More Market Consolidation As KANA Software Buys Sword Ciboodle. It's A Sound Strategy, But The Proof Will Be In The Execution

Kate Leggett

It’s exciting to see the news of yet another acquisition in the world of customer service with the announcement of KANA Software’s intent to acquire Sword Ciboodle. Today’s customer service technology ecosystem is complex and comprised of a great number of vendors that provide overlapping and competing capabilities. I’ve previously blogged about what these critical software components are. The reason why these acquisitions are good is that they align with what customers want: a simpler technology ecosystem to manage from both a systems perspective and a contractual perspective. And suite solutions available from unified communications (UC), CRM, and workforce optimization (WFO) vendors are evolving and include comprehensive feature sets. These vendors have either built these capabilities out or acquired them via M&A activity — and we expect more M&A to happen.

Now, to focus on the Sword Ciboodle acquisition. This acquisition, at a high level, is a win-win for both companies:

  • KANA has historically sold point solutions for knowledge management, email, and chat to the eBusiness owner or owner of the digital communication channels within an organization, not to the owner of the contact center. Ciboodle has had the opposite challenge, historically selling to the owner of contact centers. This acquisition will allow deeper market penetration, targeting an increasing breadth of buyer profiles.
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