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What do you think is the way ahead for pure play BPMS vendors?
By Jim Sinur | October 24, 2007
What do you think is the way ahead for pure play BPMS vendors? Like Gartner predicts, how many pure play vendors would survive in their current form and where do you see role of Global System Integrators in this space?
- Sourav
Sourav,
At one point in time, Gartner acknowledged 181+ BPM vendors. Of course, not all will survive intact, however, several types of BPM pure plays will survive. At a minimum, there will be specialty players that have built intellectual property on top of their engines, as well as horizontal specialists around CRM and compliance. They will become surviving specialists. I would guess there will be 20+ players out there with several being large. I also think you will see more acquisitions in the BPM sector like we have seen in the BI and BRE sectors.
Gartner has also indentified 20+ BPM vendors, including the power/platform vendors. Some of the non-power BPMS vendors will survive nicely, but there are some that are struggling as we speak, based on the lack of hiring and/or forced layoffs because of bad quarters. Interestingly, Gartner projects a 23% compounded annual growth rate for BPMS vendors, and IDC is even more optimistic with a 44% CAGR. This implies that there will be less BPMS vendors with a higher growth rate.
We believe there is a good opportunity for systems integrators that are multi-national in nature. According to Gartner, the service spend is around $3.50 for every $1.00 of software sale. So, there is great opportunity for firms that can help clients with the softer issues around BPM (methodology, organization, best practices etc.)
Jim
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