Micro Focus/NetManage Q&As
Micro Focus/NetManage Q&As
Micro Focus/NetManage Q&As
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<strong>Micro</strong> <strong>Focus</strong>/<strong>NetManage</strong> Q&<strong>As</strong><br />
Q. What have you announced?<br />
A. <strong>Micro</strong> <strong>Focus</strong> has announced today that it has completed the acquisition of <strong>NetManage</strong>, Inc. the<br />
NASDAQ-listed software provider, for approximately $73M.<br />
Q. Who is <strong>NetManage</strong>?<br />
A. <strong>NetManage</strong> is a NASDAQ-listed software provider, headquartered in California, serving 10,000<br />
customers and the majority of the Fortune 500, and three million licensed users. It specialises in<br />
Application Modernisation software, an area of technology that is highly complementary to<br />
<strong>Micro</strong> <strong>Focus</strong>’s core business.<br />
Q. Why did you acquire <strong>NetManage</strong>?<br />
A. The merged company provides greater scale, a broader portfolio of products and services, and a<br />
larger international presence for all our customers.<br />
More specifically, <strong>Micro</strong> <strong>Focus</strong> has acquired <strong>NetManage</strong> to strengthen its position in the delivery of<br />
terminal emulation, host connectivity and Service-Oriented Architecture (SOA) technologies within<br />
the Application Modernization market. Application Modernization is one of four key markets for<br />
<strong>Micro</strong> <strong>Focus</strong>. The others are Application Development, Application Portfolio Management and<br />
Application Information Management.<br />
The acquisition gives <strong>Micro</strong> <strong>Focus</strong> additional Application Modernization capabilities to address<br />
the needs of Global 2000 and SME customers alike. This transaction significantly extends the<br />
<strong>Micro</strong> <strong>Focus</strong> product portfolio in the SOA space.<br />
Q. What did <strong>NetManage</strong> sell?<br />
A. <strong>NetManage</strong>’s original product line was Rumba, an emulation product to connect PCs to hosted<br />
environments such as mainframes. Consequently organizations such as airlines could continue to use<br />
their “green screen” mainframe applications and access them from corporate PCs. Terminal Emulation<br />
is a strong and mature market and the Rumba product line is a market leader.<br />
Another key product is the web-integration product, OnWeb, which allows organizations to<br />
transform these hosted applications to internet-centric ones and bring customers SOA capabilities<br />
without significant upheaval. SOA capabilities including planners and connectors help enterprises to<br />
combine core systems with packaged and other applications into more modern Service<br />
Oriented Architectures.<br />
Q. What are the benefits for <strong>NetManage</strong> customers?<br />
A. <strong>NetManage</strong> customers will benefit from a broad range of <strong>Micro</strong> <strong>Focus</strong>’s Application Modernization<br />
products, allowing them to extract value from existing systems in more efficient ways and providing<br />
the opportunity to utilize existing business processes with greater flexibility.<br />
Specific benefits include:<br />
• Increased product capabilities with a broader range of higher quality offerings from the<br />
expanded team
• Joining the customer community of a true modernization partner with a heritage of<br />
‘core systems’ technology investment spanning more than 30 years<br />
• Lower risk and more stable future due to the financial and operational strength of <strong>Micro</strong> <strong>Focus</strong><br />
• Increased product support capability<br />
Q. What are the benefits for <strong>Micro</strong> <strong>Focus</strong> customers?<br />
A. In general, <strong>Micro</strong> <strong>Focus</strong> customers will benefit due to the extended SOA product portfolio and richer<br />
functionality around host connectivity, bolstering and augmenting <strong>Micro</strong> <strong>Focus</strong>’s Modernization<br />
solution.<br />
Q. What sort of customers does <strong>NetManage</strong> serve?<br />
A. <strong>NetManage</strong> has been in business for more than 18 years and has an extensive range of 10,000<br />
customers from a variety of industries. Its customers tend to be larger enterprises, not unlike<br />
<strong>Micro</strong> <strong>Focus</strong>, and we share a large number of customers who can now benefit from our<br />
complementary sets of solutions.<br />
Q. How will <strong>Micro</strong> <strong>Focus</strong> market and sell <strong>NetManage</strong> products?<br />
A. <strong>Micro</strong> <strong>Focus</strong> will rapidly integrate the <strong>NetManage</strong> sales and marketing organization into the<br />
<strong>Micro</strong> <strong>Focus</strong> operations to form a joint go-to-market strategy.<br />
Q. How does <strong>Micro</strong> <strong>Focus</strong> intend to support the delivery and management of <strong>NetManage</strong> solutions<br />
going forward?<br />
A. For the foreseeable future, all products from both companies will be fully supported. <strong>Micro</strong> <strong>Focus</strong><br />
will retain and maintain strong and popular elements of both product sets while meeting customer<br />
commitments. We will continue the development of major product lines while at the same time<br />
