fakelogoSoftware AG acquires Business Process Modeling Expert IDS Scheer

IDS Scheer is a business process consulting firm with only 19% revenue contribution of its licensed software products. Although the public perception was dominated by the product positioning, this fact justified the relative low price based on its € 399 million total revenue in 2008. The ARIS product family is a leading business process modeling tool that mainly resonates to the European culture along the separation of business process analysis and planning from the implementation in a BPM system or another traditional IT system. While US customers tend to use more the modeling tools provided by the BPM runtime engines. IDS managed to gain significant market share with non-technical business analysts. The ARIS process modeling is complementary to Software AG’s current BPM offering and a natural fit for the European market. IDS Scheer’s second product branch called ARIS Business Performance Edition is a BPM runtime monitoring which observed the process performance of BPM runtime environments. Software AG has to figure out how to capitalize this asset as it overlaps with the Business Activity Monitoring (BAM) solution which was acquired via Software AG’s first major acquisition of WebMethods in 2007.

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See the full Forrester report on the IDS acquisition here.