Some Recent Cloud Computing Acquisitions

Some Recent Cloud Computing Acquisitions

As an industry matures, consolidation occurs and some prominent players emerge. With big companies already staking their claims in this space – a phenomenon which I had argued differentiated the cloud computing fervor from the dotcom bubble  – it was only time that the bigger fish started swallowing the small ones . While startups are always on the acquiring companies’ radars, some mid-size companies are also attracting considerable interest. This article features two such recent deals.

SAP – SuccessFactors

In an effort to combat its rival Oracle’s moves in the cloud computing space, German business software maker SAP recently announced the acquisition of California-based web services company SuccessFactors for a whopping $3.4 billion in cash.

Although some analysts described the price, a 52% premium on its market value, as high, many felt that the limited number of similar-sized targets and SAP’s intent to compete with Oracle and Salesforce.com made the acquisition justified. SAP co-CEO Bill McDermott justified the acquisition in as many words. “We’re going to remain an organic growth company primarily, but where there is an opportunity, a crown jewel in the market like SuccessFactors, and where it can help us become the cloud powerhouse we want to be, you make the move,” he said.

SuccessFactors was founded in 2001 and claims more than 3,500 customers with more than 15 million subscribers in 168 countries. It specializes in HR applications and the SAP’s purchase valued the company at $40 a share, a considerable increase from the $10 it debuted at a decade ago.

IBM – DemandTec

Last month IBM announced the acquisition of retail analytics company DemandTec for $440 million in cash, a 57% premium over the market price. DemandTec’s cloud-based applications help retailers predict make business decisions like predicting supply and demand, and will become part of IBM’s Smarter Commerce portfolio. IBM estimates a $20 billion market in this space.

IBM Smarter Commerce is redefining how brands buy, market, sell, and service their customers in ways that their customers want. Bringing science to the art of pricing and promotion is a big part of this strategy, and the combination of DemandTec and IBM will help marketing and sales executives in retail and other industries drive more revenue and increase profitability,” said Craig Hayman, general manager for industry solutions at IBM.

DemandTec has unprecedented capability to improve customers’ price and promotion tactics on a standalone basis and connect retailers and manufacturers for collaborative planning through the cloud. IBM is the only provider of price and promotion offerings within a rich solution set that supports companies’ buy, market, sell, and service processes,” said Dan Fishback, CEO and president of DemandTec.

DemandTec marks IBM’s third data analytics acquisition in 2011. Last summer it bought risk analytics companies Algorithmics for $387 million and i2 for an undisclosed amount.

By Souya Biswas

Sorry, comments are closed for this post.

The Cloud Is Not Enough! Why Businesses Need Hybrid Solutions

The Cloud Is Not Enough! Why Businesses Need Hybrid Solutions

Why Businesses Need Hybrid Solutions Running a cloud server is no longer the novel trend it once was. Now, the cloud is a necessary data tier that allows employees to access vital company data and maintain productivity from anywhere in the world. But it isn’t a perfect system — security and performance issues can quickly…

Don’t Be Intimidated By Data Governance

Don’t Be Intimidated By Data Governance

Data Governance Data governance, the understanding of the raw data of an organization is an area IT departments have historically viewed as a lose-lose proposition. Not doing anything means organizations run the risk of data loss, data breaches and data anarchy – no control, no oversight – the Wild West with IT is just hoping…

How To Humanize Your Data (And Why You Need To)

How To Humanize Your Data (And Why You Need To)

How To Humanize Your Data The modern enterprise is digital. It relies on accurate and timely data to support the information and process needs of its workforce and its customers. However, data suffers from a likability crisis. It’s as essential to us as oxygen, but because we don’t see it, we take it for granted.…

Do Not Rely On Passwords To Protect Your Online Information

Do Not Rely On Passwords To Protect Your Online Information

Password Challenges  Simple passwords are no longer safe to use online. John Barco, vice president of Global Product Marketing at ForgeRock, explains why it’s time the industry embraced more advanced identity-centric solutions that improve the customer experience while also providing stronger security. Since the beginning of logins, consumers have used a simple username and password to…

The Future Of Cloud Storage And Sharing…

The Future Of Cloud Storage And Sharing…

Box.net, Amazon Cloud Drive The online (or cloud) storage business has always been a really interesting industry. When we started Box in 2005, it was a somewhat untouchable category of technology, perceived to be a commodity service with low margins and little consumer willingness to pay. All three of these factors remain today, but with…

Cloud Security Risks: The Top 8 According To ENISA

Cloud Security Risks: The Top 8 According To ENISA

Cloud Security Risks Does cloud security risks ever bother you? It would be weird if it didn’t. Cloud computing has a lot of benefits, but also a lot of risks if done in the wrong way. So what are the most important risks? The European Network Information Security Agency did extensive research on that, and…

The Importance of Cloud Backups: Guarding Your Data Against Hackers

The Importance of Cloud Backups: Guarding Your Data Against Hackers

The Importance of Cloud Backups Cloud platforms have become a necessary part of modern business with the benefits far outweighing the risks. However, the risks are real and account for billions of dollars in losses across the globe per year. If you’ve been hacked, you’re not alone. Here are some other companies in the past…

Disaster Recovery – A Thing Of The Past!

Disaster Recovery – A Thing Of The Past!

Disaster Recovery  Ok, ok – I understand most of you are saying disaster recovery (DR) is still a critical aspect of running any type of operations. After all – we need to secure our future operations in case of disaster. Sure – that is still the case but things are changing – fast. There are…