Earlier this week, Informatica announced that it is being taken private in a leveraged buyout by private equity firms. Informatica’s announcement comes on the heels of a similar announcement by Tibco late last year.
What’s behind the financial troubles of these two well-known enterprise data solution providers? One could chalk it up to coincidence, but I think there’s some commonality here. And I think there may be more struggling icons—and subsequent buyouts—to come.
Today’s fast-changing data climate is demanding a hard turn to the cloud. For companies like Informatica and Tibco that are built upon years of on-premise integration and data management solutions, the move to the cloud isn’t an easy one. Every aspect of a traditional software company’s business model—from the technology in place to the pricing strategy to customer support—needs to be retooled for success in the cloud. A partner in one of the private equity firms acquiring Informatica alluded to such a retooling effort in this week’s announcement, saying, “We are very excited about the company’s ongoing transition to cloud and subscription based services…”
But customers cannot wait for legacy architectures and business models to “transition.” Their data problems, exacerbated by big data and the deconstruction of ERPs (read my blog post from last week for more details on these disruptive technology trends), are already on their doorsteps. To stay relevant and competitive in their own industries, these customers must find a way—today, not tomorrow—to turn ever-growing amounts of disparate data into relevant and usable data-sets that drive their businesses forward.
DataRite recently made a huge announcement too. We’re celebrating the launch of the DataRite DTD Platform and, with it, the introduction of a new market category called dPaaS (Data Platform as a Service). Alloy and dPaaS are our answers to the immediate problems confounding data solution providers and their customers.
Through hard work, 15 years of cloud experience, and market instinct, DataRite has already arrived at the place so many other integration providers are struggling to get to. Not only were we born in the cloud, we’re breaking new ground with innovative platform solutions built from the ground up. Solutions that holistically incorporate people, process and technology to solve today’s integration and data management challenges.