Enterprise Application Integration (EAI) Market Opportunities, Strategies, and Forecasts, 2007 to Enterprise Application Integration (EAI)

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1 Enterprise Application Integration (EAI) Market Opportunities, Strategies, and Forecasts, 2007 to 2013 Enterprise Application Integration (EAI) Picture by Susie Eustis MOUNTAINS OF OPPORTUNITY WinterGreen Research, Inc. Lexington, Massachusetts

2 CHECK OUT THESE KEY TOPICS ENTERPRISE APPLICATION INTEGRATION (EAI) MARKET SHARES Enterprise Application Integration Market Forecasts Business Integration Industry Trends Coordinating Activities Via EAI Issues Relating To Implementing An EAI Solution Need For Integration Software SERVICE ORIENTED ARCHITECTURE AND WEB SERVICES BUSINESS INTELLIGENCE BUSINESS ACTIVITY INTEGRATION APPLICATION INTEGRATION TECHNICAL ADVANTAGES OPEN SYSTEMS JAVA WEB SERVICES PROTOCOLS ENTERPRISE INTEGRATION ANALYSIS APPLICATION INTEGRATION FUNCTIONALITY SOFTWARE ENGINES OPPORTUNITY ABOUNDS OPPORTUNITY ABOUNDS WinterGreen Research, Inc. Lexington, Massachusetts

3 Enterprise Application Integration (EAI) Market Opportunities, Market Forecasts, and Market Strategies, Application Integration is used to shape flexible business systems. Integration is the fundamental layer of IT infrastructure, providing connectivity across applications and across platforms. EAI software license markets are growing as the Internet dominates e-commerce channel adoption. Supply chain automation is a market driving force. Integration of applications by the financial services industry has not been dented. Efficient process consolidation is supported by EAI middleware. EAI software solutions are used to support software developed in-house to enable the rapid construction of Web portals and other Web-based systems. Typical implementations are related to systems running on a mixed group of servers, under different operating systems. Application and business integration is used to form business systems that are flexible. The changing business climate is a central concern for IT departments. The ability to create products that allow for efficient and quick response to changing business conditions is the basis for EAI vendor strategy. Businesses today face a serious and widening information "Integration Gap" between system integration demands and their ability to meet these demands. Hand coding is less expensive than packaged integrations software in the short term. Packaged applications efficiently accomplish the basic broker and adapter functions needed for integration. Business processes are automated using eai systems. Further EAI functionality is achieved via extract, transform, and load functions. The application integration markets have migrated to another level of functionality. EAI is synonymous with the infrastructure for business integration (BI). As the application vendors begin to support connectivity across applications and across platforms, the integration markets are moving to another level of functionality providing business automation. Worldwide application integration software markets at $4.6 billion in 2006 grew substantially as vendors were able to leverage the EAI expertise to provide competitive advantage from middleware infrastructure. Markets are anticipated to reach $11.5 billion by 2013.

4 Companies Profiled Market Leaders IBM Tibco Applied Technology Cape Clear Fusionware Oracle Progress Software Savvion webmethods Market Participants BEA Fiorano IONA PolarLake SOA Software Vitria

5 Enterprise Application Integration (EAI) Strategies and Forecasts, REPORT METHODOLOGY THIS IS THE 297TH REPORT IN A SERIES OF MARKET RESEARCH REPORTS THAT PROVIDE FORECASTS IN COMMUNICATIONS, TELECOMMUNICATIONS, THE INTERNET, COMPUTER, SOFTWARE, TELEPHONE EQUIPMENT, HEALTH EQUIPMENT, AND ENERGY. THE PROJECT LEADERS TAKE DIRECT RESPONSIBILITY FOR WRITING AND PREPARING EACH REPORT. THEY HAVE SIGNIFICANT EXPERIENCE PREPARING INDUSTRY STUDIES. FORECASTS ARE BASED ON PRIMARY RESEARCH AND PROPRIETARY DATA BASES. FORECASTS REFLECT ANALYSIS OF THE MARKET TRENDS IN THE SEGMENT AND RELATED SEGMENTS. UNIT AND DOLLAR SHIPMENTS ARE ANALYZED THROUGH CONSIDERATION OF DOLLAR VOLUME OF EACH MARKET PARTICIPATION IN THE SEGMENT. INSTALLED BASE ANALYSIS AND UNIT ANALYSIS IS BASED ON INTERVIEWS AND AN INFORMATION SEARCH. MARKET SHARE ANALYSIS INCLUDES CONVERSATIONS WITH KEY CUSTOMERS OF PRODUCTS, INDUSTRY SEGMENT LEADERS, MARKETING DIRECTORS, DISTRIBUTORS, LEADING MARKET PARTICIPANTS, OPINION LEADERS, AND COMPANIES SEEKING TO DEVELOP MEASURABLE MARKET SHARE. OVER 200 IN DEPTH INTERVIEWS ARE CONDUCTED FOR EACH REPORT WITH A BROAD RANGE OF KEY PARTICIPANTS AND INDUSTRY LEADERS IN THE MARKET SEGMENT. WE ESTABLISH ACCURATE MARKET FORECASTS BASED ON ECONOMIC AND MARKET CONDITIONS AS A BASE. USE INPUT/OUTPUT RATIOS, FLOW CHARTS, AND OTHER ECONOMIC METHODS TO QUANTIFY DATA. USE IN-HOUSE ANALYSTS WHO MEET STRINGENT QUALITY STANDARDS. INTERVIEWING KEY INDUSTRY PARTICIPANTS, EXPERTS AND END-USERS. OUR RESEARCH INCLUDES ACCESS TO LARGE PROPRIETARY DATABASES. LITERATURE SEARCH INCLUDES ANALYSIS OF TRADE PUBLICATIONS, GOVERNMENT REPORTS, AND CORPORATE LITERATURE. YOU MUST HAVE THIS STUDY

