IDC observes that successful implementations of business Performance management (BPM) solutions such as consolidation and budgeting also include a robust business intelligence (BI) strategy to integrate and deliver quality information in essence, a performance management platform.

Highlights of BPM market performance are as follows:

The BPM market experienced 12.8% growth in 2005, with the total market in 2005 valued at $1.59 billion.

>> IDC forecasts a compound annual growth rate (CAGR) of 11.2% for 2005-2010,which approximates last years five-year forecast. The forecast reflects IDC's demand-side research indicating continued expectations of strong end-user adoption of BPM applications and related information infrastructure to support performance management strategies.

>> Consolidation in the BI/BPM market is reflective of user demands for integrated BPM applications coupled with BI reporting strategies, and the impact on vendors is the emergence of integration strategies that blur the lines between these two categories of applications, resulting in a move toward performance management platforms. IDC expects consolidation to continue.

>> While broader performance management strategies may impact overall solution requirements, end users still evaluate solutions based on pain points such as budgeting and planning or financial consolidation. Vendor specialty within these areas still ultimately drives the short list.

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Prashanth Rai