High Octane Data Fuel – The $1 Trillion Market Nobody Is Talking About
Growing dependence on up-to-date and accurate data is fueling a renewed focus on Data Integration and Management software. M&A activity in the space is up more than six-fold at $68B on the year, and private placement is also up nearly three-fold at $11B.
Data integration is the process of integrating a complex information system with new or existing SaaS, packaged software or custom software and enterprise communication capabilities. Ultimately this system level integration leads to data compatibility, governance and other issues related to merged data assets. Data Integration includes systems and applications used internally such as ERP systems. Increasingly, it also includes external data that reside outside the enterprise. As the migration to cloud environments continues, organizations require increasingly sophisticated services to implement and integrate new applications. The market for systems integration has evolved and grown as a result.
There is increased complexity through variation in the types of systems, sub-systems and data needed to run distributed business processes. Homogeneous data is used to optimize business operations and heterogeneous data is increasingly combined to provide new insights and innovation. Vertical expertise of service providers is paramount as complex industries adopt technologies central to their operations and leverage industry specific data. Companies in these industries are subject to complex legal and regulatory regimes and as such have strict requirements and tailored needs for sector-specific software solutions and overall data management.
With over 180 companies identified in AGC’s Data Integration and Management landscape, this industry is large and growing and contains many innovative companies disrupting traditional trends.