Home > SAP administration / development News > SAP slips in integration-centric BPM market
SAP administration / development News:
EMAIL THIS

SAP slips in integration-centric BPM market

By Jon Franke, News Editor
03 Jan 2007 | SearchSAP.com

SAP news, tips and expert advice
Digg This!    StumbleUpon Toolbar StumbleUpon    Bookmark with Delicious Del.icio.us    Add to Google

Despite its heavy emphasis on business process management (BPM) recently, SAP has failed to keep pace with some of the competition in one area of the market, according to a recent study.

SAP slipped in the most recent evaluation of the integration-centric business process management suite (IC-BPMS) market by Cambridge, Mass.-based Forrester Research, Inc.

Forrester renamed its integration suites category IC-BPMS before the current study to reflect product enhancements made by vendors. IC-BPMS products developed primarily out of the enterprise application integration space. Its vendors represent about half of the BPM market, with human-centric BPMS (HC-BPMS) vendors making up the rest.

The HC-BPMS market consists of many smaller vendors whose products are more suited for processes involving "extensive interaction between human beings," according to the report.

No longer in the leader category, SAP now rates as a strong performer, according to the report. SAP's applications themselves did not necessarily get weaker -- rather others', such as Oracle's, IBM's, Sun Microsystems' and BEA Systems', got stronger, said Mike Gilpin, research director for Forrester.

Forrester also instituted more stringent requirements in the areas of BPM and service-oriented architecture (SOA) in this version of the study, which hurt SAP's rating as well, Gilpin said.

There were two particular areas where SAP was seen lagging, according to the report.

In the area of business-to-business, SAP still requires customers to obtain support for electronic data interchange (EDI) from a third-party provider. Despite the growth of other approaches, EDI is still the primary way business gets conducted electronically today, according to Gilpin.

"Even Microsoft has seen the light on supporting EDI natively," said Ken Vollmer, principal analyst for Forrester.

High-volume exchange infrastructure (XI) is another area of weakness. While SAP's XI component has demonstrated its capabilities in low- and mid-volume cases, customer references for high-volume uses were nonexistent.

"We suspect the reason we haven't been able to get any high-volume user references is because SAP doesn't have any," Gilpin said. "As soon as SAP has customer references that prove XI in high-volume uses, then its ranking could improve."

NetWeaver does remain a good option for customers already running many SAP applications and looking for integration and BPM features, according to Forrester.

On the flip side, for organizations that do not consider NetWeaver their application platform, offerings from other vendors can potentially trump SAP. For example, Redwood City, Calif.-based Oracle's hot-pluggable architecture is well suited for integrating products from many different vendors.

SAP has placed an increased focus on BPM in the past year, including the creation of a BPM Expert Community. Gilpin does not necessarily think that SAP's slip in the ratings is a concern for the company.

"SAP wants to be on the short list of potential vendors for every account where they represent a majority of the applications," Gilpin said. "The company has a good enough solution to do that today."

One way SAP is protecting this position is with its SOA strategy. Gilpin likes the direction SAP is going, but does see a potential speed bump.

A lot of the new SOA capabilities that SAP provides are only available to those that upgrade to NetWeaver from older software versions. Users that don't want to upgrade on SAP's schedule may have to turn to other options.

Infrastructure vendors, such as IBM, are generally willing to provide SOA to those with older SAP software versions and can step in as an alternative.

SAP status check
Read why Gartner says SAP CRM projects may be at risk in the future

See how SAP and Oracle are gearing up to battle for customers in hot markets

See where SAP and Oracle stand in business analytics according to IDC

For its part, Oracle has remained in the leader category, and Gilpin views the company as having a different market position than SAP. It can sell into accounts in two ways -- as an application vendor and as an infrastructure vendor.

Oracle's investment in middleware has resulted in a credible platform, and Gilpin also cites the company's hot-pluggable architecture as having potential market impact.

"Hot-pluggable can be a unifying infrastructure in a heterogeneous shop. Whether a company uses IBM, Microsoft, et cetera, Oracle can be the one to tie everything together," Gilpin said.



Tags: SAP PI/XISAP trends, strategy and ERP market shareVIEW ALL TAGS

Digg This!    StumbleUpon Toolbar StumbleUpon    Bookmark with Delicious Del.icio.us    Add to Google


RELATED CONTENT
SAP PI/XI
Getting started with SAP NetWeaver PI (formerly XI)
Bucking the economic trend, HSBC embarks on NetWeaver PI project
How to be a self-taught NetWeaver and ABAP expert
An ABAP user wants to learn XI
What are the benefits of EAI?
Quiz: SAP XI for beginners
XI: Search through the payload of a message... without TREX!
Automate the process of uploading catalogs using XI
Using Folders in PI 7.1
Best career path for a pro with .NET experience
SAP PI/XI Research

SAP trends, strategy and ERP market share
NetSuite gets German certification for SaaS ERP, takes jab at SAP
SAP's Web 2.0 strategy makes way for social networking in business apps
Supply chain sustainability software needed for green IT strategy
SAP's Wookey outlines the company's on-demand ambitions
How to attain high availability for SAP and local area networks
Keys for SAP customers on SAP's product strategy going forward
Sapphire videos: SAP customers talk about application strategies in '09
Focus on growth, business processes helps users stay afloat in the downturn
ASUG's plans for 2009 include finding new CEO, more software influence
SAP co-founder: Hardware will change the way SAP develops software

RELATED GLOSSARY TERMS
Terms from Whatis.com − the technology online dictionary
SAP Exchange Infrastructure  (SearchSAP.com)
SAP Integration Adapter  (SearchSAP.com)
SAP Integration Repository  (SearchSAP.com)
SAP Integration Server  (SearchSAP.com)

RELATED RESOURCES
2020software.com, trial software downloads for accounting software, ERP software, CRM software and business software systems
Search Bitpipe.com for the latest white papers and business webcasts
Whatis.com, the online computer dictionary



SAP Training & Employment
HomeNewsTopicsBlogsTipsAsk the ExpertsMultimediaWhite PapersProducts
About Us  |  Contact Us  |  For Advertisers  |  For Business Partners  |  Site Index  |  RSS
SEARCH 
TechTarget provides technology professionals with the information they need to perform their jobs - from developing strategy, to making cost-effective purchase decisions and managing their organizations' technology projects - with its network of technology-specific websites, events and online magazines.

TechTarget Corporate Web Site  |  Media Kits  |  Site Map




All Rights Reserved, Copyright 2000 - 2009, TechTarget | Read our Privacy Policy
SearchSAP.com is a search service provided by TechTarget and is completely
independent of and not affiliated with SAP AG.
  TechTarget - The IT Media ROI Experts