As you have already heard or read, We've been banned. Or, at least officially uninvited, to IBM's Rational Software Development Conference (RSDC) this year in Orlando.
The inevitable question is, why?
IBM Rational division is not without its reasons for uninviting us to its RSDC. Genuitec‘s MyEclipe Blue product does, on some levels, compete with the Rational Application Developer (RAD). It is IBM‘s conference, and their goal is to be profitable (as with any business), so we concede that MyEclipse Blue, its speed of delivery and price point pose somewhat of a threat to the goals and objectives set by the executives in the software tooling division of IBM.
Ok, so we get all of that, but the bigger question remains: Do we really pose such a threat to one division of IBM? Does banning Genuitec from this conference serve IBM‘s interest as a whole? The facts do not add up.
According to IBM‘s annual report for 2007, the company made $98,900,000,000 in 2007. The software division, which is comprised of Websphere, Lotus and RAD, grew by 10 percent and made $20,000,000,000. $17,000,000,000 of that was profit (85 percent gross profit margin). Nothing would make us happier than to claim some of these zeros. But, the David and Goliath comparison in this case takes on a new, absurd meaning.
However, the reality is that IBM makes much of its money by providing infrastructure and services, not tools. It stands to reason then that the more tools that serve this technology stack the more vibrant the community around it. That is business 101. It‘s not squabbling over pieces of the pie, but rather making the pie bigger so that everyone wins. James Governor, analyst for Redmonk, put it best on his blog, “Why is IBM afraid to compete in the tools software marketplace? This approach (elbowing out competitors) is short-sighted and wrong-headed.”
So to put this argument to rest, MyEclipse 6.1 Blue Edition is a value-add to RAD users and a standalone competitive solution. MyEclipse allows WebSphere and RAD customers to use technologies such as advanced Hibernate tools, Spring capabilities, Struts, JSF and much more. These are all items that RAD does not currently support – and that developers using RAD need. It was once said that IBM is more than a company with one product. It is an ecosystem; an environment in which companies compete. I would hate to state the obvious then, but if IBM as a whole is looking to provide a complete solution for their customers, would it not make sense to embrace a product or company that supports WebSphere users in ways that RAD does not? It is the consumers who benefit most in the end, and happy consumers equal profit for all parties involved.
Should we be flattered by this un-invite as a worthy competitor? Perhaps. Certainly, Genuitec would have profited from attending RSDC, and if it were up to us, we would go. Attending last year allowed us to speak with RAD users and learn what they like, don‘t like and want from WebSphere software tools providers including RAD, Genuitec and other exhibiting companies. All of this aside, the fact remains: we are no longer invited to RSDC, and the repercussions of this on a small company like Genuitec, unfortunately for us, cannot go unnoticed. We exhibited last year and paid IBM to exhibit again this year. Our payment was accepted only to be denied seven months later. Our marketing budget for the year, made well in advance, was based on attending RSDC, and it will be a daunting task to find another venue to show our wares. Ironically, these are the lessons you learn as a growing company to challenge common sense and to question partner motives, even when it doesn‘t make Rational sense.
Despite this experience, we are committed to continue supporting the IBM WebSphere technology stack. Simply because it makes perfect business sense. We will continue our rapid delivery tradition in support of emerging technologies and standards. We will also continue to deliver the MyEclipse Blue edition at an affordable price around the globe. For our existing customers, you know what to expect from us. For our new customers, stay tuned and hang on for a great ride.
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