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Intellicorp focuses on bigger picture

The maker of application modeling tools is corralling its diverse product line to create a new product that will act as enterprise application integration software.

    IntelliCorp is starting to focus on the bigger picture.

    The maker of application modeling tools is corralling its diverse product line to create a new product that will act as enterprise application integration (EAI) software.

    IntelliCorp is best know for its LiveModel product, a tool that allows users of German software giant SAP's R/3 software to design blue prints or models of their internal business processes. LiveModel is the tool SAP has used in its Business Engineer product as the business-process modeling tool.

    The Mountain View, California-based IntelliCorp earlier this year bought an tool from consultancy Deloitte and Touche that lets users create application interfaces to connect their R/3 system to other software systems. The product, called LiveInterface, is to be integrated with LiveModel along with data migration tool LiveTransfer, business process repository LiveCompass, and test management tool Test Director to create a total application integration software system.

    "Strong business-process modeling capability is an important ingredient of the [enterprise application integration software], but more will be required," said Boston-based AMR Research in a report on the new tool. "IntelliCorp will need to detail every aspect of its EAI product. Success will depend on its ability to meld its current products into one coherent [system], with each component providing some level of differentiation."

    The demand for easy ways to connect huge business software systems from SAP, Oracle, and PeopleSoft, to other software products like plant control or legacy mainframes created a fertile market for application integration products.

    For the past few years, companies specializing in such software have sprouted up all over the Silicon Valley and beyond, trying to grab a chunk of the untouched market share while it still exists.

    Firms like Oberon, CrossWorlds, and Vitria are all making names for themselves in the market.

    By far, the sweetest piece of the pie is the SAP market with a huge share of Fortune 500 business and the momentum to continue its drive.

    While a late bloomer in the market, IntelliCorp brings one thing to the table: a solid R/3 customer base. Its primary business has been with SAP and R/3. And a deal earlier this week with Visio give the firm even more of an advantage. IntelliCorp is taking over Visio's business modeler and is creating a new product called Business Visualizer.

    "With a substantial base of Visio and IntelliCorp customers in the SAP market, IntelliCorp has created a strong entry point into the EAI market," said AMR Research. "Despite IntelliCorp's lackluster financial performance, the company has access to valuable customers bases and a reasonable EAI story."

    IntelliCorp posted a loss of almost $1.7 million, or 12 cents a share, for its first quarter ended September 30 compared to a profit of $425,000, or 2 cents a share, the like quarter last year. Revenue for this year's quarter was $5.14 million.