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Posted by Site Administrator on July 14, 2009
By Stefan Ried
Software AG acquires Business Process Modeling Expert IDS Scheer
IDS Scheer is a business process consulting firm with only 19% revenue contribution of its licensed software products. Although the public perception was dominated by the product positioning, this fact justified the relative low price based on its € 399 million total revenue in 2008. The ARIS product family is a leading business process modeling tool that mainly resonates to the European culture along the separation of business process analysis and planning from the implementation in a BPM system or another traditional IT system. While US customers tend to use more the modeling tools provided by the BPM runtime engines. IDS managed to gain significant market share with non-technical business analysts. The ARIS process modeling is complementary to Software AG’s current BPM offering and a natural fit for the European market. IDS Scheer’s second product branch called ARIS Business Performance Edition is a BPM runtime monitoring which observed the process performance of BPM runtime environments. Software AG has to figure out how to capitalize this asset as it overlaps with the Business Activity Monitoring (BAM) solution which was acquired via Software AG’s first major acquisition of WebMethods in 2007.
Is it a good fit?
First of all, it is an extension of Software AG’s professional services division. After the first serious attempt of recovering this branch of the company with the former Executive board member Holger Friedrich failed, this is the second and pretty promising trial. See more Forrester reports coming up from Stefan Ried around these aspects and the impact to the BPM market by Clay, Ken and Connie.
Impact on Partnerships and Distribution Channels
IDS Scheer established partnerships since a long time with SAP, and more recently with Oracle and Microsoft. Until now, these partnerships has been a great sales channel for their products and created leads for consulting activities as IDS was not offering a BPM runtime engine. It was therefore complementary to these major business process platform vendors. However, the merger with Software loads all formerly clear complementary partnerships with a competitive burden. SAP missed again an acquisition which would have been a great fit to their portfolio as well. Software AG has now a major door into SAP’s install base heavily using ARIS in Europe and can sell the WebMethods integration stack aggressively against NetWeaver.
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