QA
and
Wayne Williams
CEO
Embarcadero Technologies
Leader I
a
Industry Leader Interview
E m b a r ca d e r o T a k es On t h e S y st e m
Embarcadero Technologies, a provider of multiplatform tools that companies use to
design, develop and manage databases and the data they contain, was acquired by
Thoma Cressey Bravo a little more than a year ago in a $200 million go-private
DBTA talks with transaction. One year later, Embarcadero completed the purchase of CodeGear from
Borland Software Corp. for approximately $24.5 million.The process of integrating the
Wayne Williams CodeGear products - which include the JBuilder, Delphi and C++Builder lines, as well as
products for the PHP and Ruby languages - with Embarcadero's own products is
about how the underway. Embarcadero's professional database tools will be marketed under the
DatabaseGear brand, and its application developer tools will be marketed under the
Embarcadero and CodeGear name.
CodeGear prod- DBTA: What drove the acquisition of CodeGear?
Williams: Obviously, Embarcadero wants to grow. Our new owners, Thoma Cressey Bravo, are
ucts fit together very serious about growing the company and we've got a two-part plan to do that. The first part
to provide system- is organic growth. We have been specialized in database tools - multiplatform cross-platform
database tools. We are investing in that area, adding new products - one of which was DB
wide capabilities Optimizer [introduced in July] - so that's an example of organic growth in our sweet spot. But
the second part of the strategy is to grow through acquisition and CodeGear made an especially
and also how in a good fit for growth through acquisition for a few reasons.
larger sense the DBTA: What are they?
Williams: One is that they are really the mirror image of Embarcadero on the
worlds of applica- application code side.They are fully cross-platform. There are a lot of ways to think
about cross-platform but one of the best ways is if you just think about languages - and
tion and database ultimately all software is written with a language. On the database side, we support
development are nine languages. If you look at the CodeGear product line, they have nine languages
covered as well. They have a long history of building tools that help their customers
converging. leverage multiple platforms.
DBTA: Was that the key motivation?
Williams: From a market and a customer standpoint, that was the most important
reason why it really made sense. Now, when we look at what we have, Embarcadero is
a company that is focused on systems as a whole. We are not making a somewhat
arbitrary or artificial divide between database and code.

Ultimately, data and code are what a system is DBTA: Why was it the right time to make today. The person that did modeling, the
all about, and we have coverage across that full the acquisition? person who did database administration,
scope. Now, we can talk about providing tools Williams: We at Embarcadero were ready. and the person that wrote code - they were
for development of systems—period. Thoma Cressey Bravo has a methodology three totally separate roles and people that
where they look for a platform company didn't even talk to each other. The end
DBTA: What else? which is a company in a segment that they result was intertwined because we were
Williams: CodeGear has a very strong feel is going to be the foundation for that producing a system, but the roles were
international footprint so there were some two-part approach—part of it organic, part of much more separated than they are today.
really strong synergies as far as geographic it through acquisition. And then they spend More and more, you have developers who
footprint goes. Embarcadero's revenue prior the first year really optimizing the business, have to understand a lot more about a
to this acquisition was 75 percent domestic. working with management to get the database, that have to be able to produce
We have struggled in the international company into a position where they can start efficient SQL, have to understand data
markets and CodeGear is really the exact acquisitions. We were just at that point. architecture issues so that they can code
opposite. They have a very strong efficiently and have impact on the database
international footprint—almost 75 percent DBTA: Thoma Cressey Bravo acquired design. It's a trend, it's a direction that has
of their revenue comes from international Embarcadero in the been happening for some time.
markets. Now, we have a company that is summer of 2007.
almost split 50-50 as far as revenue goes Williams: Exactly. It was June. We DBTA: How is the first new product
and a footprint in markets that would have started working on this acquisition quite a since the acquisition—DB Optimizer—
taken us years to build out. while ago, but we timed it so that we directional?
Williams: CodeGear has the mirror image
of this product for code. It used to be
“
called OptimizeIt. It is being renamed - but
essentially it is optimization technology for
Ultimately, data and code are what a system is all application code, for Java. So we've done
the same thing on the database side. It's
about, and we have coverage across that full scope. very different technology in terms of how
we go about it, but the end result is almost
exactly the same. It really deals with
finding the problem and then helping you
DBTA: Are there similarities in terms of would be basically at that 12-month point fix it. You are going to see those kinds of
employees and their philosophies? and if Thoma Cressey Bravo was happy and systemwide capabilities, so with DB
Williams: It is amazing. It is across the our management team was happy, then we Optimizer and with the optimization
board. On the R&D side, the group in Scotts were ready to pull the trigger. product from CodeGear, we now have
Valley is really the original Borland. This is system-wide optimization. From one
the group that invented the IDE - Turbo Pascal DBTA: What else factored into the vendor, a customer can acquire technology
in 1983—of which I was a buyer and user. It acquisition? which allows them to optimize the system.
really created the IDE market. And some of Williams: The other part is really just And ultimately, I think, that's what
those people are still there. We feel that one being opportunistic. The CodeGear customers want. That's what I've always
of the pieces of value that we got was one of opportunity came up really at the right wanted—I don't want this artificial divide
the best development tools-engineering time. It also came up at a time when, if you between the database and application.
teams on the planet, and we certainly feel have cash, there are great assets to be
that on the database side we have one of the bought for a very good price. DBTA: So what's next?
best teams as well. At the end of the day, we Williams: One important thing is this
are building tools that help people build and DBTA: In a larger sense, do you see the direction of providing systemwide
support software systems and so there's a lot worlds of application and database capabilities. You are going to see more of that
of like thinking there. We are very clear that development converging? from us—things like systemwide debugging.
we are focused on building tools—we are not Williams: Absolutely. They have always Big on our list is providing more technology
focused on building large enterprise offerings been interwined, but it's been more arm's- that allows customers to deal with the
with seven-figure price tags. If you look at the length in a lot of cases than it should be. I system as a whole—find the problem with
R&D teams at the combined company, started my career as a database developer the system as a whole. Optimization and
everybody is passionate about building tools. 20-some-odd years ago and the roles then debugging are good examples of that and
And on the sales side, there is a similar view. were a lot more separated than they are there will certainly be more.
This article is reprinted in its entirety from the September 2008 issue of Database Trends and Applications Magazine with the permission of
Information Today, Inc., 143 Old Marlton Pike, Medford, NJ 08055, 609/654-6266, Website: http://www.infotoday.com.