6 Enterprise Application integration (EAI) Market Opportunities, Strategies, and Forecasts, 2007 to 2013 Table of Contents ENTERPRISE APPLICATION INTEGRATION (EAI) EXECUTIVE SUMMARY ENTERPRISE APPLICATION INTEGRATION (EAI) EXECUTIVE SUMMARY Application Integration Used To Shape Flexible Business Systems IBM WebSphere MQ And Integrator Broker For Multiplatforms SOA Components Application And Business Integration Enterprise Application Integration EAI Company Market Segment Analysis Enterprise Application Integration EAI Market Shares Worldwide Application Integration (EAI) Software License, Services, and Maintenance Market Shares Enterprise Application Integration (EAI) Market Forecasts ES-1 ES-1 ES-1 ES-6 ES-6 ES-13 ES-15 ES-15 ES-17 ENTERPRISE APPLICATION INTEGRATION (EAI) MARKET DESCRIPTION AND MARKET DYNAMICS 1. ENTERPRISE APPLICATION INTEGRATION (EAI) MARKET DESCRIPTION AND MARKET DYNAMICS Brokers Business Integration Industry Trends Middleware Definition Key Missions Of EAI Continued Demand For Business Integration Software Issues Relating To Implementing An EAI Solution Partner Support Partners And Strategic Relationships Coordinating Activities Via EAI Infrastructure Value Value Of Integration Reducing Costly Errors Maximizing Operational Efficiency Faster Time to Market Improved Employee Productivity Connecting Enterprise Applications Linking Internal Operations Need For Integration Software Access And Analysis Of Real-Time Data Flowing Through The Integrated Information Systems Business Activity Monitoring EAI Defines Business Processes Service Oriented Architecture and Web Services Service Oriented Architecture Web Services 1-28

7 1.6.3 Internal Business Transformation and Efficiency Initiatives Innovation Initiatives Integration Service Providers EAI Uses Mainframes to Implement Real Time Processing Real Time XML And FTP Product Function Parity EAI Integration of ERP and Distributed Information Lack Of Standardization Data Mapping Specialists Standardization Of General Ledger Interfaces Design Of Data Paths Cost Savings Business Intelligence Extended Business Processes EAI Installation Teams Business Imperatives Businesses Activity Integration Integration of Other Technologies Enterprise Application Integration Solutions Creating Advanced E-Business Infrastructure Application Integration Technical Advantages Application Integration Business-Oriented Advantages Reducing Costs Addressing A Complex Marketplace Better Customer Service Application Integration Market Drivers Internet As A Sales Channel Internet Commerce Complexity Of Integrating Internal And External Systems Choice Of Systems - Site Visits Automating Business Processes Change In Integration Markets Rapid, Reliable, Scalable Integration Solutions Automated Solutions Requirements Routing And Communication Message Brokers Transformation Solutions Broker Agent Architecture Multicasting Web-Based Applications Record-Keeping Inside Applications Uses Of Application Integration Comprehensive Storage Solutions EAI Application Integration Middleware Platform Products Middleware Broker 1-90 ENTERPRISE APPLICATION INTEGRATION (EAI) MARKET FORECASTS 2. ENTERPRISE APPLICATION INTEGRATION (EAI) MARKET FORECASTS Application Integration Core Process Market Driving Forces WebSphereMQ and Tibco Transport Layer Achieve Mission Critical Functionality Enterprise Application (EAI) Integration Of E-Business Market Driving Forces For Real Time Exchange of Information 2-7

8 2.1.4 Typical EAI Integration Projects EAI Business Environment Market Drivers Enterprise Application Integration EAI Company Market Segment Analysis Enterprise Application Integration EAI Market Shares Worldwide Application Integration (EAI) Software License, Services, and Maintenance Market Shares Worldwide Application Integration (EAI) Software License Market Shares Worldwide Application Integration (EAI) Software Maintenance and Services Market Shares IBM Application Integration Market Share Analysis Value of WebSphereMQ, DataPower, and WebSphereMQ Broker IBM SOA Model SOA Components Use IBM WebSphereMQ IBM WebSphere Application Server Leverages Java Technology as a Stack Microsoft Adapters Top Competitors IBM, Tibco, WebMethods, and BEA EAI Platforms Tibco webmethods Sun / SeeBeyond GXS Transformation Engine BEA Vitria Sun / SeeBeyond Sybase FioranoMQ Kabira Enterprise Application Integration (EAI) Market Segment Analysis EAI Process Component Segments By Vendor Competitive Factors Affecting The EAI Market Enterprise Application Integration (EAI) Market Forecasts Application Integration Market Trends Mainframe Significantly Less Expensive than Distributed Computing Environments Internet Impact IT Department Need For EAI SOA Represents The Implementation Of Process From The Desktop Stack Based vs. Decoupled WebSphereMQ Mission Critical Messaging Approaches to EAI Solutions Tibco Mainframe Integration Broker Automation of Business Interactions webmethods Fabric Broker Cost, Time And Resources Required To Create And Maintain Integration In A Rapidly Changing Environment Application Connectivity Infrastructure Enhances E-Business Business Process Management Business Process Management Broker License Market Shares Business Process Management Broker Services and Maintenance Market Shares Business Process Management Broker License, Services, and Maintenance Market Shares Business Process Management Market Forecasts Business Process Management Productivity Improvement and Compliance EAI SOA Components EAI Brokers For Routing And Rules Implementation ESB Brokers For Routing And Rules Implementation License Market Share 2-84

