Jun
11
2018
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Splunk nabs on-call management startup VictorOps for $120M

In a DevOps world, the operations part of the equation needs to be on call to deal with issues as they come up 24/7. We used to use pagers. Today’s solutions like PagerDuty and VictorOps have been created to place this kind of requirement in a modern digital context. Today, Splunk bought VictorOps for $120 million in cash and Splunk securities.

It’s a company that makes a lot of sense for Splunk, a log management tool that has been helping customers deal with oodles of information being generated from back-end systems for many years. With VictorOps, the company gets a system to alert the operations team when something from that muddle of data actually requires their attention.

Splunk has been making moves in recent years to use artificial intelligence and machine learning to help make sense of the data and provide a level of automation required when the sheer volume of data makes it next to impossible for humans to keep up. VictorOps fits within that approach.

“The combination of machine data analytics and artificial intelligence from Splunk with incident management from VictorOps creates a ‘Platform of Engagement’ that will help modern development teams innovate faster and deliver better customer experiences,” Doug Merritt, president and CEO at Splunk said in a statement.

In a blog post announcing the deal, VictorOps founder and CEO Todd Vernon said the two companies’ missions are aligned. “Upon close, VictorOps will join Splunk’s IT Markets group and together will provide on-call technical staff an analytics and AI-driven approach for addressing the incident lifecycle, from monitoring to response to incident management to continuous learning and improvement,” Vernon wrote.

It should come as no surprise that the two companies have been working together even before the acquisition. “Splunk has been an important technical partner of ours for some time, and through our work together, we discovered that we share a common viewpoint that Modern Incident Management is in a period of strategic change where data is king, and insights from that data are key to maintaining a market leading strategy,” Vernon wrote in the blog post.

VictorOps was founded 2012 and has raised over $33 million, according to data on Crunchbase. The most recent investment was a $15 million Series B in December 2016.

The deal is expected to close in Splunk’s fiscal second quarter subject to customary closing conditions, according to a statement from Splunk.

Jun
05
2018
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SAP gives CRM another shot with with new cloud-based suite

Customer Relationship Management (CRM) is a mature market with a clear market leader in Salesforce. It has a bunch other enterprise players like Microsoft, Oracle and SAP vying for position. SAP decided to take another shot today when it released a new business products suite called SAP C/4HANA. (Ya, catchy I know.)

SAP C/4HANA pulls together several acquisitions from the last several years. It started in 2013 when it bought Hybris for around a billion dollars. That gave them a logistics tracking piece. Then last year it got Gigya for $350 million, giving them a way to track customer identity. This year it bought the final piece when it paid $2.4 billion for CallidusCloud for a configure, price quote (CPQ) piece.

SAP has taken these three pieces and packaged them together into a customer relationship management package. They see this term much more broadly than simply tracking a database of names and vital information on customers. They hope with these products to give their customers a way to provide consumer data protection, marketing, commerce, sales and customer service.

They see this approach as different, but it’s really more of what the other players are doing by packaging sales, service and marketing into a single platform. “The legacy CRM systems are all about sales; SAP C/4HANA is all about the consumer. We recognize that every part of a business needs to be focused on a single view of the consumer. When you connect all SAP applications together in an intelligent cloud suite, the demand chain directly fuels the behaviors of the supply chain,” CEO Bill McDermott said in a statement.

It’s interesting that McDermott goes after legacy CRM tools because his company has offered its share of them over the years, but its market share has been headed in the wrong direction. This new cloud-based package is designed to change that. If you can’t build it, you can buy it, and that’s what SAP has done here.

Brent Leary, owner at CRM Essentials, who has been watching this market for many years says that while SAP has a big back-office customer base in ERP, it’s going to be tough to pull customers back to SAP as a CRM provider. “I think their huge base of ERP customers provides them with an opportunity to begin making inroads, but it will be tough as mindshare for CRM/Customer Engagement has moved away from SAP,” he told TechCrunch.

He says that it will be important with this new product to find its niche in a defined market. “It will be imperative going forward for SAP find spots to “own” in the minds of corporate buyers in order to optimize their chances of success against their main competitors,” he said.

It’s obviously not going to be easy, but SAP has used its cash to buy some companies and give it another shot. Time will tell if it was money well spent.

Mar
20
2018
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Salesforce is buying MuleSoft at enterprise value of $6.5 billion

Salesforce announced today that it intends to buy MuleSoft in a deal valued at a whopping $6.5 billion. That’s not necessarily the selling price, but the amount the company has been valued at based on stocks, bonds and cash on hand. The exact price was not available yet, but the company did indicate it was paying $44.89 per share for MuleSoft, a price that represents a 36 percent premium over yesterday’s closing price, according to Salesforce .

What’s more, the deal values each MuleSoft share at $36 in cash and 0.0711 shares of Salesforce common stock.

Rumors began swirling this morning after a story broke by Reuters that the CRM giant was interested in MuleSoft, which launched in 2006 and went public almost exactly a year ago. With 1,200 customers, it gives Salesforce a mature company to add to its arsenal. It also gives them an API integration engine that should help the company access data across organizations, regardless of where it lives.

