Business Process Management (BPM) Market Opportunities, Strategies, and Forecasts, 2005 to Business Process Management (BPM)

Business Process Management (BPM) Market Opportunities, Strategies, and Forecasts, 2005 to 2011 Business Process Management (BPM) Picture by Susie Eustis MOUNTAINS OF OPPORTUNITY WinterGreen Research, Inc. Lexington, Massachusetts www.wintergreenresearch.com

CHECK OUT THESE KEY TOPICS BUSINESS PROCESS MANAGEMENT MARKET FORECASTS AND MARKET SHARES BUSINESS PROCESS MANAGEMENT Achievement of Greater Value From Existing Software Assets Business Process Services BPM Multiple Process Categories BPM Process Life Cycle BUSINESS PROCESS INTEGRATION MARKET CUSTOMER SUPPORT LINKING INTERNAL OPERATIONS SYSTEM INTEGRATOR ROLE DELIVERING BUSINESS SERVICES VIA THE WEB BUSINESS PROCESS MANAGEMENT TECHNOLOGY ISSUES TECHNOLOGY PLATFORMS PROCESS-ORIENTED ARCHITECTURE WEB SERVICES SERVICE LEVEL CHALLENGES OPPORTUNITY ABOUNDS OPPORTUNITY ABOUNDS WinterGreen Research, Inc. Lexington, Massachusetts www.wintergreenresearch.com

Business Process Management (BPM) Market Opportunities, Market Forecasts, and Market Strategies, 2005-2011 Business process management promises to drive enterprise software markets going forward. Business processes are enhanced by the ability to interconnect a range of different applications systems including general ledger, order entry, inventory, process control, customer services, and human resources. Integration of different divisions is significant for business management, financial management, and taxes. Integration of systems for communication via the Internet with partners is also significant. Customers, partners, distributors, and suppliers can interface electronically to an enterprise through a portal. When large numbers of applications and systems are linked through point-to-point interfaces, organizations find it difficult to respond quickly to business changes. Integrating with external systems of suppliers, customers, and partners presents a business process management challenge. Internal development in IT groups is the single largest competitor to integration systems implementation. Large investments in systems interfaces tend to be maintained with in a department. Integration projects are sold to companies that are replacing existing IT applications. At the time of replacement of a legacy system, the integration problem needs to be solved all at once, and then packaged software is competitive with hand coded interface logic. Companies trying to merge IT departments following a merger or acquisition need integration infrastructure. Those involved in front office/back office integration and those working to comply with new regulations all face the need to implement integration. BPM is emerging as a layer above integration infrastructure that guides process automation once integration has been put in place. Business process management promises to take the islands of knowledge, data and business rules that represent the core of enterprise activities and unite them into a business system that is accessible to ordinary business people. Business process management engine markets at $884.4 million in 2004 are expected to reach $2.4 billion by 2011. Business process content management solutions allow companies to effectively monitor changes made to data in real-time. Solutions once in place permit corporate officers to gain a 360-degree view of all operations.

Companies Profiled Market Leaders IBM Tibco BEA Cape Systems Group Envoy Technologies Fujitsu Fuego Hewlett-Packard (HP) Kabria Oracle Progress Software Savvion Sun Microsystems webmethods Market Participants EMC / Documentum Filenet Fiorano GXS i2 Microsoft Pegasystems SAP Synergy Vitria Zebra Technologies

Business Process Management (BPM) Strategies and Forecasts, 2005-2011 REPORT METHODOLOGY THIS IS THE 249 TH REPORT IN A SERIES OF MARKET RESEARCH REPORTS THAT PROVIDE FORECASTS IN COMMUNICATIONS, TELECOMMUNICATIONS, THE INTERNET, COMPUTER, SOFTWARE, TELEPHONE EQUIPMENT, HEALTH EQUIPMENT, AND ENERGY. THE PROJECT LEADERS TAKE DIRECT RESPONSIBILITY FOR WRITING AND PREPARING EACH REPORT. THEY HAVE SIGNIFICANT EXPERIENCE PREPARING INDUSTRY STUDIES. FORECASTS ARE BASED ON PRIMARY RESEARCH AND PROPRIETARY DATA BASES. FORECASTS REFLECT ANALYSIS OF THE MARKET TRENDS IN THE SEGMENT AND RELATED SEGMENTS. UNIT AND DOLLAR SHIPMENTS ARE ANALYZED THROUGH CONSIDERATION OF DOLLAR VOLUME OF EACH MARKET PARTICIPATION IN THE SEGMENT. INSTALLED BASE ANALYSIS AND UNIT ANALYSIS IS BASED ON INTERVIEWS AND AN INFORMATION SEARCH. MARKET SHARE ANALYSIS INCLUDES CONVERSATIONS WITH KEY CUSTOMERS OF PRODUCTS, INDUSTRY SEGMENT LEADERS, MARKETING DIRECTORS, DISTRIBUTORS, LEADING MARKET PARTICIPANTS, OPINION LEADERS, AND COMPANIES SEEKING TO DEVELOP MEASURABLE MARKET SHARE. OVER 200 IN DEPTH INTERVIEWS ARE CONDUCTED FOR EACH REPORT WITH A BROAD RANGE OF KEY PARTICIPANTS AND INDUSTRY LEADERS IN THE MARKET SEGMENT. WE ESTABLISH ACCURATE MARKET FORECASTS BASED ON ECONOMIC AND MARKET CONDITIONS AS A BASE. USE INPUT/OUTPUT RATIOS, FLOW CHARTS, AND OTHER ECONOMIC METHODS TO QUANTIFY DATA. USE IN-HOUSE ANALYSTS WHO MEET STRINGENT QUALITY STANDARDS. INTERVIEWING KEY INDUSTRY PARTICIPANTS, EXPERTS AND END-USERS. OUR RESEARCH INCLUDES ACCESS TO LARGE PROPRIETARY DATABASES. LITERATURE SEARCH INCLUDES ANALYSIS OF TRADE PUBLICATIONS, GOVERNMENT REPORTS, AND CORPORATE LITERATURE. YOU MUST HAVE THIS STUDY

