BEA customers warned off further investment

BEA customers warned off further investment

Research group Gartner is warning customers of enterprise software outfit BEA to hold off on new large-scale investments following a rash of top-level departures at the firm.

The 5th August resignation of BEA chief technology officer Scott Dietzen follows the recent departures of founder Bill Coleman and chief architect Adam Bosworth, amid other high-level managerial reshuffles.

Gartner holds that the "organisational turmoil" at the firm is not accidental.

"Each of the resignations calls into question the company's corporate strategy and stability," says the analyst group in a research note. "Although BEA customers are not in any immediate danger, Gartner recommends that they delay new large-scale strategic commitments to BEA until the company's long-term strategy becomes clearer."

The warning comes as BEA reports total revenues of $262.3 million for the second quarter, below expectations, but up seven per cent from $245.0 million in the equivalent period last year.

High profile financial contracts signed in the quarter include deals with Citibank, Merrill Lynch, Nordea, and Sparebank 1.

Despite the successes, Gartner says BEA's core business is under pressure from the much larger (and now well-executing) competitors on one side (IBM, Oracle and Microsoft) and from the low-cost, open-source alternatives on the other (JBoss and ObjectWeb).

Gartner has advised BEA to make a strategic acquisition, sell up or develop its own vision organically.

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