Since 1988, the IBM System i has undergone several marketing transformations, yet from a technology standpoint, the System i has quietly adapted to any and all new and emerging technologies—just as its DNA was programmed to do over 30 years ago. Addressed by many monikers and pundit slogans—such as "the little server that wouldn't quit," "IBM's best-kept secret," and "the server for which customers would rather fight than switch"—the System i (a.k.a. the AS/400) has diligently and consistently been about delivering integrated business solutions to customers and lowering total cost of ownership.
Meanwhile, Lawson, a once exclusively IBM AS/400 ISV, and an ISV that has thus far escaped the jaws of acquisition, has instead completed the merger begun about a year ago with Intentia to create the New Lawson. Recently, Lawson and IBM once again renewed their Business Partner vows and are now set to focus on delivering solutions to small and medium-sized businesses (SMBs).
OK, So What's New?
Lawson's acquisition of Intentia was possibly one of the most strategic and savvy moves Lawson could make. Intentia offers Lawson complementary product lines, industry verticals, and geographies, enabling Lawson to enter new markets and to serve customers across the product-service-geographic continuum. The acquisition of Intentia also strengthens Lawson's presence in a marketplace rife with takeovers and provides a bulwark against other application vendors' potential hostile intentions. Moreover, the Intentia acquisition has increased Lawson's appeal as a competitive option in the dwindling pool of enterprise application vendors.
Is It the Marketing?
During its 31-year incumbency, Lawson, much like the IBM System i, has undergone various transformations and has executed several marketing legerdemains. Recent history attests to this. For example, at the Lawson annual Conference and User Exchange (CUE) in 2004, the company drew a line in the sand and proposed its 1,000-day odyssey of accountability to customers, improved and simplified products, and return on value and quality.
By CUE 2005, the 1,000-days milestone had been superseded by the announcement of Lawson's new standards-based application platform and toolset, codenamed Landmark, which the company said, at that time, had been under development for three years and would support key standards such as SOAP and XML. According to Lawson's Web site, "Landmark is designed to enable customers to quickly and easily modify and customize business processes for rapidly changing specific business or technology needs."
In essence, Lawson's erstwhile Business Component Integrator (BCI), which for many years had enabled customers to link non-Lawson applications with Lawson applications, was morphing into the company's service-oriented architecture (SOA) offering, which this analyst believes is Lawson's official entrée into the SOA movement designed to compete with the likes of Oracle Fusion and SAP NetWeaver.
At CUE 2005, Lawson also renewed its Business Partner vows with IBM and announced that IBM's WebSphere would be the foundation for Landmark and that Lawson intended to deliver its application suites embedded with other IBM technologies, such as IBM DB2, Rational, and Tivoli.
Fast-forward to April and CUE 2006, during which "Lawson introduced its first Landmark-developed application, Lawson Strategic Sourcing, to help customers improve the way they develop and manage supplier relationships" on the heels of the company's release of Lawson 9, the controversial new release of Lawson's existing product line, which has had mixed reviews by Lawson customers.
A new day has, however, dawned for Lawson and also for the enterprise application market as this "tier 2" enterprise application vendor has once again dug in its heels and demonstrated an ability and agility to adapt to changing market forces and adopt new strategies. Moreover, Lawson's acquisition of Intentia and its new marketing strategy of "Simplicity by Design" is the ISV's response to customer laments of "Where have all the application vendors gone?"
Lawson is also refocusing on its own System i roots and re-joining forces with IBM to penetrate the ever-elusive SMB marketplace. In a recent joint IBM-Lawson teleconference, Dean Hager, Senior Vice President of Product Management for Lawson, who began his career at IBM working with the AS/400, discussed the Lawson-Intenia bifurcated product line—S3 and M3 Products—and the importance of IBM System i to Lawson and its customers.
In order to reduce confusion, Lawson designated its own product line as the S3 line of products, which are designed to help customers "staff, source, and serve." These products include Enterprise Financial Management, Human Capital Management, Supply Chain Management, and Business Intelligence. In keeping with Lawson's traditional vertical market concentrations, the S3 products are designed for industries including healthcare, retail, state and local government, K-12 education, etc. Note here that Lawson Version 9 is the newest release of the S3 product line.
The M3 line of products, derived from Intentia's Movex product line, provides solutions for customers that "make, move, and maintain" products or equipment. These products target asset-intensive industries with products such as Manufacturing Resource Planning, Enterprise Asset Management, and Customer/Supplier Relationship Management. The primary M3 vertical industries include fashion, food and beverage, wholesale distribution, etc.
A Tale of Two Products
Lawson's product line and the IBM System i have a remarkably similar history that spans over 25 years. Lawson software was at one time exclusive to the System i. Later, Lawson and System i became estranged as Lawson began to deliver its products on other hardware platforms. The acquisition of Intentia, a System i ISV, has brought the two companies back together, not to mention the fact that Lawson is, according to IBM, fourth in rank among IBM System i partners in revenue and third in number of customers. It is likely that Oracle and SAP supersede Lawson in both number of System i customers and revenue, but this is speculation on the part of this pundit.
Microsoft Move Over?
The renewed Lawson alliance with IBM seems to be a double-edged sword. While it is good news to System i customers, it does present a conundrum to Microsoft customers. One of the sticking points of Lawson Version 9 is the fact that it includes IBM's WebSphere Application Server, Tivoli Directory Server, and DB2 technology. This raises critical questions for customers with Windows-based Lawson implementations. Computerworld reports mixed feeling about upgrading to Lawson 9 in an article entitled, "Lawson Users Aren't Sure About Upgrading," arguing that for many companies, upgrading to Lawson 9 will entail major technology changes and consume inordinate resources. Lawson, however, reports that it sees gathering momentum with Lawson Foundation System 9.
Making the Business Case
IT decision-makers, especially those running Lawson applications on Windows platforms and those running earlier versions of Lawson, must determine precisely what the benefits and risks of upgrading are likely to be. For example, those running in heavily customized environments must determine whether the Lawson 9 applications will deliver enhanced and improved features and functions or it will be necessary to re-program all the modifications. For others, it will be necessary to determine whether additional talent will be required to not only perform the upgrade, but re-train IT staff and users. IT decision-makers should perform a cost/benefit analysis spanning at least five years and including yearly licensing and support fees as well as maintenance and staffing costs.
The Times They Are A-Changin'
The timeless Bob Dylan song is apropos to this article about the reinvigorated IBM System i and Lawson relationship. In this industry, friends can become foes and then friends again, companies can engage in competition or coopetition, the first can become the last or be acquired in a hostile takeover. Lawson represents a viable option for those companies that eschew Oracle and/or SAP, and the company is working to remain an option by rekindling old relationships, making strategic acquisitions, and competing in a volatile market. System i has had sustained growth for a number of quarters, and its value seems to have been rediscovered.
In closing, this analyst believes that IT decisions-makers must not only have a solid grasp on their internal topology, but also be business savvy and have their finger on the pulse of this market because it is a-changin'.
Maria A. DeGiglio is President of, and Principal Analyst for, Maria A. DeGiglio & Associates, an advisory firm that provides clients with accurate and actionable information on business and technology initiatives. You can reach Ms. DeGiglio at
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