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Revenue And Customer Impact From Progress Software's Shifting Strategy

|Includes: FORR, IBM, ORCL, Progress Software Corporation (PRGS), RHT, TIBX

With their recent strategy shift, is Progress Software (NASDAQ:PRGS) turning the business around or abandoning their customers? Enterprise middleware is inextricably linked to application development, and successful application platform vendors (ORCL, IBM, MSFT, TIBX, RHT, WSO2) deliver complete platform offerings. Trying to tease apart application Platform as a Service (aPaaS) from integration and middleware, while not disenfranchising the Sonic and FuseSource customer base, will require nuanced communication. IT industry analysts from Forrester (NASDAQ:FORR) are questioning the strategy.

Maybe Progress already has found a buyer and established cross-licensing agreements, or maybe a substantial portion of their revenue pipeline will run dry during the sales process. In the interim, a risky stock to own during the transition.

Disclosure: I am long RHT.

Additional disclosure: Disclaimer: I work for a competitor whose products compete with Progress Sonic ESB, Progress Sonic MQ, and Progress FuseSource.