IBM acquires DemandTec for $440million

DemandTec delivers cloud based analytics software that enables businesses to examine different customer buying trends, both online and instore. According to IBM, the acquisition will extend its Smarter Commerce initiative by adding cloud based price, promotion and other merchandising and marketing analytics. The company estimates the market opportunity for Smarter Commerce at $20billion in software alone and says extending these capabilities to the cloud gives organisations immediate access to consumer information, providing instant return on investment. IBM's general manager of Industry Solutions, Craig Hayman, said: "IBM Smarter Commerce is redefining how brands buy, market, sell and service their customers in ways that their customers want. Bringing science to the art of pricing and promotion is a big part of this strategy, and the combination of DemandTec and IBM will help marketing and sales executives in retail and other industries drive more revenue and increase profitability." California based DemandTec, employs more than 350 people and has approximately 450 customers worldwide in retail, consumer products and other industries. DemandTec's president and ceo, Dan Fishback, added: "DiamondTec has unprecedented capability to improve customers' price and promotion tactics on a stand alone basis and connect retailers and manufacturers for collaborative planning through the cloud. IBM Smarter Commerce is the perfect fit for DemandTec. IBM is the only provider of price and promotion offerings within a rich solution set that supports companies' buy, market, sell and service processes."