9 2.9.2 ESB Brokers For Routing And Rules Implementation Services and Maintenance Market Share ESB Brokers For Routing And Rules Implementation License, Services, and Maintenance Market Share ESB Brokers For Routing And Rules Implementation License, Services, and Maintenance Market Forecasts EAI Service Oriented Architecture Markets EAI Transformation Markets E-Business Internet Users E-Business B2C Global Exchange Services Direction Of EAI Markets Enterprise Application Integration Segment Analysis EAI Regional Analysis Enterprise Application Integration (EAI) For Back End Systems EAI Industry Segments Enterprise Application Integration (EAI) For Front End Systems Customer Service Partner Business Drivers Business Process Integration Integration Of Business Processes Impact Of Mergers And Acquisitions Expand Strategic Partnerships Electronic Commerce Vendors With A Broad Suite Of Products Total Segments By Vendor EAI Integration Broker Segment Market Analysis Application Integration Challenges Application Integration (EAI) Business Benefits Network Services ENTERPRISE APPLICATION INTEGRATION MIDDLEWARE SOFTWARE MODEL PRODUCT DESCRIPTION 3. ENTERPRISE APPLICATION INTEGRATION MIDDLEWARE SOFTWARE MODEL PRODUCT DESCRIPTION Business Integration Foundation Systems IBM Application Integration Middleware IBM WebSphere Business Integration Server Foundation IBM SOA Model SOA Scenario Reference Architecture Tibco Automation of Business Integration webmethods Fabric Sun Java Composite Application Platform Suite (Java CAPS) Business Process Management Systems IBM Business Integration Middleware Tibco BusinessWorks Automation of Business Interactions Tibco BusinessWorks Tibco Small And Medium Business Integration Positioning Tibco BusinessPartner Software TIBCO PartnerExpress 3-40

10 3.2.7 webmethods Fabric Business Process webmethods Trading Networks Framework Of webmethods Trading Networks B2B Standards Support webmethods Trading Networks Process Lifecycle Management webmethods Trading Partner Management webmethods Trading Networks Graphical Mapping and Transformation webmethods Trading Networks Dynamic, Rule-based Document Processing webmethods Trading Networks Flexible Transport Framework webmethods Trading Networks EDI Support webmethods Fabric WebMethods Broker WebMethods Load Balancing Sun One EAI Integration Server Sun / SeeBeyond ICAN Suite Sun einsight Business Process Manager Sun einsight Enterprise Service Bus Adapters Sun evision Studio Sun eportal Composer Sun etl Integrator Sun exchange Integrator Sun eview Studio SeeBeyond eindex Global Identifier Sun ebam Studio BEA / AquaLogic / Fuego BEA EAI Solution on WebLogic Server BEA WebLogic Integration BEA WebLogic Portal BEA WebLogic Workshop Vitria BusinessWare for Business-to-Business Integration (B2B) Vitria Business Process Management Vitria BusinessWare Messaging Transport-Independence ESB Backbone IBM Enterprise Service Bus Products IBM WebSphere Message Broker Toolkit IBM WebSphere MQ Broker IBM ESB Configuration Manager IBM WebSphere Broker User Name Server WebSphere DataPower ESB SOA Appliances WebSphere DataPower Integration Appliance XI WebSphere DataPower XML Security Gateway XS WebSphere DataPower XML Accelerator IBM WebSphere Enterprise Service Bus (ESB) Fiorano Enterprise Service Bus Progress Software s Sonic ESB Cape Clear Iona Technologies SOA Workflow Solution IBM SOA Workflow Solution for Global Markets IBM SOA Workflow Solutions Overhauling Business Processes IBM Integration Flexibility IBM SOA Workflow Solution Implementation Saving money with BPM and SOA 3-112

11 3.4.6 IBM WebSphere Business Integration WebSphere Software Transaction Management and Integration IBM EAI WebSphere Integration IBM EAI WebSphere Industry Specific Integration IBM Integration Modules IBM Integration Vertical Industry-Specific Solutions IBM EAI for Manufacturing IBM WebSphere Business Integration Server IBM WebSphere Business Integration Systems Fiorano Fiorano ESB FioranoMQ Fiorano BPEL Fiorano Business Components & Adapters Fiorano Process Orchestration Tools Fiorano BPEL Editor Fiorano Software SOA Integration Backbone Solutions Progress Software / Sonic SOA Suite Sonic Software Extends SOA Infrastructure Vitria SOA Business Process Management Microsoft SOA BizTalk Server SOA Adapter Solution Microsoft SOA Underlying Technologies Microsoft Web Services Microsoft BizTalk Server SOA Implementation Microsoft BizTalk Integration Core Architecture Microsoft BizTalk Capabilities Microsoft BizTalk Application Integration Microsoft BizTalk Connecting Systems Microsoft BizTalk Adapters For Sending and Receiving Messages Microsoft BizTalk Web Services Adapter Microsoft BizTalk Server Broker for Managing Applications Mission Critical Messaging IBM WebSphere MQ IBM WebSphere MQ Assured Delivery IBM WebSphere MQ End-To-End Security: IBM WebSphere MQ Web Services IBM WebSphere MQ File Transfer: IBM WebSphere MQ Clustering: WebSphereMQ SOA Middleware Decouples Messages And Can Be Used To Implement Flexible Infrastructure Progress Software SonicMQ Mission Critical Messaging Progress Software Sonic Mission Critical Messaging Tibco Enterprise Message Service Tibco Enterprise Message Service Benefits Tibco Enterprise Message Features Tibco Rendezvous HTTP-based Tibco Rendezvous Administrative Console Architecture Tibco SmartSockets Tibco SmartPGM Tibco SmartPGM FX WebMethods Standards-based Messaging Infrastructure WebMethods Message-Oriented Interactions 3-173

