Back in September, Microsoft announced a virtual desktop solution that lets customers run Office 365 and Windows 10 in the cloud. They mentioned several partners in the announcement that were working on solutions with them. One of those was FSLogix, a Georgia virtual desktop startup. Today, Microsoft announced it has acquired FSLogix. It did not share the purchase price.
“FSLogix is a next-generation app-provisioning platform that reduces the resources, time and labor required to support virtualization,” Brad Anderson, corporate VP for Microsoft Office 365 and Julia White, corporate VP for Microsoft Azure, href=”https://blogs.microsoft.com/blog/2018/11/19/microsoft-acquires-fslogix-to-enhance-the-office-365-virtualization-experience/”>wrote in a joint blog post today.
When Microsoft made the virtual desktop announcement in September they named Citrix, CloudJumper, Lakeside Software, Liquidware, People Tech Group, ThinPrint and FSLogix as partners working on solutions. Apparently, the company decided it wanted to own one of those experiences and acquired FSLogix.
Microsoft believes by incorporating the FSLogix solution, it will provide a better virtual desktop experience for its customers by enabling better performance and faster load times, especially for Office 365 ProPlus customers.
Randy Cook, founder and CTO at FSLogix, said the acquisition made sense given how well the two companies have worked together over the years. “From the beginning, in working closely with several teams at Microsoft, we recognized that our missions were completely aligned. Both FSLogix and Microsoft are dedicated to providing the absolute best experience for companies choosing to deploy virtual desktops,” Cook wrote in a blog post announcing the acquisition.
Lots of companies have what are essentially dumb terminals running just the tools each employee needs, rather than a fully functioning standalone PC. Citrix has made a living offering these services. When employees come in to start the day, they sign in with their credentials and they get a virtual desktop with the tools they need to do their jobs. Microsoft’s version of this involves Office 365 and Windows 10 running on Azure.
FSLogix was founded in 2013 and has raised more than $ 10 million, according to data on Crunchbase. Today’s acquisition, which has already closed according to Microsoft, comes on the heels of last week’s announcement that the company was buying Xoxco, an Austin-based developer shop with experience building conversational bots.
Greene took over the position almost exactly three years ago when Google bought Bebop, the startup she was running. The thinking at the time was that the company needed someone with a strong enterprise background and Greene, who helped launch VMware, certainly had the enterprise credentials they were looking for.
In the blog post announcing the transition, she trumpeted her accomplishments. “The Google Cloud team has accomplished amazing things over the last three years, and I’m proud to have been a part of this transformative work. We have moved Google Cloud from having only two significant customers and a collection of startups to having major Fortune 1000 enterprises betting their future on Google Cloud, something we should accept as a great compliment as well as a huge responsibility,” she wrote.
The company had a disparate set of cloud services when she took over, and one of the first things Greene did was to put them all under a single Google Cloud umbrella. “We’ve built a strong business together — set up by integrating sales, marketing, Google Cloud Platform (GCP), and Google Apps/G Suite into what is now called Google Cloud,” she wrote in the blog post.
As for Kurian, he stepped down as president of product development at Oracle at the end of September. He had announced a leave of absence earlier in the month before making the exit permanent. Like Greene before him, he brings a level of enterprise street cred, which the company needs as it continues to try to grow its cloud business.
After three years with Greene at the helm, Google, which has tried to position itself as the more open cloud alternative to Microsoft and Amazon, has still struggled to gain market share against its competitors, remaining under 10 percent consistently throughout Greene’s tenure.
As Synergy’s John Dinsdale told TechCrunch in an article on Google Cloud’s strategy in 2017, the company had not been particularly strong in the enterprise to that point. “The issues of course are around it being late to market and the perception that Google isn’t strong in the enterprise. Until recently Google never gave the impression (through words or deeds) that cloud services were really important to it. It is now trying to make up for lost ground, but AWS and Microsoft are streets ahead,” Dinsdale explained at the time. Greene was trying hard to change that perception.
