tell my Gomez colleagues and former competitors - fasten your seat belts. I know that I am supposed to be positive on the company blog, but acquisition is not easy, especially in the case of a smaller company being consumed by a much larger company. You know as well as I do - what we need for our success is focus. Now during acquisition period there are changes in management, in "go to market" strategy, in cash-to-flow process. I won't even mention integrating of software offerings, which takes time even with the most flawless execution. It's been painful for us, former Mercury ActiveWatch, and sometimes it felt like we have been reduced to ashes in the process. But like Phoenix, we are rising now, and we have more opportunities than ever, especially with you guys going through the same joys that we went through three years ago. Your customers will know that they have other options even though your new employer tries to sound like there are none. And if you want to join the business that is serious about growing its own SaaS - come work for HP!

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About the Author(s)
  • Archie delivers strategic solutions focused on today’s critical and evolving business needs, linked to the growing list of Strategic Enterprise Services including Hybrid Cloud, IM&A including Social Media, Security and Mobility from BYOD to mobile applications. Archie is the author of 4 books so far, and a founding director of the Australian Cloud Security Alliance chapter.
  • Lending 20 years of IT market expertise across 5 continents, for defining moments as an innovation adoption change agent.
  • Global Marketing Manager at HP in the Converged Application Systems organization, ESSN for Cloud Maps Solution which is a key part of HP’s Converged Cloud and CloudSystem strategy. Responsible for leading marketing for Cloud Maps with a focus on creating internal & external awareness, sales & partner enablement, and demand generation. You can follow me on Twitter @BelaniDeepak
  • HP Software Cloud and Automation solution architect serving largest customers in Europe, now leading the Community team for HP Operations Orchestration.
  • This account is for guest bloggers. The blog post will identify the blogger.
  • 15 years in IT industry … started as sys admin, then became a consultant, instructor, solution architect and now in product marketing @HP
  • I am on the WW Cloud and Big Data Solutions Team. I help our customers adopt HP advanced solutions that are made up of products and services from across HP. I have over 30 years experience in the technology business including 17 years of business ownership.
  • Matt is a Master Engineer leading the development of CLIs and SDKs for HP Cloud. Prior to this Matt led the development of the HP public cloud marketplace and developed the HP public cloud websites. He is a regular open source contributor having contributed to wide variety of projects in numerous languages including PHP, JavaScript, and Go. Matt is a published author and conference speaker.
  • Mike has been with HP for 30 years. Half of that time was in R&D, mainly as an architect. The other 15 years has been spent in product management, product marketing, and now, solution marketing. .
  • Nimish Shelat is currently focused on Datacenter Automation and IT Process Automation solutions. Shelat strives to help customers, traditional IT and Cloud based IT, transform to Service Centric model. The scope of these solutions spans across server, database and middleware infrastructure. The solutions are optimized for tasks like provisioning, patching, compliance, remediation and processes like Self-healing Incidence Remediation and Rapid Service Fulfilment, Change Management and Disaster Recovery. Shelat has 21 years of experience in IT, 18 of these have been at HP spanning across networking, printing , storage and enterprise software businesses. Prior to his current role as a World-Wide Product Marketing Manager, Shelat has held positions as Software Sales Specialist, Product Manager, Business Strategist, Project Manager and Programmer Analyst. Shelat has a B.S in Computer Science. He has earned his MBA from University of California, Davis with a focus on Marketing and Finance.
  • René J. Aerdts is chief technologist and leader of the Strategic Pursuits and Cloud Enablement organization within the Chief Technology Office for HP Enterprise Services. René is responsible for creating and delivering direction and content for consultative driven thematic pursuits, where leading edge technologies and offerings are part of the solution.
  • Roger has been trying to get out of Information Technology since programming COBOL on mainframes in the late '80's. But no matter in which continent he awoke, or whom employed him, his passion to enable people with technology was constant. So now he enables businesses to determine their strategy using the latest technologies like cloud computing, mobility, and big data. HP calls these Strategic Enterprise Services, Roger calls them "another day in the office."
  • Stephen Spector is a HP Cloud Evangelist promoting the OpenStack based clouds at HP for hybrid, public, and private clouds . He was previously at Dell promoting their Cloud solutions and was the open source community manager for OpenStack and at Rackspace and Citrix Systems. While at Citrix Systems, he founded the Citrix Developer Network, developed global alliance and licensing programs, and even once added audio to the DOS ICA client with assembler. Follow Stephen at @SpectorTX
  • As a provisioning addict for 20 years, I was involved in projects in EMEA and the US as engineer, solution architect and project manager. In the last 2 years I'm in the Operations Orchestrations Community Assistance Team in HP Software R&D.
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