12 WebMethods Message Filters Dashboards Support Integration IBM Workplace Dashboards IBM Workplace Sales Dashboards IBM PartnerWorld Dashboards MQSoftware Customized Business Dashboard MQSoftware Qnami! Dashboards webmethods Dashboard Visibility Into Key Performance Indicators webmethods Dashboard Integration Platform BEA Dashboards BEA Liquid Data for WebLogic BEA WebLogic Enterprise Liquid Computing SOA Platform BEA Dashboard Liquid Data For WebLogic Metastorm / CommerceQuest Dashboard EAI Transformation Modules EAI Application Integration Content Transformation Extract, Transform And Load (ETL) Message Brokering Transformation IBM WebSphere Information Integration IBM WebSphere Data Transformation IBM WebSphere Data Transformation and Integration IBM WebSphere Transformation Software Information Management GXS Trading Community Connectivity GXS Application Integration Transformation GXS Interchange Solutions GXS Data Transformation GXS Enterprise System GXS Application Integrator GSX Transformation Engines Tibco BusinessWorks SmartMapper Transformation Tibco BusinessWorks SmartMapper Benefits Tibco DataExchange Tibco Transformation Templates Tibco Transformation Templates User-friendly Graphical Interfaces Progress Software Sonic Software Extends SOA Infrastructure SOA Middleware Engines IBM SOA Middleware IBM WebSphere SOA Business Integration Foundation SOA Foundation Reference Architecture IBM WebSphere Business Integration Human Workflow Support IBM WebSphere Business Integration Back-End System Connectivity IBM SOA Workflow Solution for Global Markets IBM SOA Workflow Solutions Overhauling Business Processes IBM Integration Flexibility IBM SOA Workflow Solution Implementation Tibco ActiveMatrix SOA Tibco Frameworks Tibco Automating Business Interactions webmethods SOA Fabric Broker webmethods Accelerates SOA Adoption webmethods Infravio X-Registry BEA Fuego SOA BPM suite 3-250

13 BEA Fuego SOA Oracle Oracle Shift to Service-Oriented Architecture Fiorano Fiorano ESB FioranoMQ Fiorano BPEL Fiorano Business Components & Adapters Fiorano Process Orchestration Tools Fiorano BPEL Editor Fiorano Software SOA Integration Backbone Solutions Progress Software / Sonic SOA Suite Sonic Software Extends SOA Infrastructure Vitria SOA Business Process Management Services Oriented Applications (SOA) Components Adapters IBM WebSphere Infrastructure Components Core SOA Processes Leverage IBM Mainframe CICS Transaction Server IBM WebSphere Components Tibco SOA BPM Components Tibco Information Bus Architecture Microsoft SOA BizTalk Server SOA Adapter Solution Microsoft SOA Underlying Technologies Microsoft Web Services Microsoft BizTalk Server SOA Implementation Microsoft BizTalk Integration Core Architecture Microsoft BizTalk Capabilities Microsoft BizTalk Application Integration Microsoft BizTalk Connecting Systems Microsoft BizTalk Adapters For Sending and Receiving Messages Microsoft BizTalk Web Services Adapter Microsoft BizTalk Server Broker for Managing Applications Sun ONE Integration Server Microsystems EAI BEA / Fuego SOA Software BEA Fuego Business Process Management EAI Monitoring IBM BPM Monitoring IBM SOA Monitoring BMC EAI Monitoring MQSoftware QNami! WebMethods BPM System Monitoring ENTERPRISE APPLICATION INTEGRATION (EAI) PROCESS TECHNOLOGY 4. ENTERPRISE APPLICATION INTEGRATION (EAI) PROCESS TECHNOLOGY Open Systems Open Web Services Technology Open Standards To Define A Common Event Open Systems Service Oriented Architecture (SOA) IBM Service Oriented Architecture (SOA) SOA Business Challenge IT Imperative Service-Oriented Architecture And Relevant Standards 4-7

14 4.3 Java AI Vendor Commitment To Java Advantages Of Java In Context Of Application Integration J2EE (Java Platform) Java Single Application Development EAI Vendor Commitment To Java Advantages Of Java In Context Of Application Integration J2EE Standardization Web Services Protocols Web Services Soap Apache Soap Load Balancer With SSL Support Points Of Failure Soap Limitations WSDL WSDL Service Descriptions UDDI Registry UDDI Test Registries UDDI Distributed Web Service Discovery UDDI Consortium WS-Inspection Document Extensibility XSLT OASIS ebxml ebxml And Open Applications Group OAGIS Standards EBXML Standard XML Integration Engines Leverage XML Processing XML Standards XML Role In Application Topology XML Meets The Integration Challenge XML Standard Communication Language Web Services Protocols Soap Apache Soap Load Balancer With SSL Support Points Of Failure Soap Limitations Advantages Of Buying Compared To Building Middleware Mainframe Technologies / Enterprise Servers Legacy Transport Messaging Technologies Process Management Standards Transaction Processing Facility (TPF) Enterprise Integration Analysis EAI Business Benefits Event Management Event Transmission Business Process Automation Advanced E-Business Infrastructure Application Integration Technical Advantages Integration System Architecture 4-57

