Business Rules Market Maturity

Some recent correspondence with clients and prospective adopters of business rules technology indicates interested mainstream has become increasing concerned and confused by consolidation in the business rules market.

On the analyst front, they read advice such as the following from Gartner:[1]

As Gartner has stated, the BRE market is a volatile technology sector, and market trends point to increased consolidation. In recent research, we stated that some consolidation will come from rules-to-rules acquisitions. Recent examples of this include Trilogy/Versata buying Gensym and now, RuleBurst purchasing Haley Systems.

Another form this consolidation will take is application vendors or business process management suite vendors buying much-needed rule technology, as seen in SAP’s recently announced intention to purchase Yasu Technologies. In either case, rule technology will persist, but the vendors selling the technology will often be different.

I agree with Gartner, enterprise app and BPM vendors desperately need rules technology. I also agree with the following analysis from Forrester:[2]

SAP’s decision to purchase Hyderabad, India-based Yasu Technologies greatly improves its business rules management capabilities. Other large vendors would be wise to follow SAP’s lead in the business rules market. If you look at the big vendors, they’re all going to need this technology. SAP’s competitors are going to have to step up to these requirements also.

It’s encouraging that SAP bought Business Objects and is now buying Yasu. We’re seeing requirements to link business rules and business intelligence or analytics. SAP has told us they have seen these requests, and we’re encouraged that SAP is now acting.”

Unfortunately, Gartner’s concluding advice could have been more constructive:

Prospective BRE customers: Buyer beware – the rule engine market is a volatile sector. Choose your vendors carefully and be prepared to see more BRE acquisitions.

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