Welcome!

Microservices Expo Authors: Pat Romanski, John Katrick, Elizabeth White, Liz McMillan, Yeshim Deniz

Related Topics: Microservices Expo

Microservices Expo: Article

Progress Scoops Up Savvion in BPM Race

The march of Progress Software: Savvion provides latest entry in BPM consolidation parade

Is it more than coincidence that IT acquisitions tend to come in waves? Just weeks after IBM's announcement to snap up Lombardi, Progress Software today responds with an agreement to put Savvion out of its misery? In such a small space that is undergoing active consolidation, it is hard not to know who's in play.

Nonetheless, Progress's acquisition confirms that Business Process Management (BPM)'s pure play days are numbered, if you expect executable BPM.

The traditional appeal of BPM was that it was a business stakeholder-friendly approach to developing solutions that didn't rely on IT programmatic logic. The mythology around BPM pure-plays was that these were business user-, not IT-, driven software buys. [Disclosure: Progress Software is a sponsor of BriefingsDirect podcasts.]

In actuality, they simply used a different language or notation: process models with organizational and workflow-oriented semantics as opposed to programmatic execution language. That stood up only as long as you used BPM to model your processes, not automate them.

Consequently, it is not simply the usual issues of vendor size and viability that are driving IT infrastructure and stack vendors to buy up BPM pure plays. It is that, but more importantly, if you want your BPM tool to become more than documentware or shelfware, you need a solution with a real runtime.

And that means you need IT front and center, and the stack people right behind it. Even with emergence of BPMN 2.0, which adds support for executables, the cold hard facts are that anytime, anything executes in software, IT must be front and center. So much for bypassing IT.

Progress's $49 million deal, which closes right away, is a great exit strategy for Savvion. The company, although profitable, has grown very slowly over its 15 years. Even assuming the offer was at a 1.5x multiple, Savvion's extremely low seven-figure business is not exactly something that a large global enterprise could gain confidence in.

Savvion was in a challenging segment: A tiny player contending for enterprise, not departmental, BPM engagements. If you are a large enterprise, would you stake your enterprise BPM strategy on a slow-growing players whose revenues are barely north of $10 million? It wasn't a question of whether, but when Savvion would be acquired.

[Editor's note: Savvion is bringing a new geographical footprint to Progress. Savvion is well positioned in India, where Progress is eager to tread. And Progress is prominent in Europe, where the Savvion-broadened portfolio will sell better than Savvion could alone. ... Dana Gardner.]

Questions remain

Of course that leads us to the question as to why Progress couldn't get its hands on Savvion in time to profit from Savvion's year-end deals. It certainly would have been more accretive to Progress' bottom line had they completed this deal three months ago (long enough not to disrupt the end of year sales pipeline).

Nonetheless, Savvion adds a key missing piece for Progress's Apama events processing strategy (you can read Progress/Apama CTO John Bates's rationale here). There is a symbiotic relationship between event processing and business process execution; you can have events trigger business processes or vice versa.

There is some alignment with the vertical industry templates that both have been developing, especially for financial services and telcos, which are the core bastions (along with logistics) for EP. And with the Sonic service bus, Progress has a pipeline for ferrying events.

[Editor's note: The combination of Savvion BPM and Progress CEP help bring the vision of operational responsiveness, Progress's value theme of late, out from the developer and IT engineer purview (where it will be even stronger) and gets it far closer to the actual business outcomes movers and shakers.

The Savvion buy also nudges Progress closer to an integrated business intelligence (BI) capability. It will be curious to see if Progress builds, buys or partners it's way of adding more BI capabilities into it's fast-expanding value mix. ... Dana Gardner.]

In the long run, there could also be a legacy renewal play by using the Savvion technology to expose functionality for Progress OpenEdge or DataDirect customers, but wisely, that is now a back burner item for Progress which is not the size of IBM or Oracle, and therefore needs to focus its resources.

Acquiring Savvion ups the stakes with Tibco, which also has a similar pairing of technologies in its portfolio.

Although Progress does not call itself a stack player, it is evolving de facto stacks in capital markets, telcos, and logistics.

Event processing, a.k.a., Complex Event Processing (CEP, a forbidding label) or Business Events Processing (a friendlier label that actually doesn't mean much) is still an early adopter market. In essence, this market fulfills a niche where events are not human detectable and require some form of logic to identify and then act upon.

The market itself is not new; capital markets have developed homegrown event processing algorithms for years. What's new (as in, what's new in the last decade) is that this market has started to become productized. More recently, SQL-based approaches have emerged to spread high-end event processing to a larger audience.

