TIBCO’s having their first ever analyst summit in the day before the TUCON user conference starts, covering both business strategy and product announcements.
First up was Murray Rode, CFO, with a company overview and their position in the market. Their key market segments are SOA and BPM, as we know, but also business optimization (rules + analytics) based in part on the acquisition of Spotfire a year ago. They see their differentiators as their neutral platform, mission critical engineering and being event-driven and bus-based. They also see "infrastructure becoming the essential part of the architecture" and that companies are using TIBCO to "create apps from infrastructure". A key catchphrase summing up what their products can do is "simpler connectivity, more complete automation".
Their fiscal year 2007 revenue was $577M, I was surprised to hear that 50-55% of their revenue is from services, which includes both maintenance and professional services, in spite of a strong partner channel that presumably is also generated significant professional services revenue based on TIBCO products. Geographically, about 50% of the revenue is from the Americas, 40% EMEA and 10% Asia-Pacific. Financial services is their largest vertical at 25%, with telecommunications at 10-15%. They’re continuing to expand their sales force from the current 170 to 190-200, with each quota-carrying salesperson generating about $2.2M in licence revenue annually, and in addition to growing the sales force, they intend to continue expanding through new geography exploration, acquisitions and partner channels.
BPM is 11% of revenue, business optimization is 25%, and the remainder is SOA, although it’s difficult to separate out in many of the larger deals that may be driven by BPM without the licence revenue necessarily reflecting the importance.
Their growth strategy, in summary, is to build on pure-play leadership and neutrality, direct sales force expansion for broader coverage, fully penetrate Global 2000 before expanding to mid-market, continue Spotfire focus with increased cross-selling, and new geographies and indirect channels.