Business Process Management (BPM) Market Opportunities, Strategies, and Forecasts, 2005 to 2011 Table of Contents BUSINESS PROCESS MANAGEMENT (BPM) EXECUTIVE SUMMARY BUSINESS PROCESS MANAGEMENT (BPM) EXECUTIVE SUMMARY Business Process Management (BPM) Market Driving Forces Business Process Management (BPM) Market Shares Business Process Management Market Forecasts ES-1 ES-1 ES-7 ES-10 BUSINESS PROCESS MANAGEMENT (BPM) MARKET DEFINITION AND MARKET DYNAMICS 1. BUSINESS PROCESS MANAGEMENT (BPM) MARKET DEFINITION AND MARKET DYNAMICS 1-1 1.1 Achievement Of Greater Value From Existing Software Assets 1-1 1.1.1 Business Process Management Benefits 1-3 1.1.2 Product Development Process 1-6 1.1.3 Provisioning Framework for BPM 1-6 1.1.4 Highly Available Services 1-9 1.1.5 Data Mapping For BPM 1-11 1.1.6 Data Mapping Phased Services Approach 1-11 1.1.7 Availability Assessment 1-12 1.1.8 Deploying BPM 1-12 1.1.9 BPM Features 1-14 1.1.10 Reliability and Serviceability 1-15 1.1.11 Rapid Response To Changing Business Conditions 1-16 1.2 Modifying Business Processes 1-16 1.3 Business Process Services 1-20 1.4 BPM Multiple Process Categories 1-21 1.4.1 Duration And Complexity BPM Process Categories 1-24 1.4.2 Transaction-Centric Processes 1-24 1.4.3 Person-To-Person Collaboration Processes 1-25 1.4.4 Automation 1-26 1.5 BPM Process Life Cycle 1-28 1.6 Workflow and BPM 1-29 1.7 Building And Implementing Business Process Workflows 1-30 1.7.1 BPM Challenges 1-31 1.8 Straight-Through Processing with Business Process Management 1-31 1.8.1 Form Filter 1-33 1.8.2 Rules-Based Routing 1-33 1.8.3 Timely Filing Logic 1-34 1.9 Business Process Integration Market 1-34 1.10 Customer Support 1-35 1.10.1 Business E-Services Benefits 1-36 1.10.2 E-Services Approach 1-37 1.10.3 E-Services Challenge 1-39 1.10.4 E-Services Partnering 1-41

1.10.5 Retail Portal Channels 1-42 1.10.6 E-Services Is The Business Model 1-43 1.10.7 Business Process Management (BPM) Capabilities 1-50 1.10.8 Business Process Execution Engine 1-53 1.10.9 E-Business Engine 1-53 1.10.10 Need For Automating Internal And External Processes 1-54 1.11 Rapid, Reliable, Scalable Integration Solutions 1-55 1.12 Role Of Mission Critical Middleware Messaging 1-59 1.12.1 Messaging Solutions 1-60 1.13 Linking Internal Operations 1-62 1.13.1 Business Process Management, BPM 1-64 1.13.2 Business-to-Business Integration, B2Bi 1-64 1.13.3 Enterprise Application Integration, EAI 1-64 1.13.4 Business Process Intelligence, BPI 1-65 1.13.5 Business Vocabulary Management, BVM 1-65 1.14 Market Needs For Business Process Management 1-65 1.15 Difference Between An Application Server And Application Integration 1-69 1.16 Difference Between Business Process Management (BPM) And Workflow 1-69 1.17 Business Process Management Customer Services Solutions 1-71 1.18 System Integrator Role 1-72 1.18.1 Targeting Vertical Markets 1-74 1.18.2 Strategic Alliances 1-74 1.19 Delivering Business Services Via The Web 1-75 1.19.1 Organization Central To The Ability To Move Forward With BPM Strategy 1-76 1.19.2 Organizational Changes 1-78 BUSINESS PROCESS MANAGEMENT (BPM) MARKET SHARES AND MARKET FORECASTS 2. BUSINESS PROCESS MANAGEMENT (BPM) MARKET SHARES AND MARKET FORECASTS 2-1 2.1 Business Process Management 2-1 2.2 BPM Market Driving Forces 2-4 2.3 Business Process Management Market Shares 2-7 2.3.1 IBM Has Dominant Market Position 2-12 2.4 Business Process Management Market Forecasts 2-16 2.4.1 BPM Process Productivity and Compliance Market Forecasts 2-17 2.4.2 Business Process Management Productivity and Compliance 2-18 2.4.3 Sarbanes-Oxley 2-19 2.4.4 Process Workflow Market 2-19 2.5 E-Business 2-20 2.5.1 B to B 2-23 2.5.2 Global Exchange Services 2-25 2.5.3 Business Process Integration Advantages 2-25 2.6 EAI Regional Analysis 2-27 2.7 Event Management 2-29 2.8 Business Management 2-30 2.8.1 Enterprise Process Executive 2-31 2.9 BPM Market Advantages 2-31 2.10 Business Process Management Market Trends 2-32 2.10.1 Business Process Management For Back End Systems 2-35 2.10.2 Business Process Integration 2-38 2.10.3 BPM for Internal IT Departments 2-40 2.10.4 E-Business Infrastructure 2-40 2.11 Principal Competitive Factors In The BPM Market 2-42

