SunGard strikes CEP deal with Streambase; CEO refutes M&A speculation
06 April 2010 | 12418 views | 0
SunGard is to integrate complex event processing technology from Streambase into its trading applications, fuelling speculation about the potential for a future tie-up between the two firms.
SunGard will initially use Streambase's CEP engine within its Assent Liquidity Services business - which provides sponsored access, dark pool access and algorithmic trading services - and in conjunction with its Brass Order Management System (OMS).
The new development environment will help SunGard achieve faster time-to-market, improve functionality and continue to respond to changing customer and market requirements, says Raj Mahajan, president of SunGard's trading business.
"The speed and flexibility of StreamBase's platform will help us efficiently enhance our systems and further streamline every point of the trade lifecycle for our customers," he says.
It is expected that the platform will initially be deployed by SunGard in the development of new pre-trade risk technology to meet forthcoming SEC rule modifications.
Streambase has so far retained its independence as a stand-alone vendor in the hotly-contested and rapidly consolidating CEP marketplace.
Rival vendor Aleri was recently snapped up by Sybase, partly to regain control of technology licensed from Aleri subsidiary Coral8.
Aite analyst Adam Honore, believes the current deal between SunGard and Streambase could also lead to a deeper union in the future.
"It would be odd if Streambase moved deeper into SunGard's organization without the conversation being had at some point," he says. "SunGard doesn't strike me as the kind of company to build a lot of product dependency on a company outside their control."
Responding in his personal blog, Mark Palmer, Streambase CEO says: "Why doesn't SunGard just buy StreamBase? The simple answer is this: we don't want to. In the past few years, StreamBase has accumulated a who's who list of customers, we've expanded our business, are dominating the category, and, finally, CEP is becoming more and more strategic to our customers.
"With all this good stuff happening - why sell out? This year, my prediction was that the event-based computing market would yield the next great software powerhouse - we plan that company to be StreamBase."