IBM To Buy DemandTec, Inc. In A Move Toward "Smarter Commerce"
IBM, on Thursday, announced its intention to acquire DemandTec, Inc., a cloud-based software solutions company designed to promote efficient merchandising and presentation strategies to consumer and retail businesses both online and in-store.
DemandTec, Inc. (NASDAQ: DMAN), with its headquarters in Silicon Valley's San Mateo, CA, began its business in 1999, and has regional offices in London and Paris. DemandTec's website acknowledges the ever-changing conditions of business with their idea of business dynamics and development. DemandTec proclaims that, as business dynamics have changed, they have changed forever with their corporate mantra which challenges its customers to "Revolutionize Decision-Making." Apparently IBM agrees, to the tune of $440 million in cash.
IBM (International Business Machines, NYSE: IBM), headquartered in Armonk, NY, and founded in 1911, built its business through dedication to "the machine" and began its business as the Computing Tabulating Recording Corporation, CTR, a merger of three companies. IBM adopted its current name in 1924. The business culture of IBM is one to be recognized - not trendy, but smart, not sophisticated, but austere, and with the corporate motto, "Think" the company built its stoic reputation, and brand recognition of solid intelligence.
The company's acquisition of DemandTec clearly identifies its strategy as one of moving forward with accessible resources for its clients and customers who require on-going business-level evaluation and monitoring for successful product delivery, and is one that will help to establish IBM's vision for smarter commerce.
The deal, set to close in the first quarter of 2012, is just one in the trend toward cloud-based acquisitions for high tech and for the corporate technology industry.