While reflecting on the BPM marketplace, I thought that it might be interesting to test the impact of Tibco’s release of ActiveMatrix BPM on their financial results.
As a public company, Tibco is one of the few BPM vendors that file financial information with the SEC that is also small enough to give some explicit disclosure around BPM technology. As information isn’t detailed at the product level or geographically segmented but relatively good disclosure at the revenue level exists.
The analyst community started issue research reports on the product in June after the product annnouncement at TUCON in May 2010. This isn’t really my recollection. I thought that the product launch was later in the year but took Tibco’s second quarter results as the basis of analysis. The logic was the first six months of 2010 was before ActiveMatrix BPM was launched and the comparative period in 2011 had ActiveMatrix BPM.
For the six months ending the 31st of May, Tibco experienced strong growth between 2010 and 2011 as the following infographic demonstrates:
BPM license revenue grew faster than the overall business and overall license revenue (even factoring in acquisitions) but it grew from a very small base.
Despite the strong BPM growth, the amount of the BPM license revenue as a percentage of overall license revenue has only grown from 9% in the first 6 months of 2010 to 10% in the first 6 months of 2011.
It feels like Tibco is successfully selling into its installed base and, as it grows the base, it grows its BPM license sales.
Given Tibco’s acquisitive nature and how that grows revenue, ActiveMatrix BPM’s launch has had to accelerate its growth to maintain its overall percentage in the revenue mix. Some of this is no doubt penned up demand that was waiting for the next generation to end-of-life iProcess but I’m not sure they won many new BPM customers outside of their base.
Certainly, I don’t see them head-to-head with IBM in beauty parades in the UK. Pega is a much more common name. Perhaps, I should look at their 10Q as well.
Full Disclosure: I work for an Axispoint Solutions Ltd, an IBM business partner. The opinions in this piece are my own.