Can Informatica earn a place at the head table?
Informatica might be thought of as the last independent data management company standing. In fact, that used to be Informatica’s main positioning in the market. That has begun to change over the last few years as Informatica can continued to make strategic acquisitions. Over the past two years Informatica has purchased five companies — the most recent was Siperian, a significant player in Master Data Management solutions. These acquisitions have paid off. Today Informatica has past the $500 million revenue mark with about 4,000 customers. It has deepened its strategic partnerships with HP, Ascenture, Salesforce.com, and MicroStrategies, In a nutshell, Informatica has made the transition from a focus on ETL (Extract, Transform, Load) tools to support data warehouses to a company focused broadly on managing information. Merv Adrian did a great job of providing context for Informatica’s strategy and acquisitions. To transition itself in the market, Informatica has set its sights on data service management — a culmination of data integration, master data management and data transformation, predictive analytics in a holistic manner across departments, divisions, and business partners.
In essence, Informatica is trying to position itself as a leading manager of data across its customers’ ecosystem. This requires a way to have consistent data definitions across silos (Master Data Management), ways to trust the integrity of that data (data cleansing), event processing, predictive analytics, integration tools to move and transform data, and the ability to prove that governance can be verified (data governance). Through its acquisitions, Informatica is working to put these pieces together. However, as a relatively small player living in a tough neighborhood (Oracle, IBM, SAS Institute,etc. it will be a difficult journey. This is one of the reasons that Informatica is putting so much emphasis on its new partner marketplace. A partner network can really help a smaller player appear and act bigger.
This Marketplace will include all of Informatica’s products. It will enable developers to develop within Informatica’s development cloud and deploy either in the cloud or on premise. Like its new partner marketplace, the cloud is offering another important opportunity for Informatica to compete. Informatica was an early partner with Salesforce.com. It has been offerings complementary information management products that can be used as options with Salesforce.com. This has provided Informatica access to customers who might not have ever thought about Informatica in the past. In addition, it taught Informatica about the value of cloud computing as a platform for the future. Therefore, I expect that with Informatica’s strong cloud-based offerings will help the company maintain its industry position. In addition, I expect that the company’s newly strengthened partnership with HP will be very important in the company’s growth.
What is Informatica’s roadmap? It intends to continue to deliver new releases every six months including new data services and new data integration services. It will including develop these services with a self-service interfaces. In the end, its goal is to be a great data steward to its customers. This is an admirable goal. Informatica has made very good acquisitions that support its strategic goals. It is making the right bets on cloud and on a partner ecosystem. The question that remains is whether Informatica can truly scale to the size where it can sustain the competitive threats. Companies like IBM, Oracle, Microsoft, SAP, and SAS Institute are not standing still. Each of these companies have built and will continue to expand their information management strategies and portfolios of offerings. If Informatica can break the mold on ease of implementation on complex data service management it will have earned a place at the head table.