Former Google executive, founder of Accompany
Cisco Systems (CSCO) is acquiring a business intelligence startup known as Accompany for $270 million as it seeks to drive revenue growth by tapping into the healthy growth of the enterprise collaboration market. According to MarketsandMarkets, the global enterprise collaboration market will generate more than $49.5 billion in annual revenues by 2021. It was estimated at $26.7 billion in 2016, so the market is expected to keep growing at an annual rate of more than 13% in the next five years.
Accompany provides an intelligent relationship platform for finding new prospects and navigating the selling process. It was founded in 2013 by former Google (GOOGL) executive Amy Chang, who is set to join Cisco to lead its collaboration business.
Accelerating growth in collaboration technology group
Cisco is banking on the acquisition of Accompany and the hiring of Chang to accelerate growth in its collaboration technology group, which includes Webex, an online videoconferencing service.
Cisco’s battling Microsoft for enterprise collaboration revenues
Cisco is battling it out with Microsoft (MSFT), IBM (IBM), LogMeIn (LOGM), and BroadVision (BVSN) for revenues in the enterprise collaboration market. Microsoft’s offerings include its Skype for Business service.
Cisco’s revenues increased 3% YoY (year-over-year) in fiscal 2Q18, while Microsoft reported a 16% YoY increase in revenue for fiscal 3Q18. IBM and LogMeIn reported 5% and 48.9% YoY increases in revenue, respectively, in 1Q18.