Cloud, whether public or private or SaaS or PaaS, and big data, both point to more robust integration demand, from both IT and line of business. Informatica clearly grasps that market vision, and so given effective execution, there is no vendor better positioned to take advantage of such demand. In part responding to that demand, Informatica’s Q4 results suggest that they have emerged from an execution cold snap experienced during mid-2012. Q4 revenues and profits both nicely beat street estimates and INFA share prices jumped, reflecting rediscovered confidence.
What really caught ESG’s eye, however, can be found in the supplemental metrics, including (1) the pick-up in international deals and a (2) shift to more direct deals; whatever Informatica CEO Sohaib Abbasi did to remedy the weak European and sales execution issues of 2012, including bringing in John McGee as EVP of Worldwide Field Operations, seems to have worked. However, a more finely honed sales force is only as good as Informatica’s offerings, and while ESG appreciates how big data drives integration interest, cloud accounts for even more short and long-term integration demand.