Holger Mueller, an analyst at Constellation Research says Greene was able to shift the focus to enterprise more, but he likes what Kurian brings to the table, even if it will take a bit of a cultural shift from his many years at Oracle. “What Greene did not address has been how to tie the product portfolio of Google’s autonomous and disparate development teams together. Kurian is a great fit for that job, having lead 35k+ developers at Oracle, ending the trench warfare between product teams and divisions that has plagued Oracle a decade ago,” Mueller explained.
Google has not released many revenue numbers related to the cloud, but in February it indicated they were earning a billion dollars a quarter, a number that Greene felt put Google in elite company. Amazon and Google were reporting numbers like that for a quarter at the time. Google stopped reporting cloud revenue after that report.
Regardless, the company will turn to Kurian to continue growing those numbers now. “I will continue as CEO through January, working with Thomas to ensure a smooth transition. I will remain a Director on the Alphabet board,” Greene wrote in her blog post.
Interestingly enough, Oracle has struggled with its own transition to the cloud. Kurian gets a company that was born in the cloud, rather than one that has made a transition from on-prem software and hardware to one solely in the cloud. It will be up to him to steer Google Cloud moving forward.
Eight months after bringing in a $ 40 million Series D, Moogsoft‘s co-founder and chief executive officer Phil Tee confirmed to TechCrunch that the IT incident management startup had shed 18 percent of its workforce, or just over 30 employees.
The layoffs took place at the end of October; shortly after, Moogsoft announced two executive hires. Among the additions was Amer Deeba, who recently resigned from Qualys after the U.S. Securities and Exchange Commission charged him with insider trading.
Founded in 2012, San Francisco-based Moogsoft provides artificial intelligence for IT operations (AIOps) to help teams work more efficiently and avoid outages. The startup has raised $ 90 million in equity funding to date, garnering a $ 220 million valuation with its latest round, according to PitchBook. It’s backed by Goldman Sachs, Wing Venture Capital, Redpoint Ventures, Dell’s corporate venture capital arm, Singtel Innov8, Northgate Capital and others. Wing VC founder and long-time Accel managing partner Peter Wagner and Redpoint partner John Walecka are among the investors currently sitting on Moogsoft’s board of directors.
Tee, the founder of two public companies (Micromuse and Riversoft) admitted the layoffs affected several teams across the company. The cuts, however, are not a sign of a struggling business, he said, but rather a right of passage for a startup seeking venture scale.
“We are a classic VC-backed startup that has sort of grown up,” Tee told TechCrunch earlier today. “In pretty much every successful company, there is a point in time where there’s an adjustment in strategy … Unfortunately, when you do that, it becomes a question of do we have the right people?”
Moogsoft doubled revenue last year and added 50 Fortune 200 companies as customers, according to a statement announcing its latest capital infusion. Tee said he’s “extremely chipper” about the road ahead and the company’s recent C-suite hires.
Moogsoft announced its latest executive hires on November 2, only one week after completing the round of layoffs, a common strategy for companies looking to cast a shadow on less-than-stellar news, like major staff cuts. Those hires include former Splunk vice president of finance Raman Kapur as Moogsoft’s first-ever chief financial officer and Amer Deeba, a long-time Qualys executive, as its chief operating officer.
Deeba spent the last 17 years at Qualys, a publicly traded provider of cloud-based security and compliance solutions. In August, he resigned amid allegations of insider trading. The SEC announced its charges against Deeba on August 30, claiming he had notified his two brothers of Qualys’ missed revenue targets before the company publicly announced its financial results in the spring of 2015.
“Deeba informed his two brothers about the miss and contacted his brothers’ brokerage firm to coordinate the sale of all of his brothers’ Qualys stock,” the SEC wrote in a statement. “When Qualys publicly announced its financial results, it reported that it had missed its previously-announced first-quarter revenue guidance and that it was revising its full-year 2015 revenue guidance downward. On the same day, Deeba sent a message to one of his brothers saying, ‘We announced the bad news today.’ The next day, Qualys’s stock price dropped 25%. Although Deeba made no profits from his conduct, Deeba’s brothers collectively avoided losses of $ 581,170 by selling their Qualys stock.”
