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IBM Buys Cloud-Based Analytics Vendor DemandTec for $440M (NewsFactor)

As Cisco moves to market with CloudVerse, IBM is making its own cloud move with the acquisition of DemandTec. Big Blue snapped up the cloud-based analytics company for $440 million, or $13.32 a share. It's all about Big Data.

IBM expects DemandTec to extend its Smarter Commerce initiative by adding cloud-based price, promotion and other merchandising and marketing analytics that help companies better define the best price points and product mix based on customer buying trends. Again, it's all about Big Data.

"Bringing science to the art of pricing and promotion is a big part of this strategy," said Craig Hayman, general manager of Industry Solutions at IBM, "and the combination of DemandTec and IBM will help marketing and sales executives in retail and other industries drive more revenue and increase profitability."

Predictive Pricing Models

IBM estimates the market opportunity for Smarter Commerce at $20 billion in software alone. Big Blue has watched organizations struggle to meet the demands of rapidly shifting customer buying patterns in a mobile and social networking era. From setting and executing the right pricing strategy to the ability to automatically adjust pricing based on online and offline data and beyond, being nimble is a key competitive advantage IBM wants to help deliver.

Specifically, by extending these capabilities to the cloud, IBM is working to give organizations real-time access to consumer information. DemandTec's cloud-based analytics software lets organizations examine customer buying scenarios, both online and in-store. This empowers merchandising executives to spot trends and shopper insights to make better price, promotion, and assortment decisions that increase revenue and profitability.

Here are some examples: A retailer could, using this software, predict how consumers will respond to a price change before flipping the switch. Or, a brand manager can adjust the marketing mix for a product to better drive sales in the grocery channel. A merchant and supplier can work together to understand how one shopper segment differs from another to craft the best merchandising plan.

Analytics Wins

"IBM is all in on analytics. The Watson division is basically a massive analytics engine. IBM has recognized in the age of Big Data that companies that can turn that data into gold will be king," said Rob Enderle, principal analyst at Enderle Group. "Analytics is what turns Big Data into gold. So expect to see IBM do a lot more in terms of analytics.

"This is their primary investment effort for the upcoming decade. If it fills a hole and it has to do with analytics, IBM will probably buy it or build it."

DemandTec also expands IBM's Software-as-a Service strategy by adding additional, subscription-based offerings to IBM's SaaS solutions portfolio. DemandTec also brings a portfolio of 31 patents in the areas of pricing, response analysis, and promotion analysis to the IBM table.

The company has about 450 customers in retail, consumer products and other industries. Retail industry segments served include grocery, drug, convenience, consumer electronics, office supplies, apparel, department stores, and quick-serve restaurants. Manufacturer segments include fast-moving consumer goods categories such as food, beverage, and health and beauty.

Authors: Yahoo! News: Technology News

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Salesforce Announces Radian6 Social Marketing Cloud (NewsFactor)

Having acquired the social-media monitoring firm Radian6 earlier this year, Salesforce.com is now rolling out the Radian6 Social Marketing Cloud. The company said the new offering, integrated into Salesforce's platform and apps, will help companies to fundamentally change how they do business in the era of social media, by transforming social conversations into "meaningful engagements."

To accomplish this, the Social Marketing Cloud offers key functions of Social Monitoring, Social Insights, Social Engagement, Social Workflow and Social Web sites. Linking this platform to existing customer information creates what Salesforce describes as "a social hub."

Volume, Analysis, Engagement

One of the biggest challenges of using social media is the sheer volume of conversations. Salesforce said Radian6's Social Monitoring technology allows companies to capture 150 million sources of social media, in 17 languages, across Facebook, Twitter, YouTube, LinkedIn, blogs, other online communities and other sources.

After volume, of course, there's the need for cutting through the chatter to find useful information. The Social Insights component uses intelligent dashboards and sophisticated analytics to find relevant conversations and conduct analysis. Social Insights is designed to accommodate third-party tools from Klout, OpenAmplify and OpenCalais, as well as provide additional data about demographics, influence, geolocation, sentiment and topic categorization.

