Teradata Snaps Up Cloud-Based Digital Marketing Provider eCircle

In a move that highlights the growing trend of applying big data analytics to marketing data, data warehousing and business analytics provider Teradata announced today that it will acquire eCircle, a German company that offers cloud-based email and digital marketing services, for an undisclosed amount.

The eCircle acquisition, which is expected to be completed in Q2 of this year, complements Teradata's previous marketing and big data–focused purchases. Last year, the company acquired Aprimo, a cloud-based automated marketing software maker, and Aster Data Systems, a company that specializes in analytics and management of unstructured data, for $525 million and $263 million, respectively.

Once the deal is complete, the combination of Teradata, Aprimo, and eCircle will enable marketers to create an "integrated customer experience" that leverages big data insights across both online and offline channels, according to a company statement.

Forrester analyst Rob Brosnan points out that the degree to which customer intelligence and marketers benefit from Teradata's latest acquisition depends on how well the company integrates eCircle into its other offerings.

In a blog post, Brosnan suggests two scenarios. In the first, Teradata could just add eCircle's services to its product portfolio, which would "ultimately continue the status quo of a fractured marketing technology landscape: one toolbox for interactive marketers, another for traditional direct marketers, and a slowly evolving set of tools for CI [customer intelligence] pros to map between the two," according to Brosnan.

The second option would be to integrate Aprimo, eCircle, and Aster Data into a single digital marketing application. Users, Brosnan notes, would "win big" from a unified platform by receiving "easier access to digital channels, deep analytical strength, and a much simplified application environment."

Brosnan warns that if Teradata were to go with the second option, it would most likely have to support the platform financially while it waits for a demand to grow among larger enterprise customers for such a platform.

"Teradata has a good hand, but not yet a winning hand," Brosnan concludes.

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