2.12 Business Process Management (BPM) 2-46 BUSINESS PROCESS MANAGEMENT (BPM) SOFTWARE PRODUCT DESCRIPTION 3. BUSINESS PROCESS MANAGEMENT (BPM) SOFTWARE PRODUCT DESCRIPTION 3-1 3.1 Business Process Management (BPM) 3-1 3.1.1 Business Processes As The Most Valuable Corporate Asset 3-2 3.2 IBM Business Process Management (BPM) 3-5 3.2.1 IBM Business Process BPM Infrastructure 3-5 3.2.2 IBM BPM Detecting Business Anomalies 3-8 3.2.3 IBM WebSphere Business Process Management Integration 3-10 3.2.4 IBM BPM Ability To Integrate Multiple Systems 3-15 3.2.5 IBM WebSphere Business Integration Collaborations 3-17 3.2.6 IBM Cross-Industry Collaborations 3-18 3.2.7 IBM WebSphere Business Integration Collaboration Foundation Functions 3-20 3.2.8 IBM WebSphere Customer Relationship Management Collaboration 3-23 3.2.9 IBM WebSphere Business Integration Financials and Human Resources Collaboration 3-24 3.2.10 IBM WebSphere Business Integration Order Management Collaboration 3-25 3.2.11 IBM WebSphere Business Integration Of Procurement 3-26 3.2.12 IBM WebSphere Business Integration Customer Relationship Management Collaborations 3-28 3.2.13 IBM BPM Customer Relationship Management Collaborations 3-29 3.2.14 IBM WebSphere Business Integration Collaboration for Billing Inquiry 3-30 3.2.15 IBM WebSphere Collaboration 3-31 3.2.16 IBM WebSphere Business Integration Platform On Demand Collaborations 3-33 3.3 Tibco Business Process Management (BPM) Software 3-36 3.3.1 TIBCO / Staffware 3-37 3.3.2 Tibco BusinessWorks 3-39 3.4 webmethods Monitoring Business Processes 3-43 3.4.1 WebMethods Fabric Broker 3-46 3.4.2 WebMethods Middleware Broker 3-49 3.4.3 webmethods Business Process Management (BPM) 3-52 3.4.4 WebMethods Positions with Delivering Business Services Via The Web 3-53 3.4.5 WebMethods Positions with Organization Central To The Ability To Move Forward With BPM Strategy 3-54 3.4.6 WebMethods Positions with Support for Organizational Changes 3-56 3.5 Vitria BPM 3-59 3.5.1 Vitria BusinessWare Platform 3-63 3.5.2 Vitria BusinessWare Interactions Across Existing Applications 3-64 3.5.3 Vitria BusinessWare Platform 3-67 3.5.4 Vitria Business Process Management 3-70 3.5.5 Vitria OrderAccelerator 3-75 3.5.6 Vitria BusinessWare Pre-Built Process Applications Product 3-76 3.6 Fuego Enterprise-Wide Business Process Development Platforms 3-76 3.6.1 FuegoBPM High-Volume Performance 3-79 3.6.2 Fuego Measurement Of The Performance Of BPM Servers 3-83 3.6.3 Fuego BPM Enterprise Server Invoice Approval Process 3-84 3.6.4 Fuego BPM Enterprise Server Supporting Numerous Product Lines And Core Business Processes 3-84 3.6.5 Fuego Next -Generation BPM 3-85 3.6.6 FuegoBPM Capabilities 3-86 3.6.7 Fuego BPM Implementation Services 3-89

