Today, Teradata Corporation announced a definitive agreement to acquire Aprimo, a long-time player in the integrated marketing space. I sat down with Marketo’s CEO Phil Fernandez to get his analysis about the announcement.
Is this acquisition a sign of change in the marketing automation market?
Aprimo has been around for a long time, and has been successful primarily in providing what has become known as “marketing resource management” applications. However, they – and the entire marketing automaton category – were somewhat sleepy until the past few years when Marketo came on the scene. Even as recently as 2007, there were naysayers who told us that marketing automation was a dead category that nobody needed.
However, at Marketo we had a bold vision that saw where marketing automation needed to go. It is not just about marketing, but about rethinking every aspect of how corporations drive growth and improve revenue performance. Our focus was and continues to be on helping corporations to fundamentally transform their marketing and sales operations and create high performance revenue growth engines.
We call this new discipline Revenue Performance Management, and I believe that this new, more revenue-facing and strategic focus is at the core of what’s driving heightened interest and momentum in marketing automation platforms of all sizes, including Aprimo.
What does this mean for Marketo?
As the fastest growing marketing automation vendor of all time, Marketo is extremely well positioned to take advantage of the heightened interest and momentum in this space. Given our high growth rate, we particularly like what Aprimo’s valuation says about our own valuation multiple.
Do you expect to see more consolidation in the space?
From top to bottom, this has historically been a very fragmented space, and it’s no surprise that we are seeing increased M&A activity. As the emerging leader in the category, this trend presents a great opportunity for Marketo to be a consolidator and further extend our leadership position. We are very excited about the year ahead and beyond.