Business Process Automation Market Started Out Slow but Expected to Approach $2 Billion Mark by 2006, IDC Says

FRAMINGHAM, MA – SEPTEMBER 9, 2002 – The business process automation (BPA) software market is gaining momentum. According to IDC, revenues are expected to reach $1.87 billion by 2006, compared with $295 million in 2001. For the market to achieve this growth, IDC believes the next 18 months will be a crucial period during which vendors will need to educate customers about the benefits of BPA.

 

"Business process automation presents an entirely new way of approaching application development and integration," said Michele Rosen, research manager for IDC's Business Process Automation and Deployment service. "Vendors need to evangelize the benefits of business process automation software to overcome IT executives' current reluctance to deploy radically new technologies."

Many of the leading enterprise software vendors added BPA functionality to their existing products in 2001. IDC believes the few pure-play vendors who survive the current economic situation will be able to report significant revenue gains in 2003 and 2004. As a result, BPA software market shares are expected to be extremely volatile for the next several years.

Because there are a number of terms used throughout the industry to refer to business process-related software, IDC has created its own definition in order to bring clarity to the market. According to IDC, the key element for BPA software is that it must provide an abstraction layer between business logic and the business process. BPA software is intended to be flexible enough to address business processes that differ significantly between organizations, yet it must also rely on existing applications for the underlying business logic. Other important components include the ability to control, monitor, and deploy the code necessary to automate the business process; define and execute business rules; track and control the state of the business process in case of system failure; and analyze business process performance.

Worldwide Business Process Automation Software Forecast and Analysis, 2002-2006 (IDC #27643) is IDC's first-ever formal market sizing and analysis study for business process automation software. This study includes a five- year forecast, key trends affecting the market and successful strategies for vendors to employ.

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About IDC

IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in- depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at www.idc.com.

IDC is a division of IDG, the world's leading IT media, research and exposition company.

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