The global pandemic has pushed enterprises to accelerate their digital transformation plans. That means good data management, analytics and governance are more important than ever, according to Kevin Campbell, CEO of enterprise data management firm Syniti.
Boston-based Syniti this week announced the acquisition of Data Migration Resources (DMR), a similarly enterprise data-focused system integrator headquartered in Mission, Kansas. Private equity firm Bridge Growth Partners is the majority shareholder in the newly merged company, which will retain the Syniti name.
“Executives in the C-suite are starting to get the message that their most pressing challenges are likely data challenges. This is especially the case with M&A and divestitures,” Campbell told VentureBeat. “People need access to their data and the ability to analyze it to do these transactions, whether it’s Merck spinning off its women’s health business or Pfizer or Gap Inc. making an acquisition.”
“In just the last year, we believe the reaction to the pandemic, the rush to enable work-from-home and the cloud, has essentially taken us ahead five years in terms of pushing digital transformation in the enterprise.”
Leading with SAP services, investing in homegrown software
The Syniti-DMR merger brings together two software-led services companies which once competed in the high-stakes world of data management services for global enterprises. Syniti brings in about 70 percent of its revenue via services but has also invested some $75 million in its software platform featuring data solutions such as advanced data migration, quality assurance, replication, advanced management, archiving, analytics, and more.
Syniti will incorporate DMR’s Concento Rapid Data Governance software over time into the Syniti Knowledge Platform, Campbell said. The two companies support customers in the Americas, Europe and Asia, in industries ranging from pharma/life sciences and manufacturing to financial services and retail.
Syniti and DMR both boast SAP expertise. Combined, the company will now claim more than 2,000 expert consultants on the payroll globally. Syniti has the larger, more structured system integrator and reseller channel but DMR’s channel partners will also be encouraged to work with the new company. Campbell remains CEO of Syniti, while DMR CEO Ryan Rodenburg joins Syniti as executive vice president and chief operating officer for North America.
Why fight ’em when you can join ’em
After competing for the same deals for years, Syniti and DMR executives decided to try teaming up instead—even before the merger was agreed upon.
“We’re both pure-play system integrators and a little over a year ago, we started talking about teaming up,” Campbell said. “We closed on the merger last Friday but long before that, we were working together. In fact, we’ve done more than 20,000 hours together as partners now and that teamwork convinced us the merger was an even better idea than we originally thought.”
Campbell cited research conducted by HFS Research on Syniti’s behalf to emphasize the growing need for better data solutions at the highest levels of the enterprise services market. Polling 100 executives at Global 2000 enterprises, HFS found that 80 percent believed data would be a top 3 priority investment area at their company within two years.
Nine out of 10 surveyed executives said data was a “critical success factor” for their business but 75 percent said they “do not have a very high level of trust in their data” currently, according to the report. Just 5 percent of respondents said they are able to access all the data they need today.
“This study points to the challenge these organizations face,” Campbell said. “Lots of people are selling data analytics but they basically want you to dump everything you have into their ‘data ocean’ and that quickly turns into a ‘data swamp.’ So these companies still don’t have good access to the data they need or the ability to intelligently use it. What they need is a dedicated, expert partner to help them accomplish their digital transformation goals through better data management.”
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