Data Architecture

Software AG Acquires StreamSets

Software AG
A leader in data integration for the modern data stack, StreamSets, has been acquired by Software AG. With this purchase, Software AG gains a significant and quickly growing SaaS and subscription company, with StreamSets' revenue rising at a four-year CAGR of more than 70% through 2021.

Customers can transport data smoothly and securely to and from any element of their digital backbone developed by Software AG's Digital Business portfolio across hybrid and multi-cloud environments, using StreamSets' enterprise-grade data integration platform. Companies can better unlock and extract value from data as it travels across on-premises applications, data streams, SaaS apps, legacy data stores, and cloud data platforms such as Amazon RedShift, Databricks, and Snowflake with this combination. In addition, smart applications and the linked organization will benefit from the integrated hybrid iPaaS platform, which will supply consolidated, conforming, and continuous data.

"This acquisition is a major milestone for Software AG. We're acquiring a fast-growing business in a cloud market growing 26%. Its technology and team will further differentiate our hybrid integration offering for customers and fully complement our strategy to deliver sustainable profitable growth. In Girish and the whole StreamSets team, we are welcoming outstanding colleagues with a track record of innovation and success. Their base in California also extends our presence in North America, and I am incredibly excited at the prospect of working with them to grow our business together."

 Sanjay Brahmawar, Software AG CEO
 

Girish Pancha, CEO of StreamSets, said, "We're delighted to be joining the Software AG family and working with Sanjay and team on this next phase of our growth journey. Our products are made for each other, and we see tremendous opportunity in the convergence of application integration and data integration to deliver smart applications. I have been admiring Software AG's transformation from afar, and together, I believe we will accelerate our growth trajectory by unlocking digital transformation for our customers."

Strategic rationale

The purchase is the first step in Software AG's M&A strategy, which aims to boost growth by gaining access to new segments of the €61 billion total addressable market. In this situation, Software AG will enter the cloud data integration section of the more significant data integration industry, which is expected to increase at a rate of 26% annually to $3.5 billion by 2025.

StreamSets' technology collects, consolidates, and transfers data from across this landscape as well as a wider variety of datasets, including edge and process data, where Software AG's current Digital Business portfolio links a hybrid application environment and integrates transaction data inside it. This necessitates smart data pipelines capable of understanding the structure and meaning of the data traveling through them and transporting it to a variety of hybrid destinations, including current cloud data warehouses, data lakes, messaging systems, and event hubs. In this approach, the StreamSets DataOps Platform provides business clients with current data pipeline technologies to handle a critical aspect of the hybrid integration difficulty.

In addition to a tremendous technological match, StreamSets' go-to-market strategy complements Software AG's. Both parties are aiming for the same business client segment and purchasing personas in the same IT purchasing region. The cultures of the two organizations are also quite complementary, blending the 'agile start-up' with the '50 years bold' global software corporation, but with a common focus on innovation, customer success, and growth.

Value creation

Software AG expects to contribute value to the purchase in three ways, in addition to benefiting from StreamSets' strong standalone growth. StreamSets' very complementary offering will first be sold to the group's own worldwide hybrid integration client base. Second, starting in the iPaaS domain, it will build collaborative solutions and use the organizations' go-to-market alignment to bring these product offerings to market as a single entity. In 2021, Software AG anticipated the synergy revenues generated by these first two levers to exceed StreamSets' standalone revenue.

Third, in addition to the top-line synergies, Software AG will use its operational scale to assist StreamSets is growing considerably more effectively, resulting in a significant boost in profitability while continuing to develop at a rapid pace.

These elements, when combined with the strategic fit and market environment, give the Group strong confidence in StreamSets' ability to maintain high double-digit revenue growth while also being non-IFRS EBITA margin accretive in the medium term.

Financial overview

Funding and purchase price

The purchase price includes €524 million in cash, plus a standard retention package agreed upon and paid to StreamSets top management, as well as transaction costs. Cash and the group's existing credit facilities will be used to fund the acquisition.

Further accelerating growth

Software AG's organic business is expected to fulfill its guideline for 2022 and objectives for 2023.

