PerformancePoint Server 2007, Microsoft's forthcoming business performance management, financial reporting, and budgeting application, will cost more than the Business Scorecard Manager (BSM) 2005 application it replaces but less than many of its competitors, which could make it popular. The product will not be available as early as originally planned though. Microsoft says that PerformancePoint Server 2007 will ship in the second half of 2007 rather than midyear 2007 as previously announced.

What Is PerformancePoint Server?

PerformancePoint Server 2007 will include server components, client applications, and modeling utilities to help companies track business performance and streamline financial reporting and budgeting. The product targets large and midsize companies and builds on familiar Microsoft technologies, such as Windows SharePoint Server (WSS), SQL Server, and Office (particularly Excel).

The product focuses on three main areas:

Performance management tools gather and summarize business data from a variety of sources (including SQL Server databases), define and track key performance indicators (KPIs) based on those data, and display those KPIs in scorecards on SharePoint sites. (PerformancePoint will work with WSS 3.0, SharePoint Portal Server 2003, and SharePoint Server 2007.) These features extend those delivered in BSM 2005, which was released in Nov. 2005.

Advanced data analysis and visualization features are based on tools and technologies that Microsoft acquired when it purchased ProClarity in the first half of 2006.

Financial analysis and reporting, budgeting, and forecasting utilities include a tool called Business Modeler that lets business users create financial reporting or budgeting models from underlying data sources (such as a company's general ledger), define business rules (how revenue is attributed, for instance), and specify process workflow (such as the review and approval steps for a budgeting process).

PerformancePoint Server 2007 will enter a relatively crowded field that includes veteran players such as Cognos and Hyperion. Despite favorable pricing, PerformancePoint Server is in many ways a version 1.0 product, and Microsoft could initially find it difficult to compete with those more experienced vendors, especially among large companies with advanced IT skills and deep pockets. However, the combination of PerformancePoint Server's promised ease-of-use, integration with the familiar Office suite (particularly Excel), and low cost could make it a compelling buy among midsize companies, particularly those that have not yet made major investments in performance management applications.

Free Upgrade for BSM, ProClarity Customers

In Jan. 2007, Microsoft announced that it is adopting a server plus Client Access License (CAL) model for PerformancePoint, the same model currently used for BSM 2005 and ProClarity. PerformancePoint Server 2007 pricing is almost identical to that of ProClarity. The server license for PerformancePoint Server 2007 will cost US$20,000 and CALs weigh in at US$195. (BSM 2005 server licenses cost US$5,000 and CALs are US$175.) In addition, PerformancePoint Server 2007 will offer a US$30,000 External Connector license that allows organizations to give an unlimited number of nonemployees access to PerformancePoint. For example, a large manufacturer could use the license to allow its suppliers and distributors to input data to aid PerformancePoint budgeting and forecasting, without the manufacturer having to purchase CALs for those suppliers and distributors.

For both BSM and ProClarity, Microsoft will offer a no-cost upgrade to PerformancePoint Server 2007: ProClarity customers with maintenance contracts and BSM customers with Software Assurance will be able to swap their current server licenses and CALs one-for-one for PerformancePoint 2007 server licenses and CALs.

Availability and Resources

Microsoft originally planned to release PerformancePoint Server midyear 2007; in its pricing announcement, the company suggested the product will in fact be released in the second half of 2007. Microsoft released a community technical preview (CTP) of the product in Dec. 2006.

The PerformancePoint Server home page is www.microsoft.com/performancepoint.

Customers can register for and download the CTP at connect.microsoft.com/site/sitehome.aspx?siteid=181.

PerformancePoint Server 2007 was described in "New Product for Performance Management" on page 28 of the Nov. 2006 Update.