Under the terms of Deeba’s settlement, he is ineligible to serve as an officer or director of any SEC-reporting company for two years and has been ordered to pay a $ 581,170 penalty.
Tee, for his part, said there was never any admission of guilt from Deeba and that he’s already had a positive impact on Moogsoft.
“[Deeba] is a tremendously impressive individual and he has the full confidence of myself and the board,” Tee said.
Amazon, one of the world’s largest companies, has transformed the face of commerce in part because it has managed at once to be “The Everything Store” but still with a route into its sea of products that, for most users, surfaces what they might most want to see (and importantly buy or consume). That kind of personalisation has become a goal not just for e-commerce companies, but for any organization running a digital business: users are constantly distracted, and when their attention is caught, they do not want to spend time figuring out what they most want.
Not every business is Amazon, though, so we are seeing a crop of startups emerging that are working on ways to help the rest of the digital world be just as optimised and personalised as Amazon. Now one of them, an Israeli startup called Dynamic Yield, has raised more money as it continues to expand its business, both to more platforms and to more geographies.
The startup’s Series D has now closed off at $ 38 million, with the inclusion of a $ 5 million strategic investment from Naver, Korea’s “Google” (it’s the country’s top search portal) that is also behind messaging apps Line and Snow. The plan is for Naver to help bring Dynamic Yield to Korea and Japan, by incorporating its tech into its own services and those of others that work with Naver.
(Personalisation and aggregators are strong magnets for users in Asia and thus big magnets for funding: ByteDance, which provides news aggregation among other services, was recently valued at $ 75 billion.)
Naver is not the only search engine that has caught sight of Dynamic Yield over the years. Previous investors include Baidu (“the Google of China”), and we’ve heard that when the startup was younger — it was founded in 2011 — Google had tried to acquire it (Dynamic Yield rejected the offer, and it’s been approached for acquisitions numerous times since then).
Other strategic investors include The New York Times and Deutsche Telekom, alongside other backers like Innovation Endeavors, Bessemer Venture Partners, Marker Capital and more.
Dynamic Yield has raised $ 85 million to date and is now valued at “hundreds of millions of dollars,” but less than $ 500 million, a source at the company said, after seeing a strong expansion of its services.
Dynamic Yield says it works with more than 220 global brands, and its tech reaches 600 million unique users each month, across 10 billion page views and 600 billion “events” on those pages. It claims its AI-based personalisation technology can lift revenues (or other engagement metrics) by 10-15 percent.
“It makes us an effective tool for surviving in a market where customer acquisition cost keeps getting more expensive,” co-founder and CEO Liad Agmon said in an interview.
Dynamic Yield doesn’t talk about many of its customers on the record — most don’t like to reveal to rivals who they work with, Agmon said.
But they include a number of big brands across e-commerce, travel, finance, media and other segments that use its tech not just to show more targeted products to prospective shoppers, but to help power advertising, recommend content and position the same information to different people in different ways depending on who is viewing it (for example with different headlines).
There are a lot of personalisation and A/B analytics companies in the market today — others include Adobe, Marketo (which is becoming a part of Adobe), Optimizely and many more. Indeed, I’d be very surprised if Amazon is not working on ways of productising its own personalisation tech in a way that is not intrinsically linked to its own marketplace (because some will never want to sell there, and because personalisation can be used for so much more than just e-commerce).
Dynamic Yield, however, claims that it has an edge over these because of how it works.
Agmon says that the tech sits on top of whichever CMS or other backend server that a site is using and is activated by way of a small amount of code. It uses machine learning to both “read” what is in a site, and matches that up against specific visitors and its own trove of experience.
Agmon added that when a business already has information about that visitor, that is the primary data that is used; otherwise it also incorporates other data sources like Acxiom and others — much the way that other marketing tech does — to form a stronger picture of your tastes.
