VMware announces intent to buy Avi Networks, startup that raised $115M

VMware has been trying to reinvent itself from a company that helps you build and manage virtual machines in your data center to one that helps you manage your virtual machines wherever they live, whether that’s on prem or the public cloud. Today, the company announced it was buying Avi Networks, a 6-year old startup that helps companies balance application delivery in the cloud or on prem in an acquisition that sounds like a pretty good match. The companies did not reveal the purchase price.

Avi claims to be the modern alternative to load balancing appliances designed for another age when applications didn’t change much and lived on prem in the company data center. As companies move more workloads to public clouds like AWS, Azure and Google Cloud Platform, Avi is providing a more modern load balancing tool, that not only balances software resource requirements based on location or need, but also tracks the data behind these requirements.

Diagram: Avi Networks

VMware has been trying to find ways to help companies manage their infrastructure, whether it is in the cloud or on prem, in a consistent way, and Avi is another step in helping them do that on the monitoring and load balancing side of things, at least.

Tom Gillis, senior vice president and general manager for the networking and security business unit at VMware sees this acquisition as fitting nicely into that vision. “This acquisition will further advance our Virtual Cloud Network vision, where a software-defined distributed network architecture spans all infrastructure and ties all pieces together with the automation and programmability found in the public cloud. Combining Avi Networks with VMware NSX will further enable organizations to respond to new opportunities and threats, create new business models, and deliver services to all applications and data, wherever they are located,” Gillis explained in a statement.

In a blog post,  Avi’s co-founders expressed a similar sentiment, seeing a company where it would fit well moving forward. “The decision to join forces with VMware represents a perfect alignment of vision, products, technology, go-to-market, and culture. We will continue to deliver on our mission to help our customers modernize application services by accelerating multi-cloud deployments with automation and self-service,” they wrote. Whether that’s the case, time will tell.

Among Avi’s customers, which will now become part of VMware are Deutsche Bank, Telegraph Media Group, Hulu and Cisco. The company was founded in 2012 and raised $115 million, according to Crunchbase data. Investors included Greylock, Lightspeed Venture Partners and Menlo Ventures, among others.


By Ron Miller

Salesforce’s Tableau acquisition is huge, but not the hugest

When you’re talking about 16 billion smackeroos, it’s easy to get lost in the big number. When Salesforce acquired Tableau this morning for $15.7 billion, while it was among the biggest enterprise deals ever, it certainly wasn’t the largest.

There was widespread speculation that when the new tax laws went into effect in 2017, and large tech companies could repatriate large sums of their money stored offshore, we would start to see a wave of M&A activity, and sure enough that’s happened.

As Box CEO Aaron Levie pointed out on Twitter, it also shows that if you can develop a best-of-breed tool that knocks off the existing dominant tool set, you can build a multibillion-dollar company. We have seen this over and over, maybe not $15 billion companies, but substantial companies with multibillion-dollar price tags.

Last year alone we saw 10 deals that equaled $87 billion, with the biggest prize going to IBM when it bought Red Hat for a cool $34 billion, but even that wasn’t the biggest enterprise deal we could track down. In fact, we decided to compile a list of the biggest enterprise deals ever, so you could get a sense of where today’s deal fits.

Salesforce buys MuleSoft for $6.5 billion in 2018

At the time, this was the biggest deal Salesforce had ever done — until today. While the company has been highly acquisitive over the years, it had tended to keep the deals fairly compact for the most part, but it wanted MuleSoft to give it access to enterprise data wherever, it lived and it was willing to pay for it.

Microsoft buys GitHub for $7.5 billion in 2018

Not to be outdone by its rival, Microsoft opened its wallet almost exactly a year ago and bought GitHub for a hefty $7.5 billion. There was some hand-wringing in the developer community at the time, but so far, Microsoft has allowed the company to operate as an independent subsidiary.

SAP buys Qualtrics for $8 billion in 2018

SAP swooped in right before Qualtrics was about to IPO and gave it an offer it couldn’t refuse. Qualtrics gave SAP a tool for measuring customer satisfaction, something it had been lacking and was willing to pay big bucks for.

Oracle acquires NetSuite for $9.3 billion in 2016

It wasn’t really a surprise when Oracle acquired NetSuite. It had been an investor and Oracle needed a good SaaS tool at the time, as it was transitioning to the cloud. NetSuite gave it a ready-to-go packaged cloud service with a built-in set of customers it desperately needed.

