Microsoft Acquires Opalis Software
The Deal reports that Microsoft will today announce it has acquired Opalis Software, “a venture-backed maker of IT process automation technology.” — Terms were not disclosed. — In early October, Opalis put out a relase touting a 104% increase in license bookings.
Context & Ripple Effects
Microsoft formed its Server & Cloud Division within Server & Tools on December 8, combining its Windows Server & Solutions and Windows Azure groups. The Opalis purchase adds IT process automation to a business being organized around enterprise infrastructure and cloud services.
Opalis entered the deal after reporting a 104% increase in license bookings in October, signaling commercial traction for its automation software. Microsoft also disclosed a planned Sentillion acquisition the day before, making this part of a broader push into specialized enterprise software capabilities.
First-order effects
- Microsoft gains control of Opalis's IT process automation technology and its customer base, while Opalis's product roadmap and sales channel move under Microsoft.
- Opalis customers gain a vendor relationship with Microsoft rather than an independent, venture-backed software supplier.
Second-order effects
- Enterprise IT buyers evaluating Microsoft server and cloud products have a stronger reason to assess process automation as part of the same supplier relationship.
- Independent IT process-automation vendors face a larger competitor with Microsoft's enterprise sales reach, increasing pressure to differentiate on specialized capabilities or integrations.
Third-order effects
- The deal points toward enterprise infrastructure vendors acquiring workflow capabilities that sit above individual systems, where control of automated processes can strengthen the value of the underlying platform.
- If Microsoft embeds Opalis technology across its Server & Tools portfolio, process automation becomes less a standalone tool category and more a layer of the enterprise management stack.
The trend: Enterprise software vendors are using capability acquisitions to move from supplying infrastructure toward governing the workflows that operate it.