<strong>Micro</strong> <strong>Focus</strong> and <strong>NetManage</strong> teams will work on the future product roadmap.<br />
Q. Does this deal change the way you intend to serve existing <strong>Micro</strong> <strong>Focus</strong> customers?<br />
A. <strong>Micro</strong> <strong>Focus</strong>’s customers will see no change in the high levels of customer service they have come<br />
to expect. The acquisition of <strong>NetManage</strong> will further extend <strong>Micro</strong> <strong>Focus</strong>’s product offering in the<br />
application modernization space, especially within the SOA market. We believe we can even better<br />
serve our customer base with this more comprehensive and broader product line.<br />
Meeting the needs of our customers will continue to be our first priority.<br />
Q. How will you protect the investments of <strong>NetManage</strong>’s customers?<br />
A. We are confident that we will retain the <strong>NetManage</strong> customer base through continued investment in<br />
the <strong>NetManage</strong> product set and adding additional value to <strong>NetManage</strong> customers with, for example,<br />
our award-winning Support organization. <strong>Micro</strong> <strong>Focus</strong> has a strong track record of product<br />
investment, as demonstrated in the continued and integrated product portfolios of two previous<br />
acquisitions – HAL and Acucorp.<br />
Q. What difference will <strong>NetManage</strong>’s customers see?<br />
A. First, we can reassure <strong>NetManage</strong> customers that we plan to continue investment in those products<br />
and maintain them as an important part of our overall strategy. Second, we are confident the<br />
combined entity will continue to deliver the same great level of service that <strong>NetManage</strong>’s existing<br />
customers are accustomed to.
Q. What are the plans for <strong>NetManage</strong>’s commercial terms and conditions?<br />
A. There are no current plans to alter the existing commercial terms and conditions for customers.<br />
Q. How will this acquisition change the position of <strong>Micro</strong> <strong>Focus</strong> within its target markets?<br />
A. The <strong>NetManage</strong> products expand the <strong>Micro</strong> <strong>Focus</strong> portfolio to include a specific category of<br />
the broader core IT systems modernization space (i.e. Extension) where there is a less extensive<br />
<strong>Micro</strong> <strong>Focus</strong> footprint today. Furthermore, this acquisition will greatly enhance <strong>Micro</strong> <strong>Focus</strong>’s<br />
capabilities in the important SOA market. Both sets of capabilities help grow the overall<br />
<strong>Micro</strong> <strong>Focus</strong> Modernization offering, providing greater value to customers.<br />
Q. How much overlap is there between the two product offerings?<br />
A. There is little significant product overlap. Where there is some, the combination of technical<br />
resources will look at the best possible options in the immediate term, as well as a more strategic<br />
view. One product area where we are very excited is the potential to combine the strengths of the<br />
SOA offerings from both companies.<br />
Q. If <strong>Micro</strong> <strong>Focus</strong> plans to continue the restructuring currently underway, will it be maintaining the<br />
entire product line from <strong>NetManage</strong>?<br />
A. <strong>Micro</strong> <strong>Focus</strong> management believes the current product offering from <strong>NetManage</strong> is the right one<br />
and has no current plans to reduce the number of products offered.<br />
Q. Will <strong>Micro</strong> <strong>Focus</strong> radically change the R&D efforts at <strong>NetManage</strong>?<br />
A. Constant product improvement and innovation are long-term success factors in the technology<br />
market. <strong>Micro</strong> <strong>Focus</strong> sustains its competitive edge with its core products through this philosophy.<br />
Consequently, <strong>Micro</strong> <strong>Focus</strong> is committed to maintaining investments in R&D for its entire range of<br />
technology offerings.<br />
Q. Will the old <strong>NetManage</strong> product names continue to be used?<br />
A. <strong>NetManage</strong> has very strong and well-recognized product names like Rumba and OnWeb, and<br />
there are no plans to change this. To establish clarity in the marketplace of the broadened<br />
combination, we have plans in place to move the “<strong>NetManage</strong>” brand into the<br />
“<strong>Micro</strong> <strong>Focus</strong>” brand.<br />
Q. What work is required to allow <strong>Micro</strong> <strong>Focus</strong> and <strong>NetManage</strong> products to work better together?<br />
A. <strong>NetManage</strong> products are largely complementary to the <strong>Micro</strong> <strong>Focus</strong> portfolio and, as such,<br />
we believe there will not be a substantial amount of work required to integrate the<br />
product offerings.<br />
Q How are you communicating with <strong>Micro</strong> <strong>Focus</strong> and <strong>NetManage</strong> customers?<br />
A. We have been and will continue to communicate with our combined customer base about some<br />
of the exciting opportunities we have together as a larger company that offers a broader range<br />
of products and solutions.