IBM has acquired Optevia, a UK-based SaaS (software as a service) systems integrator that specializes in public-sector implementations of Microsoft Dynamics CRM, in a move that underscores IBM's ambitions in government IT and SaaS in general. Terms of the deal weren't disclosed. Here are the key details from IBM's announcement:
Industry experts estimate that the world-wide Customer Relationship Management (CRM) opportunity is in excess of $23B, with cloud-based CRM solutions expected to surpass 50 percent of that total. The acquisition of Optevia, will help IBM establish itself as a premier SaaS and digital consultant and accelerate leadership in CRM solutions.
Optevia’s main focus on UK Emergency Services, Central Government, Local Government, Health Authorities and Housing and Social Enterprises, allows them to offer their clients highly differentiated solutions. Optevia’s client base includes ministries, councils, regulators, licensing and grant management organizations, transport authorities and social housing organizations.
Surely IBM isn't only interested in Optevia implementing Dynamics CRM, however, and the announcement states as much:
The acquisition will allow IBM to scale Optevia’s solutions across other areas worldwide, where Optevia's software, assets and highly skilled, industry-focused workforce, coupled with their expertise will significantly increase IBM’s current capabilities.
Analysis: Optevia Deal Is More Evidence of the Cloud SI Gold Rush
While IBM is hoping to win more Dynamics CRM deals with the help of Optevia's people and assets, the acquisition ties more generally into the broader trend of large SIs snapping up smaller, SaaS-focused consulting and implementation firms of late. (See our full report here.)
Previously this year, Capgemini bought oinio, a German company that specializes in Salesforce implementations; Mercer bought Workday consultancy CPSG; and Accenture scooped up CRMWaypoint, another Salesforce specialist that's based in the Netherlands.
Last year, Accenture bought Cloud Sherpas, a more broadly focused SaaS SI, and IBM purchased Meteorix, another Workday specialist.
When you consider the UK focus of Optevia, the trend lines are clear: Rather than attempt to build out global SaaS practices entirely on their own, large services providers such as IBM are opening their wallets to acquire localized talent experienced with SaaS projects, and as in the case of Optevia, vertical know-how to boot.
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