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BluePhoenix Wraps Up Busy Quarter, Finishes Application Modernization Project With Large Bertelsmann Subsidiary

SEATTLE, WA--(Marketwired - June 05, 2014) - BluePhoenix (www.bphx.com) (NASDAQ: BPHX), the global leader in legacy language and database translation, announced completion of a major application modernization project with Arvato Services, a 63,000 employee subsidiary of Bertelsmann AG. 

Doing business in over 40 countries, Arvato provides outsourcing services for customer outreach and loyalty programs, IT management, financial transactions and logistics. "Arvato chose BluePhoenix's automated application modernization solution to save time and get fully maintainable Java output," explains Reinhard Wetzel, CEO of Antavent Solutions, a BluePhoenix partner in Germany.

Modernizing with BluePhoenix enabled Arvato to:

  • Keep the proven business logic and functionality of their legacy application intact
  • Get to market faster with new software features and versions
  • Reduce cost of maintaining legacy software and related platforms
  • Increase the addressable market for software by making it easier to integrate into modern IT environments

"Our partnership with Antavent has accelerated our success in the German market," adds Rick Oppedisano, vice president of Global R&D and Marketing at BluePhoenix. "Their team excels at finding ways to make IT more efficient. With Arvato, that meant eliminating dual maintenance scenarios in core applications. Application conversion from COBOL to Java will enable integration, cost savings and better efficiency for managing the software lifecycle."

Project Best Practices and Lessons Learned

When evaluating applications for migration, size is one of the factors to be considered, but not always the most important one. Larger volumes of homogeneous, single-language lines of code are less problematic than smaller volumes of heterogeneous, multi-language systems. A single application that may have many lines of code but supports few transactions or batch jobs is easier to migrate than the alternative. Understanding the size, as defined by these various components, provides some insight not only into the size of infrastructure necessary to support this workload, but also into the migration options that are the easiest to perform.

Arvato leveraged BluePhoenix's Legacy Forensics service to document these factors, as well as remediate risk factors in the legacy application code itself. This service leverages automated technology to document the complex relationships within the legacy application and identify "dead code", syntax that is no longer functional or necessary. "In an automated conversion, minimizing the amount of bugs is critical to keeping project timelines and costs on plan," says Oppedisano. "Removing dead code can dramatically reduce the number of bugs found in the source application, enabling a faster conversion and cleaner code in the converted application."

"Bite-Size Chunks"

"Mainframe migrations have a cultural aspect that can't be ignored," says Oppedisano. "While there's an obvious technical impact, the impact on people and the processes they use to deliver and operate applications is also significant."

"We offer companies the option to modernize incrementally, in what we call 'bite-size chunks.' For example, we can start with integrating their legacy database with the target modern environment. This avoids the time and risk of migration, gives the business what it wants and takes some of the pressure off the application teams. If the objective is to maximize cost savings in a non-disruptive way, we have technology that can run batch processing off the mainframe. Then of course, we have the automated conversion technology when it's time for a migration. The goal is to provide value at each step of the application modernization process, so even if the customer has to stop or change, positive gains have been made."

Modernization Activity Increasing Worldwide

BluePhoenix enjoyed a busy second quarter, highlighted by project completion, new business and positive customer feedback. Recently, BluePhoenix:

About BluePhoenix Solutions
BluePhoenix Solutions Ltd. (NASDAQ: BPHX) is the leading provider of legacy language and database translation. The BluePhoenix portfolio includes a comprehensive suite of tools and services for automated database and application migration. Leveraging over 20 years of best-practice domain expertise, BluePhoenix works closely with its customers to minimize risk and provide a clear path from legacy platforms like COBOL, Natural/Adabas and others to modern solutions like SQL, DB2, Java and more. BluePhoenix customers come from diverse industries and vertical markets such as automotive, banking and financial services, insurance, manufacturing, and retail. BluePhoenix has 6 offices in the USA, UK, Italy, Romania, and Israel.

Cautionary Statement Regarding Forward-Looking Statements
Certain statements contained in this release may be deemed forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and other Federal Securities laws. You can identify these and other forward-looking statements by the use of words such as "may," "will," "plans," "believes," "estimates," "expects," "predicts," "intends," the negative of such terms, or other comparable terminology. Because such statements deal with future events, plans, projections, or future performance of the Company, they are subject to various risks and uncertainties that could cause actual results to differ materially from the Company's current expectations. These risks and uncertainties include but are not limited to: the effects of the global economic and financial trends; market demand for the Company's products; successful implementation of the Company's products; changes in the competitive landscape, including new competitors or the impact of competitive pricing and products; and such other risks and uncertainties as identified in BluePhoenix's most recent Annual Report on Form 20-F and other reports filed by it with the SEC. Except as otherwise required by law, BluePhoenix undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. This press release is also available at www.bphx.com. All names and trademarks are their owners' property.

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