Andy on Enterprise Software

The Other Shoe Drops

January 29, 2010

I have been speculating for years now about when Informatica would finally enter the MDM marketplace. It is a leader in the integration space, and has good data quality offerings via its acquisitions of Similarity Systems, and more recently Identity Systems and Address Doctor. I am not sure why Informatica held off so long from gaining exposure to the fast growing MDM market, but its purchase of an MDM platform hub has seemed almost inevitable.

I most recently speculated about the eventual target being Siperian. Today the two finally tied the knot, with Infomatica buying Siperian for around $130 million in cash. I estimate that this is a revenue multiple of perhaps four times. This is a very logical purchase for both companies. Siperian has solid technology based on a flexible business model, and will be very complementary to Informatica’s data quality and integration offerings.

This acquisition further confirms the attractiveness of the MDM market, and is good news for the other MDM platform vendors. Market rumours are swirling as we speak about the purchase of Initiate (perhaps by IBM) and if this happens then it could be a gold rush to pick off the better quality independent companies. Despite many purchases already in this space, there are still plenty of potential further acquirers out there.

A New Year Beckons

January 5, 2010

I would like to wish you all a happy New Year. Some people have inquired about why my here postings have become less regular than they were in the past. Well, it is not that I have run out of opinions (you wish), but I now have some other outlets for the material that used to appear entirely in this blog. Some of the longer-style posts now appear in the form of a monthly column in CIO magazine:

http://www.cio.co.uk/author/andy-hayler/ (which has a link to the articles)

The more news-related items, which typically talk about an event in the software industry such as an acquisition or a significant new software release, appear as articles on the web sites IT Analysis and IT Director. For example:

http://www.it-director.com/about/author/14100/andy_hayler.php (with link to articles)
http://www.it-analysis.com/about/author/14100/andy_hayler.php (this has a link also).

I will use this blog to cover miscellaneous items that don’t fit logically into the above forums.

I am looking forward to 2010, which I hope will see at least a partial recovery for the economy and hence better times for the enterprise software industry. Have a great year!