15 IP Management Business Focus Of EAI Software The Business Imperative Customer Needs Cry Out For Solutions AI Applications To The Rescue Application Integration Functionality Role Of Messaging Role Of Routing Role Of Transformation Engines Role Of Point Solutions Role Of Distributed Computing Brokers And Publish/Subscribe Competitive Advantage Role Of Objects Role Of EAI For Storage Area Networks Role Of EAI in SANs Change Drives EAI Markets Business Process Management Services Business Process Management End-To-End Solutions Intelligent Infrastructures Role Of Switching Business Event Integration Uses And Benefits Of EAI Applications The Event Driven Enterprise The Business Payoff Enterprise Process Executive Automation Of Installation Mission Critical Messaging As A Base For Application Integration IBM WebSphere MQ Streams For Messaging and Data Access Message Queuing Database Message Queuing Data and Message Transformation Componentization Speed, Flexibility, and Scalability Server Infrastructure Software Engines Event Bus Shared Memory State Manager Nodes System Coordinator Recovery Recovery Actions Business Accelerator for Automation of Business Process Management Application Link Enabling Intermediate Document Business Application Program Interfaces (BAPI) Repository ERP and EAI Enterprise Integration Analysis EAI Business Benefits Events 4-122

16 Event Transmission Business Process Automation Advanced E-Business Infrastructure Application Integration Technical Advantages IP Management Event Bus Shared Memory State Manager Nodes System Coordinator Recovery Recovery Actions ENTERPRISE APPLICATION INTEGRATION (EAI) COMPANY PROFILES 5. ENTERPRISE APPLICATION INTEGRATION (EAI) COMPANY PROFILES Applied Technology BEA BEA Acquisitions / Plumtree and Fuego BEA Revenue BEA Delivers Business Results for Key Customers and Expands Partnerships Cape Clear Cape Clear Products Cape Clear Customers Cape Clear Partners Cape Clear Solutions Cape Clear Positioning Fiorano FioranoMQ Fiorano ESB Fiorano Customers Fiorano Partners Fiorano / Improsive Technologies Fiorano / IntegraSolv Fiorano / Asidua Fusionware IBM Description of Business IBM's Strategy Products and Services IBM WebSphere IBM and SAP IBM / DataPower DataPower IBM DataPower's strategy DataPower XG3 Product Family IBM Acquires Ascential Software IBM / Ascential ESB Platform IBM / Micromuse Inc IBM Acquires Bowstreet, Inc IBM 2006 Revenue IBM Full-Year 2006 Revenue IONA 5-40

17 5.7.1 Iona Artix Products Iona Partnerships Iona Artix Universal Service Platform Iona Products Iona Partners Iona And Industria Form Strategic Partnership Iona and Wipro Technologies Partner for SOA Iona And AmberPoint Announce Integrated SOA Infrastructure Capabilities Iona Fourth Quarter 2006 Revenue IONA First Quarter 2006 Revenue IONA 2005 Revenue Oracle Oracle Business Recent Acquisitions Oracle Middleware Products and Services Oracle Acquires Oblix Oblix Identity Management Products and Services Oracle Buys Open Source Software Company Sleepycat Oracle Revenue Oracle Corporation Q2 Fiscal 2007 Quarter Revenue Oracle Buys Open Source Software Company Sleepycat PolarLake Progress Software Progress Software Products Progress Software Partners and Customers Progress Software / NEON Systems Progress Software Reports First Quarter Financial Results Progress Software 2005 Revenue SOA Software Customers Partners Products Solutions SOA Software Acquires Blue Titan Blue Titan Products Blue Titan Customers Blue Titan Partners SOA Software 2005 Revenue Savvion Savvion BPM Tibco Tibco Products Tibco SOA Tibco BPM Tibco MDM Tibco Business Optimization Tibco Professional Services Tibco Partners HP / Tibco Tibco / IDS Scheer Tibco Financial Data Tibco Software 2006 Fourth Quarter Revenue 5-71

18 Tibco Software Reports Fourth Quarter Financial Results With License Revenues Up 32% Tibco Industry Solutions Vitria webmethods webmethods Fabric webmethods Enterprise Services Platform webmethods Business Process Management webmethods is Business Activity Monitoring webmethods Composite Application Framework webmethods is Business Process Productivity Solutions webmethods for Financial Services webmethods for the Demand-Driven Enterprise webmethods Second Quarter Fiscal 2007 Revenue webmethods / Infravio Professional Services Revenue webmethods Regional Segment Information List of Tables and Figures ENTERPRISE APPLICATION INTEGRATION (EAI) EXECUTIVE SUMMARY Table ES-1 ES-7 Enterprise Integration Solutions Overview Table ES-2 ES-9 Key Factors And Trends Driving Demand For Packaged Application Integration Solutions Table ES-3 ES-10 EAI Integration Functions Table ES-4 ES-12 Enterprise Application Integration Market Driving Forces Figure ES-5 ES-14 Application Integration Vendor Market Segment Participation, 2006 Figure ES-6 ES-16 Worldwide Application Integration (EAI) Software License, Services,and Maintenance Market Shares, Dollars, 2006 Table ES-7 ES-18 Worldwide Application Integration License, Services and Maintenance Market Forecasts, ENTERPRISE APPLICATION INTEGRATION (EAI) MARKET DESCRIPTION AND MARKET DYNAMICS Table Enterprise Integration Solutions Overview Table Key factors and trends driving demand for packaged application integration solutions Table EAI Integration Functions Table Key Missions Of EAI Table EAI Architecture Available From Multiple Vendors

