The improved systems capability and proven return on investment for application integration markets represent the most compelling market driving forces. Companies that achieve faster time to market receive significant competitive advantage. The example of Apple achieving competitive advantage over Sony in the electronic music markets is a central and compelling issue driving every enterprise to look at the advantages of enterprise application integration.

Enterprise networks represent the core business capability. Enterprise application connectivity is significant for internal IT departments and to connect to distributors, suppliers, partners, and customers. The ability to send information between disparate applications is relevant to every aspect of network computing.

EAI refers to integration projects inside the enterprise network with employees and over the Internet with partners. Application integration is the base for business process integration, the integration of information relevant to projects inside and beyond the borders of the enterprise.

Integration products are broad initiatives able to integrate heterogeneous IT departments as well as target point solutions. Integration products are becoming more highly developed and less expensive. Portals shift the focus of integration to include integration initiatives beyond the enterprise.

The integration demands of e-Business present major technical challenges. In an attempt to address business challenges, organizations have implemented various ERP enterprise applications to handle the core processes.

Application Integration (EAI) technologies address the need to interconnect distributed islands of computing. Real time network communication of information implies that computing application resources are interconnected. Solutions have limitations in terms of time-to-market, cost, performance or flexibility.

EAI markets at $2.4 billion in 2004 are expected to reach $8.2 billion by 2011. Markets are growing in line with e-commerce adoption. Supply chain automation is a market driving force. Companies in every industry are achieving competitive advantage from the use of EAI technology. It is used to replace batch processing with real time exchange of information.

Report Methodology

This is the 250th report in a series of market research reports that provide forecasts in communications, telecommunications, the internet, computer, software, and telephone equipment. The project leaders take direct responsibility for writing and preparing each report. They have significant experience preparing industry studies. Forecasts are based on primary research and proprietary data bases. Forecasts reflect analysis of the market trends in the segment and related segments. Unit and dollar shipments are analyzed through consideration of dollar volume of each market participation in the segment. Market share analysis includes conversations with key customers of products, industry segment leaders, marketing directors, distributors, leading market participants, and companies seeking to develop measurable market share. Over 200 in-depth interviews are conducted for each report with a broad range of key participants and opinion leaders in the market segment.

About the Company

WinterGreen Research, founded in 1985, provides strategic market assessments in telecommunications, communications equipment, health care, and advanced computer technology. Industry reports focus on opportunities that will expand existing markets or develop major new markets. The reports assess new product and service positioning strategies, new and evolving technologies, and technological impact on products, services, and markets. Market shares are provided. Leading market participants are profiled, and their marketing strategies, acquisitions, and strategic alliances are discussed. The principals of WinterGreen Research have been involved in analysis and forecasting of international business opportunities in telecommunications and advanced computer technology markets for over 30 years.

About the Principal Authors

Ellen T. Curtiss, Technical Director, co-founder of WinterGreen Research, conducts strategic and market assessments in technology-based industries. Previously she was a member of the staff of Arthur D. Little, Inc., for 23 years, most recently as Vice President of Arthur D. Little Decision Resources, specializing in strategic planning and market development services. She is a graduate of Boston University and the Program for Management Development at Harvard Graduate School of Business Administration. She is the author of recent studies on worldwide telecommunications markets and the Top Ten Telecommunications market analysis and forecasts.

Susan Eustis, President, co-founder of WinterGreen Research, has done research in communications and computer markets and applications. She holds several patents in microcomputing and parallel processing. She is the author of recent studies of the Regional Bell Operating Companies' marketing strategies, Internet equipment, a study of Internet Equipment, Worldwide Telecommunications Equipment, Top Ten Telecommunications, Digital Loop Carrier, Web Hosting, and Application Integration markets. Ms. Eustis is a graduate of Barnard College.