Iona Plans New Products, Partner Initiatives In Q1

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

Iona is a traditional CORBA middleware provider that has refashioned itself into a standards-based EAI provider in the past two years. It formally launched its Orbix E2A Web Services Integration Platform, built on J2EE and XML standards, late last year.

The platform has both a low-priced version aimed at smaller integration projects and a higher-priced version aimed at providing industrial-strength solutions, Morris said. "We think the opportunity for Web services integration ranges from the low end to much higher-end challenges," Morris said.

Iona also will be targeting a growing number of solution providers with its new Inferno products, particularly regional and boutique integrators, which Morris said will be at the cutting edge of proliferating the use of Web services for integration.

"We're aggressively developing [initiatives particularly for the local guys," Morris said. "They are a [large part of the way we think Web services will get delivered. They have less of a political agenda, more of a goal of getting things done."

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

A little less than 20 percent of Iona's revenue currently is derived 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. "I'd expect to take that up by 10 [percent or 15 percent in the next 18 to 24 months," he said.

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 impressive customers in its portfolio, such as Boeing and AT&T, that are using its technology to rearchitect their IT environments to embrace integration using Web services.

But like other technology vendors, Iona has not been without its troubles in 2002. The company suffered losses its past two quarters after being profitable for 10 years running. Iona also has laid off more than 200 people this past year.

"This year has been very tough," Morris said. "The main thing is to get back to profitability and to generating cash."

Morris said Iona has not stated a goal for when it will return to profitability, saying only that he expects it to happen "as soon as possible."