Software Bargains Lure Buyers:  

Microsoft Buys Connectix  
Google Acquires Blogger    

As we’ve noted before, the current marketplace, with venture capital hard to come by, and software buyers hard to find has been tough on young (and even more established) software firms.  This has resulted in a buyers’ market for well-established companies with cash in hand and a desire to fill out their portfolios with good software at bargain prices.

Some more buying occurred this week.

Microsoft Buys Connectix

Connectix Corporation sold not the company, but most of its current software offering, its client and server Virtual Machine technology.  The buyer is Microsoft. 

Connectix software permitted Windows machines to run a variety of other operating systems and software, most notably Macintosh, OS/2, NetWare, and Linux.  It also provides software that permits Macintosh systems prior to OS X to run a virtual Windows PC

Microsoft seems to be most interested in the acquisition’s technology for the possibility of consolidating multiple NT4 users onto Windows 2003 servers.  It could also be useful for assisting other legacy users in the migration process.

The Microsoft Windows products will go to Windows development divisions and might, over time, be integrated into the Windows Operating System.  The Macintosh products are to be integrated with Microsoft’s California-based Macintosh Software Group which focuses on Office and Internet Explorer software for the Mac.

Connectix’ technical staff will be moving to Microsoft.  Their support staff will continue to support the acquired products for a six month transition period.  Connectix itself seems uncertain whether they will then close down the firm or whether they will once again reinvent themselves into another business.

Google Acquires Blogger

Meanwhile, bloggers watched with interest as Google, one of the most trafficked sites on the Internet, decided to buy Pyra Labs and its Blogger web site and software for an undisclosed sum.  Founder Evan Williams and his staff of six will join Google.

Blogger is generally acknowledged to be the first of the blogging software developers, a new communication phenomenon.  Blogger itself claims to have one million registered users.  Other important blogging developers include Movable Type, Radio Userland and LiveJournal.com.

Weblogs (“blogs”) are a new form a web-based publishing.  They are intended to let anyone publish on-line without the need to learn technical issues or use an intermediary such as a web guru.  Blogs may be on any subject, from personal journals or diaries to topical exchanges on any subject.  Their structure makes it easy to create and update a chronological publication and, if desired, to invite others to comment or participate.  We have a blog at http://amywohl.weblogger.com, which is generally (but not always) about topics in the computer industry.

Google has been adding publishing features to its search engine for some time.  They have not yet commented on exactly what they intend to do with Blogger, but we’d expect them to offer blogging opportunities to a community they’ll grow around their site.  Since Google indexes all the main blogs, whether they’ll favor their own above others may become an issue.

Microsoft Looks At Blogs, Too

And we can’t help noting that Microsoft is testing an apparently internally developed Blog software product by offering it as part of its ASP.Net Community Starter Kit during its VSLive! Developer conference last week.  This weblog builder is freely downloadable and Microsoft is hoping that community sites will use it.  It confirms that some Microsoft sites are already using it and that it intends to use it to offer blogging on MSN.  

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