This is particularly important for Salesforce, which tends to come in and work with a company across enterprise systems. As it builds out its artificial intelligence and machine learning layer, which it has branded as Einstein, it needs access to data across the company. A company like MuleSoft gives them that.

But of course Salesforce gets more than tech with this purchase, which it can integrate into its growing family of products. It also gets major customers like Coca-Cola, VMware, GE, Accenture, Airbus, AT&T and Cisco. While Salesforce may have a presence in some of these companies already, MuleSoft gives them entrée into areas they might not have had, and gives them the ability to expand that presence.

What’s more, the company has big revenue goals. Having reached $10 billion in revenue faster than any software company ever has, a point that chairman and co-founder Marc Benioff has been happy to make, they have actually set their sights on $60 billion by 2034. That’s a long way away, of course, but having a company like MuleSoft in the fold, which made almost $300 million in revenue in fiscal 2017, will certainly help.

Ray Wang, founder and principal analyst at Constellation Research, says this about building a microservices future, “This is the heart of Salesforce’s M&A strategy. They have to integrate, orchestrate, and manage microservices in their future roadmap,” he said. “The AI-driven world ahead needs contextual microservices.”

Microservices are a way of building applications made up of small, distinct pieces, rather than the single, monolithic application we tended to build in the past. This makes changing and updating easier and more efficient.

Brent Leary, owner and principal at CRM Essentials, a CRM consulting firm, sees the deal through a customer prism. “Well, it shows just how crucial [Internet of Things] and [Artificial Intelligence] is to the future of Salesforce‘s ability to create the customer success platform of the future,” he said.

“It also reinforces that they feel investing deeper into customer success is a better ROI and growth play then extending to other enterprise app areas outside of their core focus,” Leary added.

As with all deals of this ilk, it needs to pass regulatory muster first, but if it does, it is expected to close at the end July.

Dec
11
2017
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Iron Mountain acquires IO Data Centers’ US operations for $1.3 billion

 Iron Mountain announced today that it’s acquiring the U.S. data center assets of IO Data Centers for a cool $1.3 billion — and the price tag could potentially go higher. With today’s purchase, Iron Mountain gets some serious assets, including four state-of-the-art data centers in Phoenix and Scottsdale, Arizona; Edison, New Jersey; and Columbus, Ohio. Read More

Oct
23
2017
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Cisco scoops up BroadSoft for $1.9 billion to boost communications tools portfolio

 One thing is clear, Cisco is not afraid to use its considerable cash on hand to fill in holes in its product portfolio. Today it wrote out a big fat check for $1.9 billion to acquire BroadSoft, a Maryland company that delivers unified communications via service providers. The purchase gives Cisco a new way to sell its communications tools as it shifts its focus from a pure networking… Read More

May
01
2017
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Cisco scoops up yet another cloud company, acquiring SD-WAN startup Viptela for $610M

Cisco headquarters. Cisco has been rather acquisitive in recent years, buying 19 companies since 2015; today it announced it was acquiring cloud-based SD-WAN vendor Viptela for $610 million in cash. Viptela was founded in 2012 and had raised more than $108 million, including its most recent $75 million round just last May. The $610 million price tag appears to be a nice return for investors. Read More

Nov
09
2016
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OneLogin acquires Sphere Secure Workspace to gain mobile management foothold

iPhone 7 OneLogin, a company that provides identity management in the cloud, has become rather acquisitive over the last year buying CafeSoft last December and Portadi in June. Today it announced it was acquiring Sphere Secure Workspace to add mobile device management to their identity-driven security model.
“We are getting the hang of acquiring companies and propelling our roadmap very… Read More

Oct
08
2016
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The method in Salesforce’s M&A madness

Salesforce executive Keith Block speaking at a press conference at Dreamforce 2016. Salesforce has been on a shopping spree this year, spending in the neighborhood of $5-6 billion on 10 companies. That’s why it was interesting to hear company president, vice chairman and COO, Keith Block talk about what they look for in an acquisition target at a press conference at Dreamforce this week. This is particularly true in the context of rumors that Salesforce was interested… Read More

Feb
02
2016
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Marc Benioff Offers Some Insight Into Thinking Behind SteelBrick Purchase

Salesforce CEO Marc Benioff speaking at a presentation today. When Salesforce announced it was buying quote-to-cash vendor SteelBrick for $360 million at the end of last year, it came as a surprise. CEO Marc Benioff offered some insight into why he made the purchase at today’s Salesforce Lightning CRM launch event.
The move has to be seen in the context of comments made at a Dreamforce press event last fall with Keith Block, who was named COO today. Read More

Dec
21
2015
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More Fodder For Dell-EMC Deal As Pivotal Buys UK-Based CloudCredo

Cloud over field of zeros and ones. The Dell-EMC deal has had so many moving pieces since it was announced in October, it’s hard to tell the players without a score card. This morning, Pivotal, which is jointly owned by EMC and VMware (and General Electric) announced it was buying CloudCredo, a Cloud Foundry service provider based in the UK. The deal also includes stayUp, a log analysis company partly owned by… Read More

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