In addition to organic growth, the integration of StreamSets Software AG is expected to boost non-IFRS Group product sales by 12 to 16% in 2022. In 2022, the group anticipates a negative impact on non-IFRS EBITA of between -€17 million and -€13 million.

In 2023, Software AG anticipates the acquisition to contribute to organic growth. The group anticipates overall revenue to be well ahead of its €1 billion objectives with the addition of StreamSets to the organic business.

The impact of purchase price allocation is not included in these updated calculations. Following the closure, the group will offer another update.

The group will keep you informed about its underlying organic business performance.

Regulatory clearances are required for the acquisition. The transaction is anticipated to come to an end by the end of the first half of 2022, according to the group.

Spotlight

Téléchargez ce nouveau rapport de Frost & Sullivan et découvrez les étapes clés pour moderniser la protection de vos données.

Spotlight

Téléchargez ce nouveau rapport de Frost & Sullivan et découvrez les étapes clés pour moderniser la protection de vos données.

Related News

Big Data Management

NetApp Empowers Secure Cloud Sovereignty with StorageGRID

NetApp | November 08, 2023

NetApp introduces StorageGRID for VMware Sovereign Cloud, enhancing data storage and security for sovereign cloud customers. NetApp's Object Storage plugin for VMware Cloud Director enables seamless integration of StorageGRID for secure Object Storage for unstructured data. NetApp's Sovereign Cloud integration ensures data sovereignty, security, and data value while adhering to regulatory standards. NetApp, a prominent global cloud-led, data-centric software company, has recently introduced NetApp StorageGRID for VMware Sovereign Cloud. This NetApp plugin offering for VMware Cloud Director Object Storage Extension empowers sovereign cloud customers to cost-efficiently secure, store, protect, and preserve unstructured data while adhering to global data privacy and residency regulations. Additionally, NetApp has also unveiled the latest release of NetApp ONTAP Tools for VMware vSphere (OTV 10.0), which is designed to streamline and centralize enterprise data management within multi-tenant vSphere environments. The concept of sovereignty has emerged as a vital facet of cloud computing for entities that handle highly sensitive data, including national and state governments, as well as tightly regulated sectors like finance and healthcare. In this context, national governments are increasingly exploring ways to enhance their digital economic capabilities and reduce their reliance on multinational corporations for cloud services. NetApp's newly introduced Object Storage plugin for VMware Cloud Director offers Cloud Service Providers a seamless means to integrate StorageGRID as their primary Object Storage solution to provide secure Object Storage for unstructured data to their customers. This integration provides StorageGRID services into the familiar VMware Cloud Director user interface, thereby minimizing training requirements and accelerating time to revenue for partners. A noteworthy feature of StorageGRID is its universal compatibility and native support for industry-standard APIs, such as the Amazon S3 API, facilitating smooth interoperability across diverse cloud environments. Enhanced functionalities like automated lifecycle management further ensure cost-effective data protection, storage, and high availability for unstructured data within VMware environments. The integration of NetApp's Sovereign Cloud with Cloud Director empowers providers to offer customers: Robust assurance that sensitive data, including metadata, remains under sovereign control, safeguarding against potential access by foreign authorities that may infringe upon data privacy laws. Heightened security and compliance measures that protect applications and data from evolving cybersecurity threats, all while maintaining continuous compliance with infrastructure, trusted local, established frameworks, and local experts. A future-proof infrastructure capable of swiftly reacting to evolving data privacy regulations, security challenges, and geopolitical dynamics. The ability to unlock the value of data through secure data sharing and analysis, fostering innovation without compromising privacy laws and ensuring data integrity to derive accurate insights. VMware Sovereign Cloud providers are dedicated to designing and operating cloud solutions rooted in modern, software-defined architectures that embody the core principles and best practices outlined in the VMware Sovereign Cloud framework. Workloads within VMware Sovereign Cloud environments are often characterized by a diverse range of data sets, including transactional workloads and substantial volumes of unstructured data, all requiring cost-effective and integrated management that is compliant with regulated standards for sovereign and regulated customers. In addition to the aforementioned advancements, NetApp also announced a collaborative effort with VMware aimed at modernizing API integrations between NetApp ONTAP and VMware vSphere. This integration empowers VMware administrators to streamline the management and operations of NetApp ONTAP-based data management platforms within multi-tenant vSphere environments, all while allowing users to leverage a new micro-services-based architecture that offers enhanced scalability and availability. With the latest releases of NetApp ONTAP and ONTAP Tools for vSphere, NetApp has significantly made protection, provisioning, and securing modern VMware environments at scale faster and easier, all while maintaining a centralized point of visibility and control through vSphere. NetApp ONTAP Tools for VMware provides two key benefits to customers: A redefined architecture featuring VMware vSphere APIs for Storage Awareness (VASA) integration, simplifying policy-driven operations and enabling cloud-like scalability. An automation-enabled framework driven by an API-first approach, allowing IT teams to seamlessly integrate with existing tools and construct end-to-end workflows for easy consumption of features and capabilities.

