BizTalk Electronic Data Interchange Reworked

Electronic Data Interchange (EDI) improvements are planned for BizTalk Server 2006 R2, a new version of Microsoft’s application integration and business process management product that is planned for the second half of 2007. EDI technology enables automated exchange of business-to-business (B2B) messages (such as purchase orders and shipping notices), speeding supply chain operations and other processes in manufacturing, retail, healthcare, and other industries. Technical improvements, along with low license costs and good developer tools, make BizTalk Server 2006 R2 an attractive EDI product, but the market is crowded, especially for the software vendors who create BizTalk Server EDI add-ons.

EDI Remains Strategic Target

BizTalk Server 2006 R2 is an update to Microsoft’s entry in the market for EDI gateways, which manage EDI message exchanges between organizations. EDI remains the dominant technology for B2B data transfer today, and Microsoft estimates that transaction volumes are growing 5% to 10% annually. EDI reduces transaction costs and errors, and is critical to controlling inventory levels in manufacturing and retail businesses that use “just-in-time” ordering. In some cases, EDI is mandated by law (e.g., in some U.S. healthcare organizations) or by dominant market players (e.g., large global retailers such as Wal-Mart and Target).