LogicalApps is taking a bigger slice of the governance, risk and compliance (GRC) software market.
The Irvine, Calif.-based vendor of internal controls automation software for the Oracle Enterprise Resource Planning (ERP) set today announced that it has acquired the Integra GRC product line from one of its chief competitors, Applimation, for an undisclosed sum. Assets acquired in the transaction include all of the Integra intellectual property, customer licenses and support contracts.
LogicalApps says it will continue to develop Integra as a standalone product while at the same time integrating it into LogicalApps' Active Governance product family. The ultimate goal, LogicalApps executives said, is to combine Integra's configuration management, access controls and transaction monitoring features with the preventative and detective controls found in Active Governance.
Active Governance embeds governance policies and processes directly into the Oracle E-Business Suite. According to LogicalApps, the software helps companies comply with data-retention regulations such as the Sarbanes-Oxley Act by automatically enforcing governance policies in real time.
"With this acquisition, we've doubled our customer base to over 300 and got a significant foothold internationally," said Chris Capdevila, LogicalApps founder and senior vice president of strategy and corporate development.
Applimation decided to sell Integra in order to focus more development resources on its Informia software line, which helps organizations manage the growth of structured and unstructured data to achieve information lifecycle management objectives, according to a statement released by LogicalApps.
Look before leaping into GRC
In the face of increased regulation, organizations are expected to do some heavy spending on GRC this year. A new study from Boston-based AMR Research finds that total spending on GRC will top off at about $29.9 billion in 2007. About $10 billion of that will be spent on GRC technology itself, with the rest going to GRC-related consulting and internal resources, according to John Hagerty, a vice president and research fellow with AMR.
Key players selling GRC software to Oracle users include Approva, which sells primarily to SAP AG's customers but also has Oracle offerings, and Paisley Consulting, Hagerty said. SAP signaled a deeper focus on GRC last year when it purchased Virsa Systems Inc. for an undisclosed sum.
Oracle itself has a GRC story as well. Late last year, the database and business applications giant purchased Stellent Inc., a content management provider that also boasts a GRC offering. Oracle also offers a homegrown GRC product called Internal Controls Manager.
Hagerty said many firms are attracted to third-party GRC specialists like LogicalApps because they're especially good at helping firms define where there should be a segregation of duties.
"What companies like LogicalApps do is flag all those places where there are conflicts and then give you a way to monitor that stuff going forward," Hagerty said.
With all the vendors out there focused on different areas of GRC, Hagerty said, it's important that potential GRC buyers do their homework.
"Oracle customers need to understand what GRC means to them," Hagerty said. "Sarbanes-Oxley is only one piece of it. The bigger story really is around how you look at GRC as a holistic way to manage your business."