Middleware

Middleware and tools includes intermediary software that’s positioned between system infrastructure and application software, allowing them to interact with each other. It supports the planning, design, construction, quality control, and operation of applications. Its primary function is to link system and application software.
Why middleware is an integral component of software industry

IBM is the market leader

The chart above shows the global revenue of application and middleware software in 2013. IBM Corp. (IBM) leads the application infrastructure and middleware market with a market share of 30% in 2013. It’s followed by Oracle Corp. (ORCL) and Microsoft (MSFT) which command 15.3% and 5% of the market, respectively. Software AG (SOW) and Tibco Software Inc. (TIBX) are other leading players in this segment.

Enterprise application integration 

The sequential binding of applications through the use of middleware is known as enterprise application integration (or EAI). Through EAI, a business can integrate all their support systems and reduce the duplication of data, costs of maintenance, and time to fulfill customer orders.

EAI does this by building a transition layer that handles all communication between systems—acting as a hub. Then all the subsystems only interact with the hub. They don’t interact with the other subsystems because the hub is responsible for all the communication and transformations between subsystems. As a result, the maintenance needs of the system are simplified. The IBM Corp. (IBM) WebSphere is an example of how this integration process is achieved.

According to Gartner, middleware (along with application software) are quickly becoming the cornerstones of digital business. The use of multiple delivery models, increased reliance on governance technologies, and the convergence of application and data integration requirements are expected to be the key factors to generate significant investment in this market. According to Ovum, middleware is expected to grow at a compound annual growth rate (or CAGR) of 9.1% to reach $17.9 billion by 2018.

Latest articles

Marathon Petroleum (MPC) stock has been tumbling in Q3, driven by geopolitical tensions, oil price uncertainty, and weaker refining conditions.

This week, AT&T CEO Randall Stephenson noted that AT&T (T) is on track to reduce its leverage multiple to about 2.5x by the end of this year.

Jeff Bezos announced that Amazon had placed an order of 100,000 electric delivery vans from Michigan-based startup Rivian.

Bad news on the trade war front appears to have led to a fall in the broader US equity markets today. Cannabis ETFs were also trading in the red.

Energy Transfer (ET) stock has recovered in the last two trading sessions after investors hammered it on its plans to acquire SemGroup (SEMG).

Software-as-a-service company Datadog (DDOG) made a smashing debut on Wall Street yesterday. After its IPO, DDOG's shares surged 40% in intraday trading.