19 Table Integration Of Information Resources Benefits Table Internal Enterprise Application Integration Tasks Table Application Integration Software Industries Targeted Table Business Imperatives Table Key Application Integration Market Drivers Table Benefits of Application Integration Table Enterprise Application Integration Benefits Table Integration Advantages Table Aspects of Automating Internal Business Processes Table Response To Change In Markets Table Application Integration Systems Support For Change in Markets Table Application Integration Software Functions Table EAI User Parameters Table EAI Routing Alternatives Table EAI Communication Modules Table Message Broker Engines Table Processing Extensions Table Exchange Systems Integration Tasks Table Enterprise Application Integration Functions Table Business Process Integration Functions Table Application Integration Uses Table Comprehensive SAN Solutions ENTERPRISE APPLICATION INTEGRATION (EAI) MARKET FORECASTS Table Enterprise Application Integration Market Driving Forces Table EAI Market Driving Forces For Real Time Computing

20 Table Typical EAI Integration Projects Figure Application Integration Vendor Market Segment Participation, 2006 Figure Worldwide Application Integration (EAI) Software License, Services, and Maintenance Market Shares, Dollars, 2006 Table Worldwide Application Integration (EAI) Software License, Services, and Maintenance Market Shares, Dollars, 2006 Figure Worldwide Application Integration Software License Market Shares, Dollars, 2006 Table Worldwide Application Integration Software License Market Shares, Dollars, 2003,2004, 2005 and 2006 Table Worldwide Application Integration Software License Market Shares, Dollars, 2005 and 2006 Figure Worldwide Application Integration (EAI) Software Services and Maintenance Market Shares, Dollars and Percent, 2005 and 2006 Table Worldwide Application Integration Software Services and Maintenance Market Shares, Dollars and Percent, 2005 and 2006 Table Worldwide Application Integration Market Segments, 2006 Table Worldwide Application Integration Market Segments By Company, Dollars, 2006 Table Worldwide Application Integration Market Segments By Company, Percent, 2006 Table EAI Competitive Market Factors Table Worldwide Application Integration License, Services and Maintenance Market Forecasts, Table Worldwide Application Integration Market Segments By Company, Percent, 2006 Figure Worldwide Application Integration License Market Forecasts, Table Worldwide Application Integration License, Services and Maintenance Market Forecasts, Figure Worldwide Application Integration Services and Maintenance Market Forecasts, Table Worldwide Application Integration Services and Maintenance Market Forecasts, Table Network Business Integration (BI) Table Internet Impact On EAI Table Impact of Application Connectivity On E-Business Figure Worldwide Business Process Engine License Market Shares, 2006

21 Table Worldwide Business Process Engine License Market Shares, 2006 Figure Worldwide Business Process Engine License, Services, and Maintenance Market Shares, 2006 Table Worldwide Business Process Engine Services and Maintenance Market Shares, 2006 Figure Worldwide Business Process Engine License, Services, and Maintenance Market Shares, 2006 Table Worldwide Business Process Engine License, Services, and Maintenance Market Shares, 2006 Figure Worldwide Business Process Management Engine Market Forecasts, Table Worldwide Business Process Management Engine Market Forecasts, Table Sarbanes-Oxley Solutions Position IT For Flexible Systems Table Sarbanes-Oxley Functions Required Table Sarbanes-Oxley Features Table Business Process Management Market Forecasts, Software License, Dollars, Figure Worldwide Application Integration Broker / Routing / Rules Engine License, Market Shares, 2006 Table Worldwide Application Integration Broker / Routing / Rules Engine License, Market Shares, 2006 Figure Worldwide Application Integration Broker / Routing / Rules Engine Services and Maintenance, Market Shares, 2006 Table Worldwide Application Integration Broker / Routing / Rules Engine Services and Maintenance, Market Shares, 2006 Figure Worldwide Application Integration Broker / Routing / Rules Engine License, Services and Maintenance, Market Shares, 2006 Table Worldwide Application Integration Broker / Routing / Rules Engine Services and Maintenance, Market Shares, 2006 Figure Worldwide Application Integration Broker / Routing / Rules Engine Market Forecasts, Table Worldwide Application Integration Broker / Routing / Rules Engine Market Forecasts, Figure Worldwide B to B Commerce Forecasts, Table Worldwide B-TO-B Commerce Forecasts, Figure Worldwide Internet User Forecasts, Table Worldwide Internet User Forecasts, Table EAI Business Environment Market Drivers

