Mercury Interactive Llc
Hewlett-Packard is the latest company to make the multibillion-dollar acquisition plunge, on Tuesday announcing plans to acquire IT management software and services company Mercury Interactive for $4.5 billion. The use of any trade name or trademark is for identification and reference purposes only and does not imply any association with the trademark holder. The Presence of Mercury Interactive LLC's profile does not indicate a business or promotional relationship of any kind between RelSci and Mercury Interactive LLC.
Note: This article was originally posted on Loadtester.com, and has been migrated to the Northway web site to maintain the content online. The story of Mercury Interactive needs to be told.
Mercury Interactive Tools
I hope someday someone within the company will write a book on the early years and discuss their great successes. It would probably be a fascinating tale. I think a lot of people would also like to know more about events which led up to the HP acquisition last year. I am not sure we will ever know the whole truth.
What is known is that in 2004, Mercury was aiming for a spot as one of the top five software companies in the world. In 2006, they were sold.
What happened? I don’t have any really juicy insider information, only what I have read online and my personal experience with Mercury as a customer and solutions partner. Is there a “story behind the story”? There very well could be. It’s only a theory, but I think it’s important that we try to learn how the actions of a few had huge impacts on an entire company. Pay By The Drink In order to understand the context, we need to go back to 2004.
Mercury Interactive Corporation
Does anyone else remember when Mercury decided to make a big deal out of “software on demand”? I distinctly remember it because I was a customer at the time, and all of the sales guys were pushing it hard. Christopher Lochhead, chief marketing officer of Mercury, stated at Sand Hill Group’s Software 2004 conference, “I believe the traditional enterprise software model is dying.” Merrill Lynch was all over it, even creating an index for it. But not everyone was in love with the idea of term licenses.
Because of deferred revenue. Mercury ended 2003 with $150 million of it. For the uninitiated – when companies sell a 1-year subscription of “software as a service” or “managed service” using a term license, they typically hold off showing all of the money as revenue at the time of sale.
The Best Music Streaming App for iOS 9 Best Food Tracking Apps The 5 Best Weather Apps with the Most Accurate Forecast for Your Location The Best Mobile Apps for. VeryPDF AutoCAD DWG and DXF To PDF Converter allows you convert DWG to PDF, DXF to PDF, AutoCAD to PDF, CAD Drawing to PDF directly without need of AutoCAD, it converts DWG and DXF files into vector. Free download and free trial are available. Autocad 2000 free download, autocad 2000 freeware and shareware download. Autocad-2000 Free Download,Autocad-2000 Software Collection Download. Free autocad 2000 software download. Autocad 2000 free download - AutoCAD, AutoCAD Mechanical, AutoCAD LT, and many more programs.
Mercury Interactive Test Director
If I buy the service for 12 months in January, the company would only count the first three months in their 1st quarter earnings, and each quarter they would add more. Thus the revenue is deferred until it becomes realized throughout the term.
If I would have spent the same amount of money on a permanent license, the entire amount would show up in first quarter earnings, making revenue look better for the company. Wall Street always wants to see bigger revenue numbers – and right now! In this Information Week article, it discusses how the current model (perpetual licensing) needs to be fixed. Merrill Lynch is one of the few financial companies that seemed to understand the model.
They went on record to state that if you look at the numbers through their index which accounted for the term licensing model, Mercury stock was “much cheaper than conventional[price-to-earnings] wisdom might apply”. There was no doubt that term licensing was big on hype. Download mangal font hindi. THIS published document by Gartner in October 2004 goes so far as to say it will be THE business model of choice in 2008. Does anyone see that happening next year? I don’t think so. But that was the talk of the town back then What does any of this have to do with the sale of Mercury to HP? My theory is that Amnon Landan’s vision for Mercury started pointing in a different direction than that of the board of directors and major stock holders.