AI is forcing the data industry to consolidate — but that’s not the whole story

The information industry is on the verge of a sharp transformation.

The market combines. If the transaction flow in the last two months is any indicator – with DATABRICKS NEON BUYS for $ 1 billion and Salesforce, cloud management firm in $ 8 billion – Momentum is built for more.

The acquired companies can be in the data stack in the field of size, age and focus, but all have something in common. These companies are expected to be a missing piece of missing parties for the adoption of the technology to adopt the AI.

This strategy in the surface level makes sense.

The success of AI companies and AI applications is determined, including the basic information of quality. Without it, there is not just the value – a belief that is shared by enterprise VCS. In a TechCrunch request in December 2024, the enterprise said that the quality of the VCS data is a key factor AI beginnings differ and win success. Some of these companies participating in these deals are not the beginning, but still the feelings are still standing.

Information integration company SnAplogic is the company integration company and the former co-founder of CEO Gaurav Dhillon, Gaurav Dhillon, reflected it in the last interview with Techcrunch.

“There is a complete reset in how data around the enterprise manages and flows,” Dhillon said. “If people want to capture the EI imperativis, they must redefine the information platforms in a very large way. This is where you see all this information, because it is the foundation for having a sound AI strategy.”

But this strategy of companies built before the world of post-chatreapt, the way of an entity in today’s fast-renewed market? This is not clear. Dhillon doubts.

“No one was born at the EU; he’s only three years old,” Dhillon referred to the current post-Chatgpt AI market. “For a larger company, an enterprise for AI updates, especially the agent, will need a large number of recall for this to happen.”

Shattered data view

The information industry has grown on a website expanding and fragmented in the last decade – it trains it for consolidation. All the necessary for this was the catalyst. Since 2020, more than $ 300 billion since 2024, more than 300 billion dollars were reported in more than 24,000 deals.

The information industry was not against trends in other areas such as Saas, which is an enterprise glass in the last decade A large number of starting-financed Only by enterprise capitalists in some cases that targeted a special area or established around a feature.

A bunch of a bunch of a bunch with different data management solutions, each gang, which is a unique attention, does not work when you want to find your data to find or apply the answer.

The larger companies have meaning to close and mix the binds that exist in the data bag. This is a perfect example of the trend Fivetran’s recent census purchase In May – which, Was done by the name AI.

Fivetran helps companies relocate data from various sources to a cloud database. For the first 13 years of his work, customers did not allow customers to transfer this information from the databases confirming this information, which offer census. Before buying this tool, the fivetran said that it should work with a second company to create the final solution until the end of the end.

It is not intended to shade over this fivetran to be clear. During the deal, Fivetran co-founder and General Director George Fraser, as in the inside of these warehouses, as there are two sides of the same coin, it is not so simple; The company even tried and left the internal solution to this problem.

“From a technical point of view, if you look at the code below [these] Services are in fact very different, “said Fraser said at that time.” To do this, you have to solve the collection of pretty different challenges. “

This situation shows how the information market turns into the last ten years. Now Sanjeev Mohan, a former Gartner analyst managing Sanjmo, Trend Consultative Firm, this type of scenarios is a great driver of the current consolidation wave.

“This consolidation is fed with numerous products that are inconsistent by customers,” he said. “You live in a very interesting world in a very interesting world, you can make an open source, they can go to the Kafka, but an area we fail, but it fails, but it works.”

Good for beginnings

Mohan, a wider market plays a role here. The information is struggling to enhance the initiates of the capital, Mohan said and a speech is better than loading the wind or debt. For those obtained, additional features give them a better price elevator and an edge against your peers.

“If Salesforce or Google does not get these companies, then rivals,” Derek Hernandez, a large-growing technological analyst in Pitchbook, TechCrunch. “Currently, the best solutions are obtained. If you have a award-winning solution, I do not know, the Outlook to stay individually, the result wins to go to a larger [acquirer]”

This trend benefits great benefits to the acquisition of beginners. The enterprise market is hungry for speeches and does not leave many opportunities to the current quiet period for iPo. Not only does this do not provide this speech, but in many cases this allows the founding room to build the structure room.

Mohan agreed and added that many information beginings feel the pain of the existing market performances and slow recovery of enterprise financing.

“It was a more affordable output strategy for them at the moment,” Hernandez said. I think this type of both sides is very encouraged to reach the finish line. I think this is a small example of this, this was the best solution for the board, which was a little hair from where the seller talked to them last year. “

What happens next

However, if this purchase strategy reaches the goals of buyers, there is still doubt.

As Dhillon notes, the database companies obtained are not necessarily built to work easily with a rapidly changing AI market. Moreover, if the company, the company’s best information, will the information and the fact that information and AI companies have different institutions?

“I think there is a lot of value to connect the main AI players with data management companies,” said Hernandez. “A related information management company does not know that it is to stay and play a third party between some kind, enterprise and AI solutions.