Smart Suite Pegasystems
Overview
Pegasystems started out in 1983 with a focus on exceptions processing. The company has broadened since then, with its flagship solution dubbed SmartBPM, a business process management (BPM) offering, but still with a strong emphasis on payments (around half its business remains in financial services). The company as a whole claims growth per annum of around 20 per cent. It is listed on Nasdaq and is based in Cambridge, MA, with offices elsewhere in the US and around the globe.
Strengths
• Strong in its BPM niche. • Impressive growth and customer base. • Ever greater geographical reach from initial US focus.
Weaknesses
• Solutions are primarily for high-end banks, although this might change with its cloud offering.
• Profile is often now for pure BPM rather than specific applications.
• Covers parts but not all of the payment sector.
Corporate overview
In financial services, its business has traditionally been in wholesale banking but it has moved into retail banking, at the likes of AIG, and (particularly in the US) into insurance. Its entire customer base is only around 200, with the company claiming breadth and depth at most of these. On the whole, it tends to work with larger organisations.
The company clearly seems to be in a good position in
the market, with a 50 per cent increase in licence fees in 2008 and it made a lot of noise about recording its 13th consecutive quarter of record revenue towards the end of 2010, bringing in GAAP revenue in the quarter of $90 million. GAAP revenue for 2010 as a whole increased 27 per cent to $336.6 million compared to 2009. Pegasystems’ revenue in 2013 was $509 million, with income from operations of $58.1 million, and it is seemingly completely hostile to the idea of any takeovers. CEO, Alan Trefler, who owns 54 per cent of the company, created some waves in October 2010 when he was quoted by Reuters as saying he would rather ‘eat sand’ than entertain a possible bid by a large vendor like IBM. It was later pointed out that the sentiment applied
equally to bids from the likes of SAP and Oracle. It has also invested a lot of time and effort recently in its BPM cloud offering, Pega Cloud for BPM. By late 2010, the supplier claimed to have a complete managed services infrastructure to back up the offering, with 24x7 monitoring and support, PCI DSS security for cards, and compliance with the European Data Privacy Directive. It also claimed there was no lock-in, so customers could move both ways between the cloud and an on-premise model. ‘The proposition is all about speed, cost, availability,
security and portability,’ said Pegasystems’ principal, EU financial services industry solutions, James Clark. It means users can have a standard BPM platform within 48 hours of sign-off so that a project can get under way without waiting three or four months for IT to select, order, deliver and configure servers. ‘The bigger the organisation, the longer it tends to take,’ he felt. The cost of Pega Cloud for BPM at this stage started at $155 per user, per month. The most common level of uptake was around $12,000 for the equivalent of ten instances for a development environment – ‘peanuts’ for tier one banks, he said.
Payment Systems & Suppliers Report |
www.ibsintelligence.com 229
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112 |
Page 113 |
Page 114 |
Page 115 |
Page 116 |
Page 117 |
Page 118 |
Page 119 |
Page 120 |
Page 121 |
Page 122 |
Page 123 |
Page 124 |
Page 125 |
Page 126 |
Page 127 |
Page 128 |
Page 129 |
Page 130 |
Page 131 |
Page 132 |
Page 133 |
Page 134 |
Page 135 |
Page 136 |
Page 137 |
Page 138 |
Page 139 |
Page 140 |
Page 141 |
Page 142 |
Page 143 |
Page 144 |
Page 145 |
Page 146 |
Page 147 |
Page 148 |
Page 149 |
Page 150 |
Page 151 |
Page 152 |
Page 153 |
Page 154 |
Page 155 |
Page 156 |
Page 157 |
Page 158 |
Page 159 |
Page 160 |
Page 161 |
Page 162 |
Page 163 |
Page 164 |
Page 165 |
Page 166 |
Page 167 |
Page 168 |
Page 169 |
Page 170 |
Page 171 |
Page 172 |
Page 173 |
Page 174 |
Page 175 |
Page 176 |
Page 177 |
Page 178 |
Page 179 |
Page 180 |
Page 181 |
Page 182 |
Page 183 |
Page 184 |
Page 185 |
Page 186 |
Page 187 |
Page 188 |
Page 189 |
Page 190 |
Page 191 |
Page 192 |
Page 193 |
Page 194 |
Page 195 |
Page 196 |
Page 197 |
Page 198 |
Page 199 |
Page 200 |
Page 201 |
Page 202 |
Page 203 |
Page 204 |
Page 205 |
Page 206 |
Page 207 |
Page 208 |
Page 209 |
Page 210 |
Page 211 |
Page 212 |
Page 213 |
Page 214 |
Page 215 |
Page 216 |
Page 217 |
Page 218 |
Page 219 |
Page 220 |
Page 221 |
Page 222 |
Page 223 |
Page 224 |
Page 225 |
Page 226 |
Page 227 |
Page 228 |
Page 229 |
Page 230 |
Page 231 |
Page 232 |
Page 233 |
Page 234 |
Page 235 |
Page 236 |
Page 237 |
Page 238 |
Page 239 |
Page 240 |
Page 241 |
Page 242 |
Page 243 |
Page 244 |
Page 245 |
Page 246 |
Page 247 |
Page 248 |
Page 249 |
Page 250 |
Page 251 |
Page 252 |
Page 253 |
Page 254 |
Page 255 |
Page 256 |
Page 257 |
Page 258 |
Page 259 |
Page 260 |
Page 261 |
Page 262 |
Page 263 |
Page 264 |
Page 265 |
Page 266 |
Page 267 |
Page 268 |
Page 269 |
Page 270 |
Page 271 |
Page 272 |
Page 273 |
Page 274 |
Page 275 |
Page 276 |
Page 277 |
Page 278 |
Page 279 |
Page 280 |
Page 281 |
Page 282 |
Page 283 |
Page 284 |
Page 285 |
Page 286 |
Page 287 |
Page 288 |
Page 289 |
Page 290 |
Page 291 |
Page 292 |
Page 293