Salesforce buys Tableau for $15.7 billion in 2019

That brings us to today’s deal. Salesforce swooped in again and paid an enormous sum of money for the Seattle software company, giving it a data visualization tool that would enable customers to create views of data wherever it lives, whether it’s part of Salesforce or not. What’s more, it was a great complement to last year’s MuleSoft acquisition.

Broadcom acquires CA Technologies for $18.9 billion in 2018

A huge deal in dollars from a year of big deals. Broadcom surprised a few people when a chip vendor paid this kind of money for a legacy enterprise software vendor and IT services company. The $18.9 billion represented a 20% premium for shareholders.

Microsoft snags LinkedIn for $26 billion in 2016

This was a company that Salesforce reportedly wanted badly at the time, but Microsoft was able to flex its financial muscles and come away the winner. The big prize was all of that data, and Microsoft has been working to turn that into products ever since.

IBM snares Red Hat for $34 billion in 2018

Near the end of last year, IBM made a huge move, acquiring Red Hat for $34 billion. IBM has been preaching a hybrid cloud approach for a number of years, and buying Red Hat gives it a much more compelling hybrid story.

Dell acquires EMC for $67 billion in 2016

This was the biggest of all, by far surpassing today’s deal. A deal this large was in the news for months as it passed various hurdles on the way to closing. Among the jewels that were included in this deal were VMware and Pivotal, the latter of which has since gone public. After this deal, Dell itself went public again last year.


By Ron Miller

With Tableau and Mulesoft, Salesforce gains full view of enterprise data

Back in the 2010 timeframe, it was common to say that content was king, but after watching Google buy Looker for $2.6 billion last week and Salesforce nab Tableau for $15.7 billion this morning, it’s clear that data has ascended to the throne in a business context.

We have been hearing about Big Data for years, but we’ve probably reached a point in 2019 where the data onslaught is really having an impact on business. If you can find the key data nuggets in the big data pile, it can clearly be a competitive advantage, and companies like Google and Salesforce are pulling out their checkbooks to make sure they are in a position to help you out.

While Google, as a cloud infrastructure vendor, is trying to help companies on its platform and across the cloud understand and visualize all that data, Salesforce as a SaaS vendor might have a different reason — one that might surprise you — given that Salesforce was born in the cloud. But perhaps it recognizes something fundamental. If it truly wants to own the enterprise, it has to have a hybrid story, and with Mulesoft and Tableau, that’s precisely what it has — and why it was willing to spend around $23 billion to get it.

Making connections

Certainly, Salesforce chairman Marc Benioff has no trouble seeing the connections between his two big purchases over the last year. He sees the combination of Mulesoft connecting to the data sources and Tableau providing a way to visualize as a “beautiful thing.”


By Ron Miller

Salesforce is buying data visualization company Tableau for $15.7B in all-stock deal

On the heels of Google buying analytics startup Looker last week for $2.6 billion, Salesforce today announced a huge piece of news in a bid to step up its own work in data visualization and (more generally) tools to help enterprises make sense of the sea of data that they use and amass: Salesforce is buying Tableau for $15.7 billion in an all-stock deal.

The latter is publicly traded and this deal will involve shares of Tableau Class A and Class B common stock getting exchanged for 1.103 shares of Salesforce common stock, the company said, and so the $15.7 billion figure is the enterprise value of the transaction, based on the average price of Salesforce’s shares as of June 7, 2019.

This is a huge jump on Tableau’s last market cap: it was valued at $10.79 billion at close of trading Friday, according to figures on Google Finance. (Also: trading has halted on its stock in light of this news.)

The two boards have already approved the deal, Salesforce notes. The two companies’ management teams will be hosting a conference call at 8am Eastern and I’ll listen in to that as well to get more details.

This is a huge deal for Salesforce as it continues to diversify beyond CRM software and into deeper layers of analytics.

The company reportedly worked hard to — but ultimately missed out on — buying LinkedIn (which Microsoft picked up instead), and while there isn’t a whole lot in common between LinkedIn and Tableau, this deal is also about extending engagement with the customers that Salesforce already has.

This also looks like a move designed to help bulk up against Google’s move to buy Looker, announced last week, although I’d argue that analytics is a big enough area that all major tech companies that are courting enterprises are getting their ducks in a row in terms of squaring up to stronger strategies (and products) in this area. It’s unclear whether (and if) the two deals were made in response to each other.

