Ping Identity Acquires UnboundID

Merritt Maxim

Yesterday, Ping Identity announced it has acquired Austin, Texas-based UnboundID. Although the financial terms were not disclosed, Forrester estimates the purchase price in the $50M-$75M range, based on typical M&A SaaS revenue multiples of 6X to 8X and Forrester’s estimation of UnboundID’s annual revenue.

This acquisition is not particularly surprising, as UnboundID and Ping have had a healthy reseller relationship since April 2015, so the purchase merely consummates the existing relationship. It also demonstrates how reselling relationships can help software vendors validate how they complement each other and set the stage for a complete acquisition.

For me, there are three key takeaways from the Ping Identity/UnboundID merger:

1.       Customer identity and access management (CIAM) demand is strong and growing. UnboundID’s focus on customer IAM complements Ping’s existing strengths in enterprise IAM and provides further evidence of the strong demand from today’s digital businesses to build compelling, identity-centric digital customer experiences. Forrester has seen a steady increase in the number of CIAM-related inquiries from enterprise clients looking to provide a holistic, omnichannel customer experience that doesn’t compromise on security or privacy. The Ping/UnboundID combination is now positioned to meet that growing demand.

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Bosch Software Innovation Offers Lessons For Digital Transformation

Dan Bieler

Traditional manufacturing businesses must rework the structure and culture of their organization to address rapidly changing client expectations. Bosch is a fascinating example of how a traditional manufacturing firm can successfully transition into a leading digital business. Our discussions with Bosch highlight that:

  • The shift from selling products to outcomes-as-a-service requires business model change. In order to sell business outcomes, Bosch combines business process expertise with technical know-how and an outside-in approach.
  • Digital transformation depends on successful cultural transformation. Bosch’s digital transformation is based on a fundamental cultural transformation that takes every Bosch employee and customer along.
  • Bosch’s software engineering division acts as a catalyst for digital transformation. Bosch believes in a central coordinating role for its software engineering division as part of the digital transformation process.
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Verizon’s Acquisition Of Fleetmatics Group Boosts IoT Momentum In The Telco Space

Dan Bieler

Verizon’s acquisition of Fleetmatics Group isn’t the first deal that involves a telco pushing into new internet-of-things (IoT) territory in the vehicle management space. In 2015, Orange acquired fleet management provider Ocean to strengthen its vehicle fleet management activities.

However, at $2.4 billion, the Fleetmatics deal is much bigger than most telcos have been willing to contemplate to date, underlining Verizon's commitment to the IoT space. But this deal won’t transform Verizon’s enterprise revenue composition overnight. While it will help improve Verizon's position in terms of IoT revenues, Fleetmatics had revenues of $285 million in 2015 – compared to Verizon’s $132 billion.

The price it is prepared to pay for Fleetmatics shows that Verizon expects to see impressive long-term benefits from the deal. Forrester expects that Verizon will ultimately extend Fleetmatics’ business model beyond global fleet and mobile workforce management solutions to more general tracking and tracing solutions for nonpowered objects like skips, agricultural equipment, machinery, and other connected assets.

Verizon has its work cut out: The acquisition is the easy part. But successful integration will be much harder, as this deal is about supporting customers with their business processes rather than just selling them new products.

Insights-Driven Businesses Will Make $1.2 Trillion In 2020. Wanna Join Them?

Ted Schadler
You can't win, serve, and retain powerful customers without being insights-driven. It's one of the principles of customer obsession: customer-led, insights-driven, fast, and connected. So what does it mean to be insights-driven? We think we know based on conversations with over 50 companies over three years. 
We have identified 40 public companies and a horde of venture-backed startups that work in a fundamentally different way: They harness and apply data at every opportunity to differentiate their products and customer experiences. That makes them faster and fleeter than you. In fact, using data from PitchBook and Morningstar, we forecast that, collectively, these insights-driven businesses will make $1.2 trillion dollars in 2020 (see the first figure).
What does it mean to be insights-driven? It's easiest to see by example. What if you could:
  • Optimize the driving experience by mining car performance data for insights to continuously improve car software? Tesla does.
  • Improve student loan re-financing prices and risk by finding insights in a borrower's credit card transaction history, college, and grades? Earnest does.
  • Win a football championship by gathering data and using insights to improve recruiting, training, and half-time pep talks. FC Midtjylland does.
  • Earn the best on-time arrival of any major airline by measuring when the airplane door closes -- and everything leading up to it. Alaska Airlines does.
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Insights-Driven Businesses Are Stealing Your Customers

Brian  Hopkins

Is your business digital? Like Domino’s Pizza, do you realize that you are not a product or service business, rather you are a software and data business that provides products or services? Do you exploit all of your customers' data to know them inside-out? Are customers flocking to you because you are driving every engagement with insight about them? If the answer to any of these questions is not a resounding, “Yes!”, then you are losing revenue and shareholder value.

In Forrester’s new report, The Insight Driven Business, my colleagues Ted Schadler, James McCormick and I identify a type of business that ignores the "data driven" hype. Instead, insights-driven businesses focus on implementing insights - that is actionable knowledge in the context of a process or decision - in the software that drives every aspect of their business. This is a big shift from most firms that fret over big data and technology. Instead insights-driven businesses focus on turning insights into action. The big data and technology pieces come along naturally as a consequence.

To gauge the economic impact of insights-driven businesses, Forrester built a revenue model that conservatively forecasts insights-driven businesses will earn about $400 billion in 2016; however, by 2020 they will be making over $1.2 trillion a year due to an astonishing compound annual growth rate between 27% and 40%. Given that global growth is less than 4%, how will they pull this off? Plain and simple, they’ll do this by understanding customers more deeply and using that insight to steal them from their competition. 

