Softricity Acquires Competitor's Assets

Under the agreement, Softricity gains Seaport's intellectual property, including source code and a patent around virtual software installation, a process that enables on-demand software delivery from a central server without requiring the software to be installed on the end user's system, said David Greschler, co-founder and executive vice president of Softricity, Boston.

"The acquisition bolsters our technology and bolsters our [intellectual property portfolio," Greschler said.

Softricity's application delivery and management platform, SoftGrid, supports both Microsoft Windows desktop and Terminal Services environments. Applications are centrally housed on the SoftGrid server but are sent to the client device on demand in bits and pieces to be executed locally. The platform's SystemGuard technology keeps the applications from altering the registry of the server's operating system, eliminating software conflicts.

Softricity partners with Microsoft and Citrix Systems, recruiting Citrix Gold, Platinum and Certified Consulting Partners (CCPs) to sell its products through its channel-only sales strategy.

Financial terms of the acquisition were not disclosed.

Softricity plans to include technology acquired from Seaport in SoftGrid 2.1, due out next spring, Greschler said.

The addition of Seaport's technology, known as Briqs, will add performance and security improvements to Softgrid, he said.

Cambridge, Mass.-based Seaport, formerly known as Into Networks, used its application delivery technology to stream on-demand gaming software to broadband Internet service subscribers before shifting its focus to the enterprise market earlier this year.

Solution providers working with Softricity said they are starting to gain traction with customers.

RapidApp, a Citrix CCP, is in the midst of implementing its first SoftGrid implementation, said Robert Koury, principal at the Chicago-based solution provider.

SoftGrid can eliminate conflicts between applications installed in a Citrix server farm, enabling applications that previously could not co-exist to be installed on the same server, Koury said.

"Softricity allows you to keep the server farm clean," Koury said.

The end result is that Citrix customers can consolidate their servers and save money on their infrastructure, Koury said.

"Ultimately, Softricity will sell more licenses for Citrix," said Bill Fistori, president and CEO of DeVA Systems Group, a Citrix Platinum partner based in Maynard, Mass. "The more applications that work on a terminal server, the more licenses Citrix sells, the more penetration they get into enterprise accounts," he said.

One of DeVA's largest clients is currently evaluation SoftGrid, Fistori said.

Using SoftGrid, DeVA can help clients protect their investment in Citrix technology, Fistori said.

"If customers find out they want to use the [Citrix server farm for other applications but those applications don't work together, Softricity can make it happen," Fistori said.