3.6.8 Fuego Pre-Packaged Templates For 60 Different Sets Of Processes 3-89 3.7 Fiorano Business Integration Suite 3-90 3.7.1 Fiorano BPM Convergence Of Separate And Individual Approaches 3-90 3.8 CommerceQuest BPM 3-91 3.9 Sun / SeeBeyond Comprehensive Solution For Business Integration 3-92 3.9.1 Sun / SeeBeyond Open Engine for BPM, Workflow and Web Services 3-94 3.9.2 Sun / SeeBeyond Business Process Management 3-94 3.9.3 SeeBeyond ICAN Products 3-96 3.10 BEA AquaLogic Business Process Lifecycle Management Solution 3-99 3.10.1 BEA AquaLogic 3-100 3.10.2 BEA AquaLogic Process Orchestration Of Re-Use Existing Services 3-104 3.10.3 BEA AquaLogic Service Bus IT Foundation For SOA That Meets Business Objectives 3-105 3.10.4 BEA AquaLogic Data Services Platform 3-108 3.10.5 BEA AquaLogic Service Bus 3-108 3.10.6 BEA AquaLogic Data Services Platform 3-109 3.10.7 BEA Delivering Business Services Via The Web 3-110 3.10.8 Organization Central To The Ability To Move Forward With BPM Strategy 3-112 3.10.9 BEA BPM Organizational Changes 3-114 3.10.10 BEA WebLogic Enables Data Delivery For SOA. 3-116 3.10.11 BEA WebLogic Enterprise Strength 3-117 3.10.12 BEA AquaLogic Data Services Platform (formerly BEA Liquid Data) 3-118 3.10.13 BEA AquaLogic Enterprise Security 3-118 3.10.14 BEA AquaLogic Service Registry 3-118 3.10.15 Business Process Lifecycle Solutions As Basis for a Service Oriented Architecture (SOA) 3-119 3.11 Savvion 3-120 3.11.1 Savvion Modernization Support 3-121 3.11.2 Savvion Reuse and Recycle 3-122 3.11.3 Savvion TeamWorks 3-123 3.11.4 Savvion Plug-And-Play SOA Architecture 3-124 3.11.5 Savvion Technology Solutions Impact On Core Business Processes 3-125 3.11.6 Savvion / Satyam Portfolio of Business Process Management (BPM) Solutions 3-125 3.11.7 Savvion BusinessManager 3-126 3.11.8 Savvion Process Modeler Pro 3-127 3.11.9 Savvion Business Process Forms 3-127 3.11.10 Savvion Business Rules Management 3-128 3.11.11 Savvion Process Repository 3-128 3.11.12 Savvion Interface 3-130 3.11.13 Savvion Automating Supplier Discount and Management Process 3-130 3.11.14 Savvion Improves Business Performance And Reduces Costs 3-132 3.11.15 Savvion Customers 3-132 3.12 Pegasystems Business Process Management (BPM) solutions 3-133 3.13 Quovadx Vertical Templates Applicable To Complex Regulatory And Business Requirements 3-134 3.14 FileNet Business Process Manager 3-135 3.14.1 FileNet Case Management Process Template 3-138 3.14.2 FileNet Business Process Manager Solution Suite 3-138 3.14.3 FileNet Business Process Manager Control Of The Flow Of Work 3-141 BUSINESS PROCESS MANAGEMENT (BPM) TECHNOLOGY 4. BUSINESS PROCESS MANAGEMENT (BPM) TECHNOLOGY 4-1 4.1 Business Process Management Technology Issues 4-1 4.1.1 Application Integration Professional Services Implementation Strategies 4-2

4.1.2 Application Connectivity 4-2 4.1.3 Single Vendor Issues 4-3 4.1.4 Standards Adoption 4-4 4.2 BPM Technology Analysis 4-5 4.3 BPM Business Benefits 4-6 4.4 Technology Platforms 4-7 4.4.1 Automated Virtualization Of Existing Enterprise Assets 4-7 4.4.2 Complexity Of The Underlying IT Technologies 4-8 4.4.3 Impact of Platforms 4-9 4.4.4 Platforms and Disparate Technologies 4-10 4.5 Events 4-10 4.5.1 Event Transmission 4-13 4.5.2 Business Process Automation 4-14 4.6 Process-Oriented Architecture 4-17 4.6.1 Business Process Automation 4-17 4.6.2 Business Process Management Modular Architecture 4-17 4.6.3 Business Components 4-18 4.7 Advanced E-Business Infrastructure 4-21 4.7.1 Application Integration Technical Advantages 4-22 4.7.2 Integration System Architecture 4-23 4.8 Open Systems 4-25 4.8.1 Adapters 4-25 4.9 Development Toolset 4-27 4.9.1 Infrastructure And System Management 4-28 4.10 BPM Software Process Design 4-28 4.10.1 Process Monitoring 4-29 4.10.2 Messaging as Part of Process Operation 4-29 4.11 BPM / Web Services 4-30 4.11.1 Common Object Request Broker Architecture (CORBA) 4-31 4.11.2 Enterprise Application Servers 4-31 4.11.3 Advantages Of Java In Context Of Application Integration 4-31 4.11.4 EAI Technology Heritage 4-32 4.12 Web Services 4-33 4.12.1 Promise Of Web Services 4-34 4.12.2 Microsoft.Net Framework 4-35 4.12.3 Java 4-36 4.12.4 Java Technology 4-37 4.12.5 J2EE 4-37 4.12.6 Soap 4-38 4.12.7 Apache Soap 4-39 4.12.8 Load Balancer With SSL Support 4-39 4.12.9 Points Of Failure 4-40 4.12.10 Soap Limitations 4-40 4.12.11 WSDL 4-43 4.12.12 WSDL Service Descriptions 4-44 4.12.13 UDDI 4-45 4.12.14 UDDI Test Registries 4-45 4.12.15 UDDI Distributed Web Service Discovery 4-46 4.12.16 UDDI Consortium 4-47 4.12.17 WS-Inspection Document Extensibility 4-47 4.12.18 XML 4-49 4.12.19 XSLT 4-50

