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Businessintelligenceandanalytics 130717092947-phpapp02 Businessintelligenceandanalytics 130717092947-phpapp02 Presentation Transcript

  • PRIVATE AND CONFIDENTIALTECHNOLOGY FOCUS. BROAD REACH. OPTIMAL RESULTS. Business Intelligence: Analytics Platforms Peter Falvey Managing Director peter.falvey@falveypartners.com P. 1.617.598.0437 Jason Myler Managing Director jason.myler@falveypartners.com P. 1.617.598.0438 Jeffrey Cook Vice President jeffrey.cook@falveypartners.com P. 1.617.598.0439
  • 2 Overview  Market evolving: Enterprises are moving away from legacy solutions and towards a growing crop of disruptive vendors (e.g. Tableau, GoodData) addressing a new set of BI needs like mobile, BigData, cloud and social  BI remains a top priority for IT: Having neglected BI spending over the past few years, enterprises are refocusing on growth initiatives and upgrading to more robust BI solutions will remain a key priority for IT spending - New cloud-based solutions touting ease-of-use will also extend the appeal of BI solutions to the mid-market, who will play a major role in overall market growth • Next-gen solutions are being funded: Disruptive vendors that are gaining traction are receiving significant funding from VCs to take advantage of the opportunity  Legacy players need to catch up: Larger legacy players (SAP, Oracle, IBM, etc.) will look to acquire more nimble independent vendors in an effort to keep pace with the rapid evolution of the BI analytics market The BI analytics market is quickly moving to the “2.0” phase of its lifecycle which we believe will usher in a wave of investment and consolidation activity
  • 3 Market Evolution The shift to next-generation BI platforms is underway, displacing many legacy solutions vendors who are scrambling to catch up to vendors like Tableau MARKET EVOLUTION 2000 - 2006 2011+ BI 1.0 BI 2.0 2007 - 2011 Rise of BI 1.0 Tools Consolidation Shift to BI 2.0 Tools  BI becomes mainstream and widely adopted at enterprise level  Industry fragmented, with many independent vendors of scale  Systems are on-premise and complex; core functionality revolves around reporting and OLAP, some predictive analytics  Widespread consolidation in 2007 - BusinessObjects (SAP) - Hyperion (Oracle) - Cognos (IBM)  Many BI 2.0 companies founded  By 2012, many of the legacy vendors miss targets, acknowledging a widespread shift to next-generation solutions  Major demand for next-generation solutions targeting the business user, offer predictive analytics, embrace BigData, cloud and mobile  Numerous anecdotes of enterprises upgrading legacy systems like SAP and IBM  Tableau goes public, others receive funding  Legacy vendors enter rapid development to play “catch up”
  • 4 Market Size The BI analytics market is anticipated to grow at 10% annually as BI continues to be a top spending priority for IT and as legacy solutions are upgraded MARKET SHARE, TOP 10 VENDORSMARKET SIZE Source: IDC, Gartner 9.3% CAGR 10.7% CAGR
  • 5 Trends Shaping BI 2.0: Front-End The end-user of analytics in the enterprise has changed drastically, with businesses demanding more robust functionality for more usersERP CRM Unstructured SCM … Data Warehouse / Marts Users STACK  Rise of Business User: Analytics increasingly used by business users demanding robust visualization and presentation tools; increasing use at departmental level  Self-service: Users are demanding the ability to run analysis without intervention from IT  Cloud: Organizations, particularly at SMB level, are looking to cloud-based tools  Mobile: Expectation that analytics can be accessed via desktop and mobile /tablet  Social: Ability to collaborate now a necessity Analytics Packages FRONT-END TRENDS
  • 6 Trends Shaping BI 2.0: Back-End The explosion of data and advent of the real-time nature of analytics is also forcing analytics vendors to adapt to a more complex data environmentERP CRM Unstructured SCM … Data Warehouse / Marts Users STACK  BigData: Growing adoption of technologies like Hadoop are driving the ability to use vast amounts of unstructured data (e.g. website clicks) as a key input in analysis  Real-time analytics: Technological advancements such as in-memory databases are enabling real-time, next-generation capabilities such as predictive analytics and event processing  Proliferation of data sources: The growing number of enterprise applications is providing a wealth of data that complements analysis of legacy data sets Analytics Packages BACK-END TRENDS
  • 7 Market Map Scale based on company funding and revenue, where available ScaleLargerSmaller FunctionalityBI 1.0 BI 2.0 <$25M $25M - $100M $100M - $500M $500M+
