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.

Comic
Tesla Solar Plan Would Cost Billions To Implement

Tesla Solar Plan Would Cost Billions To Implement

A 1,500-word manifesto that Elon Musk unveiled last week, outlining his plan to expand Tesla Motors Inc.’s electric-vehicle line and to build “stunning solar roofs,” may end up costing the company tens of billions of dollars to carry out. Musk, Tesla’s chairman and chief executive officer, gave the estimate on Tuesday after a tour of the…

Healthcare IoT Security To Grow To $47 Billion In 2021

Healthcare IoT Security To Grow To $47 Billion In 2021

Healthcare IoT Security It’s obvious that IoT can make the entire healthcare industry more efficient. The kind of data involved can be used to save time, physical energy and operating costs. Because of this, devices that facilitate medical data are becoming more commonplace in the industry. This includes things such as wearables that can track…

Zoho Announces Industry’s First Multichannel CRM Service

Zoho Announces Industry’s First Multichannel CRM Service

Zoho News According to Gartner, the Customer Relationship Management (CRM) software market grew by 12.3% from $23.4 billion in 2014 to $26.3 billion in 2015. Suggests Julian Poulter, research director at Gartner, “The merger and acquisition activity that began flowing through the market in 2009 continued in 2015, with more than 30 notable acquisitions. This…

How The Cloud Is Changing Online Education

How The Cloud Is Changing Online Education

Online Education Growth There’s no doubt that the internet has changed the face of education over the last two decades. In fact, by some estimates more than 80 percent of college students expect to take at least some — if not all of their courses — online. Thousands of people have earned degrees without ever…

Investing In The Future With The Introduction of Sage Cloud

Investing In The Future With The Introduction of Sage Cloud

CHICAGO, IL–(Marketwired – Jul 26, 2016) – Sage, a market leader in cloud accounting software, announced today at Sage Summit 2016 its strong commitment to future technologies, with a focus on new and existing partnerships that power business growth. Revealed during CEO Stephen Kelly’s keynote address, which opened the world’s largest gathering of entrepreneurs and…

Are Cloud Solutions Secure Enough Out-of-the-box?

Are Cloud Solutions Secure Enough Out-of-the-box?

Out-of-the-box Cloud Solutions Although people may argue that data is not safe in the Cloud because using cloud infrastructure requires trusting another party to look after mission critical data, cloud services actually are more secure than legacy systems. In fact, a recent study on the state of cloud security in the enterprise market revealed that…

Your Biggest Data Security Threat Could Be….

Your Biggest Data Security Threat Could Be….

Paying Attention To Data Security Your biggest data security threat could be sitting next to you… Data security is a big concern for businesses. The repercussions of a data security breach ranges from embarrassment, to costly lawsuits and clean-up jobs – particularly when confidential client information is involved. But although more and more businesses are…

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…

Adopting A Cohesive GRC Mindset For Cloud Security

Adopting A Cohesive GRC Mindset For Cloud Security

Cloud Security Mindset Businesses are becoming wise to the compelling benefits of cloud computing. When adopting cloud, they need a high level of confidence in how it will be risk-managed and controlled, to preserve the security of their information and integrity of their operations. Cloud implementation is sometimes built up over time in a business,…

Ending The Great Enterprise Disconnect

Ending The Great Enterprise Disconnect

Five Requirements for Supporting a Connected Workforce It used to be that enterprises dictated how workers spent their day: stuck in a cubicle, tied to an enterprise-mandated computer, an enterprise-mandated desk phone with mysterious buttons, and perhaps an enterprise-mandated mobile phone if they traveled. All that is history. Today, a modern workforce is dictating how…

Big Data and Financial Services – Security Threat or Massive Opportunity?

Big Data and Financial Services – Security Threat or Massive Opportunity?

Big Data and Financial Services Cloud Banking Insights Series focuses on big data in the financial services industry and whether it is a security threat or actually a massive opportunity. How does big data fit into an overall cloud strategy? Most FI’s have a positive mind-set towards cloud IT consumption as it not only enables…

Moving Your Enterprise Apps To The Cloud Is A Business Decision

Moving Your Enterprise Apps To The Cloud Is A Business Decision

Moving Your Enterprise Apps Whether it be enterprise apps or any other, if there is any heavy data that is going to be transacted in and through an app, then affiliating it with the Cloud becomes a must. And then an important question arises: How do you decide when to integrate your enterprise app with…

Cloud Infographic: The Future of File Storage

Cloud Infographic: The Future of File Storage

 The Future of File Storage A multi-billion dollar market Data storage has been readily increasing for decades. In 1989, an 8MB Macintosh Portable was top of the range; in 2006, the Dell Inspiron 6400 became available, boasting 160GB; and now, we have the ‘Next Generation’ MacBook Pro with 256GB of storage built in. But, of course,…

Cloud Infographic – The Data Scientist

Cloud Infographic – The Data Scientist

Data Scientist Report The amount of data in our world has been exploding in recent years. Managing big data has become an integral part of many businesses, generating billions of dollars of competitive innovations, productivity and job growth. Forecasting where the big data industry is going has become vital to corporate strategy. Enter the Data…

Five Cloud Questions Every CIO Needs To Know How To Answer

Five Cloud Questions Every CIO Needs To Know How To Answer

The Hot Seat Five cloud questions every CIO needs to know how to answer The cloud is a powerful thing, but here in the CloudTweaks community, we already know that. The challenge we have is validating the value it brings to today’s enterprise. Below, let’s review five questions we need to be ready to address…

Digital Marketing Driven by Cloud, Big Data and IoT

Digital Marketing Driven by Cloud, Big Data and IoT

Digital Marketing Successful digital marketing campaigns are being driven largely by trending technologies, specifically the Internet of Things (IoT), Big Data, and The Cloud. These may be used for a huge number of marketing applications, from optimizing the performance of sports teams to improving science and research, even helping to aid law enforcement. Amazon Web…