4.12.20 Metadata Repository 4-50 4.12.21 Wrappering 4-52 4.12.22 Workflow Management Coalition 4-53 4.13 Service Level Challenges 4-54 4.13.1 Quality Of Service (QoS) Functions 4-54 4.13.2 Network Efficiency 4-56 4.13.3 RosettaNet Standardizing Supply Chain Processes 4-57 4.14 Business Need 4-59 4.14.1 Business Process Management Packaged Solutions for Rapid Deployment 4-59 4.14.2 Quality Of Service Control 4-60 4.15 BPMI.org 4-60 4.15.1 Bpmi.Org Defines Open Specifications 4-62 4.15.2 BPM Transactional Finite-State Machines 4-62 4.15.3 BPQL 4-64 4.15.4 XML Standards 4-66 4.16 Oasis 4-67 BUSINESS PROCESS MANAGEMENT (BPM) AND BUSINESS INTEGRATION COMPANY PROFILES 5. BUSINESS PROCESS MANAGEMENT (BPM) AND BUSINESS INTEGRATION COMPANY PROFILES 5-1 5.1 BEA 5-1 5.1.1 BEA Telecommunications Industry Initiatives 5-2 5.1.2 BEA Revenue 5-3 5.1.3 BEA Systems Enterprise Infrastructure 5-4 5.1.4 BEA Radio Frequency Identification (RFID) 5-5 5.1.5 BEA Solution For RFID 5-6 5.1.6 BEA RFID Solution Framework 5-8 5.1.7 BEA Key Customer and Partner Agreements 5-8 5.1.8 BEA WebLogic Application Server 5-9 5.1.9 BEA WebLogic Platform as Foundation for Web Infrastructure 5-10 5.2 Cape Systems Group 5-11 5.2.1 Cape Systems Group Revenue 5-11 5.3 EMC / Documentum 5-12 5.4 Envoy Technologies 5-13 5.5 Filenet 5-14 5.6 Fujitsu 5-16 5.6.1 Fujitsu Microelectronics Asia Pte Ltd 5-16 5.7 Fiorano 5-17 5.8 Fuego 5-17 5.8.1 Fuego Revenue 5-18 5.9 GXS 5-18 5.9.1 GXS Web-Based Solution RosettaNet Automated Enablement 5-19 5.9.2 GXS / Francisco Partners 5-20 5.9.3 GXS / HAHT Commerce 5-21 5.9.4 GXS Business Strategy 5-25 5.9.5 GXS Customers 5-26 5.9.6 GXS International Operations 5-26 5.10 Hewlett Packard (HP) 5-27 5.11 i2 5-27 5.12 International Business Machines IBM 5-27 5.12.1 International Business Machines Revenue 5-29 5.12.2 IBM On Demand Operating Environment Architecture 5-34

5.12.3 IBM Clients 5-35 5.12.4 IBM Capabilities 5-36 5.12.5 IBM Acquires Ascential Software 5-37 5.12.6 IBM Advanced Information Technologies 5-39 5.12.7 IBM / Corio, 5-41 5.12.8 IBM Global Services 5-42 5.12.9 IBM Multi-Core Processor Architecture Design 5-42 5.12.10 IBM Technology 5-45 5.12.11 IBM 2004 Fourth-Quarter And Full-Year Revenue 5-45 5.12.12 IBM RFID Moving To Continuous Information Visibility 5-50 5.12.13 IBM RFID Strategic Alliances 5-52 5.12.14 IBM Comprehensive RFID Services 5-52 5.12.15 IBM / Ascential Software 5-54 5.13 Kabira 5-56 5.13.1 Kabira Deployments In 30 Countries 5-59 5.14 Microsoft 5-60 5.14.1 Microsoft / HP 5-61 5.14.2 Microsoft / Intel 5-61 5.14.3 Microsoft Standards Participation 5-61 5.14.4 Microsoft RFID Partners 5-62 5.14.5 Microsoft / Accenture 5-63 5.14.6 Microsoft / Intellident 5-63 5.14.7 Microsoft / Reqio 5-64 5.14.8 Microsoft Leverages Platform 5-64 5.14.9 Microsoft / GlobeRanger 5-65 5.14.10 Microsoft / HighJump Software, a 3M Company 5-66 5.14.11 Microsoft / Intermec Technologies 5-66 5.14.12 Microsoft / Manhattan Associates 5-66 5.14.13 Microsoft / METRO Group 5-67 5.14.14 Microsoft / Provia Software 5-67 5.14.15 Microsoft RFID 5-68 5.15 Oracle 5-68 5.15.1 Oracle / Alien Technology 5-69 5.15.2 Oracle / Intel 5-69 5.15.3 Oracle / Printronix 5-70 5.16 Pegasystems 5-70 5.16.1 Pegasystems BPM 5-71 5.16.2 Pegasystems Revenue 5-73 5.17 Progress Software 5-76 5.17.1 Progress Software Revenue: 5-78 5.17.2 Progress Software / Sonic Software 5-79 5.17.3 Sonic ESB 5-82 5.17.4 SonicMQ 5-82 5.17.5 Sonic Orchestration Server 5-83 5.17.6 Sonic XML Server 5-84 5.18 SAP 5-84 5.18.1 SAP Customers 5-85 5.19 Savvion 5-85 5.20 Synergy 5-87 5.21 Sun Microsystems 5-88 5.21.1 Sun / SeeBeyond 5-89 5.21.2 Sun Microsystems Business Strategy 5-89

5.21.3 Sun Microsystems Revenue 5-91 5.21.4 Sun End-to-End Architecture 5-92 5.21.5 Sun Network Computing Products 5-94 5.21.6 Sun Products 5-96 5.21.7 Sun Solaris Operating System (OS) 5-98 5.21.8 Sun Java Technology 5-99 5.21.9 Sun / SeeBeyond Technology 5-101 5.21.10 SeeBeyond Technology Alliances 5-102 5.21.11 SeeBeyond Technology Marketing 5-103 5.21.12 SeeBeyond Technology Operations by Reportable Segments and Geographic Area 5-107 5.21.13 SeeBeyond First Quarter 2005 Financial Results 5-108 5.21.14 SeeBeyond Customers 5-109 5.21.15 SeeBeyond Composite Applications 5-112 5.21.16 SeeBeyond Technology Corporation Revenue 5-113 5.22 Tibco Software 5-114 5.22.1 Tibco Software Industries Targeted 5-115 5.22.2 Tibco Software Strategy 5-117 5.22.3 Tibco Software Revenue 5-117 5.22.4 Tibco Suite Of Business Integration Software Solutions 5-119 5.22.5 Tibco Revenue 5-120 5.22.6 Tibco Software Revenue From Reuters And By Geographic Region 5-128 5.22.7 Tibco Software / Staffware 5-130 5.23 Vitria 5-131 5.24 webmethods 5-134 5.24.1 WebMethods / Microsoft 5-134 5.24.2 webmethods 2004 / 2005 Revenue 5-134 5.24.3 webmethods Restates Financials 5-137 5.24.4 WebMethods Customers 5-139 5.24.5 webmethods strategic partnership is with Global exchange Services (GXS) 5-142 5.24.6 webmethods Fabric 5-142 5.24.7 WebMethods Strategy 5-143 5.24.8 webmethods Web Services and Service Oriented Architecture 5-145 5.24.9 webmethods BAM 5-146 5.25 Zebra Technologies 5-146

