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Progress plans to Divest Non Core Product lines like Savvion – What does it mean to You?

Submitted by Abhishek on Sat, 2012-04-28 10:35
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In a recent press release “Strategic plan to increase growth, profitability and shareholder value” Progress announced its plan to divest Non Core product lines which includes Savvion, Actional, Sonic, Orbix etc. Progress says each of these product lines are string and viable, however, they no longer fit into the company's core portfolio. Progress expects to do this by middle end of 2013.

 

So what does that mean to people like us for whom Savvion happens to be an integral part of our work area and careers? I hope the sections below will throw some light on this. Kindly note this is a Strictly independent analysis and has nothing to do with official progress plan/decision. If you would like to read the official Progress release, it is available at - http://www.progress.com/en/inthenews/progress-announces-s-58698.html

 

Before we begin, note this decision is purely investment based. There is no linkage to the product capabilities or performance. Savvion Business Manager is a strong and promising product. When Progress bought Savvion a few years back, it was expected that lots of features will be added to the product by Progress. Unfortunately, the product itself grew at a slower rate than it would have otherwise matured as an independent product.

 

There can be one of the possibilities below:

  1. Progress sells Savvion to an interested Non-BPM Company who would like to add BPM capabilities to its stack much like what Progress did when it acquired Savvion. While this will be pretty favorable, we will need to keep our fingers crossed on how the company plans to build and market the product.

  2. Progress Sells Savvion to a BPM Company. Here there are two possibilities.

    • The New Company keeps Savvion as one of their BPM Offerings. This will work great for the product as it will open it up to existing customers, better BPM centric strategy and overall growth.

    • The New company decides to scrap the product. While this would be stupid and highly unlikely, this could mean that the customers would be asked to move on to their current product (which I doubt they would like to).

  1. Third, Savvion comes out as an independent entity like before and continues ahead. This again will be difficult as pure play BPM vendors are facing several challenges.

  2. Progress decides to make Savvion as a subsidiary which continues almost independently. This would also be a pretty good option since it will have good features of independent company as well as part of a bigger organization.

 

In all this mayhem, several customers have put on a hold to product evaluations and Proof of concepts, even the companies who have huge Savvion infrastructure. Lets analyze situations from various angles.

 

As a Savvion Customer

As a Savvion customer, you are fairly covered for quite some time. Product survives or gets scrapped, the current maintenance contracts that you have will be in force and support will be available from Savvion/Progress. Frankly, it will be highly stupid for any company to let go of such a mature and stable product. You might want to wait and watch how things unfold but definitely nothing much to worry about. There is definitely great possibility of product turning out to be something much better than what it currently is in the coming years.

 

I suggest continue your development initiatives, there are plenty of good Savvion Implementors and developers out there who can build great solutions using the product.

 

 


Abhishek Mishra
Good experience in working with BPM technologies like Savvion, JBPM. Founder and Chief Editor of BPMGeek.com. Founder of Savvion Business Manager Mobility Framework Savmobify| View my BPMGeek Profile
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