Acquiring Savvion ups the stakes with TIBCO Software, which also has a similar pairing of technologies in its portfolio. [Disclosure: TIBCO is a sponsor of BriefingsDirect podcasts.]

Given ongoing consolidation, that leaves Active Endpoints, Pegasystems, Appian, plus several open source niche pure plays still standing. [Disclsoure: Active Endpoints is a sponsor of BriefingsDirect podcasts.]

Like Savvion, Pega is also an enterprise company, but it is a public company with roughly 10x revenues which as still managed to grow in the 25 percent range in spite of the recession. While in one way, it might make a good fit with SAP (both have their own, entrenched, proprietary languages), Pega is stubbornly independent and SAP acquisition-averse.

Pega might be a fit with one of the emerging platform stack players like EMC or Cisco. On second thought, the latter would be a much more logical target for web-based Appian or fast-growing Active Endpoints, still venture-funded, but also a promising growth player that at some point will get swept up.

[Editor's note: Tony's right. Once these IT acquisition waves begin, they tend to wash over the whole industry as most buyers and sellers match up. As with EAI middleware, BI, and data cleansing technologies before, BPM is the current belle of the ball. ... Dana Gardner.]

More Stories By Tony Baer

Tony Baer is Principal Analyst with Ovum, leading Ovum’s research on the software lifecycle. Working in concert with other members of Ovum’s software group, his research covers the full lifecycle from design and development to deployment and management. Areas of focus include application lifecycle management, software development methodologies (including agile), SOA, IT service management/ITIL, and IT management/governance.

Baer has been a noted authority on software development platforms and integration architecture for nearly 20 years. Prior to joining Ovum, he was an independent analyst whose company ‘onStrategies’ delivered software development and integration tools to vendors with technology assessment and market positioning services. He also led Computerwire’s CIO Agenda and Computer Finance end-user best practices research services.

Follow him on Twitter @TonyBaer or read his blog site www.onstrategies.com/blog.