List of Tables and Figures BUSINESS PROCESS MANAGEMENT (BPM) EXECUTIVE SUMMARY Table ES-1 Business Process Functions Table ES-2 BPM Market Driving Forces Figure ES-3 Worldwide Business Process Management (BPM) Market Shares, First Half 2005 Figure ES-4 Worldwide Business Process Market Forecasts, 2005-2011 ES-2 ES-6 ES-9 ES-11 BUSINESS PROCESS MANAGEMENT (BPM) MARKET DEFINITION AND MARKET DYNAMICS Table 1-1 1-2 Primary Aims Of Business Process Management (BPM) Table 1-2 1-4 Benefits Of Business Process Management Table 1-3 1-5 Business Process Management (BPM) Software Challenges Table 1-4 1-8 Role Of Middleware In High Availability BPM Computing Systems Table 1-5 1-13 Core Components Of A High Availability Application Readiness Service Table 1-6 1-18 Business Process Services Issues Table 1-7 1-19 Issues Addressed By Business Process Management Systems Table 1-8 1-20 Business Services Addressed By BPM Components Table 1-9 1-22 BPM Process Categories Table 1-10 1-23 Business Process Complexity Table 1-11 1-36 Business Benefits Of Establishing An E-Services Approach Table 1-12 1-38 E-Services Positioning For Delivering It-Based Benefits Table 1-13 1-39 Principles Of Application Integration Table 1-14 1-41 E-Services Challenge Table 1-15 1-44 E-Services Partnering Strategy Table 1-16 1-45 E-Services Systems Strategy Table 1-17 1-46 E-Services Positioning Table 1-18 1-47 E-Services

Table 1-19 1-48 E-Services Marketing Directions Table 1-20 1-48 BPM E-Services Market Positioning Table 1-21 1-49 E-Services Modular Strategy Table 1-22 1-50 E-Services Component Strategy Table 1-23 1-51 Business Process Complexity Table 1-24 1-56 Integration Platform Functions Table 1-25 1-58 Application Integration Software Functions Table 1-26 1-59 BPM Software Industries Targeted Table 1-27 1-61 Enterprise Messaging Integration Functions Table 1-28 1-63 Internal Enterprise Application Integration Tasks Table 1-29 1-66 Market Needs For Business Process Management Table 1-30 1-73 Key Elements Of BPM Strategy Table 1-31 1-76 Business Process Management (BPM) Initiatives Benefits BUSINESS PROCESS MANAGEMENT (BPM) MARKET SHARES AND MARKET FORECASTS Table 2-1 2-5 BPM Market Driving Forces Figure 2-2 2-8 Worldwide Business Process Management (BPM) Market Shares, 2004 Table 2-3 2-9 Worldwide Business Process Engine License, Services, and Maintenance Market Shares, 2004 Figure 2-4 2-10 Worldwide Business Process Management (BPM) Market Shares, First Half 2005 Table 2-5 2-11 Worldwide Business Process Engine License, Services, and Maintenance Market Shares, First Half 2005 Figure 2-6 2-13 BPM Market Driving Forces Table 2-7 2-14 Application Integration (EAI) Comp any Analysis of Market Segments, Software License and Maintenance, Percent, 2004 Table 2-8 2-15 Application Integration (EAI) Company Analysis of Market Segments, Software License and Maintenance, Dollars, 2004 Figure 2-9 2-16 Worldwide Business Process Engine Market Forecasts, 2005-2011 Table 2-10 2-17 Worldwide Business Process Management Engine Market Forecasts, 2005-2011

Table 2-11 2-18 Business Process Management Market Forecasts, Software License, Services, and Maintenance Dollars, 2005-2011 Figure 2-12 2-22 Internet Users Market Forecast, 2005-2011 Table 2-13 2-22 Worldwide Internet Users Forecasts, 2005-2011 Figure 2-14 2-23 B To B E-Commerce Market Forecasts, 2005-2011 Table 2-15 2-24 E-Commerce B To B Market Forecasts, 2005-2011 Table 2-16 2-26 Business Process Integration Advantages Figure 2-17 2-28 EAI Regional Market Shares, 2004 Table 2-18 2-29 Application Integration EAI Regional Market Shares, 2004 Table 2-19 2-32 Advantages Of BPM Solutions Table 2-20 2-34 BPM Functions Table 2-21 2-36 Business Benefits Of Business Process Management Table 2-22 2-37 Enterprise Back End System Advantages From Business Process Management Table 2-23 2-39 Business Process Integration Advantages Table 2-24 2-41 E-business Infrastructure Software Requirements Table 2-25 2-42 Principal Competitive Factors In The BPM Market Table 2-26 2-44 Specific Areas Of BPM Functionality Table 2-27 2-48 BPM Infrastructure Functions Table 2-28 2-49 Scope Of A Business Process BUSINESS PROCESS MANAGEMENT (BPM) SOFTWARE PRODUCT DESCRIPTION Table 3-1 3-3 BPM Infrastructure Functions Table 3-2 3-4 Scope Of A Business Process Table 3-3 3-7 IBM BPM On Demand Benefits Table 3-4 3-8 IBM BPM Functions for Detecting Business Anomalies Table 3-5 3-13 IBM BPM Process Lifecycle Table 3-6 3-16 IBM On Demand System Key Software Components

