You may have heard the news. Leading up to their annual Dreamforce conference, Salesforce announced their $700 million acquisition of leading data management platform, Krux.
The acquisition of Krux aims to advance Salesforce as the well-qualified expert in the ever-growing digital realm. Salesforce’s acquisition of the buzzed-about data platform also drives the conversation of the value of data to marketers and businesses.
This acquisition raises interesting questions about how the union will help advance the move of enterprises to a data-inspired future. Also, what must Salesforce do to gain the benefits they anticipate from the rich influx of customer data now available to them through the purchase of Krux. Here are some questions that came to mind for me and my thoughts on each:
How does this acquisition further drive today’s digital transformation?
This is a great announcement for Salesforce and Krux customers alike from the perspective as Aristotle stated “The whole is greater than the sum of its parts.” The synergies that exist between the two companies reflect the digital transformation that is well underway in the technology industry. Salesforce brings an immense customer base and Krux extends Salesforce’s Marketing Cloud to target consumers with even greater precision. This would not be possible without the vast amounts of data each company collects.
How will Krux’s data benefit Salesforce customers?
The Salesforce customer base benefits immensely from this acquisition as it makes their investment that much more valuable. Specifically, Krux provides Salesforce with an infinite amount of data that enables companies to know exactly how to target their customers no matter what devices they are using. This data will likely dramatically grow the adoption of Salesforce Einstein since it’s artificial intelligence (AI) engine relies on vast amounts of data in order to deliver insight to marketing, sales, and support organizations. The more data Salesforce Einstein has, the more accurate, precise, and valuable will be the data insights it can provide.
In what other ways has the value of data grown this year?
This certainly has been an exciting year for digital transformation as data becomes even more valuable. We believe data is the new currency. Insight that can be gained from data is increasingly becoming the starting point of innovation and differentiation as well as the driver of business strategy. As a result, transformative companies are doing everything they can to get their hands on more data. Just look at the recent acquisitions that have taken place this year – LinkedIn was purchased by Microsoft, NetSuite by Oracle, Yahoo by Verizon, and The Weather Company by IBM, just to name a few. Even today, there are rumors that Twitter will be purchased soon, and that Salesforce may be a potential buyer. It’s all about the data that these companies possess, including vast amount of information about their customers.
How can Salesforce best manage this new influx of data? How can they leverage it for ROI?
Salesforce is accustomed to making acquisitions, having completed more than 44 in its history. To make the most of Krux, the company will need to integrate the solution quickly into their portfolio, but rest assured they have a great head start since the partnership was established in 2015. Critical path is to integrate the vast amounts of data into a common format, and this requires significant integration and data management expertise. They would be well served to leverage a modern, data-centric architecture and cloud-based platform to seamlessly complete this integration while still providing the data management aspects required to ensure the usefulness of the resulting data.
What are the risks if Krux’s data isn’t properly integrated?
If the applications are not fully integrated seamlessly, it will lead to siloed data and a delay in realizing the synergies that exist between the two companies. This may affect customer onboardings and potentially even delay revenues associated with the acquisition. The sooner and more complete the integration and the harmonization and cleansing of the data by leveraging a modern, data-centric architecture, the sooner the benefits will be realized by the combined customer base.
Exciting times ahead!