As I mentioned in my blog post last week when discussing Informatica’s acquisition of Siperian, there was a rumor that IBM was on the verge of acquiring Initiate Systems. Well today, February 3, 2010, that rumor became reality when IBM announced their intent to acquire Initiate. Financial details were not disclosed, but estimates value the deal anywhere between $300-$450 million.
In that blog post, I suggested the following reasons IBM might consider Initiate:
Initiate has an extremely strong presence in Healthcare with a growing presence in Public Sector. Both of these verticals are expecting major federal stimulus funding, with IT spending and data management as a high priority. Initiate could help IBM take ownership of these verticals.
By acquiring Initiate as a defensive move, IBM will eliminate the risk of another vendor (EMC, HP, Microsoft, SAP) from strengthening or entering the MDM market as a tough competitor.
While I wouldn’t expect IBM to validate my 2nd assumption, they did in their announcement validate my first. In their announcements, they stated “IBM has announced plans to acquire Initiate Systems, a market leader in data integrity solutions for information shared among Healthcare and Government organizations”.
Look out IBM, Oracle and SAP — you’re about to lose a bit of your dominance in the master data management (MDM) market to Informatica. On January 28, 2010, Informatica announced that it acquired Siperian for $130 million (representing the largest acquisition Informatica has made to date). Siperian is a multi-domain operational MDM vendor that Forrester named as a leader in our last Forrester Wave for Customer Hubs in Q3 of 2008 (see graphic).
Since 2007, Forrester analysts Ken Vollmer, Noel Yuhanna and I have collaborated to publish an annual review of the application, process, and data integration technology landscape. The goal of this important recurring research is to help application development, business process, data management, and enterprise architecture professionals navigate the often complex and confusing myriad of choices available to solve their organization’s integration challenges.
This year’s report focuses on ten distinct integration technologies including ESB, CIS (Comprehensive integration solutions), B2B service providers, Privacy industry exchanges, B2B gateway software, and Integration appliances on the application and process integration side, as well as ETL, CDC (change data capture), and EII (enterprise information integration) on the data integration side. In addition, we continue to look at Information-as-a-Service (IaaS) as an architectural approach to supporting data integration requirements.
A key take away from this research is our recognition that application, process and data integration can no longer remain isolated siloed competencies within an organization. Our recommendation is that organizations look to consolidate their integration strategies and resources into a shared services organization that can leverage all the strengths of these different techniques.
We hope you enjoy, and look forward to hearing your feedback.
On January 4, 2010, Oracle announced its acquisition of Silver Creek Systems, a small private software company focusing on product data quality, which Oracle plans to add to its Oracle Data Integration offering. In our recent research, “It’s Time To Revisit Product Information Management”, we discussed how Forrester believes Silver Creek holds a virtual monopoly in delivering advanced product data quality capabilities, unmatched by other customer data-centric data quality vendors in the market. Due to this, many MDM, PIM and data quality software vendors, including Oracle, had relied on Silver Creek as a strategic partner to add credibility in product data quality. And as we accurately predicted in that research, Silver Creek has now been acquired which will introduce a significant challenge to these partners.
Last week Informatica announced the release of Informatica 9, its data integration/data management platform that continues to evolve its flagship PowerCenter and PowerExchange data integration and access technologies into a much more comprehensive data management platform going well beyond the scope of traditional, batch-oriented ETL that remains Informatica’s bread and butter.
The three main themes Informatica has pitched for this release include: - Pervasive Data Quality - Business-IT Collaboration - SOA-based Data Services
While these themes and capabilities - reusability, SOA-compatibility, real-time, business engagement - are not necessarily new to the broader data integration or data quality software markets, few organizations have been effectively able to execute on them. For the purposes of this blog post, I’d like to focus a bit more on the DQ and business/IT collaboration parts of the announcement.
Strategic partnerships are a dime a dozen in the data management industry. Vendors announce partnership deals so often that it’s a challenge to distinguish the mundane from the noteworthy. Case in point: Earlier this week, HP and Informatica entered into a partnership that is not entirely new—after all, their relationship long predates this announcement—but could be the start of a relationship of considerable strategic importance to both partners.
What the two vendors announced was a multipronged joint approach to the data integration (DI) and data warehousing (DW) markets. First, they announced that HP “will sell and deliver a set of data integration solutions with embedded Informatica technology,” including the latter’s flagship data integration, data quality (DQ), and identity resolution software solutions. Also, the partners plan to develop solutions that combine Informatica’s software with HP Neoview, a high-end, massively parallel data warehousing (DW) appliance. Furthermore, HP and Informatica will develop horizontal and vertical solution accelerators through industry-specific data models drawn from their respective consulting ecosystems, with principal reliance on HP’s BI consulting organization, the foundation of which came from HP’s 2006 acquisition of Knightsbridge Consulting.