Jun
11
2018
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Workday acquires financial modelling startup Adaptive Insights for $1.55B

Workday, the cloud-based platform that offers HR and other back-office apps for businesses, is making an acquisition to expand its portfolio of services: It’s buying Adaptive Insights, a provider of cloud-based business planning and financial modelling tools, for $1.55 billion. The acquisition is notable because Adaptive Insights had filed for an IPO as recently as May 17.

Workday says that the $1.55 billion price tag includes “the assumption of approximately $150 million in unvested equity issued to Adaptive Insights employees” related to that IPO. This deal is expected to close in Q3 of this year.

IPO filings are known to sometimes trigger M&A. Most recently, PayPal announced it would acquire iZettle just after the latter filed to go public. Skype was acquired by Microsoft in 2011 while it was waiting to IPO after previous owner eBay said it would spin it off.

Workday itself went public in 2012 and currently has a market cap of nearly $27 billion.

The deal will give Workday another string to its bow, in its attempt to become the go-to place for all for back-office services for its business customers: the company plans to integrate Adaptive Insights’ tools into its existing platform.

“Adaptive Insights is an industry leader with its Business Planning Cloud platform, and together with Workday, we will help customers accelerate their finance transformation in the cloud,” said Aneel Bhusri, Co-Founder and CEO, Workday, in a statement. “I am excited to welcome the Adaptive Insights team to Workday and look forward to coming together to continue delivering industry-leading products that equip finance organizations to make even faster, better business decisions to adapt to change and to drive growth.”

The two have been working together as partners since 2015.

In the case of Adaptive Insights, which says it has ‘thousands’ of customers, its growth mirrors that both of cloud services and specifically about how business intelligence has developed into a distinct software category of its own over the years, with not just the CFO but an army of in-house analysts relying on analytics of a business’ data to help make small and big decisions.

“The market opportunity here is huge as the CFO has become a power player in the C-Suite,” CEO Tom Bogan told TechCrunch when it raised $75 million in 2015, when it first passed the billion-dollar mark for its valuation. Bogan previously also held a role as chairman of Citrix. “As a former CFO myself, I have seen this first hand and it is accelerating.” Other examples of this force includes Twitter’s Anthony Noto catapulting from CFO to COO (and is now a CEO running SoFi). Around 25 percent of CEOs at Fortune 500 companies are former CFOs.

Adaptive Insights had raised $175 million prior to this.

Bogan will stay on and lead the business and report directly to Bhusri.

“Joining forces with Workday accelerates our vision to drive holistic business planning and digital transformation for our customers,” said Bogan, in a separate statement. “Most importantly, both Adaptive Insights and Workday have an employee-first and customer-centric approach to developing enterprise software that will only increase the power of the combined companies.”

More generally, while we have certainly seen a much wider opening of the door for tech IPOs this year, there is also an argument to be made for continuing consolidation it enterprise IT, in particular with regards to cloud services that might have small or potentially negative margins.

Adaptive Insights was not immune to that: the company in its public listing filing said that its previous fiscal year brough tin $106.5 million in revenues, up 30 percent from the year before, but it also posted a loss of $42.7 million in the same period. That was narrower than the $59.1 million it posted in 2016. Combined with the bigger trend of all-in-one platforms packing a bigger punch with businesses, it might have meant that Workday’s offer was too compelling to refuse. 

This looks like Workday’s biggest acquisition yet, but the company has been on a spree of sorts: just last week it announced the acquisition of RallyTeam to beef up its machine learning.

May
31
2018
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AWS launches pay-per-session pricing for its QuickSight BI tool

Amazon QuickSight, the company’s business intelligence tool for AWS, launched back in 2015, but it’s hard to say how much impact the service has made in the highly competitive BI market. The company has far from given up on this project, though, and today, it’s introducing a new pay-per-session pricing plan for access to QuickSight dashboards that is surely meant to give it a bit of a lift in a market where Tableau and Microsoft’s Power BI have captured much of the mindshare.

Under the new pricing plan, creating and publishing dashboards will stay cost $18 per user and month. For readers, though, who only need to have access to these dashboards, AWS now offers a very simple option: they will now pay $0.30 per session up to a maximum of $5 per month and user. Under this scheme, a session is defined as the first 30 minutes from login.

Previously, AWS offered two tiers of QuickSight plans: a $9 per user/month standard plan and a $24/user/month enterprise edition with support for Active Directory and encryption at rest.