“We are bringing together the world’s #1 CRM with the #1 analytics platform. Tableau helps people see and understand data, and Salesforce helps people engage and understand customers. It’s truly the best of both worlds for our customers–bringing together two critical platforms that every customer needs to understand their world,” said Marc Benioff, Chairman and co-CEO, Salesforce, in a statement. “I’m thrilled to welcome Adam and his team to Salesforce.”

Tableau has about 86,000 business customers including Charles Schwab, Verizon (which owns TC), Schneider Electric, Southwest and Netflix. Salesforce said it will operate independently and under its own brand post-acquisition. It will also remain headquartered in Seattle, WA, headed by CEO Adam Selipsky along with others on the current leadership team.

That’s not to say, though, that the two will not be working together: on the contrary, Salesforce is already talking up the possibilities of expanding what the company is already doing with its Einstein platform (launched back in 2016, Einstein is the home of all of Salesforce’s AI-based initiatives); and with “Customer 360”, which is the company’s product and take on omnichannel sales and marketing. The latter is an obvious and complementary product home, given that one huge aspect of Tableau’s service is to provide “big picture” insights.

“Joining forces with Salesforce will enhance our ability to help people everywhere see and understand data,” said Selipsky. “As part of the world’s #1 CRM company, Tableau’s intuitive and powerful analytics will enable millions more people to discover actionable insights across their entire organizations. I’m delighted that our companies share very similar cultures and a relentless focus on customer success. I look forward to working together in support of our customers and communities.”

“Salesforce’s incredible success has always been based on anticipating the needs of our customers and providing them the solutions they need to grow their businesses,” said Keith Block, co-CEO, Salesforce. “Data is the foundation of every digital transformation, and the addition of Tableau will accelerate our ability to deliver customer success by enabling a truly unified and powerful view across all of a customer’s data.”

More to come as we learn it. Refresh for updates.

 


By Ingrid Lunden

Google continues to preach multi-cloud approach with Looker acquisition

When Google announced it was buying Looker yesterday morning for $2.6 billion, you couldn’t blame some of the company’s 1600 customers if they worried a bit if Looker would continue its multi-cloud approach, but Google Cloud chief Thomas Kurian made clear the company will continue to support an open approach to its latest purchase when it joins the fold later this year.

It’s consistent with the messaging from Google Next, the company’s cloud conference in April. It was looking to portray itself as the more open cloud. It was going to be friendlier to open source projects, running them directly on Google Cloud. It was going to provide a way to manage your workloads wherever they live with Anthos.

Ray Wang, founder and principal analyst at Constellation Research says that in a multi-cloud world, Looker represented one of the best choices, and that could be why Google went after it. “Looker’s strengths include its centralized data-modeling and governance, which promotes consistency and reuse. It runs on top of modern cloud databases including Google BigQuery, AWS Redshift and Snowflake,” Wang told TechCrunch. He added, “They wanted to acquire a tool that is as easy to use as Microsoft Power BI and as deep as Tableau.”

Patrick Moorhead, founder and principal analyst at Moor Insights & Strategy, also see this deal as part of consistent multi-cloud message from Google. “I do think it is in alignment with its latest strategy outlined at Google Next. It has talked about rich analytics tools that could pull data from disparate sources,” he said.

Kurian pushing the multi-cloud message

Google Cloud CEO Thomas Kurian, who took over from Diane Greene at the end of last year, was careful to emphasize the company’s commitment to multi-cloud and multi-database support in comments to media and analysts yesterday. “We first want to reiterate, we’re very committed to maintaining local support for other clouds, as well as to serve data from multiple databases because customers want a single analytics foundation for their organization, and they want to be able to in the analytics foundation, look at data from multiple data sources. So we’re very committed to that,” Kurian said yesterday.

From a broader customer perspective, Kurian sees Looker providing customers with a single way to access and visualize data. “One of the things that is challenging for organizations in operationalizing business intelligence, that we feel that Looker has done really well, is it gives you a single place to model your data, define your data definitions — like what’s revenue, who’s a gold customer or how many servers tickets are open — and allows you then to blend data across individual data silos, so that as an organization, you’re working off a consistent set of metrics,” Kurian explained.

In a blog post announcing the deal, Looker CEO Frank Bien sought to ease concerns that the company might move away from the multi-cloud, multi-database support. “For customers and partners, it’s important to know that today’s announcement solidifies ours as well as Google Cloud’s commitment to multi-cloud. Looker customers can expect continuing support of all cloud databases like Amazon Redshift, Azure SQL, Snowflake, Oracle, Microsoft SQL Server, Teradata and more,” Bien wrote in the post.

