Competitive Analysis w SWOT Matrix
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This document provides an agenda and background for a market analysis discussion. The agenda includes an overview of SOA market definitions and segmentation, predictions and assumptions for the SOA application development and BPM markets, and an open discussion. CEO remarks note the need to identify core competitors and position against them while educating on the costs of free open source tools. The document defines SOA and why its needed to help IT keep up with business needs. It outlines where Skyway fits within the SOA software stack as a model-driven service design tool.
![BPM: Market Overview
• $1.9B worldwide in 2004
• $3B by 2008 (CAGR 10%)
• Trends
• Customers are demanding end-to-end solutions (ie, BPM Suites [BPMS])
• Consolidation is in process to move from BPM to BPMS
• IBM acquired Filenet, Bowstreet
• BEA acquired Fuego
• Metastorm acquired Commercequest
• Adobe acquired QLink
• EAI is moving from point-to-point solutions to architected SOA solutions
• BPMS is encompassing both human- and system-centric process
management
• Blurring functionality between EAI and BPMS
• SOA has become a “must have” requirement for BPMS, including ESB
• Focusing on service delivery and re-use
• Process- model development for human-centric BPM is a given
• Rule-based BPM is emerging as a “should have” capability
• Document repository is becoming a “should have” capability
37 Source: IBM, 2006, Lombardi Software, 2006, and Forrester, 2006](https://image.slidesharecdn.com/2highlevelcompetitiveanalysiswswotmatrix-111029181742-phpapp02/85/Competitive-Analysis-w-SWOT-Matrix-37-320.jpg)
Competitive Analysis w SWOT Matrix
- 1. Market Analysis Q3 FY06 1 Updated: 10/2/06
- 2. Agenda • Analysis Objectives • Setting the Stage • CEO Opening Remarks • CTO Opening Remarks • Analysis Objectives • SOA Market Definition and Segmentation • SOA Application Development Market • Predictions and Key Assumptions • Drill down • BPM Market • Predictions and Key Assumptions • Drill down • SOA Run Time Market • Under construction • Open Discussion 2
- 3. Market Analysis Objectives • Analyze SOA market landscape • Identify market “opportunity zones” • Determine appropriateness of product positioning messages • Capture emerging trend data to aid with future software release decisions 3
- 5. Current CEO Observations • We need to identify our core – and relatively few - competitors and position effectively against them • Partner aggressively with all other market leaders • BPM/Orchestration market segment in the SOA world appears analogous to the transaction/messaging market of the client server era • Major vendors see need to “own” it/crush new entrants which make this an unlikely expansion area for Skyway • Application development space still seems open due to abdication to eclipse based tools • Key problem appears competing with free/open source offerings…will need to educate on cost of free • Skyway’s awareness as a vendor is still very low • Need to create and execute a program to raise it in Q4/Q1 5
- 7. What is SOA? • A new way of building software • What HTML is to User Interface – XML is to Business Logic • Consistent access from anywhere • Consistent access across OS and technology boundaries • A Service is business logic exposed through XML • A single Service is accessed by lots of applications • Services simplify solutions • It does not take a coder to use a service • More services means less coding • Less coding means building solutions faster 7
- 8. Why the Need for SOA • IT cannot keep up with business • Business now moves in Internet time • IT still moves in IT time • Adapt or die • Coding is a dead end • Coding takes too long - even for fast coders • Changing existing code is as bad as new code • Need a coder to figure out what was previously coded • Need a coder to write more code to adapt existing code • Code generation and code modeling are the next steps in building applications 8
