Large systems integrators are going on a bit of a shopping spree in recent days, with the objects of desire being specialized services firms focused on prominent SaaS applications such as Salesforce and Workday.
Capgemini said Tuesday it has purchased oinio, a German firm specializing in Salesforce projects:
Based in Munich, oinio has become over the past 15 years one of the major European players in the consulting and deployment of Salesforce cloud-based CRM and digital marketing solutions. As an elite Salesforce Platinum Cloud Alliance partner, oinio has established itself as a key provider in this market with more than 600 projects for a portfolio of international clients in life sciences, manufacturing, financial services, high tech and utilities.
On the same day, Mercer announced the acquisition of CPSG, which focuses on Workday:
This acquisition will significantly expand the size and capabilities of Mercer’s existing Workday practice while providing a global distribution channel for CPSG. By acquiring CPSG, Mercer will be able to meet clients’ needs for cloud-based finance and HR services across a broader array of industry segments and employer sizes with Workday Financial Management and Human Capital Management (HCM).
Finally, on Monday Accenture said it had bought CRMWaypoint, a Netherlands firm centered on Salesforce:
CRMWaypoint is one of the largest Salesforce partners in Benelux, established in 2006 with an exclusive focus on Salesforce. It was one of the first official implementation partners for Salesforce in the Dutch market in early 2008. Since then, CRMWaypoint has delivered on more than 600 Salesforce projects in different industries with a team of highly qualified professionals that carry over 80 Salesforce certifications. CRMWaypoint is serving clients both in medium business and large enterprise market segments.
That deal followed Accenture's move in September to buy Cloud Sherpas, one of the larger independent cloud SIs. That same month, IBM bought Meteorix, a Workday services provider.
Analysis: What's Driving the Buying
Taken individually, none of the acquisitions listed seem overly massive. But as a group they certainly reflect a trend that cloud customers should pay attention to, given how they collapse and consolidate the options for specialized—and perhaps more importantly, localized—project services.
A few factors are in play behind the rash of deals, says Constellation Research founder and CEO R "Ray" Wang. For one thing, "large vendors are being rewarded in their stock multiples for having SaaS and cloud revenue streams," he says.
Second, there's simply a shortage of experts who can run SaaS projects. "Cloud implementations are more rapid and iterative," he says. "Success requires a good pipeline and volume."
Finally, there's the obvious reason: systems integrators are simply looking for growth and scale. If the first week of the new year is any indication, we'll be seeing many more boutique SaaS vendors tucked into larger players over coming months.
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