Software company webMethods
Founded in 1996, webMethods develops software that leverages Web-based technologies primarily for the Forbes Global 2000, including EchoStar
For example, Wells Fargo
Now with Infravio, webMethods can help its customers deal with so-called governance issues -- development roadmaps, best practices, tutorials, security enforcement, compliance with existing service agreements, and so on -- that are a part of SOA projects. If governance issues aren't handled properly, an SOA project can turn into an expensive mess.
Infravio may be able to do more than that for webMethods; it might also prove to be an effective revenue driver. Dennis Callaghan, an enterprise software analyst at The 451 Group, a tech research firm, told me that Infravio has doubled its customer count during the past 12 months and that its "pipeline is strong." That's good news for webMethods, which desperately needs help in boosting revenues. In its most recently completed quarter, the company's revenues fell from $47.7 million to $46 million, and license revenues plunged from $18.5 million to $12.6 million.
The company also believes it can leverage Infravio's product through its global direct sales force, as well as its channel of system integrators, which include prominent names such as Accenture
In all, it appears that webMethods has a credible plan to ramp up revenues over the next year. And if it's true that customers are increasingly moving toward SOA implementations, then the company may soon be entering a growth phase. That would certainly be good news for shareholders.
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Fool contributor Tom Taulli does not own shares of companies mentioned in this article.