IBM closes Rational deal
Rational Software Corp. this week officially became part
of the IBM empire with the formal closing of the $2.1 billion deal first
disclosed last Dec. 6.
Officials said the Rational operation will initially
operate as a separate Software Group Division headed by Mike Devlin, a founder
and CEO of Rational. Devlin reports to Steve Mills, IBM senior vice president and group executive of the software operation.
Eric Schurr, Rational's top marketing executive who will
remain at IBM to head the new division's marketing operation, told eADT that the
unit's strategy will not change markedly except to take advantage of IBM's
10,000-person strong software sales force. ''The Rational division is just what
it was before,'' Schurr said. ''For the moment, there will be no changes
to the product line.
''We will look at the overall strategy [of the combined
firm], but there won't be any changes for quite a while,'' continued Schurr.
''We see all kinds of opportunities to leverage IBM's technology and to maximize
the development and research teams.'' Added IBM's Mills, ''Rational is an
important element of our e-business on-demand initiative.''
Schurr said Rational co-founder and Chairman Paul Levy
and former President and Chief Operating Officer Tom Bogan have left the firm.
He also said that an undisclosed number of Rational workers in overlapping
administrative and financial positions would be eliminated.
Rational competitor Merant Corp., expected to boost its
configuration management offerings later this year, hopes the assimilation of
Rational and IBM can boost that firm's opportunities, said Product Marketing
President James Rogers.
Mike Bucken is former Editor-in-Chief of Application Development Trends magazine.