Good morning, Data Sheet readers. Three senior execs are out at AMD, and Boeing is giving up on commercial cybersecurity. Plus, is your finance team sick of passing around spreadsheets? Cloud financial software pioneer Adaptive Insights feels your pain. It just hired Citrix chairman Tom Bogan (himself a former CFO) as CEO to spearhead its next phase of growth.
Trio of senior AMD executives out. The departures include the general manager for the chipmaker’s graphics and business unit (John Byrne), the chief strategy officer (Rajan Naik), and the chief marketing officer (Colette LaForce). New CEO Lisa Su began shaking things up shortly after she took over October, seeking to return the company to profitability. Wall Street Journal
Who’s afraid of the IRS? Not Microsoft. Just before Christmas, the Internal Revenue Service subpoenaed about a dozen current and former executives for a case it’s building against the software company related to accounting for foreign taxes. It also hired law firm Quinn Emanuel—a specialist in litigation, not tax law—for help. Microsoft has fired back, accusing the agency of serving it with a “fusillade” of unreasonable summonses. Microsoft also questions the statute of limitations on the information being requested. Politico
Boeing ditches corporate cybersecurity business. Symantec snapped up its technology (and some of its security specialists) for an undisclosed sum. The giant contractor found limited success extending its experience in protecting the Pentagon to deals with bankers and retailers. Meanwhile, it looks like airlines are becoming a new favorite prey of unethical hackers: more than 20 travel-related sites have seen breaches in the past two months. WSJ, Computerworld
POLICY & STRATEGY
SAP transition rocky. Cloud-based software revenue accounted for 6.2% of its sales in 2014, after a big bump from Concur (the travel expense management company it bought for $7.3 billion last year. Overall, cloud subscriptions grew 68% (overall revenue grew 7%).
But the shift is putting big pressure on margins, and the company doesn’t look like it’ll make its 2017 goal of $4 billion in cloud revenue at this pace. “While SAP has a strong core portfolio in place with SAP HANA as the backbone, we believe the company will need to fill revenue gaps through tuck-in acquisitions, organic portfolio expansion and reliance on technology and channel partners to create new revenue streams, particularly around SAP HANA,” notes analyst Kelsey Mason, with Technology Business Research. Reuters
RESEARCH & PREDICTIONS
Far from a big bang. 2014 brought the third consecutive annual decline for personal computer shipments. Still, the market lost “only” 2.1% (way slower than two years ago). For the fourth quarter, companies bucked the trend with double-digit growth: Apple (up 18.9%) and Hewlett-Packard (up 15.1%). New York Times
Amazon, Google lead on cloud uptime. Microsoft’s services have been far more prone to service disruptions—it experienced 92 outages for its servers on demand, compared with just 23 for Amazon Web Services. Network World
Big bump in business software M&A. Four of the biggest mergers or buyouts during 2014 came from the sector, including Oracle’s $4.6 billion acquisition of retail point-of-sale powerhouse MICRO Systems and SAP’s $7.6 billion arrangement to claim Concur Technologies. The deal volume was up 14% (to 1,840), while the overall transaction value rose 36% to $120.2 billion. BerkeryNoyes
STARTUPS & DISRUPTORS
Multichannel retail play. Demandware is paying $75 million for Tomax, which specializes in point-of-sales software. It’s actually the third acquisition for the e-commerce specialist in the past year. TechCrunch
Teradata buys Israeli software company. The database company paid $20 million for Appoxee, which develops software for sending mobile marketing messages. The deal is being likened to IBM’s buyout of Xtify in 2013. WSJ
Something cryptic about it. Iconic Security, a stealthy document-encryption and access control technology company, just disclosed $40.1 million in Series C financing. Meritech Capital Partners led the round, with Kleiner Perkins Caufield & Byers, Google Ventures, Tech Operators, and Jafco Ventures. Gigaom
Infusion for Google Glass medical software company. Physicians can use San Francisco-based Augmedix’s smart eyeglasses applications to update patients’ electronic healthcare records. Its $16 million Series A round comes from Emergence Capital and DCM Ventures, which were also seed investors. So far, the technology is used by five national healthcare practices including Dignity Health. TC
$25 million for struggling database entrepreneur. Basho, which competes with well-funded Couchbase, MongoDB, and DataStax, has raised $25 million from Georgetown Partners (a previous investor). That brings total funding to $57.5 million. For perspective, MongoDB just got another $80 million. TC
Citrix chairman joins cloud financials pioneer
Can Adaptive Insights be as disruptive to the stodgy corporate financial planning process as Salesforce has been for customer relationship management?
