STC CEO Tips IBM to Acquire Neon >By Simon Hodgson

Computergram International, Sept 20, 1999

Jim Demetriades, CEO of enterprise application integration vendor Software Technologies Corp (STC), has kindled the rumors currently dogging its troubled rival New Era of Networks Inc (CI No 3,745). Demetriades tips IBM to acquire Neon, but also said that Neon's ills were due partly to its relationship with Big Blue's MQ-Series.

The other factor behind Neon's decline, he said, was the Englewood, Colorado-based company's business model of "buying a bunch of no-growth companies. The market doesn't lie," said Demetriades, referring to the overall decline in Neon's stock price, "that strategy has failed. I think it's very likely that it'll get bought by IBM."

Taking time to focus on his own company's activities, Demetriades revealed that STC will add a workflow component next month to its enterprise application integration software. The software is a graphical representation of messaging traffic as it passes between the various business processes. It is aimed at giving non-technical executives a handle on the underlying technology behind integration.

The move represents an attempt to reposition the Monrovia, California firm to target CEOs instead of the company's traditional CIO base, according to CEO Jim Demetriades. EAI has previously been a 'techie' tool benefiting coders. STC plans to remarket it as a tool to streamline the business process.