Waltham, MA (July 10, 2002) – Significant and increasing partnership and merger/acquisition activity will characterize the enterprise software market over the next 18 months as vendors scramble to meet customers’ growing calls for enterprise interoperability (EIO).

According to a new report from Kinetic Information, mounting economic and competitive pressures are causing business technology buyers and users to focus sharply on making their business-critical information systems work seamlessly together. The prize for interoperability is a more competitive and profitable company, thanks to increased efficiency and responsiveness.  And, because true interoperability requires application, connectivity, and process technologies that typically are not available from a single provider, vendors in one arena must join with vendors in the others to give customers what they want. 

“For many vendors, the question comes down to ‘make vs. buy’, as it often is more cost-effective to ‘buy’ a needed capability from someone else than it is to develop it yourself,” says Kinetic Information President Steve Weissman. “But for others, the question is one of survival, as smaller companies in particular may seek a ‘sugar daddy’ to provide needed funding even at the cost of their own future independence.”

Weissman lists several recent transactions as harbingers of the “deluge” to come, including Novell/Silverstream, Adobe/Accelio, and FileNET/eGrail. In such cases, he says “smart companies move quickly to chase a significant share of a $30 billion-plus opportunity that is already ripe for the picking.” Kinetic Information identifies the following companies as potential participants in significant partnership or M&A action in the near future:
 

Bowstreet Cape Clear Handysoft InfoImage

Optika PureEdge Savvion Softheon

Information about the report “Mapping the Market for Enterprise Interoperability: Friends, Foes & Paths to Profit” can be found on the Kinetic Information Web site at www.kineticinfo.com/eioinfopak.htm, or obtained by contacting Steve Weissman at 781.893.4690. 

ABOUT KINETIC INFORMATION 
Kinetic Information is a business intelligence organization specializing in the sale and use of information technology. A leading market prognosticator and strategist, the firm combines field research and academic model-building to support high-value analysis that is centered on technology’s ability to solve customer business problems. Additional information is available on the Web at www.kineticinfo.com or by calling Steve Weissman at 781.893.4690.

FOR FURTHER INFORMATION CONTACT:
Kinetic Information 
Steve Weissman, 781.893.4690 
[email protected]