Iona Technologies, the Dublin-based software company, is in advanced discussions with Microsoft about implementing a technical and business partnership.
The deal would enable Iona to embed its software into Microsoft's Web services products and greatly extend the Irish firm's reach, according to Iona's new chief technology officer, Mr Jim Boak.
Mr Boak, who joined Iona last month from Compaq, says he expects Iona to complete a draft deal with the world's largest software firm within weeks.
He said Iona would focus on extending the reach of its software beyond its core customer base of Fortune 100 firms through a successful deal with Microsoft.
Up to now, Iona's competency has been developing and linking complex corporate systems for very large firms to enable them to do high-volume transactions.
This has driven Iona's annual revenues to more than $150 million (€164.5 million). However, it has not made Iona a household name or helped it break into the small and medium-sized enterprise business.
"Most times you put a cash card in an ATM our software is being used but no-one knows and it is largely invisible," says Mr Boak.
Iona, and specifically Mr Boak, believes it can take the emerging Web services market by storm.
"Prior to joining Iona I evaluated more than 200 software companies. Iona was at the head of the list for rapid market success.
"We will now extend to the next generation of technologies and are working to develop a similar and well-integrated map for Web services."
The Web services market is set for take off and will be worth billions of pounds as large companies use this architecture for deployment, according to Mr Boak.
Companies with complex supply chains will use Web services to simplify distribution, he says.
Mr Boak, who while at Compaq managed the firm's relationship with Microsoft, believes Microsoft is the perfect partner for Iona in this area.
"Microsoft has huge pull in the market," he says. "Joint marketing pulls Iona's product through Microsoft's distribution.
"It is also a leader in the understanding of Web services," says Mr Boak.
"When Microsoft.Net was released in summer 2000 people thought it would be opposed by Sun and IBM, but they didn't because they realised it worked as an architectural concept."
A successful tie-up with Microsoft would enable Iona to broaden its reach by using Microsoft's large sales and consulting team to market its product.
"By using this medium we can reach customers who may not have been able to afford our specialised consulting staff but still need the product," he says.
There is also a natural alignment between Microsoft and Iona, according to Mr Boak.
Mr Boak spent six years with Compaq as chief technology officer.
He will be based in the US with Iona.