Read More

Data Visualization

Salesforce Unveils Einstein 1 Platform: Transforming CRM Experiences

Salesforce | September 14, 2023

Salesforce introduces the groundbreaking Einstein 1 Platform, built on a robust metadata framework. The Einstein 1 Data Cloud supports large-scale data and high-speed automation, unifying customer data, enterprise content, and more. The latest iteration of Einstein includes Einstein Copilot and Einstein Copilot Studio. On September 12, 2023, Salesforce unveiled the Einstein 1 Platform, introducing significant enhancements to the Salesforce Data Cloud and Einstein AI capabilities. The platform is built on Salesforce's underlying metadata framework. Einstein 1 is a reliable AI platform for customer-centric companies that empowers organizations to securely connect diverse datasets, enabling the creation of AI-driven applications using low-code development and the delivery of entirely novel CRM experiences. Salesforce's original metadata framework plays a crucial role in helping companies organize and comprehend data across various Salesforce applications. This is like establishing a common language to facilitate communication among different applications built on the core platform. It then maps data from disparate systems to the Salesforce metadata framework, thus creating a unified view of enterprise data. This approach allows organizations to tailor user experiences and leverage data for various purposes using low-code platform services, including Einstein for AI predictions and content generation, Flow for automation, and Lightning for user interfaces. Importantly, these customizations are readily accessible to other core applications within the organization, eliminating the need for costly and fragile integration code. In today's business landscape, customer data is exceedingly fragmented. On average, companies employ a staggering 1,061 different applications, yet only 29% of them are integrated. The complexity of enterprise data systems has increased, and previous computing revolutions, such as cloud computing, social media, and mobile technologies, have generated isolated pockets of customer data. Furthermore, Salesforce ensures automatic upgrades three times a year, with the metadata framework safeguarding integrations, customizations, and security models from disruptions. This enables organizations to seamlessly incorporate, expand, and evolve their use of Salesforce as the platform evolves. The Einstein 1 Data Cloud, which supports large-scale data and high-speed automation, paves the way for a new era of data-driven AI applications. This real-time hyperscale data engine combines and harmonizes customer data, enterprise content, telemetry data, Slack conversations, and other structured and unstructured data, culminating in a unified customer view. Currently, the platform is already processing a staggering 30 trillion transactions per month and connecting and unifying 100 billion records daily. The Data Cloud is now natively integrated with the Einstein 1 Platform, and this integration unlocks previously isolated data sources, enabling the creation of comprehensive customer profiles and the delivery of entirely fresh CRM experiences. The Einstein 1 Platform has been expanded to support thousands of metadata-enabled objects per customer, each able to manage trillions of rows. Furthermore, Marketing Cloud and Commerce Cloud, which joined Salesforce's Customer 360 portfolio through acquisitions, have been reengineered onto the Einstein 1 Platform. Now, massive volumes of data from external systems can be seamlessly integrated into the platform and transformed into actionable Salesforce objects. Automation at scale is achieved by triggering flows in response to changes in any object, even events from IoT devices or AI predictions, at a rate of up to 20,000 events per second. These flows can interact with any enterprise system, including legacy systems, through MuleSoft. Analytics also benefit from this scalability, as Salesforce provides a range of insights and analytics solutions, including reports and dashboards, Tableau, CRM analytics, and Marketing Cloud reports. With the Einstein 1 Platform's common metadata schema and access model, these solutions can operate on the same data at scale, delivering valuable insights for various use cases. Salesforce has additionally made Data Cloud accessible at no cost to every customer with Enterprise Edition or higher. This allows customers to commence data ingestion, harmonization, and exploration, leveraging Data Cloud and Tableau to extend the influence of their data across all business segments and kickstart their AI journey. Salesforce's latest iteration of Einstein introduces a conversational AI assistant to every CRM application and customer experience. This includes: Einstein Copilot: This is an out-of-the-box conversational AI assistant integrated into every Salesforce application's user experience. Einstein Copilot enhances productivity by assisting users within their workflow, enabling natural language inquiries, and providing pertinent, trustworthy responses grounded in proprietary company data from the Data Cloud. Furthermore, Einstein Copilot proactively takes action and offers additional options beyond the user's query. Einstein Copilot Studio: This feature enables companies to create a new generation of AI-powered apps with custom prompts, skills, and AI models. This can help accelerate sales processes, streamline customer service, auto-generate websites based on personalized browsing history, or transform natural language prompts into code. Einstein Copilot Studio offers configurability to make Einstein Copilot available across consumer-facing channels such as websites and messaging platforms like Slack, WhatsApp, or SMS. Both Einstein Copilot and Einstein Copilot Studio operate within the secure Einstein Trust Layer, an AI architecture seamlessly integrated into the Einstein 1 Platform. This architecture ensures that teams can leverage generative AI while maintaining stringent data privacy and security standards. The metadata framework within the Einstein 1 Platform expedites AI adoption by providing a flexible, dynamic, and context-rich environment for machine learning algorithms. Metadata describes the structure, relationships, and behaviors of data within the system, allowing AI models to better grasp the context of customer interactions, business processes, and interaction outcomes. This understanding enables fine-tuning of large language models over time, delivering continually improved results.

