Business transaction management (BTM) looks set to become a new industry buzzword, according to a new study from IDC's Emerging Technologies Group.

The analyst firm said BTM also represents a major leap forward in IT management philosophy, as one that will help firms manage complex IT environments from a business perspective. This is because the proliferation of web-based customer services provided by banks, insurance firms, stock traders, ecommerce providers, and travel agencies, will drive more businesses to adopt BTM solutions to avoid revenue loss and improve customer service through the identification and diagnosis of IT performance problems that affect transaction availability.

According to the study, entitled Business Transaction Management: Another Step in the Evolution of IT Management, major IT vendors are jumping on the BTM bandwagon as they view it as a way to solve a number of IT management and business intelligence (BI) type problems related to multi-tier, heterogeneous computing environments.

In addition to an expected set of startups, the "big four" system management vendors – HP, IBM, CA, and BMC – have already acquired smaller providers or invested in research and devleopment in anticipation of a rise in demand. IDC believes BTM will be an important part of IT management offerings as it complements a range of solutions focused on application management, business activity monitoring and business process automation.

"The real rub is that BTM holds so much potential that it is likely to attract additional established and startup companies, which will increase competition among providers large and small," said Dan Yachin, IDC research director of emerging technologies.

"It is therefore important to establish what the term means and how BTM relates to other solutions so that customers get a better understanding of its benefits. Startups themselves might also consider partnerships with established IT management vendors as well as application and middleware players as part of a go-to-market strategy."