Wakesoft, a privately held maker of software for building service-based Java applications, has closed as a result of consolidation in the infrastructure software market.
The company had been losing deals to larger software providers such as IBM and BEA Systems, who have also been promoting software for building flexible, service-based applications.
"It's incredibly hard in this environment to be a critical bit of infrastructure software and a small, privately funded startup. ... The IT organisations are looking for a guaranteed vendor and are certainly consolidating their vendor relationships," said Wakefield chief executive officer Shirley Foster.
One analyst said the pace of such closures is only likely to quicken as the big software players continue to enrich their product lines with technologies and products for building a service-oriented architecture.
"As major vendors realise how real the SOA trend is, and how critical it is to solving some of the long-standing issues around business integration, they are seeking to consolidate the market to offer complete solutions to their customers," said Ron Schmelzer, a principal analyst with ZapThink.
"We expect many of the different SOA-related markets to consolidate through acquisition, merger, or failure of many of the emerging startups and incumbent vendors in the space."
Wakesoft was founded in 2000 and employed 30 people at its peak.
The company has informed its customers of its plans to shut down and is working with them to try to make alternative arrangements for supporting their products, although Foster declined to say whether Wakesoft tried to seek a buyer before closing down.
James Niccolai writes for IDG News Service