Read More

Performance Management

NICE Named a Leader in Everest Group’s Task Mining Products PEAK Matrix

Business Wire | October 23, 2023

NICE (Nasdaq: NICE) today announced that NEVA Discover, its process analytics and task mining offering, has been recognized as a ‘Leader’ in Everest Group's Task Mining Products PEAK Matrix Assessment 2023 out of 19 task mining providers evaluated. NEVA Discover utilizes its rich desktop data collection and desktop analytics to pinpoint areas for employee improvement and optimize performance. Leaders were recognized for strong growth momentum in the task mining market and the ability to continue to differentiate by offering innovative features. NEVA Discover offers a scientific approach to scaling task mining capabilities, allowing CX organizations to take employees’ performances to a new level and ground business decisions on rich processes and interaction data. Utilizing NEVA Discover’s desktop analytics, organizations can drive employee performance improvements by developing and engaging employees with proactive, personalized coaching using actionable data. The report noted that NEVA Discover “helps users to discover best practices by combining the captured data with additional metrics, such as interaction data, employee data, and interaction outcomes, leveraging the power of the CXone Platform.” The report also noted that clients appreciated NEVA Discover’s ease of use as well as key areas of strength including the power of its task discovery and handling capabilities as well as quick adaptation to the product. “NICE has reinforced its position as a Leader on Everest Group’s Task Mining Products PEAK Matrix 2023, underpinned by its strong vision, depth and breadth of product functionalities, focus on product support, and integration with its automation capabilities,” said Amardeep Modi, Vice President at Everest Group. “Discovery capabilities, ease of maintenance, and data security are some of the key strengths indicated by its clients.” Barry Cooper, President, CX Division, NICE, said, We are pleased to be recognized as a Leader in this assessment, demonstrating NICE’s excellence in Task Mining. As CX organizations continue to struggle with employee retention, NICE’s NEVA Discover enables organizations to provide objective, targeted coaching to empower employees and make them even more effective. With our ongoing investments in Enlighten AI, NICE will continue its momentum as a market leader in Task Mining. This recognition adds to NICE’s past accomplishments in this space. NICE was recognized as a ‘Leader’ in Everest Group's Task Mining Products PEAK Matrix Assessment 2022. NICE was also named a ‘Leader’ in Everest Group’s Robotic Process Automation (RPA) PEAK Matrix Assessment 2022.

Read More