- 9. What Skyway Does • Models, Not Code • Modeling means making a graphical representation of what you would otherwise code • Current Modeling tools only go so far • Good modeling tools eliminate as much as 30% of code • Skyway eliminates almost 100% of code • Model Driven Service Design • Skyway models are implicitly SOA • Even if you do not care about SOA • Skyway simplicity creates confusion • The graphical nature is often confused with BPM at a glance • Ease of understanding what was built in Skyway contributes to the misunderstanding 9
- 10. Where Skyway Fits Platform Independent Delivery Server Server Open Application Assembly BPM Analyst Analyst Business Process Skyway MDSD Developer Service Service Service Developer Service Service Service 10
- 11. SOA Market Definition and Segmentation 11
- 12. The SOA Software Stack: As defined by Skyway ERP, CRM, SCM, Business Intelligence / Analytic Applications Applications Security (Encryption, PKI, Certificate Authority) Business Process Management - IBM, BEA, Lombardi, Savvion Application Application Governance Integration Platforms Development Systinet, AmberPoint Platforms BEA WL Portal, Skyway, ESB Registry IBM WBI, Application SAP NetWeaver, IBM Rational, CapeClear, AmberPoint, webMethods, Infrastructure Oracle Fusion, Compuware Tibco, BEA, SOA BEA WLI, IBM WebSphere OptimalJ, IBM Software, Tibco Eclipse Infravio Application Servers Data Warehousing & Integration Legacy Access Middleware Application Systems Management System Management Databases Legacy Applications Software Operating Systems Storage Software Hardware Servers Data Storage Devices 12 Source: IDC, 2006 , Triple Tree, 2005, and Skyway Management estimates
- 13. The SOA Software Stack: As defined by Skyway ERP, CRM, SCM, Business Intelligence / Analytic Applications Applications Security (Encryption, PKI, Certificate Authority) Technology market space Business Process Management - IBM, BEA, Lombardi, Savvion where Skyway plays. It is Application Application Governance Integration Platforms Development Systinet, AmberPoint us toPlatforms critical for become a Skyway, ESBleader within this space. Registry IBM WBI, Application IBM Rational, CapeClear, AmberPoint, webMethods, Infrastructure Compuware Tibco, BEA, SOA BEA WLI, OptimalJ, IBM Software, Tibco Eclipse Infravio Application Servers Data Warehousing & Integration Legacy Access Middleware Application Systems Management System Management Databases Legacy Applications Software Operating Systems Storage Software Hardware Servers Data Storage Devices 13 Source: IDC, 2006 , Triple Tree, 2005, and Skyway Management estimates
- 14. The SOA Software Stack: As defined by Skyway ERP, CRM, SCM, Business Intelligence / Analytic Applications Applications Security (Encryption, PKI, Certificate Authority) Business Process Management - IBM, BEA, Lombardi, Savvion Application Application Governance Integration Platforms Development Systinet, AmberPoint Platforms Skyway, ESB Registry IBM WBI, Application IBM Rational, CapeClear, AmberPoint, webMethods, Infrastructure Compuware Tibco, BEA, SOA BEA WLI, OptimalJ, IBM Software, Tibco Eclipse Infravio Application Servers Data Warehousing & Integration Legacy Access Middleware System Application Systems Management Technology Market Management Databases segments that enable Legacy Applications Software Operating Systems SOA applications but Storage Software Hardware Servers do not require direct Data Storage Devices partnerships. 14 Source: IDC, 2006 , Triple Tree, 2005, and Skyway Management estimates
- 15. The SOA Software Stack: As defined by Skyway ERP, CRM, SCM, Business Intelligence / Analytic Applications Applications Security (Encryption, PKI, Certificate Authority) Business Process Management - IBM, BEA, Lombardi, Savvion Application Application Governance Integration Platforms Development Systinet, AmberPoint Platforms Skyway, ESB Registry IBM WBI, Application IBM Rational, CapeClear, AmberPoint, webMethods, Infrastructure Compuware Tibco, BEA, SOA BEA WLI, OptimalJ, IBM Software, Tibco Eclipse Infravio Application Servers Data Warehousing & Integration Technology Access Middleware Legacy market segments offering Application Systems Management that solve a large portion many products System Management Databases of the SOA runtime problem, making Legacy Applications Software Operating Systems them not interesting and most likely Storage Software Hardware Servers expensive for Skyway to enter but is a Data Storage Devices good opportunity for partnering. 15 Source: IDC, 2006 , Triple Tree, 2005, and Skyway Management estimates
