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January 08, 2014

Unicom sees PowerHouse as iconic estate

The new owners of the PowerHouse software products are talking about their Dec. 31 purchase in a way the 4GL's users haven't heard since the golden era of the 3000. While Unicom Systems is still fleshing out its plans and strategy, the company is enhancing the legacy technology using monetary momentum that was first launched from legendary real estate -- an iconic Hollywood film star home and a Frank Lloyd Wright mansion.

WingsweepReal estate in the wine district of Temeulca, the Wright-inspired Wingsweep -- "a remarkable handcrafted residence that is Piranesian in scale" -- along with the iconic PickFair Mansion first built by Mary Pickford and Douglas Fairbanks comprise several early vertebrae in the backbone of a 32-company global conglomerate. VP of Sales and Marketing Russ Guzzo, who told us he was Employee 4 in an organization that now numbers thousands, said Unicom's real estate group was once a seedbed for acquisition capital.

Screen Shot 2014-01-08 at 8.17.14 PMIn the days when Unicom was smaller, "we used to [mortgage] those properties, then buy another company and go from there. We used these real estate assets to fund some of our acquisitions in the early days." Operating with cash to acquire assets such as Powerhouse is a mantra for Unicom's Korean-American founder Corry Hong, said Guzzo. "Our CEO likes to pay cash, so he's in control that way."

Guzzo said he's been put in charge of organizing the plan for the latest acquired assets. The former Cognos 4GL is the first Advanced Development Tools (ADT) acquisition for a company that has more than 300 products, counts a longstanding partner relationship with IBM, and now owns assets for Powerhouse, Axiant, and Powerhouse Web.

The piece that remains to be established is how much of the IBM-Cognos staff and executives will be coming along as part of the acquisition. Longtime product manager Bob Deskin retired during 2013, but Christina Haase and Charlie Maloney were on hand when the cash purchase was finalized.

PickfairThe company is spending the next 90 days talking to PowerHouse customers and partners to determine what the next step is for a software product which is, in some ways, as much of a legacy to the 3000 as PickFair is to Hollywood mansions. "We buy very solid technology, and then make it better," Guzzo said one week after the asset purchase was announced. It will be several months before an extensive FAQ on the new ownership is ready, he added. "Eventually, each and every customer will be visited," he said.

But he pointed out that Unicom "has never sunsetted a product. That's not our mindset. We find successful technology and say, 'We can make this better. This will be a nice fit for our customers.'  There's going to be a lot of new enhancements. We got feedback from people that they've never really gotten a lot of new [PowerHouse] enhancements or releases. That's all going to change."

Real estate mortgaging is no longer needed to fund the M&A at Unicom. PickFair is now the site of corporate social functions, while Wingsweep serves as a corporate training site and retreat. But few technology companies of Unicom's size can boast of a real estate operation with such legendary and evocative properties. Another 70-acre pedestrian gated master planned community, Roripaugh Ranch

is a 70 acre tract of land in Roripaugh Ranch, and Unicom is working with local authorities in the planning of a UNICOM IT Village. The IT Village will host a range of services, products and distribution facilities creating critical jobs in the US IT industry in one of the most attractive locations in the country.

Building out the future of PowerHouse may be a project that requires as much energy as jump-starting an idled front-end loader. Customers in the 3000 community and those in the VMS world have been vocal about seeing little that's new in the software. Cognos froze development on the 8.49F version of PowerHouse and PowerHouse Web, as well as Axiant 3.4F, before selling itself to IBM in 2009. 

That purchase was focused on IBM taking hold of the Business Intelligence and Business Objects products and customers that Cognos developed. BI represented most of the company's revenues; the ADT unit was the equivalent of pocket change in the scope of the total Cognos picture, although the operation was profitable. Some measure of that success came from rigorous pursuit of upgrade licensing and renewal charges for PowerHouse. Moving applications built from the 4GL sometimes stood in the way of upgrading an MPE installation. The 4GL is still working at major manufacturers in both MPE and OpenVMS versions, more than three decades after its introduction.

"That's 30-year-old technology, but it's solid," Guzzo said. "It's been looked at [by us], and there's a lot of opportunity there. It's just that there was really nothing being put into it, not that we saw. Now the development team is doing their best to figure out what they want to do with that. With that comes a lot of interviews with the current customers."

Unicom intends to learn what customers are doing with PowerHouse, how they're implementing it, and what plans they've got to go forward with the 4GL. The last wholesale upgrade to the solution came when Axiant, a Windows development bench meant to interoperate like Visual Basic with the product, was introduced in the 1990s. That led to an 8.1 release of the 4GL. The ultimate version was 8.49, frozen some 10 years later.

The company's attempts to serve both the evolution needs of existing PowerHouse applications as well as Visual Basic-style PC development through Axiant didn't work. "It was in response to what people were asking for," said Robert Collins, director of Cognos 4GL product development in 1997. "In retrospect, that was not the right way to go about it. It's very hard to bring out a new product and accommodate 15 years of history at the same time."

But Cognos always believed that its PowerHouse apps would outlast the hardware where they've been hosted since the early 1980s. A director of customer operations in 2003, Bob Berry, said customers "may be choosing to maintain their environment as it exists today, and migrate in three to five years. Or they will keep those legacy apps on the 3000 box in the corner of the room and it will run forever, and they’ll take on some kind of high-falutin’ application company-wide. These legacy apps will always be there.”

Like other 3000 software providers, PowerHouse generated a good share of its MPE revenues from support contracts. These are among the assets that Unicom has purchased. One example is a $6,500 yearly fee for a a small A-Class server. Berry said in 2003 those support renewal dollars “have declined very gradually, and they have declined because of the change of the cost of the license. There was a rapid decline after Y2K, but it’s going down at a slower pace now."

Leaving the product in Vintage Support status "is all being re-evaluated," Guzzo said. "We're tickled pink with this, because the product fits in very well with Unicom's core technology. Our relationship with IBM is also 30 years old, a value added reseller as well as a development partner." Unicom started operations in the early 1980s by selling an artificial intelligence program for the CICS transaction server on IBM's mainframes. "That was a product that was ahead of its time," Guzzo said about the software developed by the CEO. Guzzo said that Hong still develops from time to time, when he's not directing an M&A of a publically-traded company that Unicom is taking private to place into its Global brand.

The Unicom Systems, Inc. division of the company was founded in 1981, the original part of an extensive Unicom enterprise which now even includes light manufacturing. Guzzo said that hardware systems integration has been part of the Unicom business practices. A set of white papers and road maps for PowerHouse "will be released as they are created," he added.

Some skilled developers at Unicom might even go back further than PowerHouse, Guzzo said. "We're big on holding onto our senior talent. While we have people here with 20 years experience, we also have some with 30 and 40 years." 

08:23 PM in Homesteading, Newsmakers | Permalink

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