Services for Organizations

Using our research, best practices and expertise, we help you understand how to optimize your business processes using applications, information and technology. We provide advisory, education, and assessment services to rapidly identify and prioritize areas for improvement and perform vendor selection

Consulting & Strategy Sessions

Ventana On Demand

    Services for Investment Firms

    We provide guidance using our market research and expertise to significantly improve your marketing, sales and product efforts. We offer a portfolio of advisory, research, thought leadership and digital education services to help optimize market strategy, planning and execution.

    Consulting & Strategy Sessions

    Ventana On Demand

      Services for Technology Vendors

      We provide guidance using our market research and expertise to significantly improve your marketing, sales and product efforts. We offer a portfolio of advisory, research, thought leadership and digital education services to help optimize market strategy, planning and execution.

      Analyst Relations

      Demand Generation

      Product Marketing

      Market Coverage

      Request a Briefing


        Ventana Research Analyst Perspectives

        << Back to Blog Index

        SuccessFactors Finds Learning Management System and More with Plateau Acquisition

        Consolidation in the human capital management software market is in full swing. Recently  Peopleclick Authoria acquired Aquire Solutions, and just this week Golden Gate Capital and Infor agreed to buy Lawson Software for about $2 billion, which my colleague Robert Kugel commented.

        SuccessFactors is at it again this week as well, announcing a definitive agreement to acquire Plateau Systems, a provider of learning management system (LMS) and talent management software. This deal will build out further the SuccessFactors LMS after its purchase of social video and mobile learning provider Jambok back in March. Until this announcement the Jambok purchase was interesting albeit awkward in both customer and vendor circles, but now it makes sense. The obvious point of the Plateau purchase was for the LMS product and knowledge capital, and assuming the deal closes this summer, integration and assimilation with Jambok and CubeTree and the greater SuccessFactors BizX suite will follow.

        This expansion of the SuccessFactors BizX suite could solidify the company as a learning leader in the talent management space, with a true end-to-end SaaS platform that raises the stakes for Saba, SumTotal Systems, ADP Workscape, Workday and others. Sources at some of these companies admitted to me it’s a great move for SuccessFactors, while pointing out that integration of the products may be difficult in the short term once the deal is done.

        Integration could be an issue in another sense as well because these are two different corporate cultures. SuccessFactors is a public company and Plateau is privately held, and there are contrasting styles between their progressively aggressive West Coast and conservative and cautious East Coast orientations. The two have never had a formal partnership that could have helped with integration and assimilation as well as customer service, marketing and sales once the acquisition goes through. Until then, they’ll be operating as two separate companies.

        On the other hand, according to SuccessFactors, they are more alike technologically than any competing platforms (which SuccessFactors determined while shopping around). Because Plateau, like SuccessFactors, is built using Enterprise Java (JEE), both teams expect a smooth code assimilation. I asked them about their integration plans and product roadmap plans, but there wasn’t much they could share because of the regulatory aspects of the pending deal.

        But that’s how it is with these deals until they’re done, and the sooner they’re done and the integration has begun the better for customers, prospects and employees (I’ll get to that in a minute). We note also that SuccessFactors is not only purchasing a stellar learning management system, it will gain the rest of Plateau’s talent management suite, of which the compensation application recently scored “Hot” in our latest 2011 Total Compensation Management Value Index, only one of three that did so and much higher rating than SuccessFactors.

        What else will Plateau bring to enhance the BizX suite? I’ll bet that compensation and the iContent portal technology are second only to the learning capabilities. SuccessFactors is already very strong in performance management as well as workforce analytics and planning for where they acquired two companies youcalc and Inform that my colleague had assessed, which these tools complement but also overlap with Plateau recent advancements in its own analytics.

        Both platforms tout the customer benefits of cloud computing, but with all the chatter about cloud-based SaaS in business today (including HCM), you’d think that the stability and security for customers would be clearer. I’ve been asking more cloud HCM vendors what they’re doing to ensure that stability and security (consider the Amazon cloud computing outages last week. The answers are pretty cloudy other than “we’ve got that covered.” SuccessFactors spokespeople told me it has been running cloud-based SaaS for 10 years without major  incidents, and with Plateau they expect to own the HCM cloud-based SaaS market. Based on their initial estimates, the combined companies will have more than 15 million users. That could make for a lot of unhappy customers if the cloud should be compromised. All it takes is one security or stability breach to lose credibility.

        Among those 15 million users, the companies said they share some customers, although how many and how big they either didn’t know or didn’t want to say. For the time being, clients and prospects alike will be asking themselves, “Should I be buying from Plateau, and if I do, will SuccessFactors take care of me?” And Plateau’s current employees no doubt wonder, “Will they take care of me, whether I stay or am let go?”

        I believe SuccessFactors will do so to some extent on both accounts, but the sooner it’s all done the better it will be for all concerned.

        Regards,

        Kevin W. Grossman – VP & Research Director

        Authors:

        Ventana Research

        Ventana Research, now part of Information Services Group (ISG), is the most authoritative and respected market research and advisory services firm focused on improving business outcomes through optimal use of people, processes, information and technology. Since our beginning, our goal has been to provide insight and expert guidance on mainstream and disruptive technologies. In short, we want to help you become smarter and find the most relevant technology to accelerate your organization's goals.

        JOIN OUR COMMUNITY

        Our Analyst Perspective Policy

        • Ventana Research’s Analyst Perspectives are fact-based analysis and guidance on business, industry and technology vendor trends. Each Analyst Perspective presents the view of the analyst who is an established subject matter expert on new developments, business and technology trends, findings from our research, or best practice insights.

          Each is prepared and reviewed in accordance with Ventana Research’s strict standards for accuracy and objectivity and reviewed to ensure it delivers reliable and actionable insights. It is reviewed and edited by research management and is approved by the Chief Research Officer; no individual or organization outside of Ventana Research reviews any Analyst Perspective before it is published. If you have any issue with an Analyst Perspective, please email them to ChiefResearchOfficer@ventanaresearch.com

        View Policy

        Subscribe to Email Updates

        Posts by Month

        see all

        Posts by Topic

        see all


        Analyst Perspectives Archive

        See All