It then runs this data through its own machine learning algorithms both to recommend content and to help a marketing manager figure out better customer segmentation overall. There is an “autopilot” version of the product where everything is automated based on Dynamic Yield’s algorithms; or options to use the data sources to set up specific marketing campaigns; or (as is common) a combination of the two.
Going forward, Agmon said the plan is to work across an increasing number of interfaces where customers are going today to discover and buy goods and services. Indeed, we’ve described how some of the newest e-commerce startups have eschewed any website or app of their own and work exclusively in third-party messaging apps to acquire customers and sell goods.
But it’s not just these new digital platforms that are becoming targets for personalisation startups like Dynamic Yield.
Agmon said that his company is also working with a major retailer that is using its tech at its in-person payment points. When — for example — a customer comes to order a latte, instead of generic upselling to the latest seasonal flavour, the person taking the order will now know if the customer ever orders a sweet injection, or if she/he is more of a savoury snack sort of person. The cashier will then know what to recommend to eat with that drink that is more likely to be purchased.
The mom-and-pop shop with its reputation for knowing the regulars and what they like might have found its dystopian (but useful) heir.
Cockroach Lab’s open source SQL database, CockroachDB, has been making inroads since it launched last year, but as any open source technology matures, in order to move deeper into markets it has to move beyond technical early adopters to a more generalized audience. To help achieve that, the company announced a new CockroachDB managed service today.
The service has been designed to be cloud-agnostic, and for starters it’s going to be available on Amazon Web Services and Google Cloud Platform. Cockroach, which launched in 2015, has always positioned itself as modern cloud alternative to the likes of Oracle or even Amazon’s Aurora database.
As company co-founder and CEO Spencer Kimball told me in an interview in May, those companies involve too much vendor lock-in for his taste. His company launched as open alternative to all of that. “You can migrate a Cockroach cluster from one cloud to another with no down time,” Kimball told TechCrunch in May.
He believes having that kind of flexibility is a huge advantage over what other vendors are offering, and today’s announcement carries that a step further. Instead of doing all the heavy lifting of setting up and managing a database and the related infrastructure, Cockroach is now offering CockroachDB as a service to handle all of that for you.
Kimball certainly recognizes that by offering his company’s product in this format, it will help grow his market. “We’ve been seeing significant migration activity away from Oracle, AWS Aurora, and Cassandra, and we’re now able to get our customers to market faster with Managed CockroachDB,” Kimball said in a statement.
The database itself offers the advantage of being ultra-resilient, meaning it stays up and running under most circumstances and that’s a huge value proposition for any database product. It achieves up time through replication, so if one version of itself goes down, the next can take over.
As an open source tool, it has been making money up until now by offering an enterprise version, which includes backup, support and other premium pieces. With today’s announcement, the company can get a more direct revenue stream from customers subscribing to the database service.
A year ago, the company announced version 1.0 of CockroachDB and $ 27 million in Series B financing, which was led by Redpoint with participation from Benchmark, GV, Index Ventures and FirstMark. They’ve obviously been putting that money to good use developing this new managed service.
The Pentagon’s $ 10 billion JEDI cloud contract bidding process has drawn a lot of attention. Earlier this month, Google withdrew, claiming ethical considerations. Amazon’s Jeff Bezos responded in an interview at Wired25 that he thinks that it’s a mistake for big tech companies to turn their back on the U.S. military. Microsoft president Brad Smith agrees.
In a blog post today, he made clear that Microsoft intends to be a bidder in government/military contracts, even if some Microsoft employees have a problem with it. While acknowledging the ethical considerations of today’s most advanced technologies like artificial intelligence, and the ways they could be abused, he explicitly stated that Microsoft will continue to work with the government and the military.
“First, we believe in the strong defense of the United States and we want the people who defend it to have access to the nation’s best technology, including from Microsoft,” Smith wrote in the blog post.
To that end, the company wants to win that JEDI cloud contract, something it has acknowledged from the start, even while criticizing the winner-take-all nature of the deal. In the blog post, Smith cited the JEDI contract as an example of the company’s desire to work closely with the U.S. government.
