Acquisition Project
Update
Name, Title
[Your Company Here]
Date Here
Your Logo Here
Your Copyright here, Year
Project 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
Your Logo Here
Your Copyright here, Year
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
Your Logo Here
Your Copyright here, Year
4 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
Your Logo Here
Your Copyright here, Year
Research 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
Your Logo Here
Your Copyright here, Year
Insights 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
Your Logo Here
Your Copyright here, Year
Business 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
Your Logo Here
Your Copyright here, Year
Trend 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 ecommerce
0
5
0
0
I2 Techn.
40%
Commerce One
40%
EAI
5
0
0
1
Silverstream
90%
SI
9
3
1
1
Computer
Associates
14%
Sierra Sys.
14%
Your Logo Here
Your Copyright here, Year
Trend analysis level 2
Category
# of entries
# with vision
# with product
“available”
candidates
ASF
5
2
1
Broadvision
CRM
12
3
0
Siebel
PeopleSoft
Clarify
B2B
7
3
0
Oracle
Onyx
e-commerce
Ariba
EAI
18
6
2
Vitria
Candle
Crossworlds
Macola
SI
34
1
0
Bluestone
Your Logo Here
Your Copyright here, Year
Trend analysis level 3
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
Bluestone
0
Partnering
SI
Your Logo Here
Your Copyright here, Year
Trend analysis level 4
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
Oracle
-
B2B e-commerce
Onyx
-
B2B e-commerce
Ariba
Equity
Vitria
-
EAI
Candle
-
EAI
Crossworlds
-
EAI
Macola
-
Bluestone
-
B2B e-commerce
EAI
SI
< 10M / equity
28M – 1.3B
1M – 1.3B
-
Cash
Cash
Your Logo Here
Your Copyright here, Year
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
Your Logo Here
Your Copyright here, Year
Primary 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
Your Logo Here
Your Copyright here, Year
CRM 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 webenabled

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
Your Logo Here
Your Copyright here, Year
ASF 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
Your Logo Here
Your Copyright here, Year
EAI 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




Hitachi



Software division has strong Business Process integration knowledge and capability
No product comparable with [our product]
Candle



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
Strong integration tool, IT developer focussed
No acquisition and investment activity, extensive partnering activity
Crossworlds

Focus on software development, not ready to ship product
Your Logo Here
Your Copyright here, Year
B2B 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
Your Logo Here
Your Copyright here, Year
SI 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
Your Logo Here
Your Copyright here, Year
Specific 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
Your Logo Here
Your Copyright here, Year
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
Your Logo Here
Your Copyright here, Year
Recommendations
[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