Services Automation Market Analysis - May 2006

PREFACE

There is No Going Backwards

Perform at the Highest Level

Information-Driven Service Performance

Services Automation Enhances Business Management

CHAPTER 1: SUMMARY OF FINDINGS

Services Dominate the Free World

Technology Is the Enabler for the Services Market

Services Automation Solutions Show Solid Growth

CHAPTER 2: THEECONOMIC GROWTH ENGINE

Defining the Services Market

Continual Market Growth and Change

Outsourcing and Global Services Are Not Going Away

Professional Services Challenges

The Pressure is On to Perform

Improve on Marketing and Sales Initiatives

Pricing is just the Beginning

Build a Workforce That Meets Business Demands

Resource Management Must Go Global

Optimize the Services Delivery Lifecycle (SDL)

Reuse Information

Invoice Accurately and Collect Efficiently

Improve Financial Governance

Services-driven Information is at the Center of Success

CHAPTER 3: SERVICES AUTOMATION SOLUTIONS

Services Automation Defined

What Does an Integrated Solution Look Like?

Services Automation Tie Existing Applications Together

The Information Management Components of xSA

Service Execution

Analytics

Business Management

External Communication

xSA is Becoming Mission Critical

Different Types of Organizations Utilize xSA

PSA is a Highly Visible Solution in the xSA Family

The Benefits of xSA

Streamlined Opportunity Management

Increased Project and Service Productivity

Enhanced Collaboration

Improved Financial Management and Governance

Reduced IT Costs

CHAPTER 4: INDEPENDENT SOFTWARE VENDORS (ISV)

Mergers & Acquisitions Fuel Rapid Growth

An ISV’s Heritage Suggests its Future Development Strategy

Solution Differentiation Eases the Purchase Decision

To ERP or not to ERP — That is the Question

Purchase the Solution, Not a Solution

CHAPTER 5: SERVICES AUTOMATIONMARKET FORECAST

Services Automation Market Size

xSA Sales are Strongest in the Mid-market

Professional Services Spending has Picked Up

NAICS Services Market Breakdown

The Market Has Truly Gone Global

Portfolio Management Drives Sales in other Markets

Internal IT Builds in Momentum

New and Enhanced Capabilities Spur Sales

Support for Planning and Budgeting

Business Process Management (BPM)

Risk Management

Collaboration

Business Intelligence

Integration with Personal Productivity Applications

Vertical or Horizontal Market Focus

Sell a Solution or sell the Solution

Market Challenges

Executive Selling

SDOs Must Embrace Change

The Build-Versus-Buy Conundrum

Who Will Deploy the Solution?

ISVs Must Increase Differentiation

TCO is Still an Area of Concern

More Integration Will Help

CHAPTER 6: CONCLUSIONS

APPENDICES

Appendix A: Author Profile

Appendix B: Acronyms Used in This Report

Figures

Figure 1: U.S. Gross-Domestic-Product-by-Industry Accounts

Figure 2: Optimize the Services Delivery Lifecycle

Figure 3: A Need for Information Visibility

Figure 4: xSA’s Integration with Existing Enterprise Applications

Figure 5: BASE Modules for Services-driven Organizations

Figure 6: xSA Mergers & Acquisitions (2001 - 2005)

Figure 7: xSA Annual License Revenue (2001 - 2010)

Figure 8: 2005 xSA Total Revenue Breakdown

Figure 9: Annual Breakdown of xSA Revenue

Figure 10: xSA Revenue by Customer Size

Figure 11: xSA Deployment Cost/User by Customer Size

Figure 12: xSA Revenue Services Breakdown by NAICS Code

Figure 13: 2005 xSA Revenue Breakdown by Region

Figure 14: 2005 xSA Revenue Breakdown by Industry Group

Figure 15: xSA Internal IT Revenue Breakdown by Industry

Figure 16: Internal IT Penetration as a Percentage of Industry Sales

Tables

Table 1: xSA Core Modules —Issues, Functionality, Metrics

Table 2: Applications Integrated with xSA

Table 3: xSA Differentiators

Table 4: Independent Software Vendors (ISVs)

Table 5: 2005 xSA License Revenue Breakdown by NAICS Code

Table 6: Lexicon of Acronyms and Abbreviations