On 28 January 2010, Informatica, a leader in the data integration and data quality tools markets, announced its acquisition of Siperian, a multidomain master data management (MDM) technology provider. Informatica paid $130 million in cash for Siperian.

Overall, this is a good move for Informatica. Siperian started off as a customer data integration (CDI) hub vendor with a focus on managing customer data, which was repositioned to multidomain MDM in 2007. Siperian is a well-regarded technology provider and has been featured consistently as a visionary in Gartner's Magic Quadrants focusing on MDM and customer data. Further, the deal removes the vendor viability issue that hung over Siperian.

The Siperian technology extends Informatica's addressable market, enabling it to better compete against companies such as DataFlux/SAS Institute, IBM, Oracle and SAP — all of which have offered a broader product suite including data integration, data quality and MDM technology for some time. Informatica will be able to leverage the Siperian technology across its worldwide channels to the MDM market and to the company’s extensive customer base.

However, to succeed, Informatica needs to demonstrate a deep understanding of MDM, present MDM in the context of business processes and successfully sell MDM to businesses. This acquisition also creates potential tension with Oracle, which depends on Informatica's data integration and data quality technology in its business intelligence and MDM products

• Informatica Customers: Evaluate the Siperian technology if your enterprise seeks a packaged MDM offering and wants to build on prior Informatica investments. But be aware that Siperian may not be the best fit for your MDM requirements.
• Siperian Customers: Request details of Informatica's road map for Siperian and leverage the Siperian User Group forum to ensure that Informatica continues to invest in aspects of Siperian's plans essential to your enterprise.
• Other organizations seeking MDM capabilities: Use Gartner's MDM research to ensure that the MDM technology chosen is a good fit for your business needs.

• "Magic Quadrant for Master Data Management of Customer Data"— This Magic Quadrant provides insight into the portion of the packaged MDM systems market that focuses on managing customer data to support CRM and other customer-related initiatives. By John Radcliffe
• "The Top 10 Commercial Issues Customers Face When Software Vendors Are Acquired"— Gartner identifies the issues and presents steps that clients should work through following vendor acquisitions. By Bill Snyder

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