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Microsoft Stream Hopes To Shake Up EVP Market

Nick Barber

Microsoft Stream, the company’s enterprise video platform (EVP) bolted onto Office 365 could shake up the EVP market, but don’t jump in head first just yet.


Video used to be the domain of media and broadcasters, but now enterprises from healthcare to financial services have reason to be doing video. They can use video to connect internal employees and external prospects with the CEO during a live event. Or maybe HR needs to establish a centralized training channel.  


It makes sense for Microsoft to move into this market more robustly. It already has tens of millions of users on its Office 365 email and productivity suite so video is a logical step.


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Cybersecurity Takes Center Stage In US Presidential Election

Stephanie Balaouras
Last week, WikiLeaks posted a treasure trove of internal emails from the Democratic National Committee (DNC). The leaked emails demonstrated a clear bias within the DNC against Bernie Sanders and for Hillary Clinton, when the organization claimed to be neutral. The incident:
  • Confirms two of our 2016 cybersecurity predictions:
    • In 2015, we predicted that cybersecurity would become a major issue in the 2016 US presidential election. Not only have candidates discussed cybersecurity issues such as encryption throughout the debates, with the DNC email leak, cybersecurity itself is taking center stage in the election and influencing events. It is worth noting that hacking during election season is not purely a US-related issue. The entire voter registration database of the Philippines, which included fingerprint data, was hacked this spring.
    • We also predicted that an executive would need to step down due to a cybersecurity breach. As the result of the embarrassing emails, the DNC chairwoman, Debbie Wasserman Schultz, has announced her resignation at the end of the DNC convention.
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Look Who's Running IT Now!

Brian Baker

As CIO Executive Partners at Forrester, we meet technology leaders in almost every industry sector. One theme is clear: The typical career path, leading to CIO has changed.

No patience for CIOs to learn new tricks.
Companies are now looking to leadership from non-traditional CIO career path sources. Over the past few years, we've noticed an increase in line-of-business leaders being appointed CIO. Within the past 12 to 18 months we've also seen Digital channel / eCommerce experts, being appointed the overall CIO.

Why are Executives turning to new sources for their CIOs?
For a few decades now, tech leaders have been focused on running a stable, secure, predictable and efficient technology platform. Everyone expects you to get the "table stakes" right. That is no longer enough to keep your position in the company secure.

Back in November 2015, Forrester Analysts Nigel Fenwick and Pascal Matzke summarized the perspectives of the CIO research practice in a Predictions 2016 report: "The New Breed of CIO." In the report they claim that in 2016, CEOs will expect CIOs to grow out of being mere custodians of technology and to actively wield tech to drive revenue instead. They go on to state that, "Effective CIOs will spread outside-in thinking, agile delivery and a sense-and-respond culture to deliver digital success."

Not only is this prediction today's reality, CEOs are making quick assessments as to whether or not they have the right team to achieve results. If they perceive they don't, they are looking to new sources for their Tech Leadership.

The new CIO career path.

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Forrester's 2016 ECM Panel Survey Is Open - Call for Participation

Cheryl McKinnon

Forrester's survey for ECM decision-makers is open, and we're looking for your participation! Take this opportunity to provide your perspectives on the key vendors, the challenges, and the opportunities you see in this technology market. This survey is intended for ECM decision-makers or influencers in end user organizations. This is not for ECM vendors or systems integrators . . . but vendors and consultants — we would love it if you could share this survey invitation with your customers. The survey will remain open until end of day Monday August 1, 2016. August 15th! 

The survey will take approx 15-20 minutes to complete.

Why is your input important? Forrester uses this data to:

  • Keep our Enterprise Content Management Playbook fresh and relevant. Clients who are embarking on a new or updated content initiative rely on these interconnected reports to understand the landscape and market direction and build out the business cases, continuous improvement plans, and the org charts to succeed.
  • Track the trends and emerging use cases for ECM — for both business and transactional content services. Where are investments being made? How is cloud shaping your road map? What are the top challenges facing your programs today?
  • Educate clients and nonclients alike via research, blog posts, webinars, and industry presentations. This survey data helps us validate and verify where ECM markets are evolving and aid you in making better investment decisions.
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Unilever Buys Dollar Shave Club To Become Digital Direct

Ted Schadler

Unilever is the latest in a long string of enterprise giants to acquire digital. It acquired the digital-native startup, Dollar Shave Club, for $1 billion. I've been telling the Dollar Shave story lately as a way to describe the disruption possible when a company uses digital technology to establish a direct relationship with a customer. Dollar Shave Club is in its customers' daily shower and conscienciousness. It's a digital disruptor, not because it has a revolutionary product. It's because it has a revolutionary relationship.

What should you take away from this Dollar Shave Club deal?

  • Digital disruption starts with a direct customer relationship. Sure, sometimes digital is about new products and services. But it's always about a direct relationship with customers. That's what's so scary to traditional industries with their indirect distribution models. Unilever has sold through distribution for time and memorial. It doesn't know its customers except through the lens of research and somes times purchased sales data. No longer. Now it can know its customers as Under Armour is starting to.
  • Digital strategy is about bridging the gap between your core capabilities and what customers want. For large firms, you don't need to reinvent your core capabilities to become digital. You instead need to recognize that digital is the way customers want to buy, engage, and get service, so you must give them the tools they expect. Dollar Shave Club sells razors. It just sells them conveniently at a great price. That puts digital within reach of every company.

There will be a lot more digital direct deals like this. Direct customer relationships are one vector of our digital future.