The market for master data management just got much bigger for Informatica acquiring Siperian after just publishing their great financial results for 2009. Siperian who had started their business focusing on customer data integration and grew into what is now called multi-domain MDM. Siperian had grown over last several years with a range of brand name organizations that operate globally who have been addressing multi-domain data consistency issues across many industries. Now with Siperian the use of their MDM hub and proven methods for defining, managing and publishing master data will be simpler for organizations using Informatica. As well Informatica has continued to grow organically and through acquisition has been servicing the master data management market through the use of their data integration, identity resolution, data quality and other technologies as outlined on their site under MDM.
Informatica will integrate Siperian into their data quality business which will bring it tightly into their systems. In fact Siperian was already using Informatica technology in their solution and were using their Identity Resolution and Address Doctor that Informatica had acquired. Now Informatica can advance the use of MDM within many areas of their business from data governance, cloud computing and business to business processes. In fact our benchmark research into data governance found that only 12 percent of organizations are innovative and tackled data governance effectively with MDM leaving a significant opportunity for Informatica. In fact MDM was one of the top three technologies for making data governance successful as it was in our recent product information management benchmark research and there is a big demand for eliminating incompatible tools for this critical process.
Siperian had basically two products: the first which was their multi-domain MDM hub that was rules-based and managed data to detailed attributes and lineage of data that can be audited and tracked. The second was Siperian Business Data Director which was designed to support data governance process and provide methods for searching, viewing and creating master data across the business. In fact many of these capabilities were validated and outlined in our research on the needed capabilities for MDM across the enterprise going back over the last five years. Siperian had done a nice job in what the call a trust framework for ensuring data lineage and tracking of data in a consistent manner. Just as important is that Siperian had been effective in managing master data across application domains like Oracle and SAP along with across data domains across data warehouses. All of this is value add for Informatica who also was very integral to the data fabric of an enterprise.
This acquisition is a great step forward for Informatica and builds on top of the recent release of their Version 9 that I recently analyzed (See: “Informatica Brings Business and IT Together for Your Data in Version 9”). Now with MDM in their portfolio, Informatica can safely advance their business to a new level in the global competition against IBM and Oracle who have also been building out their information management portfolio over the last several years. Informatica is working to align business and IT as my colleague recently wrote about (See: "Informatica Works to Bridge the Business and IT Divide”) is coming closer together with technology designed for helping manage data collaboratively. This decade will be interesting as organizations can be more efficient in data management and thank goodness technology is helping dramatically increase the ability to get it done in a timely manner.
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Mark Smith – CEO & EVP Research