IDC Analyzes Trends of More Than 150 Business Process Management Customer and Partner Deals Announced in the First Half of 2007

FRAMINGHAM, MA – FEBRUARY 7, 2008 – A new IDC report analyzing announcements of business process management (BPM) and process automation deals indicates that enterprises continue to be very interested in buying from smaller, pure play vendors. This analysis, which looked at purchasing decisions in the first-half of 2007 (1H07), runs counter to the theme of consolidation and market dominance that permeated the past year of technology news.

This year, the competition from platform vendors will be much greater and the changing economy will make buyers more risk averse.

"What is interesting about the risk aversion is the different ways that purchasers look at this issue. In our research, we found four basic decision-making patterns that interpreted risk differently," said Maureen Fleming, program director, Business Process Automation and Deployment research. "Some enterprises interpreted risk avoidance as a need to stay away from smaller vendors, while others believed there was stronger risk in purchasing from a large vendor that did not have the most suitable offering or necessary skills."

Additional key findings from the study include the following:

* As a percentage of total deals examined, which spanned across multiple middleware segments, BPM suites, particularly those that run on the .NET framework, were more popular than any other type of middleware among mid-market buyers;

* Compared with 2006, services businesses were actively engaged in purchasing BPM software in 1H07;

* Platform vendors will need to sharpen their messaging and the integration of their offerings into a more comprehensive BPM story, while the pure play vendors will need to continue focusing on product and service differentiation; and,

* Although in 2006 BPM software revenue was dominated by enterprise sales, nearly 41% of the deals in 1H07 came from small and midsize enterprises.

The study, Worldwide Business Process Management Software: Review of 1H07 Deals and Buying Decisions (IDC #210144), analyzes trends from the more than 150 business process management customer and partner deals announced in the first half of 2007. The listing of deals contains data by vertical, region, customer size, and market. This study is a subset of the more than 300 deals analyzed in Worldwide Application Deployment Software 1H07: Review of Deals and Purchasing Decision Patterns (IDC #210040), with further drilldown on the BPM market.

In addition, this study aligns the many interviews with BPM buyers conducted in 2007 with the decision-making philosophies that strongly influenced vendor selection. This study will help BPM vendors align their offerings with the different types of buyers and may help them stop making common mistakes that cause them to lose deals. Enterprise buyers will also be able to use this study to review choices made by their peers.

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