No anti-trust concerns

Kurian also emphasized that this deal shouldn’t attract the attention of anti-trust regulators, who have been sniffing around the big tech companies like Google/Alphabet, Apple and Amazon as of late. “We’re not buying any data along with this transaction. So it does not introduce any concentration risk in terms of concentrating data. Secondly, there are a large number of analytic tools in the market. So by just acquiring Looker, we’re not further concentrating the market in any sense. And lastly, all the other cloud players also have their own analytic tools. So it represents a further strengthening of our competitive position relative to the other players in the market,” he explained. Not to mention its pledge to uphold the multi-cloud and multi-database support, which should show it is not doing this strictly to benefit Google or to draw customers specifically to GCP.

Just this week, the company announced a partnership with Snowflake, the cloud data warehouse startup that has raised almost a billion dollars, to run on Google Cloud Platform. It already runs AWS and Microsoft Azure. In fact, Wang suggested that Snowflake could be next on Google’s radar as it tries to build a multi-cloud soup-to-nuts analytics offering.

Regardless, with Looker the company has a data analytics tool to complement its data processing tools, and together the two companies should provide a fairly comprehensive data solution. If they truly keep it multi, cloud, that should keep current customers happy, especially those who work with tools outside of the Google Cloud ecosystem or simply want to maintain their flexibility.


By Ron Miller

Google to acquire analytics startup Looker for $2.6 billion

Google made a big splash this morning when it announced it’s going to acquire Looker, a hot analytics startup that’s raised over $280 million. It’s paying $2.6 billion for the privilege and adding the company to Google Cloud.

Thomas Kurian, the man who was handed the reigns to Google Cloud at the end of last year see the crucial role data plays today for organizations, especially as they move to the cloud. “The combination of Google Cloud and Looker will enable customers to harness data in new ways to drive their digital transformation,” Kurian said in a statement.

Google Cloud has been mired in third place in the cloud infrastructure market, and grabbing Looker gives it an analytics company with a solid track record. The last time I spoke to Looker it was grabbing a hefty $103 million in funding on a $1.6 billion valuation. Today’s price is nice even billion over that.

As I wrote at the time, Looker’s CEO Frank Bien wasn’t all that interested in bragging about valuations though. “He reported that the company has 1,600 customers now and just crossed the $100 million revenue run rate, a significant milestone for any enterprise SaaS company. What’s more, Bien reports revenue is still growing 70 percent year over year, so there’s plenty of room to keep this going.”

Perhaps, it’s not a coincidence that Google went after Looker as the two companies had a strong existing partnership and 350 common customers, according to Google.

Per usual this deal is going to be subject to regulatory approval, but the deal is expected to close later this year if all goes well.


By Ron Miller

FireEye snags security effectiveness testing startup Verodin for $250M

When FireEye reported its earnings last month, the outlook was a little light, so the security vendor decided to be proactive and make a big purchase. Today, the company announced it has acquired Verodin for $250 million. The deal closed today.

The startup had raised over $33 million since it opened its doors 5 years ago, according to Crunchbase data, and would appear to have given investors a decent return. With Verodin, FireEye gets a security validation vendor, that is, a company that can run a review against the existing security setup and find gaps in coverage.

That would seem to be a handy kind of tool to have in your security arsenal, and could possibly explain the price tag. Perhaps, it could also help set FireEye apart from the broader market, or fill in a gap in its own platform.

FireEye CEO Kevin Mandia certainly sees the potential of his latest purchase. “Verodin gives us the ability to automate security effectiveness testing using the sophisticated attacks we spend hundreds of thousands of hours responding to, and provides a systematic, quantifiable, and continuous approach to security program validation,” he said in a statement.

Chris Key, Verodin co-founder and chief executive officer, sees the purchase through the standard acquisition lens. “By joining FireEye, Verodin extends its ability to help customers take a proactive approach to understanding and mitigating the unique risks, inefficiencies and vulnerabilities in their environments,” he said in a statement. In other words, as part of a bigger company, we’ll do more faster.

While FireEye plans to incorporate Verodin into its on-prem and managed services, it will continue to sell the solution as a stand-alone product, as well.