- 16. The SOA Software Stack: As defined by Skyway ERP, CRM, SCM, Business Intelligence / Analytic Applications Applications Security (Encryption, PKI, Certificate Authority) Business Process Management - IBM, BEA, Lombadri, Savvion Application Application Governance Integration Platforms Development Systinet, AmberPoint Platforms Skyway, ESB Registry IBM WBI, Application IBM Rational, CapeClear, AmberPoint, webMethods, Infrastructure Compuware Tibco, BEA, SOA BEA WLI, OptimalJ, Eclipse Technology market IBM Software, Infravio Tibco Application Servers segments that are Data Warehousing & Integration important for us to watch Legacy Access Middleware for possible partnering Application Systems Management System opportunities and offer Management Databases Legacy Applications Software added value integration Operating Systems Storage Software capabilities. Hardware Servers Data Storage Devices 16 Source: IDC, 2006 , Triple Tree, 2005, and Skyway Management estimates
- 17. SOA Market Characteristics AppDev Tools App Metrics App Server Database Security (software Platforms only vs. total) Market Size $3.7B SW 2004 $16.5B $37B $34B total $12B $110B Market Size $19B $45B $5.2B SW $25B $121B 2009 $45B total 7% SW CAGR 3% 4% 16% 2% 5% total Strategic Importance to High High High High Moderate SOA 1 Relative Competitive 0 0 5 0 0 Threat 2 Relative Partnership 5 5 0 5 5 Potential 2 Notes: 1 Skyway Management determination 17 2 Relative ranking on scale from 0 (low) to 5 (high) Source: IDC, 2006 , Gartner, 2006 and Skyway Management estimates
- 18. SOA Market Characteristics (cont.) Metrics EAI BPM & BPEL Governance Registry ESB Market Size 2004 $135B $1.9B $7.5B $60M Market Size $160B $3B $20.5B $350M 2009 CAGR 3% 10% 22% 42% High (after High (after High (after Strategic several several several Importance to High Low Services Services Services SOA 1 projects projects projects completed) completed) completed) Relative Competitive 2 4 2 1 1 Threat 2 Relatitve Partnership 3 1 3 4 4 Potential 2 Notes: 1 Skyway Management determination 18 2 Relative ranking on scale from 0 (low) to 5 (high) Source: IDC, 2006 , Gartner, 2006 and Skyway Management estimates
- 19. Relevant Discussion • Segment Review • Application Development • Deep dive • BPM Overview • SOA Governance – section under construction • Open Discussion • Market Opportunities • Product Development Gaps and Response Plans 19
- 20. SOA Application Development (AppDev) Market 20
- 21. AppDev: Market Overview • $3.7B worldwide in 2004 • Java segment is approximately 60% ($2.2B) • $5.2B worldwide by 2009 (CAGR 7%) • Java growth is 36% during same time period ($3.5B by 2009 or 67% share) • Trends • SDLC is moving to Service Oriented Development of Applications (SODA) • Gaps in SODA • Service to UI integration • Service to BPM integration • Design Time to Run Time (and back to Design Time) transition • Analysts and Market validate modeling trends • Key Quote #1 – coding wont provide you agile IT (Gartner, 2006) • Key Quote #2 – tools are back (Gartner, 2006) 21 Source: IDC, 2005 and Gartner, 2006
- 22. AppDev: Market Predictions and Key Assumptions • Analyst Predictions • By 2008, SODA will provide the basis for 80% of new development projects (0.8 probability)-Gartner • By 2010, 75% of mainstream IT organizations will have formal open source acquisition and management strategies (0.8 probability)-Gartner • 675 firms with >40,000 will implement SOA this year-Forrester • IT cannot code its way to Agile IT – it must be done through modeling- Gartner AppDev Summit, Sept. 2006 • AppDev tools are back-Gartner AppDev Summit, Sept. 2006 • Skyway’s Key Market Assumptions • Developers at SI and Enterprise shops have productivity problems due to the inherent limitations of coding • Modeling is the answer to faster and more agile application development • Skyway’s main competition is status quo/Eclipse (free) • Developers are protecting their coding turf 22
