Software AG looks to UK corporate reseller channel

German-based vendor aiming to double revenues within five years

German-based vendor Software AG has hinted it will target the UK corporate reseller channel for the first time after setting itself the goal of doubling revenues within five years.

Jim Close, UK country manager at the Service-Oriented Architecture (SOA) software vendor, told CRN the firm had not traditionally targeted the channel, but that VARs were becoming more relevant to its strategy.

“We’re investing a six-figure sum to develop our systems integrator relationships – principally around SOA,” he said. “We want to work with companies that can deliver expertise and niche products that complement our SOA solutions.

“Given that I plan to invest in developing our channel route to market this year, players such as Computacenter, Morse or SCC are becoming more important to Software AG.”

Software AG, which is already Germany’s second largest software vendor behind SAP, has targeted €1bn turnover by 2011, which would represent annual growth of 17 per cent.

To get there, the firm has advocated an ‘active M&A strategy’ for 2007 and 2008.

“We have a pot of money – either as cash in hand or as lines of credit from banks – of €700m, and plan to acquire more technology and market share in the SOA space,” Close said.

Hugh Carroll, vice-president of marketing at SOA software vendor and Software AG partner Vordel, said: “The timing is good for Software AG to jump into the mainstream. Its goals are achievable because SOA is where the money is being spent.”

Firms cry out for SOA clarity