By Ron Miller

Takeaways from KubeCon; the latest on Kubernetes and cloud native development

Extra Crunch offers members the opportunity to tune into conference calls led and moderated by the TechCrunch writers you read every day. This week, TechCrunch’s Frederic Lardinois and Ron Miller discuss major announcements that came out of the Linux Foundation’s European KubeCon/CloudNativeCon conference and discuss the future of Kubernetes and cloud-native technologies.

Nearly doubling in size year-over-year, this year’s KubeCon conference brought big news and big players, with major announcements coming from some of the world’s largest software vendors including Google, AWS, Microsoft, Red Hat, and more. Frederic and Ron discuss how the Kubernetes project grew to such significant scale and which new initiatives in cloud-native development show the most promise from both a developer and enterprise perspective.

“This ecosystem starts sprawling, and we’ve got everything from security companies to service mesh companies to storage companies. Everybody is here. The whole hall is full of them. Sometimes it’s hard to distinguish between them because there are so many competing start-ups at this point.

I’m pretty sure we’re going to see a consolidation in the next six months or so where some of the bigger players, maybe Oracle, maybe VMware, will start buying some of these smaller companies. And I’m sure the show floor will look quite different about a year from now. All the big guys are here because they’re all trying to figure out what’s next.”

Frederic and Ron also dive deeper into the startup ecosystem rapidly developing around Kubernetes and other cloud-native technologies and offer their take on what areas of opportunity may prove to be most promising for new startups and founders down the road.

For access to the full transcription and the call audio, and for the opportunity to participate in future conference calls, become a member of Extra Crunch. Learn more and try it for free. 


By Arman Tabatabai

Zendesk acquires Smooch, doubles down on support via messaging apps like WhatsApp

One of the bigger developments in customer services has been the impact of social media — both as a place to vent frustration or praise (mostly frustration), and — especially over messaging apps — as a place for businesses to connect with their users.

Now, customer support specialist Zendesk has made an acquisition so that it can make a bigger move into how it works within social media platforms, and specifically messaging apps: it has acquired Smooch, a startup that describes itself as an “omnichannel messaging platform,” which companies’ customer care teams can use to interact with people over messaging platforms like WhatsApp, WeChat, Line and Messenger, as well as SMS and email.

Smooch was in fact one of the first partners for the WhatsApp Business API, alongside VoiceSageNexmoInfobip, Twilio, MessageBird and others are already advertising their services in this area.

It had also been a longtime partner of Zendesk’s, powering the company’s own WhatsApp Business integration and other features. The two already have some customers in common, including Uber. Other Smooch customers include Four Seasons, SXSW, Betterment, Clarabridge, Harry’s, LVMH, Delivery Hero and BarkBox.

Terms of the deal are not being disclosed, but Zendesk SVP  class=”il”>Shawna Wolverton said in an interview that that the startup’s entire team of 48, led by co-founder and CEO Warren Levitan, are being offered positions with Zendesk. Smooch is based out of Montreal, Canada — so this represents an expansion for Zendesk into building an office in Canada.

Its backers included iNovia, TA Associates and Real Ventures, who collectively had backed it with less than $10 million (when you leave in inflated hills surrounding Silicon Valley, numbers magically decline). As Zendesk is publicly traded, we may get more of a picture of the price in future quarterly reports. This is the company’s fifth acquisition to date.

The deal underscores the big impact that messaging apps are making in customer service. While phone and internet are massive points of contact, messaging apps is one of the most-requested features Zendesk’s customers are asking for, “because they want to be where their customers are,” with WhatsApp — now at 1.5 billion users — currently at the top of the pile, Wolverton said. (More than half of Zendesk’s revenues are from outside the US, which speaks to why WhatsApp — which is bigger outside the US than it is in it — is a popular request.)

That’s partly a by-product of how popular messaging apps are full-stop, with more than 75 percent of all smartphone users having at least one messaging app in use on their devices.

“We live in a messaging-centric world, and customers expect the convenience and interactivity of messaging to be part of their experiences,” said Mikkel Svane, Zendesk founder, CEO and chairman, in a statement. “As long-time partners with Smooch, we know first hand how much they have advanced the conversational experience to bring together all forms of messaging and create a continuous conversation between customers and businesses.”

 

While the two companies were already working together, the acquisition will mean a closer integration.

That will be in multiple areas. Last year, Zendesk launched a new CRM play called Sunshine, going head to head with the likes of Salesforce in helping businesses better organise and make use of customer data. Smooch will build on that strategy to bring in data to Sunshine from messaging apps and the interactions that take place on them. Also last year, Zendesk launched an omnichannel play, a platform called The Suite, which it says “has become one of our most successful products ever,” with a 400 percent rise in its customers taking an omnichannel approach. Smooch already forms a key part of that, and it will be even more tightly so.