Table 3-7 3-19 IBM WebSphere Collaboration Foundation Functions Table 3-8 3-21 IBM WebSphere Business Integration Collaboration Foundation Generic Template Functions Table 3-9 3-22 IBM WebSphere Business Integration Collaboration System Requirements Table 3-10 3-24 IBM WebSphere Customer Relationship Management Collaboration Functions Table 3-11 3-25 IBM WebSphere Business Integration Order Management Collaboration Functions Table 3-12 3-27 IBM WebSphere Business Integration Procurement Collaboration Functions Table 3-13 3-29 IBM WebSphere Business Integration Customer Relationship Functions Table 3-14 3-30 IBM WebSphere Business Integration Collaboration for Billing Inquiry Table 3-15 3-32 IBM WebSphere Collaborations Solutions Table 3-16 3-34 IBM WebSphere Collaborations Industry Specific Key Business Benefits Table 3-17 3-40 Tibco BusinessWorks Benefits Table 3-18 3-42 Tibco BusinessWorks Features Table 3-19 3-44 webmethods Business Process Management Benefits Table 3-20 3-45 webmethods Business Process Management Functions Table 3-21 3-47 WebMethods Fabric Table 3-22 3-48 webmethods Fabric Benefits Table 3-23 3-49 webmethods Fabric Components Figure 3-24 3-50 WebMethods Middleware Broker Table 3-25 3-54 Business Process Management (BPM) Initiatives Benefits Table 3-26 3-60 Vitria Packaged Applications Table 3-27 3-65 Vitria BusinessWare Functions Table 3-28 3-66 Vitria BusinessWare Positioning Table 3-29 3-68 Vitria: BusinessWare Platform RFID Functions Table 3-30 3-69 Benefits of Using Vitria:BusinessWare for RFID BPM Table 3-31 3-71 Vitria BusinessWare Business Process Integration Server Features Table 3-32 3-72 Vitria BusinessWare Complex Business Processes Supported

Table 3-33 3-73 Vitria BusinessWare Business Process Integration Server Functions Table 3-34 3-78 Fuego Business Process Management BPM Functions Table 3-35 3-80 Fuego BPM Enterprise Server Positioning Table 3-36 3-81 Fuego BPM Enterprise Server Functions Table 3-37 3-82 Fuego Funding Of Independent Benchmarks Table 3-38 3-87 FuegoBPM Capabilities Table 3-39 3-95 Sun / SeeBeyond Business Process Management Functions Table 3-40 3-97 SeeBeyond ICAN 5 Suite Components Table 3-41 3-102 BEA AquaLogic Family Functions Figure 3-42 3-103 BEA AquaLogic Process Orchestration Table 3-43 3-106 BEA AquaLogic Service Bus IT Benefits Table 3-44 3-108 BEA AquaLogic Data Services Platform Functions Table 3-45 3-111 Business Process Management (BPM) Initiatives Benefits Table 3-46 3-123 Savvion TeamWorks Benefits Table 3-47 3-129 Savvion Business Process Key Corporate Asset Features Table 3-48 3-136 Business Process Manager Business Performance Competitive Advantage Table 3-49 3-140 FileNet Business Process Manager Key Elements Table 3-50 3-142 FileNet Business Process Manager benefits BUSINESS PROCESS MANAGEMENT (BPM) TECHNOLOGY Table 4-1 4-11 Type Of Event Information Table 4-2 4-12 Event Management Definition Table 4-3 4-16 Integration Services Table 4-4 4-18 Business Components Chained Together To Comprise A Business Service Table 4-5 4-20 Integration Services Table 4-6 4-24 Design Concerns For Integration System Architecture

Table 4-7 4-42 Soap-Based Web Service Production Environment Testing Table 4-8 4-50 XSLT Transformation Of XML Table 4-9 4-51 Metadata Repository Table 4-10 4-63 BPML E-Business Processes BUSINESS PROCESS MANAGEMENT (BPM) AND BUSINESS INTEGRATION COMPANY PROFILES Table 5-1 5-6 BEA RFID Partners Table 5-2 5-14 Envoy Adaptive Business Connectivity Functions Table 5-3 5-24 Functions To Automate The Exchange Of Essential Business Information Between Trading Partners With Dissimilar Processes Table 5-4 5-25 GXS Business Strategy Table 5-5 5-38 Ascential Software Enterprise Data Integration Software Functions Table 5-6 5-40 IBM RFID Business Operations Table 5-7 5-44 IBM / Sony / Toshiba Cell Functions Table 5-8 5-57 Kabira Service Platforms Figure 5-9 5-58 Kabira Service Platforms Table 5-10 5-90 Sun Microsystems Business Strategy Table 5-11 5-95 Sun Network Computing Products Table 5-12 5-100 Java Success Worldwide Table 5-13 5-106 SeeBeyond Company Facts Table 5-14 5-116 Tibco Software Industries Targeted Table 5-15 5-117 Core Elements Of Tibco Software Strategy

