Telelogic's QSS Acquisition Exploits Boom in Real-Time Telecommunications Applications


Archived Published: 15 August 2000 ID: G0092041

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Summary

Telelogic has acquired Quality Systems & Software (QSS). The move will benefit Telelogic and QSS will gain a focus on advanced, real-time software.

News Analysis

Event

On 8 August 2000, Telelogic, which sells application development tools, announced that it has acquired privately held QSS for stock worth $115 million.

Analysis

This acquisition allows Telelogic to offer an analysis and design suite similar to that of Rational Software's, and creates the potential for further value-added integration of requirements with design. QSS also brings a substantial partnering program — valuable in its own right — and offers a potential original equipment manufacturer channel for Cool:Jex.

The acquisition continues the consolidation in the growing requirements management tools market. Previously, Rational Software acquired Requisite, and Structural Dynamics Research Corp. (SDRC) bought TD Technologies. However, new players continue to emerge, notably Omni-Vista with its OnYourMark requirements-based estimating tool.

Both Telelogic and QSS will benefit from the deal. Telelogic had to expand into North America and judged that acquisition of QSS — with effective channels and a toolset complementary to Telelogic's own — offered a faster, surer route than trying to put together a sales force from scratch. Telelogic has been a significant vendor of tools for wireless and real-time applications. In March 2000, it acquired Sterling Software's Cool:Jex Unified Modeling Language-based tools for enterprise business, data and object modeling (see Gartner FirstTake " Telelogic to Acquire Cool:Jex from Sterling Software "). Although QSS already had a significant European presence, this deal will extend its reach there, particularly in the northern countries.

Telelogic plans to focus on the world's top-10 telecommunications vendors, target the real-time industry and partner for other verticals. Telelogic is well-positioned to lead in the fast-growing, software-intensive, market for real-time application tools. Developers of such software should consider QSS DOORS Suite with Telelogic's other tools, along with Integrated Chipware's RTM. Commercial IS organizations seeking midmarket tools to help in the requirements process should compare the DOORS.net and RequireIT modules of DOORS with other leading offerings, such as Chipware's RTM Workshop, Rational Requisite Pro and Technology Builders' CalibreRM.

Analytical Source: Matt Light and James Duggan, Applications Development & Maintenance

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