SFFA: What is the hierarchy of players in the EMA market?
BW: Every market breaks down into a food chain: big fish to small fish. In this market, you see companies like Oracle and SAP launching CRM initiatives. But they aren't too advanced on the marketing automation side. ERP is trying to become ERM (enterprise resource management), where sales, service and marketing converge.
In the next level down, you have large CRM vendors, which are becoming suite vendors, like Siebel, which is doing well with its Scopus sales.
Then you have those whose specialties and sub-specialties are marketing automation. In this class, you optimize the Internet for free campaign management, with companies such as Market First, Rubric and Annuncio. Then you have sub-specialty companies, like MarketSoft, which offer lead management as well. They focus on call centers.
We see Rubric as a good example of a company trying to get its arms around what vice presidents of marketing do on a given day-a different spin. They do some lead management, but they are looking at a wealth of marketing functions, such as workflow, tradeshows, public relations and advertising, or budgeting.
So [they're dealing with] the whole idea of how many people can I get on the bus, to be able to look at intersecting numbers, to get an idea of the individuals and households and multiple accounts, and decide how that manifests itself into a database. It depends on what vendors give in terms of scalability, campaign management and analytics. Epiphany and that class of vendors for CRM focus on that problem, Broadbase has solutions, Hyperion and others for churn problems, neural networks on the data mining side for scoring and predictive modeling.
All these guys will thrive for the next four years, but they will collapse into smaller groups like supply-chain planning trends. Now it's the Wild West.