That $9/user/month is still available and probably still makes sense for smaller companies where those who build dashboards and consume them are often the same person. The new pricing plan replaces the existing enterprise edition.

QuickSight already significantly undercuts the pricing of services like Tableau and others, though we’re also talking about a somewhat more limited feature set. This new pay-per-session offering only widens the pricing gap.

“With highly scalable object storage in Amazon Simple Storage Service (Amazon S3), data warehousing at one-tenth the cost of traditional solutions in Amazon Redshift, and serverless analytics offered by Amazon Athena, customers are moving data into AWS at an unprecedented pace,” said Dorothy Nicholls, Vice President of Amazon QuickSight at AWS, in a canned comment. “What’s changed is that virtually all knowledge workers want easy access to that data and the insights that can be derived. It’s been cost-prohibitive to enable that access for entire companies until the Amazon QuickSight pay-per-session pricing — this is a game-changer in terms of information and analytics access.”

Current QuickSight users include the NFL, Siemens, Volvo and AutoTrader.

Feb
21
2018
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Crunchbase opens a marketplace for 3rd-party data in bid to be the ‘master database for companies’

 Last year, when tech-company database Crunchbase (once a part of TechCrunch but since spun out) announced a funding round of $18 million, it previewed plans for a new marketplace where it would sell access to third-party data to supplement its own information. Now nearly one year later, it’s taking the wraps off that project. Read More

Sep
14
2017
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Looker’s latest looks to simplify data integrations

 Looker is holding its Join user conference this week, and these affairs often involve a new release to show off to customers. Today, the company released Looker 5, which they say will make it easier for employees to make use of data in their work lives. Company CEO Frank Bien believes there is a growing group of people, who need quick access to data to do their jobs. “At a high level,… Read More

Jun
29
2017
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Adobe releases analytics tools for conversational AI

 It’s still hard to say if the voice-controlled aluminum can will be the next smartphone or the next Segway, but either way, brands are preparing. This morning Adobe launched a new set of analytics tools, Adobe Sensei for Voice, to help brands take advantage of conversational data to improve targeting and, ideally, conversions.
Adobe says it can consume data from Alexa, Siri, Google… Read More

Jun
12
2017
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Microsoft’s Power BI business analytics tool learns new tricks

 Back in 2015, Microsoft launched a highly visual Power BI data exploration and interactive reporting tool into general availability. The service is now in active use at 200,000 different organizations and the team has shipped 400 updates and new features over the course of the last two years. Current users span a wide gamut and include the likes of the Seattle Seahawks, CA Technologies,… Read More

Apr
18
2017
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Facebook analytics gets smarter with Automated Insights and Custom Dashboards

 Facebook’s VP of Partnerships, Ime Archibing, announced updates to Facebook Analytics as well as Facebook Login and Account Kit during his F8 keynote address. Analytics is getting greater customizability and a machine learning boost while Login and Account Kit are benefitting from additional transparency and accessibility. Facebook analytics is a core product for businesses using… Read More

Apr
12
2017
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Sisense Pulse uses machine learning to trigger data anomaly alerts

Electrocardiogram (ECG) trace. An ECG measures the electrical activity of the heart. Sisense introduced a new tool today called Pulse, which uses machine learning to trigger an alert when it detects results outside of normal parameters for a particular metric. A user can set a Pulse alert to monitor a metric or KPI such as sales activity or win rate. The machine learning component watches the chosen metric and learns over time what’s normal. When it detects an… Read More

Feb
14
2017
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Gamalon leverages the work of an 18th century reverend to organize unstructured enterprise data

Red and white dice casting shadows on grey surface It’s hard to fathom that the work of Reverend Thomas Bayes is still coming back to drive cutting edge advancements in AI, but that’s exactly what’s happening. DARPA-backed Gamalon is the latest carrier of the Bayesian baton, launching today with a solution to help enterprises better manage their gnarly unstructured data. The world of enterprise is full of… Read More

Jan
17
2017
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TellusLabs wants to help us better understand our planet

cascades-and-agriculture-aug-2016 If you’ve spent time following companies like Orbital Insight and Descartes Labs, you might assume the geospatial analytics race has been won. But TellusLabs thinks, on the contrary, that the table hasn’t even started to cool. Armed with $3 million in new seed funding from IA Ventures and an investor group including Hyperplane VC, FounderCollective and Project11, the… Read More

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