  • 8 How We See the Market Playing Out The BI market will undergo a paradigm shift over the next few years as BI 2.0 solutions gain hold and larger players look to play catch-up Continued Acceleration of BI 2.0 Players Legacy Vendors Will Maintain a Foothold Solutions More Widely Adopted at the SMB Level Next Wave of Consolidation Starts  Legacy players (SAP, Oracle, IBM, etc.) acquire established platforms and smaller vendors to upgrade platforms  Growing next-generation vendors (TIBCO, Qlik, etc.) acquire rising technologies to extend their lead  Well-funded, disruptive independent vendors (Tableau, GoodData) continue to take share from legacy solutions and move up-market  Vendors see use at the departmental level as a complement to enterprises ‘standard BI infrastructure  Established vendors with existing footprints continue to control the “plumbing” and basic reporting function of BI  Vendors will look to maintain foothold by upgrading product offering through both in-house innovation and acquisition  SaaS-based, easy-to-use solutions extend the appeal and value to the mid-market, who will increasingly drive growth of the overall market  BI 2.0 vendors will control the majority of the share in these markets given their value proposition
  • 9 M&A Interest Comes from Several Angles DATA & INFRASTRUCTURE APPLICATION VENDORS • Vendors controlling the data and infrastructure layer • Focused on platform acquisitions to move up the technology stack towards the application layer • Enterprise application vendors • Will look to acquire front-end solutions to broaden product offering; pursue select vertical acquisitions DIVERSIFIED TECHNOLOGY / FULL-STACK BI PURE-PLAY BI VENDORS • Diversified technology vendors offering solutions across the BI stack, from hardware to applications • Will look to do technology tuck-ins as well as acquire platforms • Independent BI vendors of scale looking to build BI product offering across the technology stack • More focused on tuck-in technology / functionality acquisitions
  • 10 Recent Acquisition Activity Target Acquirer Date Solution June 2013 Visual analytics and BI June 2013 Custom analytics June 2013 Streaming analytics software May 2013 Advanced visualization for data March 2013 BI and analytics software February 2013 Process automation for BI software October2012 Big data search and analytics September 2012 Personalized SaaS BI August 2012 Big data analytics June 2012 Metadata management May 2012 Real-time network data analytics April 2012 Big data predictive analytics April 2012 Data management and BI for security October 2011 Unstructured data and BI for web commerce September 2011 Data analytics for financial organizations August 2011 Intelligence analysis for investigations
  • 11 Recent Investment Activity Target Date Amt. / Total Raised Investors Jul 2013 $4.1M / $5.2M Columbus Nova Technology Ventures, Razor’s Edge, CIT Jun 2013 $22M / $74M TOTSV Ventures, Adreessen Horowitz, General Catalyst Jun 2013 $8M / $13.5M Draper Fisher Jurvetson, Atlas Venture May 2013 $45M / $96.3M Bessemer, Norwest Ventures Partners, ONSET Ventures May 2013 $12M / $18M Toba Capital, SAP Ventures May 2013 $6.5M / $7.7M Trinity Ventures, SoftTech VC May 2013 $254M (IPO) New Enterprise Associates was the seller Apr 2013 $39M / $86.5M Investor Growth Capital, QuestMark Partners, Intel Capital Apr 2013 $10M / $23.5M Battery Ventures, Opus Capital, Genesis Partners Mar 2013 $2.5M / $10.6M Undisclosed Feb 2013 $1M / $1M (Debt) Intel Capital, JMI Equity, Others Dec 2012 $9.2M / $12.4M Sequoia Capital, IDG Ventures India Nov 2012 $20M / $27.2M Battery Ventures, Sutter Hill Ventures, Andreessen Horowitz Oct 2012 $23M / $60M New Enterprise Associates, Benchmark Capital, Others Oct 2012 $4.4M / $5.6M TCV Capital, Analytics Ventures May 2012 $26M / %53.3M Sequoia Capital, Hummer Winblad, DAG Ventures
  • 12 Falvey Partners Overview FOCUS SELECT TRANSACTION EXPERIENCE December 2011 Has acquired July 2012 Has been acquired by September 2011 Series D Convertible Preferred Stock Led by September 2012 Has been acquired by A portfolio company of July 2011 Has been acquired by a portfolio company of April 2011 Has been acquired by July 2011 Has been acquired by February 2011 Growth equity investment from July 2011 Has been acquired by March 2011 Has divested its diagnostic solutions unit November 2010 Has received an investment from A portfolio company of October 2010 PGI Notify and Send platforms acquired by August 2010 Two divisions have been acquired by a portfolio company of April 2010 Has been acquired by August 2010 Series C Convertible Preferred Stock Led by SERVICES  Sell-side or buy-side M&A  Growth capital raising  Board and corporate advisory SECTOR  Software / SaaS  Tech-enabled business services  IT services  Internet / digital media COMPANY TYPE  $50M - $250M in enterprise value  Growing, with established scale  Profitable or near-term path to profitability Falvey Partners is a leading advisory firm serving mid-market clients across technology sectors  Founded in 2012 by Peter Falvey and key members of the Morgan Keegan / Revolution Partners team  Falvey Partners professionals have closed dozens of software transactions representing billions of dollars in transaction value