Things have been almost comatose on this thread, so I thought I would bring over a post on PEGA from the Siebel thread. Thanks to William Harmond for an excellent contribution:
Subject: Siebel Systems (SEBL) - strong buy?
From: William Harmond May 7 1997 2:24PM EST
Reply #394 of 395
With the caution that I can and have been really wrong, here's my view of Pegasystems:
Pegasystems can loosely be grouped with Siebel, Aurum, Scopus, Vantive, Clarify, Remedy, etc, in that they are all in the customer interface management (CIM) application software sector.
Pegasystems, however focuses entirely on the financial-services industry, and their software is designed to merge seamlessly with these organizations' existing mainframe back-office accounting and transaction systems. Additionally, Pegasystems software also falls into a category called expert systems, where the software can be programed in accord with the organization's policies, and can actually automate things like credit limit changes, besides performing all sorts of front-office functions like microfilm image retreval and confirmation correspondence.
What I like most about the company are that they have tremendous momentum in the industry (Bank of America check processing, Citicorp Master Charge and Visa, Fidelity Investments, Franklin/Templeton, etc); their revenue-growth rates are accelerating(last quarter license revenues 157%, previous quarters 83, 79, 50, 14); margins are increasing; they're pretty much at the same point in their growth curve that Vantive and Remedy were at the end of 1995; and the company uses deferred revenue reporting based on customer acceptance. This means that reported revenues are actually six months behind what's really happening. On top of all this, almost half of revenues are from renewals...they use a lease-type model.
First Data (I think the country's largest card-processing vendor) has signed to re-license Pegasystems software under private label in lieu of its own product. I think the reason for this is that Pegasystems core engine runs on platforms ranging from IBM MVS/CICS to Solaris to NT; and is the only vendor to combine this platform coverage with workflow automation functionality together with customer service and problem-resolution tasks.
The company has a website at pegasystems.com |
