The Size of the BPM Market :: According to Pegasystems

Looking through some recent investor materials from Pega produced this slide which I thought was a fascinating view of the BPM market size and definition.

Pega_bpm_marketsize_fy2011

via Pegasystems Investor Presentation, November 2011

Without the accompanying commentary, its hard to evaluate the accuracy of the numbers but a few dynamics are clear:

  1. The market categories are self-serving – They are an extrapolation of Pega’s architectural strengths onto the market but interestingly they see more opportunity attacking the CRM and document management (case management in the chart) parts of market.  

  2. Pega views the market all about execution technology.  Their ‘market’ does not include analysis or modelling revenue.
  3. Despite their history, there is no stand-alone business rules market in their marketview.

 

2 comments for “The Size of the BPM Market :: According to Pegasystems

  1. pelujan
    March 5, 2012 at 12:37 am

    I’m a little lost on your third statement regarding "there is no stand-alone business rules market in their marketview." Yes, the primary product/platform – PegaPRPC, Pega Process Rules Process Commander – was/is built on rules, but a "rule" has a very specific meaning in Pega’s terminology and within the platform itself. In briefest terms, it’s actually a database construct. So "despite their history," I would submit that business rules is a given, implicit within the vendor’s and the platform’s worldview. Goes without saying, that is; part and parcel of what they do and how the platform works.Cheers, Pat

  2. Anonymous
    March 5, 2012 at 8:59 am

    Pat – I find myself in violent agreement with you. The point I was trying to make (too briefly and not clearly enough) is that their description of their market opportunity includes ‘BPM’ market which is dwarfed by opportunities around CRM and Case Management. This view matches the strengths of their product and the logic of their Chordiant acquisition but its interesting that there is no standalone business rules market in that view.Hypothetically, imagine if IBM produced the same market opportunity diagram.It might be hard to tell exactly what it would look like but you get the idea that Rules, human-centric BPM and document-centric BPM would all have their own market opportunities representing the jrules, Lombardi/process server and filenet legacies. These opportunities would probably form a Venn diagram and rules would almost be completely overlapping BPM but not quite. Case Management would still be a big opportunity but BPM for CRM is unlikely to appear.If anything, Pega probably represents the clearer marketing message: They are downplaying the small market (standalone rules) to position themselves for the bigger opportunities (BPM in CRM).

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