Citrix chairman Tom Bogan (a former CFO) thinks so, and he’s signing on as CEO at the end of January to steer the company’s next phase of growth. “I believe Adaptive is a really unique opportunity,” he told Fortune in a briefing about his appointment. “I was open to looking for a high-growth [software as a service] business that could be transformational.”
Adaptive Insights plays in a specialized category of the business intelligence market dubbed “corporate performance management.” Its software is used actively by more than 2,500 companies—including Coca-Cola, Yamaha, Bridgestone and newly public big data companies Hortonworks and New Relic—for budgeting, forecasting and understanding potential results.
“We help CFOs better manage the business, to understand the path of what has happened and then use that information to project forward,” said Rob Hull, founder and chairman of Adaptive Insights, which is located in Palo Alto, Calif.
That task today is typically managed by juggling spreadsheets (the most likely scenario) or with legacy software applications from the likes of Business Objects, Cognos, Hyperion, or Prophix. Adaptive Insights touts a renewal rate of more than 100% for the past 12 months, plus bookings grew more than 50% during the same period. It also is fond of citing this statistic: it has more customers that all the other emerging cloud companies in this category. Notable players (based strictly on money raised) include Anaplan, Host Analytics, and Tidemark.
As you might expect, Bogan will spend his first 90 days meeting with customers and employees to refine his priorities. “At Bessemer [Venture Partners], we’ve evaluated thousands of cloud businesses over the years,” said partner Byron Deeter, who holds a board position. “Adaptive Insights embodies all the ingredients of a hot cloud company: hyper-growth, product innovation, and a very satisfied (and fast-growing) customers base. With Tom Bogan at the helm, their future shines even brighter).
Bogan, currently based in Boston but relocating soon, was formerly the president and COO of Rational Software, which grew to $750 million in an annual revenue before it was snapped up by IBM.
So far, Adaptive Insights has raised more than $100 million in private equity from investors including ONSET Ventures, Norwest Venture Partners, Information Venture Partners, Bessemer, Cardinal Venture Capital, and Monitor Ventures. Bogan is mum on the company’s initial public offering dreams, saying there’s no specific timeline. “Right now, we’re focused on a culture of customer success,” he said.
MY FORTUNE.COM BOOKMARKS
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Leaked document shows how Palantir makes its money By Ben Geier
FOR YOUR INNER TECHNOPHILE
Why does it have to be all or nothing on drones? Federal regulators are befuddled over how to regulate unmanned aerial vehicles. So, an industry group called the UAS Fund is offering some suggestions. It has suggested proposed regulations for small drones weighing less than three pounds—so businesses can test commercial applications while we’re waiting for the FAA to figure things out. Fortune
ONE MORE THING
Perennial patent king. Yes, yes, the IBM research machine still churns out more patents than any other technology company (7,534 last year). But Google and Apple do pretty darn well, too. WSJ
MARK YOUR CALENDAR
IBM ConnectED: Collaboration and digital experience. (Jan. 25 – 28; Orlando, Florida)
IBM Interconnect: Cloud and mobile strategy. (Feb. 22 – 26; Las Vegas)
Gartner CIO Leadership Forum: Digital business strategy. (March 1 – 3; Phoenix)
Microsoft Convergence: Dynamics solutions. (March 16 – 19; Atlanta)
IDC Directions 2015: Innovation in the 3rd Platform era. (March 18; Boston)
Cisco Leadership Council: CIO-CEO thought leadership. (March 18 – 20; Kiawah Island, South Carolina)
Gartner Business Intelligence & Analytics Summit: Crossing the divide. (March 30 – April 1; Las Vegas)
Knowledge15: Automate IT services. (April 19 – 24; Las Vegas)
RSA Conference: The world talks security. (April 20 – 24; San Francisco)
Forrester’s Forum for Technology Leaders: Win in the age of the customer. (April 27 – 28; Orlando, Fla.)
MicrosoftIgnite: Business tech extravaganza. (May 4 – 8; Chicago)
NetSuite SuiteWorld: Cloud ERP strategy. (May 4 – 7; San Jose, California)
EMC World: Data strategy. (May 4 – 7; Las Vegas)
SAPPHIRE NOW: The SAP universe. (May 5 – 7; Orlando, Florida)
Gartner Digital Marketing Conference: Reach your destination faster. (May 5 – 7; San Diego)
Annual Global Technology, Media and Telecom Conference: JP Morgan’s 43rd invite-only event. (May 18 – 20; Boston)
HP Discover: Trends and technologies. (June 2 – 4; Las Vegas)