Software AG focuses on two product groups

Software AG, the German company specializing in XML (Extensible Markup Language) technology, will narrow the focus of its future software development to two product lines in a move designed to consolidate its research and development activities, and reduce costs.

Following a decision reached Thursday by Software AG's management and supervisory boards, an XML-based integration platform will be created by combining the company's EntireX and Tamino products. This will allow customers to create cost-efficient links between legacy systems, the Darmstadt, Germany, company said.

The other product line will be enterprise transaction systems for mainframe computers. The company plans to expand its portfolio in this area, where it currently has two products: the Adabas database software and the Natural development tools. Software AG plans to add new functionalities to the products, such as the use of Web technology.

The German vendor hopes to cut costs by Euro 10 million (US$13 million) in 2004 and about Euro 20 million each year from 2005. As part of that cost cutting effort, technical support for EntireX and Tamino is being shifted from Germany to India, Software AG said.

More than 3,500 large corporations and public sector organizations worldwide use Software AG's enterprise transaction systems, the company said.

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