On the outbound side, for now, there will be two areas where Smooch will be used, Wolverton said. First will be on the basic level of giving Zendesk users the ability to see and create messaging app discussions within a dashboard where they are able to monitor and handle all customer relationship contacts: a conversation that was inititated now on, say, Twitter, can be easily moved into WhatsApp or whatever more direct channel someone wants to use.

Second, Wolverton said that customer care workers can use Smooch to send on “micro apps” to users to handle routine service enquiries, for example sending them links to make or change seat assignments on a flight.

Over time, the plan will be to bring in more automated options into the experience, which opens the door for using more AI and potentially bots down the line.


By Ingrid Lunden

HPE is buying Cray for $1.3 billion

HPE announced it was buying Cray for $1.3 billion, giving it access to the company’s high performance computing portfolio, and perhaps a foothold into quantum computing in the future.

The purchase price was $35 a share, a $5.19 premium over yesterday’s close of $29.81 a share. Cray was founded in the 1970s and for a time represented the cutting edge of super computing in the United States, but times have changed, and as the market has shifted, a deal like this makes sense.

Ray Wang, founder and principal analyst at Constellation Research says this is about consolidation at the high end of the market. “This is a smart acquisition for HPE. Cray has been losing money for some time but had a great portfolio of IP and patents that is key for the quantum era,” he told TechCrunch.

While HPE’s president and CEO Antonio Neri didn’t see it in those terms, he did see an opportunity in combining the two organizations. “By combining our world-class teams and technology, we will have the opportunity to drive the next generation of high performance computing and play an important part in advancing the way people live and work,” he said in a statement.

Cray CEO and president Peter Ungaro agreed. “We believe that the combination of Cray and HPE creates an industry leader in the fast-growing High-Performance Computing and AI markets and creates a number of opportunities that neither company would likely be able to capture on their own,” he wrote in a blog post announcing the deal.

While it’s not clear how this will work over time, this type of consolidation usually involves some job loss on the operations side of the house as the two companies become one. It is also unclear how this will affect Cray’s customers as it moves to become part of HPE but HPE has plans to create a high performance computing product family using its new assets.

HPE was formed when HP split into two companies in 2014. HP Inc. was the printer division, while HPE was the enterprise side.

The deal is subject to the typical regulatory oversight, but if all goes well, it is expected to close in HPE’s fiscal Q1 2020.


By Ron Miller

SugarCRM moves into marketing automation with Salesfusion acquisition

SugarCRM announced today that it has acquired Atlanta-based Salesfusion to help build out the the marketing automation side of its business. The deal closed last Friday. The companies did not share the purchase price.

CEO Craig Charlton, who joined the company in February, says he recognized that marketing automation was an area of the platform that badly needed enhancing. Faced with a build or buy decision, he decided it would be faster to buy a company and began looking for an acquisition target.

“We spent the last three or four months doing a fairly intensive market scan and dealing with a number of the possible opportunities, and we decided that Salesfusion was head and shoulders above the rest for a variety of reasons,” he told TechCrunch.

Among those was the fact the company was still growing and some of the targets Sugar looked at were actually shrinking in size. The real attraction for him was Salesfusion’s customer focus. “They have a very differentiated on-boarding process, which I hadn’t seen before. I think that’s one of the reasons why they get such a quick time to value for the customers is because they literally hold their hand for 12 weeks until they graduate from the on-boarding process. And when they graduate, they’re actually live with the product,” he said.

Brent Leary, principal at CRM Essentials, who is also based in Atlanta, thinks this firm could help Sugar by giving it a marketing automation story all its own. “Salesfusion gives Sugar a marketing automation piece they can fully bring into their fold and not have to be at the whims of marketing automation vendors, who end up not being the best fit as partners, whether it’s due to acquisition or instability of leadership at chosen partners,” Leary told TechCrunch.

It has been a period of transition for SugarCRM, which has had a hard time keeping up with giants in the industry, particularly Salesforce. The company dipped into the private equity market last summer and took a substantial investment from Accel-KKR, which several reports pegged as a 9 figure deal, and Pitchbook characterized as a leveraged buyout.

As part of that investment, the company replaced long-time CEO Larry Augustin with Charlton and began creating a plan to spend some of that money. In March, it bought email integration firm Collabspot, and Charlton says they aren’t finished yet with possibly two or three more acquisitions on target for this quarter alone.