22 Table Types of Integration Capabilities Table Types of Integration Broker Capabilities Table Aims of EAI Figure Worldwide Application Integration (EAI) Regional Market Shares, 2006 Table Application Integration (EAI) Regional Market Shares, 2006 Table Application Integration (EAI) European Regional Market Shares, 2006 Table Application Integration (EAI) European Regional Market Shares, 2006 Table Business Benefits Of EAI Table Enterprise Back End System Advantages From EAI Table Enterprise Market Advantages From EAI Table Integration Targeted To B2B And Exchanges Table Business Process Integration Advantages Table Enterprise Application Integration (EAI) Processes Table E-Business Objectives Table Electronic Commerce Infrastructure Requirements Table EAI Functions Enable E-commerce Table EAI Support For Internet Commerce And EDI Table Key Challenges Of Application Integration Table Integration Modular Architecture Impact ENTERPRISE APPLICATION INTEGRATION MIDDLEWARE SOFTWARE MODEL PRODUCT DESCRIPTION Table Business Integration System Functions Table Application Integration Segments Table IBM WebSphere Business Integration Server Foundation Functions Table IBM WebSphere Business Integration Foundation Server Visual Functions Table IBM SOA Component Assemble Phase

23 Table IBM SOA Platform Construction Of The Hosting Environment Table webmethods Fabric Key Benefits Next Generation B2B Solutions Table webmethods Fabric Enables Figure webmethods Fabric Architecture Table IBM WebSphere BPM Business Integration Middleware Table IBM WebSphere BPM Business Integration Functions Table IBM BPM Mediation Elements Table IBM BPM Dynamic End-Point Invocation Table IBM BPM Benefits Table WebSphere Integration Developer SOA Functions Table WebSphere Integration Developer SOA Features Table WebSphere Integration Developer SOA Mapping Functions Table Tibco BusinessWorks Integration Benefits Table Tibco BusinessWorks Benefits Table Tibco Business Process Management BPM Integration Platform Functions Table Tibco BusinessWorks Business integration platform system functions Table TIBCO BusinessPartner Benefits Table Tibco PartnerExpress Benefits Table webmethods Fabric Components Table webmethods Trading Networks Benefits Table webmeathods Fabric Key Benefits Next Generation B2B Solutions Table webmethods Fabric Enables Figure webmethods Fabric Architecture Table webmethods Fabric Functions Table webmethods Broker Functions Table webmethods Message Brokering Features

24 Table Sun ONE Integration Server EAI Features Table BEA Application Platform Convergence Table BEA WebLogic Enterprise Platform Table BEA WebLogic Integration Functions Table BEA WebLogic Portal Table BEA WebLogic Workshop Table Benefits Of Using Vitria BusinessWare for B2B: Table Vitria BusinessWare Business Process Management Benefits Table Vitria BusinessWare BPM Functions Table Vitria BusinessWare Messaging and Connectivity Benefits Figure ESB Backbone Table IBM WebSphere Message Broker Enterprise Service Bus Features and Benefits Table IBM WebSphere Message Broker Web Services Support Table IBM WebSphere Message Broker Helps Develop Productivity Table Cape Clear Software's products provide over 200 companies with the ability to: Table Cape Clear ESB Table Cape Clear Service Availability Table IONA ESB Functions Table Distributed Nature of an IONA ESB Table IBM Business Integration Functions Table IBM Business Integration Aspects Table IBM WebSphere Business Integration Server Advantages Table IBM WebSphere Operating Systems Supported Table IBM DataPower Enterprise Service Bus (ESB) Benefits Table Microsoft Fundamental Principles Of SOA Table Microsoft SOA Benefits

25 Table Microsoft BizTalk functions Table Microsoft BizTalk Core Benefits Table Microsoft BizTalk Application Integration Orchestrations Table Microsoft BizTalk Application Integration Technology Table Microsoft BizTalk Web Services Adapters Table Microsoft BizTalk Web Services Adapters For Commonly-Used Business Software Table Microsoft BizTalk Server Broker for Managing Applications Table Tibco Messaging Platforms Table HTTP-based TIBCO Rendezvous Administrative Console Benefits Table HTTP-based Tibco Rendezvous Administrative Console Features Table Tibco Rendezvous Platforms Table Tibco SmartSockets Benefits Table MQSoftware Q Pasa! Business Dashboard Benefits Table webmethods Dashboard Benefits Table Benefits of BEA Dashboards Table EAI Transformation Module Functions Table EAI Transformation Functions Table IBM and WebSphere Transformation Enterprise Data Integration Software Functions Table IBM Data Transformation Feature Positioning Table WebSphereenterprise data integration software functions Table GXS Industry-Specific Solutions Table GXS Services Functionality Table GXS Data Transformation Modules Table GXS Application Integrator Modules Table GSX Transformation Engines Features Table Tibco DataExchange Benefits

26 Table Tibco DataExchange Features Table IBM WebSphere SOA Business Integration Server Functions Table IBM WebSphere Business Integration Foundation Server Visual Functions Table IBM SOA Business Innovation & Optimization Services Table SOA Foundation Reference Architecture Table IBM WebSphere Business Integration Human Workflow Support Table IBM WebSphere Business Integration Human Workflow Tasks Table IBM WebSphere Business Integration Human Workflow Tasks Table IBM WebSphere Business Integration Back-End System Connectivity Functions Table Tibco B2B Integration Benefits Table WebMethods SOA Fabric Benefits Table webmethods SOA Fabric Components Table webmethods X-Registry and webmethods X-Broker Governance Product Features Table webmethods Infravio X-Registry End-To-End Service Lifecycle Governance Table Key Benefits of webmethods Infravio Registry, Repository, and Governance Table webmethods Infravio Functions Table WebMethods SOA Registry Engine Table BEA / Fuego SOA Software Key Functions Table BEA / Fuego SOA Software Key Benefits Table BEA Fuego SOA Business Process Management Functions Table IBM SOA Component Implementation of Process Table IBM WebSphere Components Table Microsoft Fundamental Principles Of SOA Table Microsoft SOA Benefits Table Microsoft BizTalk functions Table Microsoft BizTalk Core Benefits