- 23. AppDev: Business Problems require solutions to IT issues • Business Issues • Persistent competitive pressure to differentiate • Limited success in commercializing new business opportunities • Ongoing need to improve customer service levels and total customer experiences • Increased requirements for speed and flexibility • Adoption-paralysis of newer, enabling technologies • IT Issues • Inefficient IT resource utilization and an inability to cost-effectively reuse established applications • Inability to align IT with the Business Unit • Declining data consistency and quality • Increasing levels of IT backlog • Lack of available skills and expertise to maintain legacy systems • Culture of status quo, apathy, and complacency 23 Source: Gartner, 2005 and internal Skyway data
- 24. AppDev: Critical Success Factors • Improved IT responsiveness to business change • Improved resource utilization • Reduce application backlog and extend legacy application platforms • Consistent, progressive, and flexible policy and process implementation • Eliminate attrition risk • Long term IT cost savings 24 Source: Internal Skyway data
- 25. AppDev SWOT: Skyway Strengths Weaknesses • Broadest and most advanced modeling tool available • Private company and small Sales force • Built from the ground up to enable modeling as the path to • Limited functionality (via Governor) in the Analysis phase SOA • Assemble phase offers great strengths, but is limited by not • Deployment and Model combine to keep all solutions having built in connectivity to service registries and Test platform-independent phase is greatly enhanced by allowing developers to code automated tests, but no functionality that enables Quality • How to leverage Assurance engineers • Simplify core marketing messages to focus on value • No functionality in the Manage phase created for Application Developers • How to mute • Expand customer support capability to capture wider range of market feedback for future releases • Consider partnership with BPM & ESB/Registry companies (efficiency gains for Service creation) • Skyays underutilized multi-orchestration capabilities • Lack of broader market acceptance • Linkage to Services created by BPM • Lack of awareness of marketing messages and inability to communicate value of models vs. coding • Creation of new Services built via Builder • Selling power of larger competitors • “Hidden” UI services • How to mitigate • Partnership with complementary companies (ie, BPM, ESB, Registry, Governance) to accelerate creation of new Services • Partner with SI to ensure faster technology adoption • How to capitalize • Communicate partnerships with larger ISV companies to “buy scale” • Refine Builder’s Orchestration marketing messages • Enter partner agreements in Q4 Opportunities Threats 25
- 26. AppDev SWOT: IBM/Rational Strengths Weaknesses • Large public company with large Sales force and large • As a result of numerous acquisition, they offer a large but installed base complex tool set that is difficult to use and learn • Combined benefits of models and Java coding; excellent • Very limited integration exists between the various offerings functionality in the areas of Analysis, Design and Test to address the SOA cycle • Perceived as standards based due to pioneering of UML and • IBM offerings are not integrated with the Rational offerings the Rational Unified Process • Why Skyway is the answer • How to position Skyway as an alternative • We model the Java code, they write it • Rational models only go to the skeleton code level • We deploy anywhere, they offer no deployment and do not accelerate construction options in Rational and only IBM support for Eclipse • Complexity of Rational makes it difficult to learn and plug-ins use • There is very little opportunity to work with Rational since • IBMs size, scope of offerings, and large installed base they view themselves as very competitive to us • Shops that use Rational likely will not consider Skyway • While the value of the offerings are quite different, IBM claims Rational does pretty much what we do and may be able to “freeze” deals • If IBM were to rewrite and refocus Rational as a direct play against Skyway, they could be a very fiece competitor • How can Skyway mitigate • Emphasize our model-based coding strengths and highlight Rationals coding/complexity weaknesses Opportunities Threats 26
