Integration solutions take offering to a new level
One of the cornerstones of our growth strategy is the continuous development of the Software AG service portfolio, based on future customer and market needs. The XML and ETS portfolios have been optimized to give them a greater focus on customer needs, and we are now adding XML Integration Solutions. The XML offering previously centered on integration products and services, but in 2004 we added two new levels: Level 3 comprises Integration Packages, forming a horizontal technology platform; level 4 includes additional vertical solutions. The higher the level, the greater the added-value for customers.

Level 4 is based on industry-specific solutions developed in the regions, which we adapt to the needs of international markets. During the third quarter, this led, in particular, to new financial services, healthcare, and public-sector solutions.

In the Enterprise Transaction System segment, we launched Adabas Replication Server during the third quarter. This innovative product was developed in response to the needs of 28 individual customers around the world, and reflects our customer-driven go-to-market strategy.

Growth via geographical diversification
There are exciting growth opportunities for Software AG in the emerging markets, particularly Eastern Europe, China, and South America. The Company has now directly entered the South American market and has already won major contracts with high-profile reference customers in Chile: We are providing consulting services to the Chilean government on the implementation of XML as a standard integration tool, with advice and support for the Health Ministry regarding the possibilities offered by e-government. Other customers include the national post office organization and two major healthcare companies that operate hospitals and GP practices.

Expanded partner network
Software AG and Novell, Inc. have formed a new technology partnership for XML-based products operating under Suse Linux. The two companies are collaborating to create solutions for vertical markets. Novell Alliance Partner status is helping Software AG to become more innovative, providing greater opportunities in the open-source space, and facilitating the penetration of new markets.

We also collaborated with Sun Microsystems on two major XML integration projects in the UK: A Linux portal was implemented at Dorset County Council, and Tewkesbury Borough Council received a new solution to aid compliance with the UK Government’s electronic-service legislation. Our partnership with Shanghai 5A Technology Development Co. Ltd. enabled us to win the Shanghai Government as an important XML Business Integration customer.