27 Table Microsoft BizTalk Application Integration Orchestrations Table Microsoft BizTalk Application Integration Technology Table Microsoft BizTalk Web Services Adapters Table Microsoft BizTalk Web Services Adapters For Commonly-Used Business Software Table Microsoft BizTalk Server Broker for Managing Applications Table BEA / Fuego SOA Software Key Functions Table BEA Fuego Business Process Management Functions Table BEA Fuego Business Process Management End-To-End Processes Table IBM SOA governance Positioning ENTERPRISE APPLICATION INTEGRATION (EAI) PROCESS TECHNOLOGY Table Service Oriented Architecture (SOA) Functions Table Web Services Protocols Table Soap-Based Web Service Production Environment Testing Table XSLT Transformation Of XML Table Integration Engine XML Processing Functions That Drive Business Process Electronically End-To-End Table Soap-Based Web Service Production Environment Testing Table Type Of Event Information Table Event Management Definition Table Integration Services Table Design Concerns For Integration System Architecture Table Functions Of An IP Addressing Device Table Benefits Of an IP Addressing Device Table Business Focus Of EAI Software Table Strategic Goals Of Enterprise Integration Table Advantages Of EAI Applications Integration Solutions

28 Table Problems Confronting IT Managers Table Application Integration Engines Table EAI Assistance With Optimizing Management Plans Table Mission Critical Messaging As A Base For Integration Software Provides A Base For Application Connectivity Table Mission Critical Messaging Integration Functions Table Aspects Of Data Streaming Management Table Infrastructure Server Service Creation Platforms Table Infrastructure Server Architecture Table Shared Memory Functions Table Business Process Advanced Frameworks And Software Engine Functions Table Type Of Event Information Table Event Management Definition Table Integration Services Table Functions Of An IP Addressing Device Table Benefits Of an IP Addressing Device Table Shared Memory Functions ENTERPRISE APPLICATION INTEGRATION (EAI) COMPANY PROFILES Table Cape Clear Product Table Cape Clear Customers Table Fiorano Partner Categories Table IBM WebSphere Product Categories Table Progress Software s Product Categories

29 ABOUT THE COMPANY WINTERGREEN RESEARCH, HAS A UNIQUE RESEARCH STRATEGY THAT RELATES TO IDENTIFYING MARKET TRENDS THROUGH READING AND INTERVIEWING OPINION LEADERS. BY READING THE ELECTRONIC EQUIVALENT OF 40 FEET OF PAPER, WINTERGREEN RESEARCH SENIOR ANALYSTS CAN LEARN A LOT MORE ABOUT MARKETS, A LOT FASTER THAN CAN BE LEARNED THROUGH EXPENSIVE SURVEYS AND FOCUS GROUPS. THINKING ABOUT MARKET TRENDS IS A HIGH PRIORITY AT WINTERGREEN RESEARCH. AS WITH ALL RESEARCH, THE VALUE PROPOSITION FOR COMPETITIVE ANALYSIS COMES FROM INTELLECTUAL INPUT. IT IS A LUXURY REALLY, AVAILABLE TO ONLY A VERY FEW PEOPLE, TO BE ABLE TO GATHER INFORMATION, LOTS OF INFORMATION FROM READING MASSIVE AMOUNTS OF CONTENT, AND THEN TRYING TO MAKE SENSE OF THAT CONTENT. THE ABILITY TO THINK ABOUT MARKET TRENDS IS ENHANCED BY DOING IT OVER AND OVER FOR MANY DIFFERENT MARKETS. THAT IS WHAT WINTERGREEN RESEARCH IS ALL ABOUT: READING AND THINKING IS AN ESSENTIAL ASPECT OF COMPETITIVE ANALYSIS. TALKING TO OPINION LEADERS IS THE THIRD ESSENTIAL ASPECT OF PRODUCING GOOD, RELIABLE DATA. WINTERGREEN RESEARCH, FOUNDED IN 1985, PROVIDES STRATEGIC MARKET ASSESSMENTS IN TELECOMMUNICATIONS, COMMUNICATIONS EQUIPMENT, HEALTH CARE, INTERNET AND ADVANCED COMPUTER TECHNOLOGY. INDUSTRY REPORTS FOCUS ON OPPORTUNITIES THAT EXPAND EXISTING MARKETS OR DEVELOP MAJOR NEW MARKETS. THE REPORTS ASSESS NEW PRODUCT AND SERVICE POSITIONING STRATEGIES, NEW AND EVOLVING TECHNOLOGIES, AND TECHNOLOGICAL IMPACT ON PRODUCTS, SERVICES, AND MARKETS. MARKET SHARES ARE PROVIDED. LEADING MARKET PARTICIPANTS ARE PROFILED, AND THEIR MARKETING STRATEGIES, ACQUISITIONS, AND STRATEGIC ALLIANCES ARE DISCUSSED. THE PRINCIPALS OF WINTERGREEN RESEARCH HAVE BEEN INVOLVED IN ANALYSIS AND FORECASTING OF INTERNATIONAL BUSINESS OPPORTUNITIES IN TELECOMMUNICATIONS AND ADVANCED COMPUTER TECHNOLOGY MARKETS FOR OVER 30 YEARS.

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