“We’re looking to make some waves and grow very aggressively and and to drive home some really compelling differentiation that we have, and and that will be building over the next 12 to 24 months,” he said.

Salesfusion, which was founded in 2007 and raised $32 million, will continue to operate out of its offices in Atlanta. The company’s 50 employees are now part of Sugar.


By Ron Miller

VMware acquires Bitnami to deliver packaged applications anywhere

VMware announced today that it’s acquiring Bitnami, the package application company that was a member of the Y Combinator Winter 2013 class. The companies didn’t share the purchase price.

With Bitnami, the company can now deliver more than 130 popular software packages in a variety of formats such as Docker containers or virtual machine, an approach that should be attractive for VMware as it makes its transformation to be more of a cloud services company.

“Upon close, Bitnami will enable our customers to easily deploy application packages on any cloud — public or hybrid — and in the most optimal format — virtual machine (VM), containers and Kubernetes helm charts. Further, Bitnami will be able to augment our existing efforts to deliver a curated marketplace to VMware customers that offers a rich set of applications and development environments in addition to infrastructure software,” the company wrote in a blog post announcing the deal.

Per usual, Bitnami’s founders see the exit through the prism of being able to build out the platform faster with the help of a much larger company. “Joining forces with VMware means that we will be able to both double-down on the breadth and depth of our current offering and bring Bitnami to even more clouds as well as accelerating our push into the enterprise,” the founders wrote in a blog post on the company website.

The company has raised a modest $1.1 million since its founding in 2011 and says that it has been profitable since early days when it took the funding. In the blog post, the company states that nothing will change for customers from their perspective.

“In a way, nothing is changing. We will continue to develop and maintain our application catalog across all the platforms we support and even expand to additional ones. Additionally, if you are a company using Bitnami in production, a lot of new opportunities just opened up.”

Time will tell whether that is the case, but it is likely that Bitnami will be able to expand its offerings as part of a larger organization like VMware.

VMware is a member of the Dell federation of products and came over as part of the massive $67 billion EMC deal in 2016. The company operates independently, is sold as a separate company on the stock market and makes its own acquisitions.


By Ron Miller

Sisense acquires Periscope Data to build integrated data science and analytics solution

Sisense announced today that it has acquired Periscope Data to create what it is calling, a complete data science and analytics platform for customers. The companies did not disclose the purchase price.

The two company CEOs met about 18 months ago at a conference, and running similar kinds of companies, hit it off. They began talking and after a time, realized it might make sense to combine the two startups because each one was attacking the data problem from a different angle.

Sisense, which has raised $174 million, tends to serve business intelligence requirements either for internal use or externally with customers. Periscope, which has raised over $34 million, looks at the data science end of the business.

Both company CEOs say that they could have eventually built these capabilities into their respective platforms, but after meeting they decided to bring the two companies together instead, and they made a deal.

Harry Glasser from Periscope Data and Amir Orad of Sisense.

Harry Glasser from Periscope Data and Amir Orad of Sisense.

“I realized over the last 18 months [as we spoke] that we’re actually building leadership positions into two unique areas of the market that will slowly become one as industries and technologies evolve,” Sisense CEO Amir Orad told TechCrunch.

Periscope CEO Harry Glasser says that as his company built a company around advanced analytics and predictive modeling, he saw a growing opportunity around operationalizing these insights across an organization, something he could do much more quickly in combination with Sisense.

“[We have been] pulled into this broader business intelligence conversation, and it has put us in a place where as we do this merger, we are able to instantly leapfrog the three years it would have taken us to deliver that to our customers, and deliver operationalized insights on integration day on day one,” Glasser explained.

The two executives say this is part of a larger trend about companies becoming more data-driven, a phrase that seems trite by now, but as a recent Harvard Business School study found, it’s still a big challenge for companies to achieve.

Omad says that you can debate the pace of change, but that overall, companies are going to operate better when they use data to drive decisions. “I think it’s an interesting intellectual debate, but the direction is one direction. People who deploy this technology will provide better care, better service, hire better, promote employees and grow them better, have better marketing, better sales and be more cost effective,” he said..

Omad and Glasser recognize that many acquisitions don’t succeed, but they believe they are bringing together to like-minded companies that will have a combined ARR of $100 million and 700 employees.