To engage with customers and potential customers, the Social Engagement Console also uses outside data, including Trending Topics from Twitter, Bit.ly stats about shared links and other information. The Social Workflow component helps to organize the massive traffic via analysis and rules, including the ability to create social-media campaigns based on customer interests.

And, to create Web sites for more extensive information and contact, Social Web sites provides drag-and-drop tools for developing, editing, and managing sites without bothering the IT people. The content management system enables the addition of social features, such as Twitter streams.

'Social Enterprises'

In recent years, Salesforce has been positioning itself as a leader in cloud-based, socially enhanced services. At the Dreamforce 2011 annual event in the summer, for instance, the company said that "companies are completely changing the way they collaborate, communicate and share information with customers and employees in the cloud -- transforming themselves into social enterprises."

This transformation, the company said, leverages social, mobile, and open cloud computing. The key components of transforming a company into a social enterprise, according to CEO Marc Benioff, are socially oriented customer profiles in order to follow what customers are looking for, a social network for employees, and a social network for customers and the dissemination of products.

In addition to the $300 million acquisition of Radian6 in May, Salesforce has been busy acquiring or announcing other social media assets. In September, for instance, it bought Assistly for $50 million, in order to allow corporate customers to quickly provision socially-based customer service as needed.

Salesforce said that Radian6, started in 2006, has a customer base of more than 2500 companies, including AAA, GE, GEICO, PepsiCo, Southwest Airlines, and others.

Authors: Yahoo! News: Technology News

Read more http://us.rd.yahoo.com/dailynews/rss/tech/*http%3A//news.yahoo.com/s/nf/20111209/bs_nf/81325

Spotify Radio vs. Pandora: Hands-on showdown (Digital Trends)

spotify-pandora

Spotify announced early on Friday that it has revamped its Radio functionality, making it possible for non-paying customers to skip past as many songs as they wish, and add as many stations as they like. This move takes direct aim at Pandora, which allows its free users to skip only six songs per hour, with a total limit of 12 skips per day.

The new Spotify Radio is technically still in beta, with the fully finished product set to roll out in the next few days. But we’re impatient, so we thought we’d take it for a test drive, and see how it stands up to Pandora’s Music Genome Project-powered products.

Note: For this test, I’ve decided to use the Web version of Pandora, which is by far the most accessible option. Of course, Pandora also has a desktop app, and a mobile app, both of which provide the full functionality that its Web version provides. For now, Spotify Radio is only available on its desktop client, and does not yet work on its mobile app, which is only available to paying subscribers, anyway.

Creating stations

spotify-create-station-tom-pettySpotify

Once you download the newest version, which takes only a minute, you can launch the new beta version of Spotify. You’ll find the Radio app under “Apps” in the left-hand menu. (Slightly below where it was on previous versions of the platform.) When you launch the Radio, Spotify will automatically create a number of stations for you, based upon your most-played artists. It also lists suggested stations based upon your favorite tracks, along with other popular stations, as well as an assortment of generic genre stations.

To create an entirely new station, just click the “Create new station” box, which appears at the top of the main window. You can type in either song name, or artist, to launch a new station. All your recent stations appear beneath the ‘currently playing’ window, which shows album cover, artist and song name.

create-station-pandoraPandora

Compared to the whiz-bang flashiness of Spotify, Pandora’s user interface feels a bit antiquated. In terms of functionality, however, it works basically the same. A control bar appears at the top of the browser page, where you can type in artist, track or composer to create a new station. Also on the bar are the play button, thumbs up, thumbs down and skip button.

For those of you not familiar, both the thumbs up and the skip button allow you to jump to the next song. Though thumbs down has the added affect of further refining which songs Pandora chooses to play. Thumbs up, of course, does the same thing, but in a positive, rather than negative, way.

