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10/18/2010
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Software AG Buys MDM Vendor Data Foundations

Business process management middleware is the key pickup in third acquisition this year involving master data management.

Software AG has acquired Data Foundations and will integrate the master data management vendor's technology into Software AG's portfolio of business process management middleware.

Software AG announced the acquisition Monday, but terms were not disclosed. The purchase continues the trend of MDM vendor deals, with both IBM and Informatica having made acquisitions this year.

MDM technology helps organizations ensure data consistency and reliability across such dimensions as customers, products, locations and employees. The importance of such capabilities has made MDM technology a hot item in the enterprise market.

Forrester Research predicts that sales of MDM software will reach $1 billion this year, an increase of 20% from the year before.

Software AG plans to incorporate Data Foundations' technology in its WebMethods and ARIS BPM tools. BPM systems in general that include person-to-person work steps, system-to-system communications, or combinations of both. The systems add efficiency by automating back-office tasks.

Through the Data Foundations purchase, Software AG plans to offer customers a way to apply consistent data related to customers, products and suppliers while executing business processes using WebMethods or ARIS.

Wolfram Jost, chief technology officer for Software AG, said in a statement that adding MDM to the company's BPM portfolio "demonstrates how IT can support business strategy as never before."

Large software makers this year have been chipping away at the number of independent MDM vendors. Early this year, data integration vendor Informatica bought MDM provider Siperian for $130 million in cash. Less than a week later, IBM announced an agreement to buy Initiate Systems for an undisclosed amount.

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