IBM buys e-commerce analytics vendor Demandtec for $440M
The move builds out IBM's Smarter Commerce portfolio
IDG News Service - IBM is buying analytics vendor DemandTec for $440 million in a bid to build out its line of e-commerce software, the companies announced Thursday. The transaction is expected to close in the first quarter of next year.
DemandTec's cloud-based applications are used by retailers to fine-tune pricing strategies and product offerings on an ongoing basis in order to improve business.
The various modules approach this general theme from many perspectives, according to descriptions on DemandTec's website. Some allow companies to determine the best product mix on a local basis by "taking shopper demand, space, productivity, and profitability into account," it states. Another helps determine the best pricing on a given item throughout its lifecycle, while others focus on targeted marketing campaigns.
DemandTec also offers a number of partner-provided services. One of the latest features long-term weather forecasting data from Weather Trends International.
DemandTec's offerings will be rolled into IBM's Smarter Commerce family of products, which also includes the business-to-business data integration technology the company gained through the $1.4 billion acquisition of Sterling Commerce in 2010.
IBM "is redefining how brands buy, market, sell and service their customers in ways that their customers want," said Craig Hayman, general manager of industry solutions, in a statement. "Bringing science to the art of pricing and promotion is a big part of this strategy."
The DemandTec purchase will also give IBM 450 additional customers among some of the world's largest retailers, including Target and Walmart.
Chris Kanaracus covers enterprise software and general technology breaking news for The IDG News Service. Chris's e-mail address is Chris_Kanaracus@idg.com
- Warning: Cloud Data at Risk Experts agree that relying on SaaS vendors to backup and restore your data is dangerous. Yet that's exactly what huge portions of the...
- The Opportunities and Challenges of the Cloud In this report F5 poses questions to IDC analysts, Sally Hudson and Phil Hochmuth, on behalf of F5's customers to better understand the...
- 5 Hybrid Cloud Starting Points Did you know that more than 50% of organizations are already using or planning a move to hybrid cloud?
- Cloud Computing Drives IT and Business Agility Hybrid Cloud Accelerates Time to Value What is the main focus for IT in your organization - cost or agility? Many IT discussions today focus on cost controls rather...
- DevOps with PureApplication System: Reduce cost and speed delivery with an integrated IBM Cloud solution Join this webcast to hear what ING Netherlands has been able to achieve while deploying DevOps tools from IBM Rational. An ING executive...
- Why Are Customers Really Deploying an NGFW? It seems every IT Security expert is talking about the NGFW, but what are people really doing? This webcast covers 5 real-world customer... All Cloud Computing White Papers | Webcasts