Below the control bar, you’ll find your list of stations on the left, the currently-playing album art, song title, artist name and album name. Pandora now also includes a share button, which allows you to post the station or track on Facebook and/or Twitter, as well as a buy button for purchasing the album on iTunes or Amazon. Beneath that, Pandora provides song lyrics, artist bio, and a list of similar artists.

Winner: Tie

Both options have their pros and cons. While some might like the graphics-heavy Spotify, we found the straightforward list of our stations on Pandora easier to navigate, even if it’s not as pretty. That said, Spotify offers more suggestions for stations you might want to create, which is great when you can’t just think of something off the top of your head.

Song selection

This is a particularly difficult thing to test, without spending hundreds of hours meticulously recording each track that plays next, for each service, so we’re just going to go with broad, likely inaccurate, estimates here.

From what we found, the songs chosen by Pandora were, in fact, much more what we wanted to listen to than what Spotify chose. That’s not to say Spotify’s selection was bad by any means. It just lacked a certain, let’s say, polish, that the Pandora selections have.

spotify-song-selection-2

This is, of course, good news for Pandora, as the entire premise of the Music Genome Project was choosing songs you’ll actually like, rather than just other songs in that genre. We don’t know the exact algorithm Spotify uses to choose the lineup for each station, but it definitely felt more like it was simply selecting from a pot of “similar bands,” rather than a finely tuned batch of tracks that share similar musical qualities.

Winner: Pandora

Like we said, we’re basing this judgement more off of a subconscious inkling, a glimmer, a hunch, than hard, scientific fact. And even then, the differences are minimal. But if we had to choose one service on this factor alone, it would no doubt be Pandora.

Music discovery

Song selection and music discovery are almost the same thing — but not quite. By “music discovery” we mean finding new music, that you’ve never heard before, that you like. And again, if this were the only element of this, we’d again have to go with Pandora here, since the selection of songs was better overall. But because Spotify has both a superior catalog, with 15 million songs, and because when you find a band or album you like through Spotify Radio, you can simply search for it, pull it up, and listen to it, without having buy anything, Spotify gains a ever-so-slight edge in this category.

Winner: Spotify

Skipping and station limits

Obviously, Spotify has the edge here, since 12 skips in a day is simply not enough. Same goes for its option of unlimited stations, but that’s not nearly as big of a deal, since 100 stations (Pandora’s maximum) is likely perfectly adequate for most users. We will say, however, that since Pandora offers a better selection of music in the first place, we found there to be less of a desire to skip songs on Pandora than on Spotify. Still, if you listen to Pandora all day long, you’re going to want to skip more than 12 times. And we have long felt restricted by this limit. Long story short: Pandora needs to do away with the skip limit, or it’s going to lose users (and, therefore; ad dollars) to Spotify.

Winner: Spotify

spotify mobileMobile

This one is quick and easy: Pandora is available, for free, on iOS, Android, BlackBerry, and WebOS handsets. Spotify users must pay to use the mobile apps, and even then, Spotify Radio isn’t yet an option. We’re sure this will change — the Spotify Radio part, not the paying part. But for now, Pandora has this category in the bag.

Winner: Pandora

Conclusion

As you can see, this showdown is more of a tossup than anything. Which service is better depends on how you like to listen to music. If you want to just set it on shuffle, and not think about it for the rest of the day, Pandora is the better option. If you want to be more interactive, Spotify is better, as it always has been. And, of course, you can always just use both.

That said, the updates to Spotify Radio bode ill for Pandora. Spotify is quickly evolving so that it dominates its competition on all fronts. And because of that, Pandora is already starting to feel a bit behind-the-times. If Pandora wants to remain a major player, it’s going to have to start ushering in more features. For now, however, if you’re simply looking to throw on some tune in the car or as background music at a dinner party, Pandora is the way to go.

This article was originally posted on Digital Trends

Authors: Yahoo! News: Technology News

Read more http://us.rd.yahoo.com/dailynews/rss/tech/*http%3A//news.yahoo.com/s/digitaltrends/20111209/tc_digitaltrends/spotifyradiovspandorahandsonshowdown

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