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The Ever-Changing CPQ Market Landscape

Posted by Michael Bauer 12/29/2015 Categories: CPQ Software Microsoft Dynamics CRM Salesforce.com

Reviewing The Latest CPQ Acquisitions in 2016

Cloud-based and Web-based CPQ SolutionsIn 2015, two more configure-price-quote products were ;swallowed up by enterprise companies, making it five major acquisitions in the last two years. So, what's driving up the value in automated sales solutions, making quote-to-cash products one of the most highly sought after and attractive pieces to one's portfolio?

A number of analysts point to the introduction of the SaaS model as the springboard to the growing demand for sales automation. Cloud-based CPQ solutions became much more affordable and prevalent to SMBs looking for ways to stay competitive in the global market.

These businesses leverage CPQ software to:

  1. Drive down sales costs through automation
  2. Improve sales performance (efficient and effective)
  3. Simplify complex selling and servicing
  4. Boost channel sales
  5. Build loyalty with consumers

Recent CPQ Acquisitions

We've compiled a list of the most notable CPQ acquisitions in the last five years. The chart lists the product, buyer, date and price of acquisition, deployment offering(s), integration option(s), and press announcement. *Note - Information listed was found on the respective company's website.

Sterling Commerce

IBM
  • August 2010
  • $1.4 billion
  • On-Premise and Hosted
  • Salesforce.com

TDCI - BuyDesign

Infor
  • April 2013
  • Unknown
  • On-Premise and Hosted
  • Oracle, Microsoft AX, Infor

BigMachines

Oracle
  • October 2013
  • $400 million
  • SaaS
  • Salesforce.com, Oracle

Cameleon

PROS, Inc.
  • October 2013
  • $33 million
  • On-premise and SaaS
  • Salesforce.com, Microsoft

Configure One

Autodesk
  • October 2015
  • Unknown
  • SaaS
  • Sfdc, Infor, MSFT, SAP

SteelBrick

Salesforce.com
  • December 2015
  • $360 million
  • SaaS
  • Salesforce.com

CRM + CPQ = BUILDING A STRONGER, MORE EFFICIENT SALES FORCE

Is there any coincidence that half of the companies (Salesforce, Infor, Oracle) buying CPQ products include customer relationship management (CRM) in its product line? Many analysts agree that marrying CPQ and CRM solutions provide sales professionals with an unified framework for different elements of the sales cycle.

The combination of these platforms help sales professionals efficiently manage their customer, distributor, reseller, and partner interactions and transactions. Moreover, sales professionals become self-sufficient in business processes like subscription billing, pricing, quick quote generation, and bundling of complex services with products in orders.

With small and large businesses competing against each other in the global market, investing in your sales team is critical. Businesses all over the world are adopting automation tools to increase the deal size, shorten sales cycles, reduce quoting errors and delays, and improve customer loyalty.

How Will These Acquisitions Affect The CPQ Landscape?

In the chart above, take a look at the 4th line. Notice how many business systems these CPQ applications integrate into? Multiple, right! That was prior to the acquisition. Now, most have narrowed its focused to only the parent company's platform. 

In my opinion, three things will happen in 2016. First, it's no surprise, but expect more acquisitions. Second, existing CPQ vendors will broaden its integration offering into more CRM and ERP platforms. Finally, watch for a shift in product configurator offerings. Manufacturers are beginning to move away from still images and adopting 2D / 3D visual. 

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