- 27. AppDev SWOT: BEA Strengths Weaknesses • Strong and well rounded offerings around SOA management and • Most solutions are not fully integrated since they were development acquired • Perceived as a leader in the SOA space • No focus on service creation; the answer is to write code like • Doing a good job of integrating point solutions they purchased to have an integrated offering you always do • Excellent EAI and integration tools • Why Skyway is the answer • Drives may SOA and Java specifications • Skyway works well with BEA tools • How to position Skyway as an alternative • We deploy to anything; their tools focus only on BEA • No modeling or service creation components other than coding deploys • Skyway complements BEA and feeds new services into its tools • Opportunity to work with BEA from a service-creation • BEAs size and scope of offerings perspective • If they choose to focus on modeling, we will be “frozen” from • Skyway tools create services that can feed directly into BEAs most BEA accounts offerings • Even without entering the modeling space, if they perceive us as competing for dollars then they could position us as unnecessary • How can Skyway mitigate • Emphasize our model-based coding strengths and highlight BEAs coding/complexity weaknesses Opportunities Threats 27
- 28. AppDev SWOT: Compuware/Optimal J Strengths Weaknesses • Combined benefits of models and Java coding • The model only goes to a limited depth, substantial coding is required to get from model to solution • Integrated tightly with Eclipse • No functionality in the Assemble phase • Very extensible for organizations that desire to continue • They only address the Test phase through existing coding standards, they writing code and only partially use models offer no functionality themselves • The Model is not insulated from the underlying infrastructure – models are • Integrated with the Compuware Optimal Trace product for tied to explicit platforms once coding is begun Requirements Gathering in the Analysis phase • Deployment is not addressed at all, standard technologies such as Ant are • How to position Skyway as an alternative their only answer • Why Skyway is the answer • Skyway is true modeling with Java code output • We model the Java code, they write it • Optimal J sill requires substantial code writing • We deploy anywhere, they offer no deployment functionality • Very little opportunity for Skyway to work with Optimal J • While Optimal J will not see the same acceleration that Skyway since the products are similar in positioning and value can, it could be more accepted as a middle ground by developers • It allows them to continue writing code • But still see some acceleration through modeling but to keep code in the equation • Compuwares size and large installed base of Optimal J users • How can Skyway mitigate • Emphasize our model-based coding strengths and productivity gains combined with access to standard, well- formed Java code Opportunities Threats 28
- 29. AppDev SWOT: Microsoft/VisualStudio Strengths Weaknesses • All solutions are fully integrated • Once a heterogeneous environment beyond Microsoft is required, complexity arises • Easy to use for building simplistic solutions • Very little is offered to accelerate the test phase, they rely on • Perceived as the easiest platform to use for building solutions ease of developer tools to accelerate this phase • Very easy to SOA enable anything that is built • BizTalk is utilized for Assembly, but no clear connection • How to position Skyway as an alternative between it and the Build phase • For Java development environments, we are the • Why Skyway is the answer most productive modeling tool in the market • Microsofts inability to align with non-Microsoft environments and/or non-Microsoft products • If Skyway were to deploy to .Net servers, there are string • They are Microsoft partnering opportunities with Microsoft • If they choose to enter the modeling space, they likely would • Microsoft has not been focusing on their tools or SOA create an excellent product infrastructure; instead, they are focusing on solutions • Skyways lack of support for .Net limits our overall market delivered through SOA opportunity • How can Skyway mitigate • Explore feasibility of adding .Net functionality Opportunities Threats 29
