BMC, XOsoft agreement likely to lead to future deals

BMC, XOsoft agreement likely to lead to future deals

Enterprise management software vendor BMC Software signed its first alliance with XOsoft, an application availability company Tuesday.

Enterprise management software vendor BMC Software signed its first alliance with XOsoft, an application availability company, Tuesday. Executives at both companies positioned the deal as an initial tie-up in what they expect will prove to be an important relationship.

"This is a first step," Israel Gat, vice president, infrastructure management at BMC, said in a recent phone interview with both BMC and XOsoft executives. "Stay tuned" on further developments, he added. "There will be more announcements in the future," Leonid Shtilman, founder and chief executive officer (CEO) of XOsoft, added. "We've been working on this relationship for a long time."

Under the terms of the agreement, BMC will relicense XOsoft's WANSync replication software, which includes embedded continuous data protection (CDP) technology, according to Gat. The two companies are working on integrating WANSync with BMC's SQL-BackTrack backup and recovery software to improve the BMC product's data protection capabilities, speeding up both system backup and recovery.

BMC will then bundle WANSync with SQL-BackTrack and sell the combined software bundle. The bundle is likely to appear in the market in late March or early April, according to Iqbal Singh, director of R&D (research and development) at BMC. The two companies will share revenue from the bundled products on a proportional basis in relation to integration, sales, product delivery and support efforts.

As part of the deal, XOsoft will consider adding more platform support for WANSync, according to Shtilman. Currently, WANSync runs on Windows and two flavors of Unix -- IBM's AIX and Sun Microsystems's Solaris. XOsoft is likely to add support for Linux later this year and is also looking at supporting Hewlett-Packard's HP-UX operating system, Shtilman said.

Both Gat and Shtilman stressed the synergies between BMC and XOsoft. Gat pointed out that both companies have strong R&D teams in Israel. BMC also chose XOsoft as its CDP partner because its technology is oriented toward applications, Gat said. The two companies already have a number of joint customers, another reason for their alliance, according to Shtilman.

XOsoft has close to 1,000 customers in 28 countries, 20 percent of which are Global 2000 companies, Shtilman said. He's hoping the tie-up with BMC will enable XOsoft to reach more enterprise customers as well as expand the company's worldwide presence. The alliance with BMC isn't exclusive with the XOsoft CEO expecting to announce at least one more OEM (original equipment manufacturer) deal with another large IT company later this year, Shtilman added.

Gat wouldn't comment on whether BMC might look to acquire XOsoft in the future. In the past, BMC has acquired smaller software players as a way of accessing additional technology.

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