SOA Consolidation

Reactivity was purchased by Cisco for a cool $135MM, making it the largest acquisition in the SOA space. DataPower (aquired by IBM for ~$105MM and Systinet (acquired by Mercury for ~$102MM) were the other >$100MM acquisitions. Other smaller ones include Sarvega (acquired by Intel for ~$40MM), Conformative (acquired by Intel for ~$32MM), Infravio (acquired by webMethods for ~$38MM) pretty much consolidated the space leaving Forum Systems, Layer7, SOA Software and Amberpoint as the independent private companies. Further consolidation is inevitable.

The second wave of SOA Infrastructure startups in underway. Andrew Nash, CTO of Reactivity, started a company focused on XML identity. Sonoa Systems is the Next Gen XML Infrastructure Company still in stealth mode and is funded by SAP Ventures, Norwest Ventures, and Bay Partners.

Ofcourse, all XML/SOA infrastructure companies will require extensive SOA Testing to make their products enterprise ready. They will have to deal with the extensive web services/XML standards such as WS-Security, its profiles such as User Name, X.509, Kerberos, SAML tokens as well as SOAP signatures and encryption. Starting XML/SOA infrastructure companies from scratch will enable such new startups to build ground up on relatively newer and useful standards such as WS-Policy, WS-SecureConversation, etc. The second cycle will be shorter with exits taking 3-4 years unlike the 5+ years needed by the 1st wave of SOA consolidations.

For an interesting interview on Sonoa by Eric Knorr, see this video clip.