- 30. AppDev SWOT: Sun/Java Studio Creator Strengths Weaknesses • Still perceived as a leader in the Java space • Solutions where acquired and are not integrated • No offerings in the modeling space; fixated on the SDLC as if critical mass • Broad coverage of the SOA SDLC spectrum of services already exist • Marketing message blurs the SDLC reality and makes SOA • Test and Deploy phases are only expedited for Assemblies – no value at all appear ready for today – takes SOA knowledge to get around when constructing new services or solutions • Build phase handled by Studio Creator, which can facilitate only the • How to position Skyway as an alternative construction of user interfaces but provides virtually no value for complex • They offer nothing in the way of service creation, business solution creation other than writing code • Design phase very limited, again covered by Studio Creator for prototyping • Why Skyway is the answer • Their focus is more BPM than creating the services to feed the BPM • Skyway works well with Sun tools • We deploy to anything; their tools focus only on Sun deploys • Since they offer no solution for the creation of atomic • Suns size and scope of offerings services, Skyway can likely offer the same value to them that • The Sun suite of products appear to be very well-rounded we can to any other BPM vendor for building service content and solve many problems within SOA • Sun has some ability to “freeze” deals when they are head- to-head with Skyway • How can Skyway mitigate • Emphasize our model-based coding strengths and highlight our ability to also create/assemble services to support their BPM tool Opportunities Threats 30
- 31. AppDev SWOT: Eclipse Strengths Weaknesses • Open source, and in only 4 years, they are represented in 50% of Java • IBM links development projects (EvansData, 2005) • Manual coding is only option (high cost, high knowledge requirement, no • The de facto coding environment for Java today independence during deployment) • Excellent tool for Java developers in the Build phase • Almost no functionality in the Analyze and Design phases – even free open source plug-ins are not available • Many open source plug-ins to augment functionality • Assemble phase is only addressed in Eclipse by plug-ins, but no free plug- • Standards based for just about everything and quite open and extensible ins for this phase are available • Efforts under way to provide a modeling plug-in through open source, it is • Test is only addressed through standard test coding tools (JUnit) still aiming at coders just like OptimalJ • Deploy is only addressed through standard scripting tools (Ant) • How to position Skyway as an alternative • Why Skyway is the answer • Skyway generates the same Java code but at a much lower cost • We model the Java code, their tool requires coding • We deploy anywhere, they do not have deployment functionality • Moving Skyway on to the Eclipse platform will give us a • For people that want to keep coding, Eclipse is the de facto much more open appearance Java standard • This would allow us to leverage the Eclipse brand, installed • Eclipse has modeling initiatives that could be competitive base, and momentum over time • How can Skyway mitigate • Explore feasibility of adding Eclipse functionality Opportunities Threats 31
- 32. AppDev: Key Segment Participants AppDev SOA Lifecycle Solution Analyze Design Assemble Build Test Deploy Manage Total Skyway 17 IBM/Rational R R R 19 Optimal J 8 Microsoft 14 Sun 12 BEA 12 Eclipse 4 Full capability in current product offering Partial (or lack of) capability in current product offering R – Denotes the solutions from the Rational product line – these solutions are detached from the other IBM solutions that were delivered through numerous acquisitions 32 Source: Gartner, 2005 and internal Skyway data
