your logo here your copyright here, year acquisition project update name, title [your company here]...

Your Logo HereYour Copyright here, Year

Acquisition Project Update

Name, Title[Your Company Here]

Date Here


Project FocusProject Focus

Identify and evaluate trends in integration of

software systems using business process

workflow approach

Evaluate potential candidates for participation

in [Product] spin-off

Validated opportunities for engagement

scenarios with specific potential partners


Methodology Methodology

Used two assessment and qualification levels

Initial on-site meeting to validate progress,

attain direction and continue refinement

Basis: Determine receptiveness in the market

place for a process-centric Integration

product

Broad view of target product categories


4 perspectives of analysis4 perspectives of analysis

Partnering activity and trends among players in the 5

categories

Profiling on acquisition, investment and merger activity

Expanded scope to conduct company vision and product

review

Confirmed breadth and depth of vision for integration


Research HighlightsResearch Highlights

4 Value Characteristics for our product line: Vision, process centric,

lack of tool, competitive positioning

Still first to market with pure “business, process, workflow integration

product” solution for our value characteristics

Market focus is on trading marketplaces and [product category]

TAC’s focus is on supporting [product] tasks

Tool vendors are most active in competitive investments

Primary target partner in enterprise space are also acquisition

candidates


Insights to Partner StrategyInsights to Partner Strategy

Most aggressive partnering (through acquisitions) in first half of 2003 occurred

among leading organizations (in TAC segments)

Leaders think as enablers and partner with many organizations in and around

their vertical in order to create their market space rather than fill existing

apparent holes

Leaders recognize the value of investing in, acquiring, partnering with niche

players that extend their portfolio in a competitive direction

Leaders create market spaces and enjoy first-to-market advantage by delivering

enabling technology and devices ahead of the existence of well-developed

vertical applications and content partnerships


Business DriversBusiness Drivers

Consolidation pressures to retain leading position in the segment.

Broadening of [product market] concept on customer side requires expanding functionality and updating architecture to enable ASP model

Partnering with key customers and vendors to share costs, development and marketing efforts

Result provides instant referenceable customer(s) upon release of a new product or service, thus increasing probability of success

Partnering with well-known / name-brand suppliers and device manufacturers to jointly offer solutions the marketplace can take advantage of

Return on investment. Most have established investment pools, the firms try to control the entire channel by investing in / acquiring key channel organizations

Leaders have developed partner support groups to provide hands-on technical and business guidance to organizations that want to utilize their technology, ensuring that opportunities are fully exploited


Trend analysis level 1Trend analysis level 1

Category Acquisition Acquired by

other

Merger Investment Most active Share

ASF 8 1 0 0 BEA 75%

CRM 3 1 0 0 PeopleSoft 50%

B2B e-

commerce

0 5 0 0 I2 Techn.

Commerce One

40%

40%

EAI 5 0 0 1 Silverstream 90%

SI 9 3 1 1 Computer

Associates

Sierra Sys.

14%

14%



Category # of entries # with vision # with product “available”

candidates

ASF 5 2 1 Broadvision

CRM 12 3 0 Siebel

PeopleSoft

Clarify

B2B

e-commerce

7 3 0 Oracle

Onyx

Ariba

EAI 18 6 2 Vitria

Candle

Crossworlds

Macola

SI 34 1 0 Bluestone



Category “available” candidates # of activities Direction of

interest

ASF Broadvision 2 acquisitions

CRM Siebel 1 acquisition E-commerce

CRM PeopleSoft 2 acquisitions CRM and

CRM Clarify Acquired by Nortel

B2B e-commerce Oracle 0 E-commerce

B2B e-commerce Onyx 0 E-commerce

B2B e-commerce Ariba 1 acquisition Trading tech.

EAI Vitria 0 Partnering

EAI Candle 0 Partnering

EAI Crossworlds 0 Partnering

EAI Macola 0 Partnering

SI Bluestone 0 Partnering



Category Range value of

deal

Preference Candidate Preference

ASF Unavail Unavail. Broadvision Equity

CRM 450 M / equity Equity Siebel 444M

CRM PeopleSoft Unavail

CRM Clarify Unavail

B2B e-commerce < 10M / equity - Oracle -

B2B e-commerce Onyx -

B2B e-commerce Ariba Equity

EAI 28M – 1.3B Cash Vitria -

EAI Candle -

EAI Crossworlds -

EAI Macola -

SI 1M – 1.3B Cash Bluestone -


Implications for [Your Company]Implications for [Your Company]

First to market opportunity for NEWCO within [market]

Business drivers are aligned with revenue and stated market penetration

objectives

Number 2 position in ASF and EAI category likely to be receptive to

partnering offer that provides opportunity to differentiate

Mixed partnerships will leverage NEWCO’s efforts and ensure market

penetration

BUT: Partnering trends show preference for acquisitions to control

competitive functionality, not shared access!