“Recently Microsoft bid on an important defense project. It’s the DOD’s Joint Enterprise Defense Infrastructure cloud project – or “JEDI” – which will re-engineer the Defense Department’s end-to-end IT infrastructure, from the Pentagon to field-level support of the country’s servicemen and women. The contract has not been awarded but it’s an example of the kind of work we are committed to doing,” he wrote.
He went on, much like Bezos, to wrap his company’s philosophy in patriotic rhetoric, rather than about winning lucrative contracts. “We want the people of this country and especially the people who serve this country to know that we at Microsoft have their backs. They will have access to the best technology that we create,” Smith wrote.
Throughout the piece, Smith continued to walk a fine line between patriotic duty to support the U.S. military, while carefully conceding that there will be different opinions in a large and diverse company population (some of whom aren’t U.S. citizens). Ultimately, he believes that it’s critical that tech companies be included in the conversation when the government uses advanced technologies.
“But we can’t expect these new developments to be addressed wisely if the people in the tech sector who know the most about technology withdraw from the conversation,” Smith wrote.
Like Bezos, he made it clear that the company leadership is going to continue to pursue contracts like JEDI, whether it’s out of a sense of duty or economic practicality or a little of both — whether employees agree or not.
Artificial intelligence touches just about every aspect of the tech world these days, aiming to provide new ways of making old processes work better. Now, a startup that has built an AI platform that tackles the ever-present, but never-perfect, business of customer service has quietly raised a large round of funding as it gears up for its next act, an IPO. Afiniti, which uses machine learning and behavioral science to better match customers with customer service agents — “behavioral pairing” is how it describes the process — has closed a $ 130 million round of funding ($ 75 million cash, $ 60 million debt) — a Series D that Afiniti CEO Zia Chishti says values his company at $ 1.6 billion.
If you are not familiar with the name Afiniti, you might not be alone. The company has been relatively under the radar, in part because it has never made much of an effort to publicise itself, and in part because the funding that it has raised up to now has largely been from outside the hive of VCs that swarm around many other startup deals that push those startups into the limelight.
At the same time, its backers make for a pretty illustrious list. This latest round includes former Verizon CEO Ivan Seidenberg; Fred Ryan, the CEO and publisher of the Washington Post; and investors Global Asset Management, The Resource Group (which Chishti helped found), Zeke Capital, as well as unnamed Australian investors.
The previous Series C round of $ 26.5 million, also has an interesting list of backers and also was not widely reported. They included McKinsey & Company, Elisabeth Murdoch, former Thomson Reuters CEO Tom Glocer, and former BP CEO John Browne, alongside Global Asset Management, The Resource Group, Seidenberg and Ryan.
That Series C was at a $ 100 million valuation, meaning that Afiniti’s valuation has increased more than 10 times in the last year on the back of 100 percent revenue growth each year over the last five.
That momentum led the company also to file confidentially for an IPO — although ultimately Chishti told TechCrunch that the company decided to raise privately at the potential IPO valuation since the money was easy to come by. (It’s also been one of the reasons he said he’s also rebuffed acquisitions, although at least one of the companies that’s approached him, McKinsey, now an investor.)
Now, Chishti — who is a repeat entrepreneur, with his previous company, Align Technology (which makes teeth alignment alternatives to braces), now at a $ 24 billion market cap — said that Afiniti has started to tip into profitability, so it seems the prospect of an IPO might be back on the table. That is possibly one reason that the company has started to speak to the press more and to make itself more visible.
Chishti and Afiniti are based out of the US, but it has roots into a range of local businesses globally in part by way of its well-connected team of advisors and local leaders. Among them, Princess Beatrice (or Beatrice York), currently 8th in line to the throne to succeed Queen Elizabeth, is the company’s vice president of partnerships. Alonso Aznar, the son of the former prime minister of Spain, runs Afiniti’s operations in Madrid.
The company itself sits in the general area of CRM, and specifically among that wave of startups that are trying to build tools using AI and other new technology to improve on the old ways of getting things done (it’s not alone: just today we noted that People.ai raised $ 30 million for its own AI-based CRM tools).