- 33. AppDev: Competitor Summary Weight-Adjusted Analysis Segment Weight Success Factors Skyway IBM Optimal J MSFT Sun BEA Eclipse High Low Factor AppDev Innovation 0.25 4.25 4.75 2.00 3.50 3.00 3.00 1.00 IBM Eclipse Sun Differentiation 0.25 2.25 1.50 1.25 2.00 0.75 0.75 0.75 Skyway BEA Eclipse IBM & Awareness 0.2 0.20 2.00 1.60 2.00 1.40 1.60 1.80 Skyway MSFT IBM & Viability 0.15 0.30 1.50 1.05 1.50 0.90 0.90 1.35 Skyway MSFT Execution 0.15 0.30 1.50 0.90 1.35 1.05 1.20 0.75 IBM Skyway 7.30 11.25 6.80 10.35 7.10 7.45 5.65 Total Score 1.0 IBM Eclipse (4) (1) (6) (2) (5) (3) (7) Notes: Total maximum weight-adjusted score is 14.5 33 Source: Skyway Management estimates
- 34. AppDev: Summary • Skyway is very strong with our disruptive offering relative to our “peers” • Our “peers,” however, are much larger and possess more recognizable brands • Partnerships can help us acquire scale quickly and improve our Sales execution capabilities • Areas needing attention or consideration • Finalize up our positioning and accelerate broader awareness of our value proposition • Consider Eclipse and .Net functionality to help with scale, but without diluting our core value proposition • Monitor the market for new entrants and/or new products as modeling acceleration continues 34
- 35. Business Process Management (BPM) Market 35
- 36. BPM Process 36
- 37. BPM: Market Overview • $1.9B worldwide in 2004 • $3B by 2008 (CAGR 10%) • Trends • Customers are demanding end-to-end solutions (ie, BPM Suites [BPMS]) • Consolidation is in process to move from BPM to BPMS • IBM acquired Filenet, Bowstreet • BEA acquired Fuego • Metastorm acquired Commercequest • Adobe acquired QLink • EAI is moving from point-to-point solutions to architected SOA solutions • BPMS is encompassing both human- and system-centric process management • Blurring functionality between EAI and BPMS • SOA has become a “must have” requirement for BPMS, including ESB • Focusing on service delivery and re-use • Process- model development for human-centric BPM is a given • Rule-based BPM is emerging as a “should have” capability • Document repository is becoming a “should have” capability 37 Source: IBM, 2006, Lombardi Software, 2006, and Forrester, 2006
- 38. BPM: Market Predictions and Key Assumptions • Analyst Predictions • A massive consolidation of the BPM market will take place by 2009 (0.7)- Gartner • Through 2010, more than 80% of organizations will improve business process efficiencies by at lest 15% by establishing a strategy for optimum acquisition of Web-Service enabled software and services (0.7)-Gartner • BPM, ESB, Governance, Registry and EAI are morphing into a new segment known as BPMS-Gartner AppDev Summit, Sept. 2006 • Skyway’s Key Market Assumptions • BPM tools also address the development productivity issue • BPM may benefit greatly from a modeling tool like Skyway that generates services • Large ISVs see BPM/SOA runtime as a critical market segment and will protect their share at all costs • BPM vendors are not focusing on the AppDev segment and have conceded turf largely to Java/Eclipse 38
- 39. BPM: Business Problems • Issues • Inability to optimize business performance/results due to non- standard business processes, tools, and personnel • Lack of consistent performance • Poor coordination between functional groups • Lack of real-time feedback and data • Limited “what-if” scenario planning • Difficulty with linking processes and metrics to user documentation • Poor post-event reporting • Weak interaction and coordination with IT 39
- 40. BPM: Critical Success Factors • Consistently execute the optimal process • Efficient and effective Services creation • Provide real-time feedback to line managers to support process improvement • Effective Services methodology and toolset to model/simulate all interaction patterns between staff, systems, and data • Efficient cross-functional coordination and data management • Long term IT cost savings 40 Source: Gartner, 2006 and internal Skyway data
- 41. BPM: Key Segment Participants BPM Core Capabilities Human System Rule Graphical Centric Centric Centric Simulation Analysis Process Document Solution Modeling PM PM PM Functions Functions Registry Library Total Skyway 9 IBM/Filenet 16 BEA/Fuego 17 Lombardi 21 Pegasystem 22 Metastorm 15 Savvion 20 Full capability in current product offering Partial (or lack of) capability in current product offering 41 Source: Gartner, 2006 and internal Skyway data
