Steven C Zolman, NET(net) Founder, Owner, and Executive Chairman
Preface
Nearly all clients are seeking greater prosperity in 2024.
While client organizations are still focused on cost reductions to meet the challenges of their new economic and market realities, the pent-up demands of the business are increasingly calling for innovation, automation, and organizational performance improvement.
Digital Transformation has emerged as the #1 Way to Boost Performance and Savings concurrently. Client organizations that are digitally transforming are harvesting greater value by:
- Automating tasks (RPA) to streamline efficiencies
- Unlocking data insights (ML) for better organizational (AI) decision-making
- Empowering flexible (Cloud) solutions for more cost-effective scaling
This drives greater innovation, improved organizational performance, and significant cost savings ranging from 25-30% (depending on industry, scope of transformation, maturity of transformation, and the methodology and execution) while at the same time, lowering risk by diversifying and improving the technology supply chain.
NET(net) is the #1 IT Cost and Value Optimization Provider. In the last 20+ years, NET(net) has shaped over $2 Trillion of investment, captured well over $400 Billion of incremental value for our clients and partners, and has an 85% probability of helping you save between 13-53% on your existing and planned IT costs. Our performance numbers are simply unmatched.
Intro
The recent interest by Salesforce in acquiring Informatica underscores the critical role data integration plays in the modern enterprise. While the deal ultimately fell through, it raises important questions for companies seeking to leverage data for strategic advantage. This blog explores the potential implications for enterprise customers and how NET(net) can help you navigate this dynamic landscape. In the below we review the background behind the failed (for now) deal, the market, and what it means for you.
Background
Customer Relationship Management (CRM) solutions like Salesforce have become central to many client organizations. However, a siloed data landscape, where information resides in disparate systems, hinders a holistic view of the customer. This is where Data Integration (DI) comes in. DI tools bridge these silos, ensuring a seamless flow of accurate and consistent data across various applications.
Negotiations for Salesforce to acquire Informatica fell through in April 2024 due to disagreements on the terms of the deal [multiple sources]. Reports indicate Salesforce wasn't willing to meet Informatica's asking price (CRN).
There was speculation that the two companies couldn't find a way to efficiently integrate their similar offerings, particularly in the data management area where Salesforce already has MuleSoft (Salesforce Ben).
Here at NET(net), we've been following the recent buzz surrounding a potential Salesforce acquisition of Informatica with keen interest. First, a little background on the market.
The Data Integration Market
Here are the top 10 companies in this space:
Informatica (Redwood City, California): A veteran in the data integration space, Informatica offers a suite of tools for data integration, quality, and governance. www.informatica.com
Microsoft Azure Data Factory (Redmond, Washington): Part of the Microsoft Azure cloud platform, Azure Data Factory (ADF) provides solutions for data integration and data management tasks.https://azure.microsoft.com/en-us/products/data-factory
IBM(Armonk, New York): IBM has a range of data integration solutions, including IBM DataStage and IBM Cloud Pak for Data, catering to businesses of all sizes. https://www.ibm.com/integration
Oracle (Austin, Texas): They have data integration tools like Oracle Data Integrator, specifically designed to work with other Oracle products. https://www.oracle.com/gr/integration/
SAP SE (Walldorf, Germany): SAP provides data integration solutions that specifically integrate with its own enterprise software suite. https://www.sap.com/products/technology-platform/what-is-enterprise-integration/data-integration.html
Talend (now part of Qlik) (Cloud Garden, California): Provider of open-source and commercial data integration solutions, Talend touts a flexible and user-friendly platform for 'businesses of all sizes'. https://www.talend.com/products/integrate-data/
Software AG (Darmstadt, Germany): Software AG has webMethods, an integration platform for connecting various applications, data sources, and APIs. https://www.softwareag.com/en_corporate/resources/data-integration/wp/data-integration-accelerator.html
Salesforce (San Francisco, California): While the Salesforce acquisition of Informatica didn't go through, they do have MuleSoft, an integration platform for connecting cloud and on-premise applications. https://www.mulesoft.com/integration-solutions/saas/salesforce
Qlik (King of Prussia, Pennsylvania): Primarily known for its business intelligence (BI) and data analytics solutions, Qlik also offers data integration capabilities through its Qlik Data Integration platform. They acquired Talend in 2023 which adds to their integration capabilities. https://www.qlik.com/us/products/qlik-talend-data-integration-and-quality
Stitch (San Francisco, California): A relatively new player in the data integration space, Stitch touts a user-friendly and automated solution for integrating data from various SaaS applications. https://www.stitchdata.com/
This list represents a good cross-section of the major data integration software providers, with solutions catering to different business needs and budgets.
