IBM, for its part, said that despite the fact that it already has both ECM and BPM technologies of its own, it was FileNet’s content-centric approach to business process management, and its tailored industry-specific offerings, that make it a sensible acquisition.

Ambuj Goyal, general manager of the Information Management division within IBM’s Software Group, explained that FileNet P8 is an example of content-driven BPM, where the content drives the workflow. By bringing these two together, we can address customer’s BPM needs, regardless of if they come at BPM from a process-centric angle or a content-centric angle, he said.

But the CEO of rival BPM software vendor Lombardi Software, Rod Favaron, believes that IBM has less desire for FileNet’s BPM than it does its ECM: It is our belief that the acquisition of FileNet by IBM is focused on their ECM solutions, he told Computer Business Review. While the IBM announcement discussed integrating IBM’s BPM and service oriented architecture technologies with the FileNet platform, mention of FileNet’s BPM product was noticeably absent.

It’s my feeling that FileNet got into BPM because the ECM growth was slowing, and they had hoped to improve their valuation by entering BPM, Favaron continued. It seems as if FileNet decided to throw in the towel because they have not been able to execute very well on BPM – just look at leading analyst opinions from this year. The valuation they are getting for this acquisition reflects that fact.

Meanwhile Jon Pyke, CEO of BPM technology and services business The Process Factory, chair of the Workflow Management Coalition (WfMC) and former CTO of BPM vendor Staffware, had this to say about the acquisition: On the face of it, it doesn’t make sense since IBM already has content and process capability.

However, I think this move confirms that BPM is not just about system-to-system SOA solutions, Pyke told us. The majority of business processes are driven by content, the need for SOA and web-services integration stems from that notion – this purchase simply re-enforces the need to involve people and content in processes. This is only part of the story though – we’ll see what happens next as vendors slowly wake up to the needs of the business user.

Another BPM vendor, this time Pegasystems, took the line that the deal is good news for the BPM sector generally. We believe the acquisition of FileNet by IBM reflects the continuing recognition, in both the industry and among end-users, that companies need to take control of their business processes, said the firm’s David Wells, vice president and managing director.

Further, it emphasizes a growing understanding that effective BPM is central to the automation, management and optimization of such processes, Wells continued. And that this is essential if organizations are to achieve real competitive advantage.

Wells also took the opportunity to argue that, In the short term, buyers may wish to reconsider their options in the light of FileNet’s uncertain future. But he added that, In the longer term however, such activity can only further stimulate what is a technologically advanced and rapidly evolving BPM market. And that’s good news for all of us.

Lombardi’s Favaron echoed this last sentiment, saying, This is a positive development for Lombardi and the other BPM leaders, since we view it as yet another opportunity for us to gain further market share in the rapidly growing BPM category.

IBM has said that when the acquisition closes, it will combine FileNet’s operations with IBM’s Content Management business in the Information Management unit led by Goyal. It insisted that it will preserve and enhance customer investments in both FileNet and IBM Content Management platforms… to develop broader ECM solutions, and that it will integrate IBM’s BPM and service oriented architecture technologies with the FileNet platform.

Freeing up information contained in content management systems is critical to unlocking the potential of information to improve business processes and performance, said Goyal. The combination of IBM and FileNet will provide our customers and partners with industry-focused content management solutions that offer a new level of business value.