Afiniti on one hand calls itself a traditional AI company, but on the other, its CEO laments how overused and hackneyed the term has become. “AI is just a bubble,” he said in an interview. “The intensity of interest in AI is unwarranted because nothing has changed. It’s the same algorithms and software, and we just have faster hardware now.”
In actual fact, what Afiniti does is supply an AI layer to a process that is otherwise “ninety-nine percent human”, in the words of Chishti. The company uses AI to analyse sales people’s performance with specific types of calls and situations, and also to analyse customers in terms of their previous interactions with a company. It then matches up customer service reps who it believes will be most compatible with specific customers.
Afiniti’s pricing model has been an important lever for getting its foot in the door with companies. The company does not price its service per-seat or even per-month, but on a calculation between how well the company does when its call routing and running through Afiniti, versus how much is sold when it does not.
“We run systems on for 15 minutes, off for 5 minutes, and we do that perpetually,” Chishti said. It integrates with a company’s CRM, sales and telephony systems at the back end, in order both to route calls but also to track when those calls result in a sale. “We count the revenues, calculate the delta, and we get a share of that delta.”
If that sounds like a tricky measure, it doesn’t to customers, it seems. The zero-cost-to-try-it model is how it has surmounted the hurdle of getting used by a number of large, often slow-moving carriers and other large incumbents. “It means we have to continuously prove our value,” Chishti added.
As one example of how this works out, he used the example of Verizon (which is the owner of TechCrunch, by way of Oath). “Say Verizon makes $ 120 billion in revenues in a year,” he said, “and $ 30 billion of that is in phone-based sales. Afiniti would make $ 600 million on that.” Times that by dozens of customers in 22 countries, and that may point to how the company has quietly reached the valuation that it has.
Beyond its core product, the company has dozens of patents and more in the application phase in the US and other jurisdictions.
Twilio is hosting its Signal developer conference in San Francisco this week. Yesterday was all about bots and taking payments over the phone; today is all about IoT. The company is launching two new (but related) products today that will make it easier for IoT developers to connect their devices. The first is the Global Super SIM that offers global connectivity management through the networks of Twilio’s partners. The second is Twilio Narrowband, which, in cooperation with T-Mobile, offers a full software and hardware kit for building low-bandwidth IoT solutions and the narrowband network to connect them.
Twilio also announced that it is expanding its wireless network partnerships with the addition of Singtel, Telefonica and Three Group. Unsurprisingly, those are also the partners that make the company’s Super SIM project possible.
The Super SIM, which is currently in private preview and will launch in public beta in the spring of 2019, provides developers with a global network that lets them deploy and manage their IoT devices anywhere (assuming there is a cell connection or other internet connectivity, of course). The Super SIM gives developers the ability to choose the network they want to use or to let Twilio pick the defaults based on the local networks.
Twilio Narrowband is a slightly different solution. Its focus right now is on the U.S., where T-Mobile rolled out its Narrowband IoT network earlier this year. As the name implies, this is about connecting low-bandwidth devices that only need to send out small data packets like timestamps, GPS coordinates or status updates. Twilio Narrowband sits on top of this, using Twilio’s Programmable Wireless and SIM card. It then adds an IoT developer kit with an Arduino-based development board and the standard Grove sensors on top of that, as well as a T-Mobile-certified hardware module for connecting to the narrowband network. To program that all, Twilio is launching an SDK for handling network registrations and optimizing the communication between the devices and the cloud.
The narrowband service will launch as a beta in early 2019 and offer three pricing plans: a developer plan for $ 2/month, an annual production plan for $ 10/year or $ 5/year at scale, and a five-year plan for $ 8/year or $ 4/year at scale.
Some tech companies might have a problem taking money from the Department of Defense, but Amazon isn’t one of them, as CEO Jeff Bezos made clear today at the Wired25 conference. Just last week, Google pulled out of the running for the Pentagon’s $ 10 billion, 10-year JEDI cloud contract, but Bezos suggested that he was happy to take the government’s money.
