Study: Enterprise integration market to hit $11 billion

The enterprise integration market would grow to US$11 billion by 2006, which is a 20 percent compound annual growth rate, according to a report released by the ARC Advisory Group Inc. on Tuesday.

Dedham, Massachusetts-based ARC, which provides technology planning and assessment services, values the software and services associated with integration at $3.9 billion for 2000 and $4.8 billion this year.

Perhaps more important than the raw numbers, though, the study said that integration projects are metamorphosing into the realm of strategic planning, whereas integration once was seen as a middleware-based means for automating and connecting systems.

The report, entitled Enterprise Application Integration Global Outlook, stated that issues such as collaboration and consistent business processes have created the need for more integration projects as companies now need to connect to partners' systems.

And for companies to successfully conduct business-to-business transactions, they need to first integrate in-house systems, the report said. As a result, the study said that the business-to-business and EAI (enterprise application integration) markets are not clearly separate markets, and most vendors will provide capabilities for both.

Looking to the future of integration, the study said that Web services will be a boon to integration, particularly with the common interface between otherwise disparate systems that Web services promise. Indeed, many of the integration vendors, such as WebMethods, Vitria, Tibco, and SeeBeyond, are enabling Web services through support of XML (Extensible Markup Language), SOAP (Simple Object Access Protocol), WSDL, (Web Services Description Language), and UDDI (Universal, Description, Discovery, and Integration).

Along with the greater need for integration come more advanced products and methodologies for integration, including adoption of component-based development and deployment, according to the study.

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