Businessmodel of Informatica

Customer Segments

Informatica has a mass market business model, with no significant variation between customers. The company targets its offering at organizations across industries that need data integration software. Its main industries of focus are automotive, entertainment/media, energy and utilities, financial services, insurance, healthcare, manufacturing, retail, public sector, services, telecommunications, technology, and travel/transportation. Financial services represents its largest customer segment.

Value Proposition

Informatica offers three primary value propositions: convenience, performance, and brand/status.

The company offers convenience through its big data integration offering. The solution includes over 200 connectors that simplify and speed up access to data, as well as ingestion to NoSQL and Hadoop databases. This helps save time that might otherwise be spent on hand-coding data integration.

The company has demonstrated strong performance. Positive outcomes for its clients include:

• AGL Resources - Improved data processing performance by 400%
• Cognizant - Reduced total test management time by 20%
• DirectEdge - Decreased latency by 83% and saved $1 million in hardware costs, and achieved 100% uptime in data delivery
• EA - Reduced time-to-benefit for systems rolled out to new business areas by 25%
• Grant Thornton - Reduced data integration development and maintenance lifecycle by 50% The company has established a strong brand due to its success. It touts itself as the leading global provider of data management solutions. It has 7,000+ clients, including a number of prominent Fortune 500 firms such as ACE Hardware, Comcast, FedEx, Hewlett-Packard, and Toshiba. It has a developer community, Informatica Communities, with more than 130,000 members that use its platform to build data integration solutions. Its Informatica Marketplace product hosts more than 1,500 apps from partners and generates 11,000 – 15,000 downloads a month. Lastly, the company has received a number of honors. These include leadership placement in the 2015 Magic Quadrant for Data Masking Technology (Gartner) and numerous Global Excellence awards from Info Security.

Channels

Informatica’s main channel is its direct sales team, which has a presence in more than 20 countries. The company also utilizes channel partners such as resellers, distributors, systems integrators, and OEM partners in more than 80 countries. It promotes its offerings through its website, social media pages, and participation and hosting of various conferences.

Customer Relationships

Informatica’s customer relationship is primarily of a self-service nature. Customers utilize its products and services while having limited interaction with employees. The company’s website features a section called “Informatica Network” that has numerous self-help resources, including articles, “how-to” guides, product documentation, webinars, and “Support TV”, a collection of informational videos.

Despite this orientation, there is also a community component in the form of “User Groups” the company has set up in various major cities, consisting of knowledgeable customers. Moreover, there are a number of personal assistance elements. Informatica University is a training program that features online and in-person classes for instructional and certification purposes. The company also offers professional services from a team of almost 500 consultants that help customers get the most out of products. Lastly, Informatica offers phone, e-mail, and online support.

Key Activities

Informatica’s business model entails maintaining developing quality software and maintaining a robust platform for its clients.

Key Partners

Informatica has over 400 global partners, who fall into the following groups:

Global Systems Integrators - Include outsourcing and consulting firms that provide expertise to customers in the planning and deployment of the Informatica solution. Specific partners include Accenture, Capgemini, Cognizant, Deloitte, HCL, Infosys, Tata Consultancy Services, Tech Mahindra, and Wipro.

Systems Integrators & Solution Providers – Include consulting organizations that specialize in helping customers obtain more value from their data. They provide delivery and integration services, horizontal and vertical business solutions, and deep knowledge. Specific partners include AMD, Cloud Sherpas, Fujitsu, HighPoint Solutions, Intricity, Mastek, Puridiom, PwC, SSG, Trinus, and Vertica.

Resellers & Distributors – Include independent enterprises that expand Informatica’s reach by selling its products to their own customers.

Independent Software Vendors and Software-as-a-Service Partners – ISVs offer technology that complements Informatica’s products, and SaaS partners leverage the firm’s software as part of service for their customers. Specific partners include CGI, Arhis, BTC, Daimler TSS, ELCA, Excellent Minds Consultancy, Infologistix, Noventum, Trivadis, Unitek Engineering, and Amazon Web Services.

Informatica separates these groups into two main partnership programs. INFORM Partner Program includes global systems integrators, solution providers, distributors, and value-added resellers. Informatica Ready Program includes ISVs and SaaS partners.

Key Resources

Informatica’s main resource is its proprietary software platform. It also depends on some key human resources. The research and development team includes over 1,237 people who operate in 19 development centers in 10 countries. Its professional services staff consists of 500 consultants who operate in 19 countries and complete 800 engagements a year. The company places a high priority on its intellectual property, with 80 patents issued in a wide variety of jurisdictions.

Cost Structure

Informatica has a cost-driven structure, aiming to minimize expenses through significant automation and low-price value propositions. Its biggest cost driver is research and development, a fixed cost. Other major drivers are in the areas of sales/marketing and administration, also fixed expenses.

Revenue Streams

Informatica has two revenue streams:

Subscription Revenues – The company utilizes a subscription model for offerings that provide functionality within a cloud-based environment.

License Revenues – The company utilizes a perpetual license model for its on-premise software products.

Service Revenues – The company charges for access to its education, consulting, and support services.