2018 is barely three weeks old and many sales organizations are busy forecasting, implementing new compensation plans, and finalizing territories and quotas. As everyone is excited to align business objectives and pursue leads, we’d like to take a moment and reflect on 2017.
The Sales Performance Management Market Continues to Grow
Growth is an important measuring tool within the sales performance world that we excel and exist in. It offers validation to the strength of our offerings and provides motivation for greater accomplishments. When sales performance software leaders experience growth, competitors and partners alike take notice.
A key strength for CallidusCloud is their commitment to improving their Lead to Market suite each year through savvy acquisitions and internal development. This has directly translated to improved SaaS revenues being reported in 2017. In their most recent public disclosure in Q3 of 2017, CallidusCloud boasted huge 31% year-over-year revenue growth. We’re excited to see how CallidusCloud will leverage this positive momentum and continue its growth trajectory for 2018.
Xactly also reported an exciting growth trajectory prior to being acquired with year-over-year Q1 subscription growth of 12.7%. It’s clear that Xactly’s investments in customer experience boosted their revenues in 2017. We look forward to more growth under their new owners, Vista Equity Partners.
Anaplan entered 2017 with positive momentum stemming from industry-wide acknowledgement. Gartner’s Magic Quadrant identified Anaplan as a Visionary in their Strategic Corporate Performance Management Solutions category and as a Leader in the Sales Performance Management category. As one of North America’s fastest growing companies, Anaplan continues to surge ahead. They achieved 75% annual year over year subscription revenue growth and $120 million in total revenue. Not all of this growth is a result of their Sales Performance Management success, but it’s a good indicator that Anaplan will be a market disrupter for years to come. This is a great time for Anaplan and we look forward to seeing what new innovations they will be introducing at Anaplan Hub this year.
Investments and Acquisitions
Another strong indictor to the long-term viability of the sales performance management industry is further investment and acquisitions.
Xactly was acquired by Vista Equity Partners in July of 2017. Vista has been actively acquiring software, data, and technology-focused businesses for quite some time now and this move reinforces that trend. We view Vista’s substantial foray into the Sales Performance Management market as an outside indicator that SPM solutions have considerable untapped market potential.
Within the incentive compensation world, CallidusCloud made some strategic moves of its own. They acquired RevSym back in May 2017. The move coincides with the January 1st, 2018 deadline for compliance with the new revenue reporting standards (ASC-606 and IFRS 15) for public companies. CallidusCloud recognizes the opportunity created by these new rules and are betting big that organizations will need better software solutions to become compliant.
2017 saw Intangent continue to build out its partner ecosystem through the additions of Xactly, CallidusCloud and Obero as new partners. These new partnerships brought immediate value to Intangent’s customers, giving its professional services team new perspectives on the sales performance management market and available solutions. Intangent’s partner CallidusCloud strengthened their own relationship with SAP and SalesForce in 2017, which positions CallidusCloud as the vendor-of-choice for customers of these products. Similarly, Obero extended its partnerships with NetSuite and Intact. Finally, we want to highlight the moves made by IBM. Back in March 2017, IBM Watson announced that they had formed a strategic partnership with Salesforce Einstein. Both groups are heavily involved with creating artificial intelligence platforms designed at improving the incentive compensation decision making process. With industry investment in artificial intelligence slowly taking on a more prominent role, we’re curious to see what future developments this partnership may create.
Are You Ready for 2018?
January is halfway completed, and we find ourselves busy assisting businesses with their 2018 sales compensation plans. If you’re currently in need of help with comp plans, implementation, sales forecasting, and managing territories and quotas, we would love to chat. Let’s talk, book a call with Intangent here!