@MicroservicesExpo Stories
For organizations that have amassed large sums of software complexity, taking a microservices approach is the first step toward DevOps and continuous improvement / development. Integrating system-level analysis with microservices makes it easier to change and add functionality to applications at any time without the increase of risk. Before you start big transformation projects or a cloud migration, make sure these changes won’t take down your entire organization.
When you focus on a journey from up-close, you look at your own technical and cultural history and how you changed it for the benefit of the customer. This was our starting point: too many integration issues, 13 SWP days and very long cycles. It was evident that in this fast-paced industry we could no longer afford this reality. We needed something that would take us beyond reducing the development lifecycles, CI and Agile methodologies. We made a fundamental difference, even changed our culture...
In his session at 20th Cloud Expo, Mike Johnston, an infrastructure engineer at Supergiant.io, discussed how to use Kubernetes to set up a SaaS infrastructure for your business. Mike Johnston is an infrastructure engineer at Supergiant.io with over 12 years of experience designing, deploying, and maintaining server and workstation infrastructure at all scales. He has experience with brick and mortar data centers as well as cloud providers like Digital Ocean, Amazon Web Services, and Rackspace. H...
You often hear the two titles of "DevOps" and "Immutable Infrastructure" used independently. In his session at DevOps Summit, John Willis, Technical Evangelist for Docker, covered the union between the two topics and why this is important. He provided an overview of Immutable Infrastructure then showed how an Immutable Continuous Delivery pipeline can be applied as a best practice for "DevOps." He ended the session with some interesting case study examples.
Without lifecycle traceability and visibility across the tool chain, stakeholders from Planning-to-Ops have limited insight and answers to who, what, when, why and how across the DevOps lifecycle. This impacts the ability to deliver high quality software at the needed velocity to drive positive business outcomes. In his general session at @DevOpsSummit at 19th Cloud Expo, Eric Robertson, General Manager at CollabNet, will discuss how customers are able to achieve a level of transparency that e...
"DivvyCloud as a company set out to help customers automate solutions to the most common cloud problems," noted Jeremy Snyder, VP of Business Development at DivvyCloud, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
The Jevons Paradox suggests that when technological advances increase efficiency of a resource, it results in an overall increase in consumption. Writing on the increased use of coal as a result of technological improvements, 19th-century economist William Stanley Jevons found that these improvements led to the development of new ways to utilize coal. In his session at 19th Cloud Expo, Mark Thiele, Chief Strategy Officer for Apcera, compared the Jevons Paradox to modern-day enterprise IT, examin...
We all know that end users experience the internet primarily with mobile devices. From an app development perspective, we know that successfully responding to the needs of mobile customers depends on rapid DevOps – failing fast, in short, until the right solution evolves in your customers' relationship to your business. Whether you’re decomposing an SOA monolith, or developing a new application cloud natively, it’s not a question of using microservices - not doing so will be a path to eventual ...
In his session at 20th Cloud Expo, Scott Davis, CTO of Embotics, discussed how automation can provide the dynamic management required to cost-effectively deliver microservices and container solutions at scale. He also discussed how flexible automation is the key to effectively bridging and seamlessly coordinating both IT and developer needs for component orchestration across disparate clouds – an increasingly important requirement at today’s multi-cloud enterprise.
Your homes and cars can be automated and self-serviced. Why can't your storage? From simply asking questions to analyze and troubleshoot your infrastructure, to provisioning storage with snapshots, recovery and replication, your wildest sci-fi dream has come true. In his session at @DevOpsSummit at 20th Cloud Expo, Dan Florea, Director of Product Management at Tintri, provided a ChatOps demo where you can talk to your storage and manage it from anywhere, through Slack and similar services with...
Containers are rapidly finding their way into enterprise data centers, but change is difficult. How do enterprises transform their architecture with technologies like containers without losing the reliable components of their current solutions? In his session at @DevOpsSummit at 21st Cloud Expo, Tony Campbell, Director, Educational Services at CoreOS, will explore the challenges organizations are facing today as they move to containers and go over how Kubernetes applications can deploy with lega...
Learn how to solve the problem of keeping files in sync between multiple Docker containers. In his session at 16th Cloud Expo, Aaron Brongersma, Senior Infrastructure Engineer at Modulus, discussed using rsync, GlusterFS, EBS and Bit Torrent Sync. He broke down the tools that are needed to help create a seamless user experience. In the end, can we have an environment where we can easily move Docker containers, servers, and volumes without impacting our applications? He shared his results so yo...
Enterprise architects are increasingly adopting multi-cloud strategies as they seek to utilize existing data center assets, leverage the advantages of cloud computing and avoid cloud vendor lock-in. This requires a globally aware traffic management strategy that can monitor infrastructure health across data centers and end-user experience globally, while responding to control changes and system specification at the speed of today’s DevOps teams. In his session at 20th Cloud Expo, Josh Gray, Chie...
Don’t go chasing waterfall … development, that is. According to a recent post by Madison Moore on Medium featuring insights from several software delivery industry leaders, waterfall is – while still popular – not the best way to win in the marketplace. With methodologies like Agile, DevOps and Continuous Delivery becoming ever more prominent over the past 15 years or so, waterfall is old news. Or, is it? Moore cites a recent study by Gartner: “According to Gartner’s IT Key Metrics Data report, ...
Kubernetes is a new and revolutionary open-sourced system for managing containers across multiple hosts in a cluster. Ansible is a simple IT automation tool for just about any requirement for reproducible environments. In his session at @DevOpsSummit at 18th Cloud Expo, Patrick Galbraith, a principal engineer at HPE, discussed how to build a fully functional Kubernetes cluster on a number of virtual machines or bare-metal hosts. Also included will be a brief demonstration of running a Galera MyS...
In his session at Cloud Expo, Alan Winters, U.S. Head of Business Development at MobiDev, presented a success story of an entrepreneur who has both suffered through and benefited from offshore development across multiple businesses: The smart choice, or how to select the right offshore development partner Warning signs, or how to minimize chances of making the wrong choice Collaboration, or how to establish the most effective work processes Budget control, or how to maximize project result...
In his keynote at 19th Cloud Expo, Sheng Liang, co-founder and CEO of Rancher Labs, discussed the technological advances and new business opportunities created by the rapid adoption of containers. With the success of Amazon Web Services (AWS) and various open source technologies used to build private clouds, cloud computing has become an essential component of IT strategy. However, users continue to face challenges in implementing clouds, as older technologies evolve and newer ones like Docker c...
In IT, we sometimes coin terms for things before we know exactly what they are and how they’ll be used. The resulting terms may capture a common set of aspirations and goals – as “cloud” did broadly for on-demand, self-service, and flexible computing. But such a term can also lump together diverse and even competing practices, technologies, and priorities to the point where important distinctions are glossed over and lost.
In his session at @DevOpsSummit at 20th Cloud Expo, Kelly Looney, director of DevOps consulting for Skytap, showed how an incremental approach to introducing containers into complex, distributed applications results in modernization with less risk and more reward. He also shared the story of how Skytap used Docker to get out of the business of managing infrastructure, and into the business of delivering innovation and business value. Attendees learned how up-front planning allows for a clean sep...
"I will be talking about ChatOps and ChatOps as a way to solve some problems in the DevOps space," explained Himanshu Chhetri, CTO of Addteq, in this SYS-CON.tv interview at @DevOpsSummit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.