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Analysis

Versata - Trilogy combination zeros in on extended value
Terry Schurter By: Terry Schurter, Research Director for Process, Bloor Research (Moved)
Published: 16th May 2006
Copyright Bloor Research © 2006
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Versata is known for its business rules management system (BRMS) while Trilogy is in the business of delivering “technology powered business services” to vertical markets such as automotive, consumer electronics and insurance services. Early this year Trilogy purchased Versata to extend their value proposition in their vertical markets—a strategic move that makes a lot of sense.

Considering that Trilogy already has a strong reputation in their target verticals and Versata has earned their wings as a tier 1 BRMS provider, the match brings together two companies each with proven individual strengths. Nothing wrong with that, but how do they fit together?

The fit comes via enhancement of Trilogy's vertical technology with the extended capabilities of the Versata BRMS. Where Trilogy's focus on specific vertical markets solves targeted problems, Versata (as a BRMS vendor) solves agility, flexibility, control, management and knowledge requirements as a horizontal enabling technology.

Brought together under the Versata brand, the move now underway is the inclusion of Versata BRMS technology into the vertical offerings of Trilogy as a way to increase flexibility, agility and capability of these offerings. This makes sense and has the potential to set the vertical market offerings from Trilogy under the Versata brand well ahead of the markets where they have already established a strong competitive position.

Of course, much depends on the integration of the Versata BRMS capabilities. As with most combined technologies, potential benefits are limited to the vision, understanding and execution of the vision by the parties involved. There is little doubt that the resulting enhanced vertical products will be improved—and represent more value to customers—but we won't know just how well this is achieved until results from the field begin to trickle in. That being said, expect to see significant new value creation as these folks know what they are doing and they have the right technology and people to get it done.

The horizontal BRMS product will still be offered, supported and expanded—as it is a core product of the Versata brand. This is also smart as the BRMS market is still evolving so keeping the horizontal product will help push the company to stay on the cutting edge of the BRMS market with trickle-down benefits to vertical products as they go.

It will be interesting to see the market effect from the purchase of Versata, a purchase that “feels” more like a merger in spirit and vision than just a sale. It marks a move to increase the value and meet market demand for vertical and packaged applications requirements that is recognized throughout the customer and vendor communities. The approach is aggressive—and it is on target—assuming Versata/Trilogy leverage the BRMS capabilities of Versata in the Trilogy verticals.

It's the right move at the right time—and may well prove to be a significant step in increasing the value of Versata products in both vertical and horizontal markets.

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