What Does This Mean for the Industry?
The proposed acquisition signaled a growing recognition within the CRM space of the critical role data integration plays in the customer journey. Streamlining data flows across disparate systems allows for a more holistic view of the customer and fuels powerful analytics.
This trend is likely to continue, potentially leading to further consolidation or partnerships within the data integration market. We can expect continued innovation and a wider range of solutions catering to specific industry needs.
What Does This Mean for Your Enterprise?
For enterprises like yours, the implications are two-fold:
- Potential Disruption: Existing integrations between your CRM and other systems (potentially built on Informatica) could face changes. New licensing models or product roadmaps might emerge.
- New Opportunities: A more robust data integration landscape could unlock new functionalities and insights for your business. Consider how improved data quality and streamlined workflows can enhance customer experiences, sales pipelines, and marketing efforts.
How Can NET(net) Help You Navigate This Landscape?
NET(net) is here to guide you through the ever-changing data integration landscape. We offer expertise in assessing existing integrations, developing contingency plans, and identifying new opportunities to unlock the full potential of your data.
At NET(net), we are experts in helping enterprises like yours leverage data for strategic advantage. Here's how we can assist you:
- Pre-emption and Response: Our team can assess your existing data integrations and advise on potential impacts from changing market dynamics. We can also develop contingency plans to minimize disruption and ensure your critical business processes remain smooth.
- Capitalizing on Opportunities: We can help you identify new data integration opportunities that align with your strategic objectives. This could involve implementing best-in-class solutions or exploring innovative approaches to data management.
- Thoroughly Vetting and Sourcing the Suppliers: Our SMEs can run full RFPs via our online platform to fully compare and interrogate DI supplier capabilities to ensure you have the very best solution.
- Negotiate the Deal: NET(net) can negotiate the very best terms, conditions, pricing and options that will future proof any DI estate.
Taking a Proactive Approach
Regardless of future acquisitions or partnerships, one thing remains constant: data is the lifeblood of your business. By taking a proactive approach to data integration, you can:
- Reduce Reliance on Suppliers: Diversifying your data integration solutions reduces dependence on any single supplier, making your supply chain more resilient, and making you less susceptible to product or licensing changes.
- Enhance Agility: A flexible data integration infrastructure allows you to adapt quickly to new technologies and business needs.
Conclusion
The potential Salesforce-Informatica deal, while ultimately unsuccessful, highlights the growing importance of data integration in today's business landscape. At NET(net), we are here to help you navigate these changing dynamics.
The very best time to achieve a fully optimized deal for the long term is at the start of any new agreement and or purchase. This is the time when you can set your company up for success, or as we all too often see, failure that results in severe overpaying and limited options as dictated by the supplier.
Call to Action
NET(net) can help you maximize your savings and value on all your IT spend categories, including your Customer Relationship Management (CRM) and Data Integration (DI) investments.
When it comes to data integration strategy, we can help you assess your existing integrations and identify potential risks, develop a future-proof strategy, and leverage market opportunities to do that in the most cost optimized and value conscience ways possible, so Contact Us today, or better yet; Act Now to unlock the full potential of your data.
About the Author
Steven C. Zolman is a leading expert in technology investment optimization and the founder, owner, and executive chairman of NET(net), Inc., the world's leading technology investment optimization firm. With over 30 years of industry experience, Mr. Zolman has helped client organizations of all sizes maximize the value of their technology investments by minimizing cost and risk and maximizing the realization of value and benefit.
About NET(net)
Founded in 2002, NET(net) is the world’s leading IT Investment Optimization firm, helping clients find, get, and keep more economic and strategic value in their technology supply chains. Over the last 20 years, NET(net) has influenced trillions of investment, captured hundreds of billions of value, and has helped clients cost and value optimize all major areas of IT Spend, including XaaS, Cloud, Hardware, Software, Services, Healthcare, Outsourcing, Infrastructure, and Telecommunications, among others. NET(net) has the experience you want, demonstrates the expertise that you need, and delivers the performance you demand and deserve. Contact us at info@netnetweb.com, visit us online at www.netnetweb.com, or call us at +1 (616) 546-3100 to see if we can help you capture more value in your IT investments, agreements, deployments, and relationships.
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