The data industry is on the path to severe change.
The market is stable. And if the contract flow has been a signal in the past two months – data bikes have bought Billion to Billion 1 billion and the sales force has eliminated cloud management firm Information for $ 8 billion – its pace is working further.
The acquired companies can be in size, age and focus area within the data stack, but one of them is common. These companies are being purchased in hopes that the acquired technology businesses will have the necessary missing piece of need to adopt AI.
At the level level, this strategy is meaningful.
The success of AI companies, and AI applications is determined by access to basic data of quality. Without it, there is not just value – a belief that is shared by the Enterprise VCS. In a December 2024, a tech crunch survey survey, the Enterprise VCS said that the quality of the data is an important factor for highlighting and making the AI ​​startup. And while some of these deals are not startups, the emotions are still standing.
Former Informatica co -founder and CEO, and the current chairman and CEO of Data Integration Company Snaplujic, Gorao Dilin, echoed in a recent interview with Tech Crunch.
“It has a complete reset of how data is managed and flows around the enterprise,” said Dylan. “If people want to occupy AI, they will have to repeat their data platforms in a big way. And this is the place where I believe you are seeing all these data, as this is the basis of AI’s stable strategy.”
But is it a strategy to snatch companies before the world after the method of increasing the adoption of enterprise AI in today’s rapid innovation market? This is not clear. Dallon also has doubts.
“No one was born in Ai; he is only three years old,” Dylan said citing the current post -chatpot AI market. “For a larger company, especially the Agent Enterprise, to provide AI innovations to re -imagine the enterprise, it will need to be very much to be recovered.”
Of scattered data renovated
Over the past decade, the data industry has grown in a wide and scattered web – which has caused it to stabilize it. Get ready It just needed a catalyst. According to the pitch Book data, only from 2020 to 2024, more than $ 300 billion was put in data startup for more than 24,000 deals.
The data industry was not protected from trends shown in other industries such as sauce, where the last decade plan resulted in the financing of a number of startups through Venture Capitalists, which targeted only a specific area or in some cases was built around a single feature.
The current industry standard of combining a group of different data management solutions, each one with its own specific focus, does not work when you want to find answers or build applications around your own data.
This makes sense that big companies want to pull startups that can plug into the current space in their data stack. An excellent example of this trend is the recent pursuit of foters census in May – which yes, Was done in the name of Ai.
Fyotrons help companies transmit their data from various sources to the cloud database. In the first 13 years of its business, it did not allow users to transfer this data back from the aforementioned database, which is a census offer. Before this, that means, Fivitian users needed to work with another company to create solutions from the end to the end.
To clarify, this does not mean that they shadow on the fighter. At the time of the contract, George Fraser, co -founder and CEO of the futile, told Tech Crunch that the data moved to and out of these warehouses looks like two sides of the same coin, which is not so easy. Even the company tried and abandoned the country’s solution.
Fraser said at the time, “Technically, if you look at the code below (these), they are really different.” “To do this, you have to solve a very different set of problems.”
This situation helps to clarify how the data market has changed in the last decade. Former Gartner analyst Sanjeev Mohan, who now runs his own data trend advisory firm Sanjumo, is a major driver of the current wave of stability.
“This stability is fed up with a lot of products by consumers that are not compatible,” said Mohan. “We live in a very interesting world where there are many solutions to data storage, you can open source, they can be covered, but an area where we have failed is metadata. These dozens of products are capturing some metal data but to perform their work, this is an overlap.”
Good for a startup
Mohan said that the wider market here also plays a role. Mohan said the data startups are struggling to increase capital, and it is better to go down or put a burden on the debt, Mohan said. By adding features, they take advantage of prices and take a lead against their peers by adding features.
“If the Sales Force or Google is not getting these companies, then their rivals are likely,” said Derek Harnands, a senior emerging tech analyst from Pitch Book. “Currently the best solution is being achieved. Even if you have award -winning solutions, I do not know that the private approach to being private eventually wins when going into a bigger (obtainer).”
Startups, which begin with this trend, have great benefits. The venture market is dying of hunger to get out and the current quiet period for IPOs does not leave them too much opportunities. Not only does it get out, but in many cases it gives these founding teams rooms to continue construction.
Mohan agreed and added that many data is feeling the slow recovery of the current market pain and venture funds in connection with the startups.
“At this time, acquisition has been a very favorable strategy for them,” said Harnands. “So I think, like the two sides, they have been very encouraged to go to the final line. And I think Informatica is an excellent example of this, even though the sales force was talking to them, even though a little hair was cut, according to their board, it was still the best solution.”
What happens next
But the doubt still remains if this acquisition strategy will achieve the goals of buyers.
As Dylan pointed out, the database companies acquired were not necessarily built to work with the rapidly changing AI market. In addition, if the best data company AI wins, will it make data and AI companies realize separate companies?
“I think a lot of price data management is to integrate AI’s major players with companies,” said Harnands. “I do not know that the Standstone Data Management Company is particularly encouraged to stay like this and play the role of the third party between such, businesses and AI solutions.”