IBM Acquires DataPower To Speed XML And SOA Adoption - InformationWeek

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10/18/2005
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IBM Acquires DataPower To Speed XML And SOA Adoption

IBM estimates building out enterprise infrastructures for Web services and service-oriented architecture will amount to a market "in the tens of billions" of dollars, and is looking to Data Power's XML message processing line to help get it there.

IBM is expanding into what it sees as its most rapidly growing market—services-oriented architectures—by acquiring DataPower Technology Inc., a provider of XML message processing products.

Privately held DataPower builds a hardware device, the XA35 XML Accelerator, that acts as a front-end, XML message processor on the enterprise network. DataPower also offers the XS40 XML Security Gateway, an XML firewall that inspects messages for confirmation of the sender, serving as a shield against spoofing and ferreting out any hidden malicious code. It also offers an XML message transformation and routing appliance, the X150 XML Integration Appliance. The 70-employee firm in Cambridge, Mass., is being acquired for an undisclosed amount. All employees will become part of IBM and IBM will hire additional people to expand the product line, said Robert LeBlanc, general manager of WebSphere products, in a teleconference today announcing the acquisition.

"We plan to introduce a family of appliances" beyond those currently fielded by DataPower, LeBlanc said. The appliances will be more tightly integrated with WebSphere middleware, Tivoli systems management and DB2 database management systems, he said. Six-year-old DataPower plays in a competitive space. Reactivity Inc., RSA Security and Layer 7 Technologies Inc. all produce XML message accelerators or XML firewalls.

IBM estimates building out the enterprise infrastructure for Web services and SOA will amount to a market "in the tens of billions" of dollars, enhancing its WebSphere software revenues, which it said yesterday grew 14% in the third quarter compared to the same period last year. DataPower appliances will continue to work with other vendors' middleware, such as BEA Systems or Oracle Corp.'s, but LeBlance said the optimization between DataPower and WebSphere "will be a huge advantage" for WebSphere users.

J.P. Morgan Chase & Co. and securities trader UBS AG are among DataPower's existing customers.

Eugene Kutnetsov, found of DataPower and its chief technology officer, said being acquired by IBM made sense for the small firm in order to rapidly expand its product offering through a larger company.

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