May 11, 1999
TIBCO SOFTWARE INC (TIBX)
S-1 Filing (SEC form S1)
We are a leading provider of software solutions that enable businesses to integrate internal operations, business partners and customer channels in real- time. Through our products and services, we enable computer applications and platforms to communicate efficiently across local or wide area networks, including the Internet.
Our TIB/ActiveEnterprise product suite facilitates the distribution of information and integration of business processes by connecting applications to a network through patented technology called The Information Bus or the TIB. This technology uses a publish/subscribe model to deliver information to those who need it automatically as it becomes available. The TIB technology allows multiple distinct applications, web sites, databases and other content sources to be integrated and managed in real-time within a common framework. TIB/ActiveEnterprise also enables enterprises to extend their information infrastructures across the Internet. Our product suite is employed in high- performance environments and provides enterprises with a comprehensive and scalable method of distributing relevant, timely information across and beyond the enterprise.
Our products are currently in use by over 300 companies in diverse markets such as telecommunications, high-tech manufacturing, energy, financial services and e-business. Users of our products include Cisco, 3Com, Fidelity Investments, The Nasdaq Stock Market, Cedel Global Services, Yahoo!, Netscape, Intel, NEC, Motorola, Telia, Philips Medical, PageNet, Chevron and Mobil.
Our Market Opportunity
As markets become increasingly global and enterprises become increasingly decentralized, the business environment demands a more tightly integrated network of supplier, customer and partner relationships. Real-time exchange of information across the enterprise can enhance management and employee productivity, create manufacturing efficiencies and improve customer service. For example, real-time information exchange with suppliers and customers expedites order fulfillment, permits just-in-time inventory management, enhances sales opportunities through direct customer interaction and facilitates the implementation of e-business solutions.
Creating a real-time enterprise through technology is complex. The range of computing environments and software applications utilized across the typical business organization is vast and growing. Organizations are incorporating powerful new enterprise software while seeking to take advantage of their prior technology investments. All of an enterprise's systems and applications must be tightly integrated in order to manage, grow and extend the enterprise. We believe that many traditional application integration solutions have failed to address all of the enterprise's information integration needs because they are not comprehensive, provide information only upon a user's request, lack flexibility and/or use costly network resources inefficiently.
Our Strategy
Our objective is to establish the TIB/ActiveEnterprise product suite as the leading software solution for linking enterprises' internal operations, business partners and customer channels. The core elements of our strategy include:
. Promote the widespread adoption of our technology. We seek to establish the TIB technology and the TIB/ActiveEnterprise product suite as the industry standard by building strategic relationships with key hardware and software vendors to embed and extend our technology into their networking and applications software. We also plan to continue extending the functionality and enhancing the capabilities of our TIB/ActiveEnterprise suite and to increase the number of standard adapters that connect leading enterprise applications to our technology.
. Enhance our position as a provider of Internet infrastructure. TIB/ActiveEnterprise provides us with a platform to expand our e-business offerings. We have recently introduced TIBCO.net, an infrastructure solution for Internet portals based on our TIB/ActiveEnterprise product suite.
. Pursue a license-driven business strategy. We plan to expand relationships with systems integrators and professional services firms such as Deloitte Consulting and EDS to focus on licensing products rather than providing integration and support services. We also plan to leverage these relationships to augment our professional services staff and enhance market awareness of our products.
. Leverage our vertical market expertise. We plan to expand our presence in vertical markets such as telecommunications, high-tech manufacturing and energy in which we have created industry-specific templates that allow us to leverage our substantial experience in these markets. In addition, we intend to transfer the knowledge gained in our existing vertical markets to expand our presence in new vertical markets.
. Capitalize on the presence of Reuters in the financial services industry. We sell our products to companies in the financial services industry primarily through Reuters. We believe that the presence and expertise of Reuters in the financial services industry will provide us with sales and marketing advantages in that market.
. Expand our international market presence. In fiscal 1998, revenue from sales of our products and services outside the United States accounted for 38% of our total revenue. We intend to continue expanding our direct and indirect sales channels internationally.
Company Background
We are the successor to a portion of the business of Teknekron Software Systems, Inc., a leading innovator in the development of software infrastructure for the integration and delivery of market data (stock quotes, news and other financial information) in trading rooms of large banks and financial services institutions. Teknekron was acquired by Reuters, the global news and information group, in March 1994. In January 1997, we were established as a separate entity to focus on creating and marketing software solutions for use in the integration of business information, processes and applications in diverse industries outside the financial services market.
Following this offering, Reuters will continue to hold a majority equity interest in our company, but has agreed to limit its voting rights. Nevertheless, Reuters will continue to have significant influence over our company. See "Relationship with Reuters and Certain Transactions--Stockholders Agreement". We license the technology underlying some of our TIB/ActiveEnterprise products from Reuters, and Reuters is our exclusive distributor in the financial services market, subject to limited exceptions. When we refer to Reuters in this prospectus, we include Reuters Group PLC and its consolidated subsidiaries, including TIBCO Finance Technology, Inc. ("TFT"), but excluding our company, TIBCO Software Inc.
Websites:
tibco.com
tibco.net
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