Thursday, February 09, 2006

Another one bites the dust

I had written quite recently about the consolidation occurring in the data quality industry. The pace picked up today, when First Logic, having escaped the clutches of Pitney Bowes, looks as if it will be acquired by Business Objects.

This acquirer is a lot more logical for First Logic than Pitney Bowes. Data quality is a major company of any BI/data warehouse implementation, and indeed Business Objects has already been reselling First Logic for over a year, so the two companies already know each other. The bargain basement price (USD 69M purchase for a company with revenues of over USD 50M) tells you all you need to know about the health of the data quality market.

This move supports my thesis that data quality as an independent market is essentially disappearing, with the capabilities being baked into broader offerings. I believe the same fate awaits the ETL market; more on this later.

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