BluePhoenix Signs Modernization Deals
February 3, 2009 Alex Woodie
BluePhoenix Solutions, which bought System i modernization vendor ASNA in 2007, has closed two major new IT modernization deals–one involving System i and one mainframe–which should bring in at least $1.4 million for the business, the company announced last week.
The System i deal involves an unnamed wealth and asset management company that wants to migrate its RPG applications to Microsoft .NET. Purported benefits of the project include reduced costs, better integration with other IT systems, and “overcoming the challenges associated with a dwindling pool of RPG-trained resources,” BluePhoenix says.
The mainframe deal involves an unnamed life insurance and pension management company. Taken together, the two deals should bring BluePhoenix $1.4 million in software licenses, maintenance fees, and consulting services throughout 2009.
The deals demonstrate “the diversity and depth” of the company’s solution portfolio, says Yaron Tchwella, who was named the CEO of BluePhoenix last month. “BluePhoenix is able to address the modernization needs of the legacy mainframe users and the extensive IBM System i market–a space that comprises hundreds of thousands of AS/400 and iSeries users,” he says in a press release.
BluePhoenix, which has its world headquarters in Herzlia, Israel and its U.S. headquarters in Cary, North Carolina, bought ASNA in August 2007 for $7 million. ASNA today operates as BluePhoenix’s System i unit, and maintains its office in San Antonio, Texas. Greg Schottland serves as president of the System i unit.
BluePhoenix announced two executive changes on January 6. Former CEO Arik Kilman was given the title executive chairman of the board, where he would continue with a hand in day to day operations. It also announced the promotion of Tchwella to CEO from president, the position he held since joining BluePhoenix in August 2008. BluePhoenix does not currently have anyone serving as president.