“That’s the icing on the cake, knowing that the cultures are so compatible, knowing that they work so well together, but it starts from a conviction that this advanced analytics can be operationalized throughout enterprises and [with] their customers. This is going to drive transformation inside our customers that’s really great for them and turns them into data-driven companies,” Glasser said.


By Ron Miller

Microsoft delves deeper into IoT with Express Logic acquisition

Microsoft has never been shy about being acquisitive, and today it announced it’s buying Express Logic, a San Diego company that has developed a real-time operating system (RTOS) aimed at controlling the growing number of IoT devices in the world.

The companies did not share the purchase price.

Express Logic is not some wide-eyed, pie-in-the-sky startup. It has been around for 23 years building (in its own words), “industrial-grade RTOS and middleware software solutions for embedded and IoT developers.” The company boasts some 6.2 billion (yes, billion) devices running its systems. That number did not escape Sam George, director of Azure IoT at Microsoft, but as he wrote in a blog post announcing the deal, there is a reason for this popularity.

“This widespread popularity is driven by demand for technology to support resource constrained environments, especially those that require safety and security,” George wrote.

The beauty of Express Logic’s approach is that it can work in low-power and low resource environments and offers a proven solution for a range or products. “Manufacturers building products across a range of categories — from low capacity sensors like lightbulbs and temperature gauges to air conditioners, medical devices and network appliances  –leverage the size, safety and security benefits of Express Logic solutions to achieve faster time to market,” George wrote.

Writing in a blog post to his customers announcing the deal, Express Logic CEO William E. Lamie, expressed optimism that the company can grow even further as part of the Microsoft family. “Effective immediately, our ThreadX RTOS and supporting software technology, as well as our talented engineering staff join Microsoft. This complements Microsoft’s existing premier security offering in the microcontroller space,” he wrote.

Microsoft is getting an established company with a proven product that can help it scale its Azure IoT business. The acquisition is part of a $5 billion investment in IoT the company announced last April that includes a number of Azure pieces such as Azure Sphere, Azure Digital Twins, Azure IoT Edge, Azure Maps and Azure IoT Central.

“With this acquisition, we will unlock access to billions of new connected endpoints, grow the number of devices that can seamlessly connect to Azure and enable new intelligent capabilities. Express Logic’s ThreadX RTOS joins Microsoft’s growing support for IoT devices and is complementary with Azure Sphere, our premier security offering in the microcontroller space,” George wrote.


By Ron Miller

Salesforce is buying MapAnything, a startup that raised over $84 million

Salesforce announced today it’s buying another company built on its platform. This time it’s MapAnything, which as the name implies, helps companies build location-based workflows, something that could come in handy for sales or service calls.

The companies did not reveal the selling price, and Salesforce didn’t have anything to add beyond a brief press release announcing the deal.

“The addition of MapAnything to Salesforce will help the world’s leading brands accurately plan: how many people they need, where to put them, how to make them as productive as possible, how to track what’s being done in real time and what they can learn to improve going forward,” Salesforce wrote in the statement announcing the deal.

It was a logical acquisition on many levels. In addition to being built on the Salesforce platform, the product was sold through the Salesforce AppExchange, and over the years MapAnything has been a Salesforce SI Partner, an ISV Premier Partner, according the company.

“Salesforce’s pending acquisition of MapAnything comes at a critical time for brands. Customer Experience is rapidly overtaking price as the leading reason companies win in the market. Leading companies like MillerCoors, Michelin, Unilever, Synchrony Financial and Mohawk Industries have all seen how location-enabled field sales and service professionals can focus on the right activities against the right customers, improving their productivity, and allowing them to provide value in every interaction,” company co-founder and CEO John Stewart wrote in a blog post announcing the deal.

MapAnything boasts 1900 customers in total, and that is likely to grow substantially once it officially becomes part of the Salesforce family later this year.

MapAnything was founded in 2009, so it’s been around long enough to raise over $84 million, according to Crunchbase. Last year, we covered the company’s $33.1 million Series B round, which was led by Columbus Nova.

At the time of the funding CEO John Stewart told me that his company’s products present location data more logically on a map instead of in a table. ‘“Our Core product helps users (most often field-based sales or service workers) visualize their data on a map, interact with it to drive productivity, and then use geolocation services like our mobile app or complex routing to determine the right cadence to meet them,” Stewart told me last year.

It raised an additional $42.5 million last November. Investors included General Motors Ventures and (unsurprisingly) Salesforce Ventures.


By Ron Miller