- 42. BPM: Summary • We score much lower than our “peers” in this space • Our Open Application Assembly (OAA) capability is merely a bridge benefit resulting from the strength of MDSD and PID; we should avoid direct interaction in this space • We do, however, produce the requisite services for these tools • Rather than compete directly, we should partner instead • They don’t develop services; we do • Target large cap ISVs • ISVs who lack service development or production capabilities • ISVs who have “committed” to Eclipse • We need to develop supplemental marketing messages 42
- 44. Governance: Market Predictions and Key Assumptions • Analyst Predictions • In 2006, the lack of working governance mechanisms in the midsize- to-large post-pilot SOA projects will be the most common reason for project failure (0.8 probability)-Gartner • Many middleware technologies will cease to exist by 2010 such as EAI, ETL, Data Integration, rules engines, and others, due to their inability to move to SOA (0.8 probability)-Gartner • Skyway’s Key Market Assumptions • SOA runtime will merge with BPM to form a new segment called BPMS and it will consist of the very large players (BEA, Oracle, IBM, etc) • The large players consider this space a core area that they need to own • SOA application development & SOA runtime currently do not speak with one another presenting a product opportunity for Skyway • ESB is considered a commodity – large vendors do not consider this product space strategic to them but need to offer a solution 44
- 47. Market Analysis Summary • Analyzed SOA market landscape • Evaluated AppDev segment (polarization of pure code and pure model frameworks) • Identified Services trends • Identified BPMS trends – many potential friends and some foes • Considered SOA Run Time player(s) – unknown opportunity here • Identified market opportunity zones • Identified relevant and potential partnerships • Evaluated real and potential competitors • Characterized our market dependencies • Determined appropriateness of product positioning messages • Need to create and/or refresh collateral and develop a process to manage and distribute information to Sales • Must accentuate core capabilities • Captured emerging trend data to aid with future software release decisions • BPA integration • Eclipse compatibility • .Net adoption • Open source adoption • Service broadcast capability during run time 47
- 49. Open Discussion • Market Analysis Recap • AppDev • BPM • Governance • Market Opportunities • Q4 FY06 • FY07 • Product Gap Plans • Build • Buy • Partner • Other 49
- 50. Appendix 50
- 51. AppDev: Competitor Array (Page 1 of 2) IBM IBM Optimal Optimal Segment Success Skyway Skyway MSFT MSFT Rational Rational J J Factors Weight Gross Wt Adj Gross Wt Adj Gross Wt Adj Gross Wt Adj AppDev Score Score Score Score Score Score Score Score Innovation - Application 0.25 17 4.25 19 4.75 8 2.00 14 3.50 Development Offering Differentiation – Unique Product and 0.25 9 2.25 6 1.50 5 1.25 8 2.00 Service Positioning Awareness – 0.20 1 0.20 10 2.00 8 1.60 10 2.00 Marketing execution Viability - Company 0.15 2 0.30 10 1.50 7 1.05 10 1.50 Financial Strength Sales Execution - Company Sales 0.15 2 0.30 10 1.50 6 0.90 9 1.35 Effectiveness Total Score 1.0 31 7.30 55 11.25 34 6.80 51 10.35 Notes: Maximum Offering score is 28; other maximum scores are 10 (each) Total maximum gross score is 68; total maximum adjusted score is 14.5 51 Source: Skyway Management estimates
- 52. AppDev: Competitor Array (Page 2 of 2) Segment Success Skyway Skyway Sun Sun BEA BEA Eclipse Eclipse Factors Weight Gross Wt Adj Gross Wt Adj Gross Wt Adj Gross Wt Adj AppDev Score Score Score Score Score Score Score Score Innovation - Application 0.25 17 4.25 12 3.00 12 3.00 4 1.00 Development Offering Differentiation – Unique Product and 0.25 9 2.25 3 0.75 3 0.75 3 0.75 Service Positioning Awareness – 0.20 1 0.20 7 1.40 8 1.60 9 1.80 Marketing execution Viability - Company 0.15 2 0.30 6 0.90 6 0.90 9 1.35 Financial Strength Sales Execution - Company Sales 0.15 2 0.30 7 1.05 8 1.20 5 0.75 Effectiveness Total Score 1.0 31 7.30 35 7.10 37 7.45 30 5.65 Notes: Maximum Offering score is 28; other maximum scores are 10 (each) Total maximum gross score is 68; total maximum adjusted score is 14.5 52 Source: Skyway Management estimates