Iona: Web Services Key To Systems Integration

The new products, code-named Inferno, will build on Iona's strategy to provide integration using Web services technology, Morris said.

Long a traditional CORBA middleware provider, Iona over the past two years has refashioned itself into a standards-based EAI provider.

The company formally launched low-end and high-end versions of its Orbix E2A Web Services Integration Platform, built on J2EE and XML standards, late last year.

Iona will be targeting more solution providers with its new Inferno products, particularly regional and boutique integrators, which Morris said will aid in the proliferation of Web services for integration.

Kevin Maunz, a senior manager in the Integration Services Office of McLean, Va.-based BearingPoint, said his company originally partnered with Iona three years ago for its CORBA investments. Since then, Iona has emerged into what Maunz terms a "thought leader" in Web services-based integration.

"I look at Iona as having a very complete vision of the Web services space and really driving it in a real-world, implementable and deployable model," said Maunz.

However, Maunz said Iona's marketing focus is still a little too "techie," and he has suggested to Iona executives that the company retool its message to demonstrate how its products can provide real business value for customers.

Iona has about 20 systems integrator partners but will be growing that number in 2003, Morris said.

Iona currently derives a little less than 20 percent of its revenue through solution providers and another 15 percent to 18 percent through about 280 ISV partners that embed Iona's technology.

In total, Iona sells about 35 percent of its products through indirect channels, but Morris said that number will grow by about 15 percent in the next two years.

Morris also said he expects to increase Iona's solution provider revenue to "northward of 30 percent" in the next 18 months.

Iona has some brand-name customers in its portfolio, such as Boeing and AT&T, that are rearchitecting their IT environments to embrace Web services using Iona technology.

But like other technology vendors, Iona has had its share of troubles in 2002. Iona suffered losses its past two quarters after being profitable for 10 years running, and laid off more than 200 people in 2002.

Morris said returning to profitability and cash generation are his primary goals.