Analytic data solutions provider Teradata (NYSE: TDC) announced an agreement to acquire Munich, Germany-based eCircle, a cloud-based digital marketing firm. The addition of eCircle is intended to enhance and expand Teradata’s overall big data market prowess.
According to Rob Brosnan, an analyst with Forrester Research, the acquisition signals two continuing trends: Teradata is extending its core offerings through marketing technology and complementing its data warehousing with big data analytics.
“Both companies gain from the deal,” Brosnan said on his blog. But Teradata “is the bigger winner” because “eCircle fills gaps in its AMS and ARM products with proven e-mail service, integrated digital and social messaging, native software-as-a-service delivery and a strong presence in Europe.”
Brosan said “eCircle gains wider access to North America, marketing resource management capabilities and direct access to Teradata and Aster Data’s engineering talent.”
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The completion of the transaction, which is subject to applicable regulatory clearances and other customary closing conditions, is expected to occur in the second quarter of 2012. Once the acquisition is completed, eCircle will become part of Aprimo, a Teradata company focused on integrated marketing management software.
According to a McKinsey report, the world’s data is doubling every two years and digital campaigns are the source of some of the largest and most complex big data sets used by marketers. A Forrester survey noted more than 45% of surveyed clients’ big data initiatives address marketing. The company estimates that social media, e-mail and mobile marketing market is a $6 billion market opportunity that will grow to $16 billion by 2016.
The combination of Teradata’s analytical capabilities, Aprimo’s IMM, and eCircle’s digital messaging solutions could enable marketers worldwide to create integrated customer experiences across online and offline channels. In turn, this could help leverage big data insights to increase sales to existing customers, attract new customers and raise revenues. In addition, eCircle’s digital marketing applications might enhance Aprimo’s IMM strategy and enable marketers to deliver highly targeted, consistent and personalized campaigns that are integrated across all channels.
Regarding Teratada’s portfolio, Forrester’s Brosnan said an opportunity exists to break from the portfolio strategies of Adobe, IBM and Oracle.
“Even if a portfolio approach is safer, market conditions may force Teradata’s hand,” Brosnan said. “The move would help counter the incursion from interactive campaign specialists, like ExactTarget, Neolane and Responsys, that focus on ease-of-use and digital execution. And it could fend off pressure from established players, like IBM, Oracle and SAS, that use large portfolios and enterprise licensing agreements to push into the marketing department.”
Teradata acquired Aprimo in December 2010 targeting to access to deeper digital marketing capabilities.
