April 11, 2022
Photo: Library of Congress; Wikimedia Commons
Hello, and welcome to Protocol Enterprise! Today: why process-mining companies are the next logical place for big enterprise tech to expand, Ampere signals its intentions to go public, and the latest major funding rounds in enterprise tech.
While applications built around managed container services dominate a lot of new application-development strategies on cloud providers like AWS, the concept is still pretty new to the broader world. Only 14% of cloud customers surveyed by Dark Reading are using managed container services, which suggests there’s still lots of room to grow.
The enterprise software establishment is on a process-mining buying spree. At the end of March, Microsoft purchased process-mining company Minit; early last year, SAP acquired Signavio for an undisclosed sum; and IBM acquired startup myInvenio just a few months after SAP’s purchase.
But why are these business software giants investing so heavily in process mining? The answer may be less about process mining itself, and more about what process mining, workflow management and robotic process automation can achieve together. In this industry, the whole could be greater than the sum of its parts.
One of those early academics was Wil van der Aalst, a professor at RWTH Aachen University and the chief scientist for Celonis, one of the better-known upstarts in the process-mining world.
Still, process mining on its own isn’t enough to drive the types of operational improvements enterprises are seeking. To Celonis co-founder Alexander Rinke, process mining is a “gateway technology to building new and better processes,” which is why it's often lumped together with workflow management and robotic process automation.
Overall, it’s clear that further industry consolidation lies ahead for process-mining, ERP and RPA players. In fact, some industry practitioners think process-mining and RPA companies will almost have to expand into adjacent spaces to survive.
If process-mining companies can’t succeed on their own, it might prove that a platform play is ultimately more impactful than a more focused approach pursued by a single vendor. And it would be a feather in the cap for ERP companies that have been touting that strategy for years.
M&A and workforce reorganization can create a wealth of opportunities for companies seeking rapid growth, transformation and market expansion. In fact, 47% of executives say pursuing corporate M&As, joint ventures and alliances is their top growth driver in 2022. Unfortunately, nearly half of executives say talent acquisition and retention challenges are the biggest obstacle.
Oracle-backed server processor startup Ampere Computing said Monday that it plans to go public, filing initial confidential paperwork with the SEC.
Ampere designs server chips based on Arm architecture that aim to challenge chips made by Intel and AMD, which run on x86-based designs. Microsoft and Oracle are two of Ampere’s larger customers; the latter has quietly invested $426 million in Ampere, which is run by former Intel president Renée James. The funding will likely aid Ampere’s efforts to carve out a space in the data center for rivals to Intel and AMD, which currently dominate the server market.
A public listing would give Ampere an infusion of cash and potential access to more investment further down the line via public markets. The confidential treatment allows Ampere to proceed with the listing process without making significant disclosures around its operations and financial performance in recent years. Some companies file prospectuses and never go public, or end up getting acquired along the way.
Oracle’s latest quarterly earnings report implied that it had taken a 20% to 50% stake in Ampere, based on accounting rules. James sits on Oracle’s board, but it stopped treating her as an independent member after Oracle first took a stake in the Silicon Valley company.
Clarify Health was another recipient of SoftBank’s largesse, raising a $150 million series D round for its health care data analytics software.
Nord Security landed the first major funding round in its 10-year history, raising $100 million from Novator to build out its security and identity management software.
Intel unveiled a new expansion to its flagship D1X chipmaking plant in Hillsboro, Oregon, and renamed the facility “Gordon Moore Park at Ronler Acres” in honor of its co-founder, a chip industry legend.
Kaseya acquired Datto for $6.2 billion to add its small-business backup and recovery software to its broader array of IT software and services.
Puppet, one of the first infrastructure-as-code startups that also helped establish the concept of DevOps, was acquired by Perforce for an undisclosed amount.
ProEdge can help you conduct a skill gap analysis across your organization and gain insights you can leverage to develop forward-looking plans while taking into account the needs of the entire enterprise, including individuals, teams and functions. In an M&A scenario, an upskilling program like ProEdge can also be used to uncover employees’ skills that weren’t utilized before
Thanks for reading — see you tomorrow!