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Software AG Buys Terracotta to Be Cloud Player

Figures Terracotta’s Ehcache technology will increase the performance & scalability of its Business Process Excellence platform

Software AG is buying Terracotta, whose open source widgetry makes Java-based enterprise applications run faster and scale without rewriting the code.

The German company wants the start-up as the basis of a perspective cloud offering, expecting to use it to turn into a Platform-as-a-Service house.

It figures Terracotta's Ehcache technology, the de facto caching standard for enterprise Java, will "dramatically" increase the performance and scalability of its own Business Process Excellence platform.

Terracotta will be the in-memory technology in the Software AG product stack. Release of the first combined products is due in Q4. SAG's cloud-based PaaS roll-out is scheduled for next year.

The price Software AG is paying for the 55-man company was not disclosed. Terracotta, which will be run as an independent business unit, raised $23.5 million during its eight-year run.

Software AG says that with Terracotta's in-memory widgetry capable of making data access up to 1,000 times faster than database access, it can increase its revenues by winning significantly larger business process excellence projects that address complex event processing, mobile technology, cloud distribution and virtualization. Customers will have an advanced technology solution for analyzing vast amounts of data.

The acquisition also adds an open source community to Software AG's business model that the German company says it will nurture.

Terracotta claims 500,000 deployments of the open source technology, including most of the Fortune 2000. Going with SAG gives the start-up more feet on the street, a patron with deeper pockets and a larger support organization. It also says it will be easier to sell a stack.

There's significant customer overlap between the two concerns but the billion dollar-a-year SAP obviously has a bigger customer base that it means to cross-sell and up-sell to. Software AG wants to be a $5 billion company in 10 years. Its largest territory is the American market, followed by the German-speaking parts of Europe and it's active in Asia-Pacific, China, Japan and Singapore.

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at) or paperboy(at), and by phone at 516 759-7025. Twitter: @MaureenOGara

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