Adobe recently announced that it is going to acquire cloud software firm Marketo in a bid to expand its stronghold in cloud computing customer services. The move that will see the Adobe Experience Cloud combined with the potential of Marketo’s Engagement Platform will position Adobe as a force to be reckoned with in the rising cloud-based marketing industry.
Adobe Acquires Marketo for $4.75 Billion
The news that Adobe Systems and Marketo have agreed on a $4.75 billion deal came a few days ago, adding to the hype generated with Adobe’s acquisition of e-commerce pioneer Magento Commerce for $1.68 billion last May. Adobe Systems, founded in 1982 and engaging roughly 18,000 employees, currently enjoys the no. 10 spot in the Forbes List of Top 100 Digital Companies in 2018, with a market cap of $119.1 billion, a revenue of $7.7 billion and assets that are valued at $15 billion. This latest move is set to solidify the brand’s place in the cloud marketing industry, combining Marketo’s B2B expertise with the analytics and personalization potential of Adobe Experience Cloud.
Marketo will bring with it a developed professional network of more than 500 partners, almost 5,000 clients and a 65,000-strong marketing community. The deal – which is the biggest yet for Adobe – will be completed in Q4 2018 pending approval from regulatory authorities. Adobe is looking to consolidate its cloud services package using Marketo as a springboard to attract more clients by offering tailored comprehensive solutions. A consolidation might be the ideal way to address what is perceived one of the biggest shortcoming of the marketing cloud industry, namely the failure to offer a well-rounded customer experience.
Adobe Set to Provide Comprehensive Cloud Solutions
A recent study found that 95% of marketing cloud customers face problems with implementing solutions and a further 40% facing issues when attempting integration with legacy systems. 64% have also reported turning to external consultants to manage integration, as customer needs for personalized yet comprehensive services packages rise. Acquiring Marketo can allow Adobe to offer such a comprehensive solution that responds to the rising demand and is able to adapt around older technology. Syncing Marketo’s capabilities with Adobe’s wide range of cloud products on web management and analytics can result in an impressive new line of services.
The company also stands to benefit from Marketo’s focus on security and regulatory compliance. Marketo focuses on ensuring customer data protection as well as on safeguarding application security. Web applications can be subject to hacker attacks such as SQL injections, remote file inclusion and cross-site scripting, all of which can be prevented by putting specialized cybersecurity tools like a WAF in place. Most cloud companies are beginning to realize the added value of promoting cybersecurity, not only in protecting sensitive data, but also in letting clients know that they are safe. Marketo is one of those companies that actively promote web security, insisting on physical and environmental security, while it has received a Privacy Shield, a SOC2, and a Skyhigh Enterprise-Ready certification.
The move is bold and signals that Adobe is looking to assume a leading position in order to take full advantage of the rapidly evolving cloud services market.