Bezos has been surprisingly quiet about the contract up until now, but his company has certainly attracted plenty of attention from the companies competing for the JEDI deal. Just last week IBM filed a formal protest with the Government Accountability Office claiming that the contract was stacked in favor one vendor. And while it didn’t name it directly, the clear implication was that company was the one owned by Bezos.
Last summer Oracle also filed a protest and also complained that they believed the government had set up the contract to favor Amazon, a charge spokesperson Heather Babb denied. “The JEDI Cloud final RFP reflects the unique and critical needs of DOD, employing the best practices of competitive pricing and security. No vendors have been pre-selected,” she said last month.
While competitors are clearly worried about Amazon, which has a substantial lead in the cloud infrastructure market, the company itself has kept quiet on the deal until now. Bezos set his company’s support in patriotic terms and one of leadership.
“Sometimes one of the jobs of the senior leadership team is to make the right decision, even when it’s unpopular. And if if big tech companies are going to turn their back on the US Department of Defense, this country is going to be in trouble,” he said.
“I know everyone is conflicted about the current politics in this country, but this country is a gem,” he added.
While Google tried to frame its decision as taking a principled stand against misuse of technology by the government, Bezos chose another tack, stating that all technology can be used for good or ill. “Technologies are always two-sided. You know there are ways they can be misused as well as used, and this isn’t new,” Bezos told Wired25.
He’s not wrong of course, but it’s hard not to look at the size of the contract and see it as purely a business decision on his part. Amazon is as hot for that $ 10 billion contract as any of its competitors. What’s different in this talk is that Bezos made it sound like a purely patriotic decision, rather than economic one.
The Pentagon’s JEDI contract could have a value of up to $ 10 billion with a maximum length of 10 years. The contract is framed as a two year deal with two three-year options and a final one for two years. The DOD can opt out before exercising any of the options.
Bidding for the contract closed last Friday. The DOD is expected to choose the winning vendor next April.
You might think that Anaplan CEO, Frank Calderoni would have had a few sleepless nights this week. His company picked a bad week to go public as market instability rocked tech stocks. Still he wasn’t worried, and today the company had by any measure a successful debut with the stock soaring up over 42 percent. As of 4 pm ET, it hit $ 24.18, up from the IPO price of $ 17. Not a bad way to launch your company.
“I feel good because it really shows the quality of the company, the business model that we have and how we’ve been able to build a growing successful business, and I think it provides us with a tremendous amount of opportunity going forward,” Calderoni told TechCrunch.
Calderoni joined the company a couple of years ago, and seemed to emerge from Silicon Valley central casting as former CFO at Red Hat and Cisco along with stints at IBM and SanDisk. He said he has often wished that there were a tool around like Anaplan when he was in charge of a several thousand person planning operation at Cisco. He indicated that while they were successful, it could have been even more so with a tool like Anaplan.
“The planning phase has not had much change in in several decades. I’ve been part of it and I’ve dealt with a lot of the pain. And so having something like Anaplan, I see it’s really being a disrupter in the planning space because of the breadth of the platform that we have. And then it goes across organizations to sales, supply chain, HR and finance, and as we say, really connects the data, the people and the plan to make for better decision making as a result of all that,” he said.
Calderoni describes Anaplan as a planning and data analysis tool. In his previous jobs he says that he spent a ton of time just gathering data and making sure they had the right data, but precious little time on analysis. In his view Anaplan, lets companies concentrate more on the crucial analysis phase.
“Anaplan allows customers to really spend their time on what I call forward planning where they can start to run different scenarios and be much more predictive, and hopefully be able to, as we’ve seen a lot of our customers do, forecast more accurately,” he said.
Anaplan was founded in 2006 and raised almost $ 300 million along the way. It achieved a lofty valuation of $ 1.5 billion in its last round, which was $ 60 million in 2017. The company has just under 1000 customers including Del Monte, VMware, Box and United.
Calderoni says although the company has 40 percent of its business outside the US, there are plenty of markets left to conquer and they hope to use today’s cash infusion in part to continue to expand into a worldwide company.
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