Virtualization Should Keep BEA Going

Sep.14.07 | About: BEA Systems (BEAS)

By Kris Tuttle

Kris Tuttle submits: There will be a slew of updates and commentary on the BEA (BEAS) World announcements after the financial analysts have been briefed and have put out their obligatory notes. So to save the reading we’d say this:

It’s all fine. More of the same. Similar to an IBM (NYSE:IBM). Problem is the SOA/SaaS space is being more granular and looking for simpler solutions. BEA is a good company with strong products but they are just too much big iron. We’ve said it for a year or more now but the big bang SOA stack is a non-starter in most places.

To their credit they have introduced the concept of their own microService Architecture (mSA) but it stands as a bit of a contradiction to the BEA SOA 360 degree platform. As far as just how granular it gets and how well it will operate with other systems remains to be seen in the implementation.

BEA may get a a boost from the virtualization opportunity which is part of what they are positioning for. It’s probably the best chance they have in the market right now and should be enough to keep them going. At a minimum they probably can cut a better figure today next to IBM, Oracle (NASDAQ:ORCL) or Microsoft (NASDAQ:MSFT) versus where they were six months ago.

There were a few puzzlers in the mix including an alignment with Adobe (NASDAQ:ADBE) on form processing and SOAAPPS with EnterConnect?!? Do we really have to clutter up the press releases with sponsor-injected junk?

BEAS 1-yr chart: