The IT management software and operations communities have been buzzing this week about reports that Microsoft acquired IT process automation vendor Opalis Software. We have unequivocally confirmed that this rumor is incorrect. Opalis has NOT been acquired by Microsoft. It remains an independent entity, at least for now.

Opalis, based outside of Toronto, has repeatedly reported impressive revenue growth over its short history. For the past few years, it has been a desirable morsel for larger vendors seeking to add strong process automation to their portfolios. Many have expressed interest, but its success allows Opalis to command a high premium that no suitor has yet been willing to pay.

This
past Tuesday Autodesk conducted its annual Manufacturing Analyst Day event in
Lake Oswego, Oregon, and I had the opportunity to catch up with executive
leaders across the company’s spectrum of product brands (i.e. Alias for
conceptual design, AutoCAD and Inventor for engineering design, and, more
recent acquisition additions, MoldFlow and Algor for simulation). Contrary to
my original perception that Autodesk offers affordable, no-frills product design
tools to lots of smaller, mom-and-pop companies, I learned that their business
is significantly shifting to include more direct sales to large,
enterprise-level manufacturers like Intel, Nestle, and Parker Hannifin. In
fact, approximately a quarter of Autodesk’s manufacturing business now comes from
customers with over $2 billion in annual revenues, and it’s their fastest
growing segment within this vertical.

By Clay Richardson

Time flies when you're having fun - and 2009 was a really fun and successful year for the BPM industry.  Nearly all BPM vendors reported double digit revenue growth over the first three quarters of 2009 and many are already reporting strong pipeline growth for 2010.  Most importantly, some BPM practitioners are beginning to reign in the bloat and complexity traditionally associated with BPM implementations.  

At Forrester’s Services & Sourcing Forum earlier this month in Chicago, Patrick Connaughton and Duncan Jones led a breakout session on common problems with software selection, organizing the selection process, and negotiations strategy. Below are some tips from clients and vendors at the session.

Plan ahead
One client recommended plotting the next 90 days of negotiation milestones in order to plan sourcing’s involvement. This helps you structure your approach so that you close the deal at the point when you have the best leverage. Formalizing and documenting the process also helps you demonstrate to the business that you did your homework.

Get involved before the vendor selection phase
Establish the value of what you do and let the business know how you can help throughout the process. Bring information the VPs don’t have, like benchmarking. The earlier you are brought in, the more you can plan ahead, and the better your understanding of what is important to the business before you meet with vendors.

Focus on differentiators
The RFP process is so mature that vendors often respond in a way that highlights themselves without showing any real differentiators. Don’t just use packaged, boilerplate RFPs — pare down the criteria to reflect what’s important to you.

You have more leverage as an early adopter, and when replacing a competitor
In both cases the vendor is likely to send the A-team and to concede higher discounts. The vendor may see you as a potential marquis client that can act as a reference and even speak at events.

Look beyond the typical references