HP Acquires Mercury Interactive– SOA implications including Systinet
This is a big move for HP. The part that is of interest from the SOA perspective is the Systinet division of Mercury.
So typically in software there have been two kinds of companies–central control oriented and distributed agility oriented. Central control oriented companies include CA, HP, Mercury, BMC and the Tivoli division of IBM. They tend to occupy a space in “the cloud” and deliver visibility by watching things happening in the network. On the flip side there are companies focused on agility. These tend to be application platform companies such as Microsoft, BEA, SAP, Oracle, and others. They tend to exist on “servers” and deliver business functionality. This acquisition further pushes the Systinet Governance functionality into “the cloud” and into the hands of centrally located control types.
What does this buy mean? First of all, it cleans up Mercury’s options scandal problems which have plagued the company since it’s delisting from the NASDAQ. It will henceforth be traded on both the NASDAQ and NYSE at HPQ. Goodbye MERQ.PK (Trading on pink paper).
It’s a huge move for HP, and securely puts HP at the center of the Systems Management arena for emerging SOA initiatives. IT tends to be about two fundamental forces, CONTROL and AGILITY. On the agility side are typically distributed business units–who are tied to application platforms and are interested to deploying applications rapidly and with the least possible amount of hassle.
On the control side are typically central IT people like the CIO. The CIO maintains job security by establishing control of IT systems at all times, this includes visibility but also policy enforcement. From this perspective the Systems Management assets of HP and the IT Management assets of Mercury (and the SOA Governance capabilities of Systinet) provide the ultimate control suite for SOA as well as IT management assets.
So this is great right? HP + Mercury + Systinet = Ultimate Control.
This is a very very attractive combination from a value perspective. However, this sale is a very centralized CIO centric sale.
The line of business owners want SOA for AGILITY purposes, and this is where Infravio has had tremendous success and strength. Whether it’s enabling business to business integration through Service Delivery Contracts(tm) or new business process centric capabilities via BPEL or other process engines. These types of drivers are attractive to lines of business.
So the turf war between registry repository giants continues, with Systinet moving squarely into the network management layer and focusing on control, and Infravio, the strongest independent player focusing on agility and business enablement through SOA Governance. Full disclosure, I work for Infravio as a VP. Nuff said.



Concur with most of your observations. One company I would encourage you to consider or add under the agile, application platform companies is Adobe. Adobe was involved in creating some official standards around SOA and embraces many of the core tenets of SOA within its engagement platform LiveCycle components as well as within Flex and Cold Fusion products. LiveCycle has a geat SOA story including a decentralized architecture bound together by a platform registry-repository which allows ad hoc binding of components. The workflow engine can also orchestrate services into a workflow and deploy to a runtime environment.
Adobe has never really been noted as a registry-repository vendor but their 2003 acquisition of Yellow Dragon Software for the Registry was a sign of their future architecture. Systinet is a prime example of a forward thinking company that has worked out the real requirements of SOA and put the best foot forward.
Great writing - keep it up!!
D. Nickull
http://technoracle.blogspot.com
Hi Duane!
Thanks for your comment, I would agree that Adobe is an application platform provider, albeit a highly specialized one. Adobe isnt about control, it’s about delivering business functions.
One big unanswered is the acquisition competency issue. HP didnt make much of Bluestone, Verifone or Compaq and faces an uphill battle to organize such a big buy…
Here’s news from the field and from a real customer SOA governance evaluation ongoing. First, the upfront disclaimer: I work with Miko at Infravio. Second, that doesn’t detract from this real enterprise architect and their team’s evaluation of the HP-Mercury acquisition.
So, the rub is that this customer (in the Global 50) believes that now Systinet will be , to use his term, a ‘byproduct’ because investing in the registry and integration outside of HP will be far less important and no longer their focus. What will happen to their GIF? he asked me. Actional and AmberPoint, if they weren’t in Mercury’s gunsights are most certainly in SOA Manager and OpenView’s. Anyway, I just thought the readers might enjoy a real live customer’s view and perhaps a few readers will chime in with their own views. I wasn’t about to discourage his thought processes.
Transparently yours,
Thom Snyder