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  IBM deal could hurt Microsoft
Time: 11:13 EST/16:13 GMT | News Source: Seattle PI | Posted By: Robert Stein

IBM Corp. said yesterday it will buy Cupertino, Calif.-based software developer Rational Software Corp. for about $2.1 billion in a deal that analysts say poses a threat to Microsoft Corp. IBM agreed to pay $10.50 per share for Rational, which makes development tools -- software that helps developers model and create software. That price is 28 percent above the Rational's Thursday closing price of $8.17. The purchase could hurt Microsoft in several ways, analysts said. Microsoft relies on Rational products to let customers perform modeling, having incorporated those products into Visual Studio, the most widely used development environment in the world. Now, Microsoft will probably drop Rational "like a hot potato," said Carl Hoagland, a fund manager for investment firm State Street Corp.

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#1 By 135 (209.180.28.6) at 12/7/2002 1:55:18 PM
Hmm. I don't know that Rational products are included in VS.NET. There is UML modeling, but it's all based upon Visio.

The Rational products are pretty poorly written and buggy, as well as incredibly expensive. That's always been one of my great puzzles that the companies selling products and tools to supposedly improveme development practices generally appear to create some of the largest piles of crap. :(

#2 By 20 (24.243.41.64) at 12/8/2002 12:36:09 AM
#6: I'm hoping it was sarcasm, but probably not. Emacs people are particularly in love with their editor... I'm sorry, it's an emacsitor.

It's a shame that IBM will absorb Rational and destroy any innovation or productivity they might have had in the past :( Rational XDE for VS.NET is pretty damned cool.

MS should have a modeling, reverse- and forward-engineering toolkit, and refactoring package for VS.NET anyhow. MS is a development company, they need to be making a complete development solution for .NET.

I'm still convinced that MS doesn't know what it has with .NET. They're ahead of the likes of Sun* in that they know .NET will be big and they're pushing it, but I don't think MS realizes how huge it'll be.

*I think Sun still doesn't realize what they have with Java and they keep squandering it and filing stupid lawsuits against Microsoft to keep Java on Windows. Why? No one is using Java on Windows except for Servers anyhow, Sun has done a good job ensuring that.

Sun should worry about creating demand for Java on Windows which will pressure Microsoft THROUGH THE MARKET (now there's a concept) to include Sun's JVM with Windows.

#3 By 20 (24.243.41.64) at 12/8/2002 4:16:23 AM
#9, Then you haven't seen many editors :) EMACS is by far the WORST (ed is the worst, followed closely by vi [*ducks impending Emacs v. vi debate*]), but it's certainly not the best :)

Actually, it's extremely powerful for a text editor, it's just the interface sucks. Once you learn the interface, you won't want to use any other text editor, so I've heard and seen from several of my friends.

VS.NET is good for VS.NET kinda stuff, but for serious text editing, EMACS is pretty damned cool (if you can remember all the keys, that is).

Remember, EMACS is _NOT_ an IDE. VS.NET IS and IDE, so comparing the two is a mistake.

#4 By 931 (67.35.52.174) at 12/8/2002 5:27:50 AM
"Remember, EMACS is _NOT_ an IDE. VS.NET IS and IDE, so comparing the two is a mistake. "
--Dead on.

Shame of MS for not buying rational first.. serious with the there war chest I'm not sure why they didn't do this. My guess would be that they have the visio.net and vs.net teams working on some similar products.. that or they decided to leave the toolsets to the ISV market and not destroy Rational by producing there own tools. My guess is now that microsoft will either create there own tool sets to match that of rational in the 2004 time frame, or half heartly counter it with some added stuff to visio.net and vs.net2004. Either way I think MS just got caught sleeping on this one.. lets hope IBM just woke the giant.

"Rational XDE for VS.NET is pretty damned cool"
-- damb skippy!



#5 By 5444 (208.180.140.124) at 12/8/2002 10:42:06 PM
KnightHawk,

I have always wondered why MS relied on Other Tool vendors to put into the VS framework the Complete package.

There should be the standard package which is just VS.net and perhaps visio.

VS.net Architech should offer the complete package or offer the the Modularity to do so.

The complete Cycle of software development from Design/planning stage to the development stage, to the Testing stages to release, and start over again.

So when you purchase VS.net architech. the tools to architech should be there. Not only to limit the Design levels but the planning and Design stages. a much better code tracking than the current Visual Safe Source (should be more integrated) And a Bug/wish tracking and resolution

el

#6 By 3108 (200.63.130.127) at 12/8/2002 10:54:17 PM
I have been wishing that Microsoft acquires Rational since 2000, but this time IBM.

Eldoen,

I agree with you, bu it will take time to Microsoft to develop a complete package that covers all the aspects of the process of development a software program. Meanwhile it is VS.net enterprise Architect that comes with Visio, which is nobody uses (nobody uses Visio no VS.net) and which is not as integrated like the Rational XDE version for .net.

I course you IBM, for destroying my golden dream.

So, since now Rational products suck!!! (unless Microsoft acquires IBM)

What if Microsoft offer a better proce for the acquisition?



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