To: Susan G who wrote (5606 ) 6/4/2001 12:04:36 AM From: 2MAR$ Respond to of 5732 BEA unveils new product, ratchets up rivalry with IBM By Ilaina Jonas NEW YORK, June 4 (Reuters) - Business software maker BEA Systems Inc. <BEAS.O> on Monday is set to announce the upgrade for its application server software as well as many enhanced features, continuing a game of one-upmanship against rival IBM. BEA is scheduled to unveil WebLogic Server 6.1, the new version of its application server. Part of the infrastructure of an enterprise's computer system, the application server is software which acts as a base on which developers build their programs. It also connects large back office systems where information is held to the Web site. The unveiling, along with the announcement of 30 new partners, is expected to be made at the JavaOne Conference for developers in San Francisco. BEA also will unveil new technology and standards that will allow customers to integrate not only new programs they design, but also ones they and their partners have had for years. In this way, the various and disparate systems, whether inside a company or between more than one company, can work together. Finally, BEA also will introduce its new portal technology that will allow customers to present different versions of a Web page to each employee, customer or partner. The portal can display information unique to the user as well anticipate what information they would need or would be interested in the future. "I would say that's the most importation thing," Shawn Willett, principal analysts with Current Analysis. "Right now the portal market is hot. It's one of the few bright spots out there." In fact, last quarter, BroadVision Inc. <BVSN.O>, a BEA partner, attributed half its license revenue to its portal product. With the new WebLogic 6.1, BEA said it would start delivering a product and upgrade to allow companies to build programs for Web services. The idea of the new programs is to allow different companies share the way they carry out their business with partners as well as enable them to share applications. Last week, International Business Machines Corp. <IBM.N> announced the new version of its WebSphere application server and its enhancements. BEA, the leader in the application market, is engaged in an intense competition with No. 2 IBM. IBM's new product is scheduled for wide release June 30. BEA's is scheduled for July. "I don't think the fundamental equation has changed," Willett said. "I think they've both come out with pretty strong upgrades. I don't think anybody with these announcements has come out with any huge advantage that they didn't have. BEA is ahead and probably will continue to be ahead. Willett said he believes IBM's real threat to BEA comes in the form of Big Blue's huge sales force and its omnipresent services division -- a formidable sales driver. Meanwhile, BEA is incorporating more and more into its application server platform -- a la Microsoft and its evolution of the operating system, Willett said. With the new announcements, BEA is adding integration and portal capability to its business-to-business transaction program, Collaborate, which will bring it to closer to being a fully loaded electronic commerce product. ((New York Newsdesk, 646-223-6193)) REUTERS *** end of story ***