The company will grab enteo Software, which develops PC life-cycle management and Citrix management solutions; the deal is strategically sound and a "competitive necessity," says one analyst.
Posted Mar 15, 2007
FrontRange Solutions has signed an agreement to acquire Germany-based enteo Software, a developer of PC life-cycle management and Citrix management solutions, for an undisclosed amount. The deal is intended to expand FrontRange's global footprint in the IT business software market, while complementing its strengths in CRM and IT service management for the midmarket and distributed enterprise organizations.
Enteo's product portfolio features solutions for patch management, software distribution for operating systems and apps, license management and compliance, and configuration management. The company's client roster includes more than 1,200 customers, while its extended network includes 200 partners.
"We made the combination because we felt like [enteo's offerings are] very complementary to what we offer in CRM and service management," says Kevin Smith, FrontRange's vice president of products. "For example, patch management, software distribution, and software licensing [solutions] are products that we do not currently have in our portfolio. But they're very complementary to service management and CRM because those applications really let service and support teams more proactively manage the desktop and address issues that customers or employees might be having with their infrastructure. It's something that's been on our roadmap for a while, so this allows us to immediately have access to a very mature, proven product in each of those areas that we feel like we can go to market with immediately."
From a business perspective and a product perspective, Smith says, "this really made sense for our business expansion, and we expect to make another couple of major moves [in] the remainder of this year."
"PC configuration and remediation can provide synergies to IT service management for a more comprehensive service and asset solution," Stephan Glathe, CEO of enteo, said in a written statement. "IT organizations thinking strategically about future business needs are looking for more complete solutions with the right value proposition. It's all about doing more with less by optimizing the life cycle of assets while delivering better service."
Fen Yik, research analyst at Info-Tech Research Group, sees the acquisition as a positive strategic move for FrontRange. "The company is a recognized leader in the midsize space that has been aggressively expanding up-market in recent years," he says. "To be successful in this transition, FrontRange needs to establish its HEAT suite as a comprehensive ITSM solution--not just a help desk tracking tool with added components. This deal is a giant step in that direction. While the current HEAT suite does include an asset tracking module, the acquisition of enteo will enable FrontRange to evolve that module from an optional tool into a robust asset management solution."
Yik contends that this deal will certainly boost FrontRange's competitiveness in its target market. "Competitors like BMC and Altiris already have well-rounded ITSM suites that include proven asset management solutions. LANDesk, traditionally an asset management powerhouse, has recently entered the fray with an ITSM product. Acquiring enteo was not only strategically sound for FrontRange, it was a competitive necessity." He adds, though, "the acquisition of enteo proves that FrontRange is no longer just a midmarket vendor--they're definitely playing in the big leagues now."
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