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 (See: Are Cloud Computing Stocks Overvalued?) – it was only time that the bigger fish started swallowing the small ones (See: Is Consolidation Coming to Cloud Computing?). While startups are always on the acquiring companies’ radars (See: Acquisitions of Cloud Computing Startups Speed Up), 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 (See: Oracle Acquires RightNow Technologies for $1.5 Billion and Oracle Announces Oracle OpenWorld San Francisco 2011 Keynote Lineup), 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

sourya

Sourya Biswas is a former risk analyst who has worked with several financial organizations of international repute, besides being a freelance journalist with several articles published online. After 6 years of work, he has decided to pursue further studies at the University of Notre Dame, where he has completed his MBA. He holds a Bachelors in Engineering from the Indian Institute of Information Technology. He is also a member of high-IQ organizations Mensa and Triple Nine Society and has been a prolific writer to CloudTweaks over the years... http://www.cloudtweaks.com/author/sourya/

5 Responses to Some Recent Cloud Computing Acquisitions

Comics

At CloudTweaks, we're plugged into the cloud, the internet of things and all that the web has to offer. From wearable technology, to mobile computing, cloud computing and big data, CloudTweaks is your source for updates and news on the most innovative technology.

Popular

Top Viral Impact

5 Ways The Internet of Things Will Drive Cloud Growth

5 Ways The Internet of Things Will Drive Cloud Growth

5 Ways The Internet of Things Will Drive Cloud Growth The Internet of Things is the latest term to describe the interconnectivity of all our devices and home appliances. The goal of the internet of things is to create universal applications that are connected to all of the lights, TVs, door locks, air conditioning, and…

Cloud Infographic: Disaster Recovery

Cloud Infographic: Disaster Recovery

Cloud Infographic: Disaster Recovery  Business downtime can be detrimental without a proper disaster recovery plan in place. Only 6% of businesses that experience downtime without a plan will survive long term. Less than half of all businesses that experience a disaster are likely to reopen their doors. There are many causes of data loss and…

Cloud Infographic: Cloud Computing Growth

Cloud Infographic: Cloud Computing Growth

An excellent infographic provided by AwesomeCloud which predicts a continued high level of growth in the cloud computing industry. Potentially staggering numbers for Public Cloud IT Services of $100 Billion by 2016. Infographic Source: AwesomeCloud About Latest Posts souryaSourya Biswas is a former risk analyst who has worked with several financial organizations of international repute, besides being a…

Are Cloud Servers The Right Choice For Your Business?

Are Cloud Servers The Right Choice For Your Business?

Cloud servers offer power, flexibility, reliability, and client friendly hosting for small and medium businesses that have outgrown shared hosting. New business hosting clients are bombarded with an incredible diversity of different choices for their site’s hosting. It can be a challenge to negotiate the range of platforms and the marketing hype that many hosting…

Featured Sponsors

The Internet of Everything Opens Up The World

The Internet of Everything Opens Up The World

Shaping The World With New Technologies As a connected collection of intelligent objects, the Internet of Everything promises to open up those areas of the world hardest hit by economic, political and agricultural blights. Relatively inexpensive devices, paired with revolutionary energy sources and unprecedented access to information offer great promise to farmers and workers in…

Salesforce Service Cloud: Air Traffic Control For Your Customer

Salesforce Service Cloud: Air Traffic Control For Your Customer

Salesforce Service Cloud One of the greatest benefits of the increasingly reliable and ubiquitous state of cloud technology is the removal of business silos and the consolidation of information flow, both in-house and on the road. This is of particular importance to the many different types of professionals whose work involves customer relationship management (CRM).…

Sponsors

Moving To The Cloud: A Smart Move Or Proceed With Caution?

Moving To The Cloud: A Smart Move Or Proceed With Caution?

Moving To The Cloud: A Smart Move Or Proceed With Caution? You hear it over and over again: The future of computing is in the cloud. Businesses should be moving to the cloud. If you’re not in the cloud, you’re behind the times. But trusting your essential data to a cloud may sound like a…

Placement Opportunities - Find Out!

Established in 2009, CloudTweaks is recognized as one of the leading influencers in cloud computing, big data and internet of things (IoT) information. Our goal is to continue to build our growing information portal, by providing the best in-depth articles, interviews, event listings, whitepapers, infographics and much more.

You can help continue to support our community by social sharing, sponsoring, partnering or contributing to this great educational resource.

Contact

CloudTweaks Media
Phone: 1 (212) 763-0021

Join Our Newsletter