ABOUT THE COMPANY WINTERGREEN RESEARCH, HAS A UNIQUE RESEARCH STRATEGY THAT RELATES TO IDENTIFYING MARKET TRENDS THROUGH READING AND INTERVIEWING OPINION LEADERS. BY READING THE ELECTRONIC EQUIVALENT OF 40 FEET OF PAPER, WINTERGREEN RESEARCH SENIOR ANALYSTS CAN LEARN A LOT MORE ABOUT MARKETS, A LOT FASTER THAN CAN BE LEARNED THROUGH EXPENSIVE SURVEYS AND FOCUS GROUPS. THINKING ABOUT MARKET TRENDS IS A HIGH PRIORITY AT WINTERGREEN RESEARCH. AS WITH ALL RESEARCH, THE VALUE PROPOSITION FOR COMPETITIVE ANALYSIS COMES FROM INTELLECTUAL INPUT. IT IS A LUXURY REALLY, AVAILABLE TO ONLY A VERY FEW PEOPLE, TO BE ABLE TO GATHER INFORMATION, LOTS OF INFORMATION FROM READING MASSIVE AMOUNTS OF CONTENT, AND THEN TRYING TO MAKE SENSE OF THAT CONTENT. THE ABILITY TO THINK ABOUT MARKET TRENDS IS ENHANCED BY DOING IT OVER AND OVER FOR MANY DIFFERENT MARKETS. THAT IS WHAT WINTERGREEN RESEARCH IS ALL ABOUT: READING AND THINKING IS AN ESSENTIAL ASP ECT OF COMPETITIVE ANALYSIS. TALKING TO OPINION LEADERS IS THE THIRD ESSENTIAL ASPECT OF PRODUCING GOOD, RELIABLE DATA. WINTERGREEN RESEARCH, FOUNDED IN 1985, PROVIDES STRATEGIC MARKET ASSESSMENTS IN TELECOMMUNICATIONS, COMMUNICATIONS EQUIPMENT, HEALTH CARE, INTERNET AND ADVANCED COMPUTER TECHNOLOGY. INDUSTRY REPORTS FOCUS ON OPPORTUNITIES THAT EXPAND EXISTING MARKETS OR DEVELOP MAJOR NEW MARKETS. THE REPORTS ASSESS NEW PRODUCT AND SERVICE POSITIONING STRATEGIES, NEW AND EVOLVING TECHNOLOGIES, AND TECHNOLOGICAL IMPACT ON PRODUCTS, SERVICES, AND MARKETS. MARKET SHARES ARE PROVIDED. LEADING MARKET PARTICIPANTS ARE PROFILED, AND THEIR MARKETING STRATEGIES, ACQUISITIONS, AND STRATEGIC ALLIANCES ARE DISCUSSED. THE PRINCIPALS OF WINTERGREEN RESEARCH HAVE BEEN INVOLVED IN ANALYSIS AND FORECASTING OF INTERNATIONAL BUSINESS OPPORTUNITIES IN TELECOMMUNICATIONS AND ADVANCED COMPUTER TECHNOLOGY MARKETS FOR OVER 30 YEARS.

ABOUT THE PRINCIPAL AUTHORS ELLEN T. CURTISS, TECHNICAL DIRECTOR, CO-FOUNDER OF WINTERGREEN RESEARCH, CONDUCTS STRATEGIC AND MARKET ASSESSMENTS IN TECHNOLOGY-BASED INDUSTRIES. PREVIOUSLY SHE WAS A MEMBER OF THE STAFF OF ARTHUR D. LITTLE, INC., FOR 23 YEARS, MOST RECENTLY AS VICE PRESIDENT OF ARTHUR D. LITTLE DECISION RESOURCES, SPECIALIZING IN STRATEGIC PLANNING AND MARKET DEVELOPMENT SERVICES. SHE IS A GRADUATE OF BOSTON UNIVERSITY AND THE PROGRAM FOR MANAGEMENT DEVELOPMENT AT HARVARD GRADUATE SCHOOL OF BUSINESS ADMINISTRATION. SHE IS THE AUTHOR OF RECENT STUDIES ON WORLDWIDE TELECOMMUNICATIONS MARKETS, THE TOP TEN INTERNET EQUIPMENT COMPANIES, THE TOP TEN CONTRACT MANUFACTURING COMPANIES, AND THE TOP TEN TELECOMMUNICATIONS MARKET ANALYSIS AND FORECASTS. SUSAN EUSTIS, PRESIDENT, CO-FOUNDER OF WINTERGREEN RESEARCH, HAS DONE RESEARCH IN COMMUNICATIONS AND COMPUTER MARKETS AND APPLICATIONS. SHE HOLDS SEVERAL PATENTS IN MICROCOMPUTING AND PARALLEL PROCESSING. SHE HAS THE ORIGINAL PATENTS IN ELECTRONIC VOTING MACHINES. SHE HAS NEW PATENT APPLICATIONS IN FORMAT VARYING, MULITPROCESSING, AND ELECTRONIC VOTING. SHE IS THE AUTHOR OF RECENT STUDIES OF THE REGIONAL BELL OPERATING COMPANIES' MARKETING STRATEGIES, INTERNET EQUIPMENT, BIOMETRICS, A STUDY OF INTERNET EQUIPMENT, WORLDWIDE TELECOMMUNICATIONS EQUIPMENT, TOP TEN TELECOMMUNICATIONS, DIGITAL LOOP CARRIER, WEB HOSTING, WEB SERVICES, AND APPLICATION INTEGRATION MARKETS. MS. EUSTIS IS A GRADUATE OF BARNARD COLLEGE.

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