Link: On Salesforce’s acquisition of MuleSoft

“[H]aving a decent integration platform in its arsenal enables Salesforce to tell better stories about the seamlessness of its own application portfolio, even as this continues to expand through acquisition (which, note, was where Oracle was with its Fusion Middleware portfolio and strategy when it bought BEA). It also potentially helps Salesforce further develop its Einstein proposition, by making it easier to get access to corporate data from more systems in more locations…. However, just as was the case with BEA, many of MuleSoft’s customers made that investment precisely because it could demonstrate its ability to connect anything to anything without bias, and nurture customers’ own heterogeneous ‘application networks’. I hope Salesforce can take MuleSoft’s existing value proposition forward as it creates the Salesforce Integration Cloud.”
Original source: On Salesforce’s acquisition of MuleSoft

Link: On Salesforce’s acquisition of MuleSoft

“[H]aving a decent integration platform in its arsenal enables Salesforce to tell better stories about the seamlessness of its own application portfolio, even as this continues to expand through acquisition (which, note, was where Oracle was with its Fusion Middleware portfolio and strategy when it bought BEA). It also potentially helps Salesforce further develop its Einstein proposition, by making it easier to get access to corporate data from more systems in more locations…. However, just as was the case with BEA, many of MuleSoft’s customers made that investment precisely because it could demonstrate its ability to connect anything to anything without bias, and nurture customers’ own heterogeneous ‘application networks’. I hope Salesforce can take MuleSoft’s existing value proposition forward as it creates the Salesforce Integration Cloud.”
Original source: On Salesforce’s acquisition of MuleSoft

Talend IPO’s

The open source based data integration (basically, evolved ETL) company Talend IPO’ed this week. It’s a ten year old company, based on open source, with a huge French tie-in. Interesting all around. Here’s some details on them:

  • “1,300 customers include Air France, Citi, and General Electric.” That’s way up from 400 back in 2009, seven years ago.
  • In 2015 “Talend generated a total revenue of $76 million. Its subscription revenue grew 39% year over year, representing $62.7 million of the total. The company isn’t profitable: it reported a net loss of $22 million for 2015.”
  • “…much of that [loss] thanks to the $49 million it spent on sales and marketing,” according yo Julie Bort.
  • “Subscription revenue rose 27% to $63m while service fees stayed flat at $13m,” according to Matt Aslett.
  • It looks like the IPO performed well, up ~50% from the opening price.

TAM Time

By this point, I’m sure Talend messes around in other TAMs, but way back when I used to follow the business intelligence and big data market more closely, I recall that much of the growth – though small in TAM – was in ETL. People always like the gussy it up as “data integration”: sure thing, hoss.

That seems still be the case as spelled out a recent magic quadrant of the space (courtesy of the big dog in the space, Informatica):

Gartner estimates that the data integration tool market was worth approximately $2.4 billion in constant currency at the end of 2014, an increase of 6.9% from 2013. The growth rate is above the average for the enterprise software market as a whole, as data integration capability continues to be considered of critical importance for addressing the diversity of problems and emerging requirements. A projected five-year compound annual growth rate of approximately 7.7% will bring the total to more than $3.4 billion by 2019

In comparison, here’s the same from the 2011 MQ:

Gartner estimates that the data integration tools market amounted to $1.63 billion at the end of 2010, an increase of 20.5% from 2009. The market continues to demonstrate healthy growth, and we expect a year-on-year increase of approximately 15% in 2011. A projected five-year compound annual growth rate of approximately 11.4% will bring the total to $2.79 billion by 2015.

Meanwhile check out Carl Lehmann’s recent overview of Informatica and the general data integration market and Matt Aslett’s coverage of IPO plans back in June for a good overview of Talend.