Business Performance Management Market Will Grow 15%-20% in 2004, According to META Group; BPM Market Grew to $1.1 Billion in 2003.

Business Editors/High-Tech Writers

STAMFORD, Conn.--(BUSINESS WIRE)--Dec. 22, 2003

According to META Group, Inc. (Nasdaq: METG), the business performance management (BPM) marketplace will grow by 15%-20% in 2004. The BPM market grew to approximately $1.1 billion in 2003. Although this growth represents a 10%-15% increase over the 2002 marketplace, this was less than most BPM vendors had anticipated for the year. A recent META Group study uncovered that, within the next 18 months, 85% of firms will work on a BPM project.

"The anticipation of increased BPM growth in 2003 was primarily due to expectations that companies would use business applications in an effort to comply with regulations for the Sarbanes-Oxley Act (SOX)," said John Van Decker, vice president with META Group's Technology Research Services. "The business drivers for the BPM market in 2003 were primarily more penetration of planning and budgeting solutions, not SOX compliance-driven sales."

In 2003, companies were primarily involved in Section 404 activities for the assessment of internal controls. Once companies go through one fiscal closing with Section 404, they will be seeking to optimize controls and will look to BPM for improved visibility, compliance dashboards, alerts/notification tools, and planning. SOX compliance will likely play a larger role as a major business driver in 2004. A large number of these BPM projects will include moving to suite solutions to provide a closed-loop life-cycle approach that includes metrics, reporting, and planning.

"Most of the firms that have been concentrating on SOX have been working on Section 404, which addresses internal controls and assessment. This will change by the third quarter of 2004," said Van Decker. "In 2004, we'll likely see a 15%-20% increase in business performance management, as firms utilize BPM both for SOX compliance activities and as an enabler of closed-loop performance management frameworks."

During the first three quarters of 2004, as firms address the lagging financial management processes identified in SOX Section 404 activities, they should consider leveraging BPM to improve financial visibility, supporting SOX Sections 302 and 906, and improving notifications, which supports Section 409.

About META Group

META Group is a leading provider of information technology research, advisory services, and strategic consulting. Delivering objective and actionable guidance, META Group's experienced analysts and consultants are trusted advisors to IT and business executives around the world. Our unique collaborative models and dedicated customer service help clients be more efficient, effective, and timely in their use of IT to achieve their business goals. Visit metagroup.com for more details on our high-value approach.