The SOA space continues to consolidate and Cape Clear’s acquisition by Workday is the latest headline. I’m not in the know of how Cape Clear has actually been executing lately but suspect they don’t have as much customer momentum as they portray on the outside. Hence the viability of becoming internal technology to a Saas provider like workday - and ceasing availability of thier ESB offering.
Details from the Release
- Workday has reached a definitive agreement to purchase Cape Clear Software, Inc.
- Cape Clear has been recognized as the industry’s leading ESB by top research firms, including Forrester.
- The acquisition will allow Workday to accelerate its efforts to support customers with packaged and custom Integration On Demand.
- Cape Clear will become Workday’s integration team, based in Dublin, Ireland, with additional resources in Walnut Creek, Calif.
- Annrai O’Toole, chief executive officer of Cape Clear, will join the Workday management team as Vice President, Integration.
- The Cape Clear solution will no longer be offered standalone and will be available only as part of Workday Integration On Demand.
- Workday will continue to support existing Cape Clear customers.
- Financial terms are private and Workday expects to complete the purchase in 30 days.
So is this a portfolio consolidation on the part of Greylock? Given the level of investment over the years (sine 1999)and the fact that its really an internal private acquisition by another startup I’m sure it wasn’t an easy decision. It does allow Annrai to continue to operate in Ireland which may be mostly whats its all about - dunno.
Execution has been patchy and with 45m million raised they were never going to fulfil there promise.
Instead all the preference holders will get to exchange their worthless capeclear paper for a much smaller amount of (more valuable) Workday paper.
Aneels wins twice as a partner of Greylock and of course Greylock and Accel love the idea of having a foot in the door at Workday.
It remains to be seen whether the common stock holders will see a dimes worth of stock.
Cape Clear and Workday have the same founder/owner and Cape Clear was just plain out of momentum from what I gather.
I think you’re right on the money (so to speak), Joe. I can’t imagine the acquisition was above liquidation levels.
Jevon, Thats what I’ve heard as well. With the anticipated downturn in the US, banks in turmoil over sub-prime lending I fret over who will pull SOA along for the next year or two. Will it continue to bud? Or, die on the vine?
My company is very broad several thousand customers doing Web services and SOA. I did a quick tally of our customer’s my sector and we are over 68% in financial+insurance.