Partners in NEWCO should therefore be carefully selected to avoid

competitive complications


Primary Partner TargetsPrimary Partner Targets

eCRM, B2B trading exchanges and EAI tool vendors

Ariba, Bluestone Consulting and Broadvision are the clear choices

BEA Systems is the leader in EAI space, others are lagging by

substantial lengths

Tibco in the infrastructure arena

System Integrators are secondary, but should be involved for

distribution to verticals

The time is NOW , and the window of opportunity is short


CRM TrendsCRM Trends

Products are moving to the web. Concept is broadening to view the relationship from the

perspective of the consumer. New entrants are using ASP models and are fully web-

enabled

Distinct split between enterprise and mid-market offerings. New entrants are addressing

small to mid market needs

Shifting concepts about consumer interaction cause shift in product (company) positioning

Offerings are beginning to implement self-service model

Connectivity beyond the HR and marketing systems still not implemented

PeopleSoft expanding from HR to include CRM, Call Center capability through Vantive

Nortel Networks expanding to include CRM for the enterprise through Clarify


ASF TrendsASF Trends

Partnering focused more on extending capabilities and assuring compatibility

BEA Systems Serious direction setting in component and consulting partnering

Serious commitment to EJB and middleware integration - 6 of 6 partnerships in this area

“The automation workflow co.” acquisition will accelerate development of sophisticated workflow modules

Vignette Up and comer in ASF – acquiring its way into number 2 position through Oberon integration

Commitment to EAI and infrastructure – purchased On Display

Lack of stated vision with respect to business level process integration tools

Broadvision Partnering with ASP and “Advocate Partners” in addition to traditional VAR, consulting and technology

Focus on streamlining and improvement of efficiency through e-commerce solutions


EAI TrendsEAI Trends

Partnering activity was mostly acquisition oriented. Most energy is spent on enabling IT to provide integration services to business departments through messaging, app. server and other solutions.

TibCo Expanding from strong middleware position to include process and application integration capability No acquisitions, partnerships with strong enterprise level application vendors (Siebel, Clarify etc.) Only EAI to provide serious Business Process modeling capability

Hitachi Software division has strong Business Process integration knowledge and capability No product comparable with [our product]

Candle Strong integration tool, IT developer focussed No acquisition and investment activity, extensive partnering activity

Crossworlds Focus on software development, not ready to ship product


B2B e-commerce TrendsB2B e-commerce Trends

Onyx

Only b2b with business process integration vision among B2B vendors today.

Partnering predominantly with front office e-commerce type companies

No acquisitions or investments during review period

Ariba Significant press coverage through IBM – i2 deals

Heavy partnering activity during fall winter/spring 2000

Only one acquisition in this period

CommerceOne Acquiring to enhance portfolio of technologies and functionality

Partner orientation toward global system integrator

I2 Technologies Almost no content partners

Just announced (March) big deal with IBM and Ariba for Automotive marketplace

implementation


SI Company TrendsSI Company Trends

Most organizations appear to be ‘stuck’ in providing integration services to IT,

certainly in the mid-market segment

Bluestone Consulting Most active in partnering for strategic positioning, possibly because closer to a software

developer than a pure integrator.

Only one with explicitly stated vision of integration from a business process perspective

Comprehensive Systems orientation, no specific vertical

Sierra Systems Actively acquiring, but focused on specific vertical: geographic mapping and planning systems

Computer Associates Acquiring capability to develop e-commerce presence through “bizworks” product line

Significant size deals: Sterling Software (4B in equity), Platinum Technology


Specific ObservationsSpecific Observations

Number of firms with explicit statement of vision and product for BPI is relatively small.

BUT: each category has a leader that has developed specific functionality similar to

[product], leaving others to catch up

Most activity is concentrated on acquisitions as a way to jockey for position

Most EAI energy is spent on enabling IT to provide integration services to business

departments through messaging, app. server and other solutions.

Firms with well-developed business / partner development & support organizations and

investment funds will dominate the market

Providers of enabling tools, data and technology MUST creatively partner to help propagate

end-user / vertical applications that utilize their product or be swept aside by those who do


Lack of Action=Lost Opportunity Lack of Action=Lost Opportunity

In this highly competitive marketplace, first-to-market advantage will only be held by

firms delivering enabling technology that provides real world solutions

Caused by the direction set by the leaders in each category, there is natural demand for

[product] like capability to hold on to, and bypass the current secondary position many

of the candidate are in

The key players in the market MUST ACT NOW or forever lose out on these

opportunities, and potentially, on survival


RecommendationsRecommendations

[Our Company] Should: Recommended target partners

Recommended Target Acquisition Companies

Dual strategy partners in both categories to ensure viability with lowest risk

Timeframe here

your logo here your copyright here, year acquisition project update name, title [your company here]...

Documents

product market concept

product review

product line

new product

integration slide

market advantage

year project focus

year insights