CXP Group produces quick wins for PAC and BARC

The dust is starting to settle, and the aftermath is a little clearer about CXP and BARC’s decision to merge with PAC last week.

One thing that’s clear is that there’s a lot of potential in the merger. We mentioned the partnership between CXP and PAC that was announced earlier this year. The activities that arose from that are good examples of some of the quick wins available to the firm.
• PAC will be able to take part in the CXP Summit, which is a vendor-sponsored gathering for around 500 CIO-level managers.
• PAC and BARC are co-operating on a PAC Radar aimed at the end-user market for business intelligence tools in Germany.
• PAC and CXP are co-operate in France to produce a service for board-level users in organisations developing strategy for digital transformation, based on modified and bundled content
• PAC can take part in BARC’s major BI and Analytics forum at CeBIT.
• PAC and BARC have co-organised a consulting day for software vendors and systems integrators, bringing together their expertise.

CXP’s investment allows some of the firms’ long-term shareholders to release some equity. In the short term, the focus will be on integrating the management teams and looking for ways to identify best practises. There’s also longer-term opportunity, separate from these service synergies that probably won’t appear this year but could develop in the next couple of years.

Most obviously, there’s potential to produce a new proposition based on both offering the insight of all three firms, and trying to develop cross-firm insight and synergies. PAC is well known on the supply side of the industry, and the high quality of its insight into the ecosystem is reflected in the 95% renewal rate. But mergers and acquisitions mean that the growth of the vendor side is limited and, of course, even cash cows dry up. The new group has the potential to test out the suitability of end-user market segments. Given CXP and BARC’s background in business applications, cloud services could be a good area, but a simpler strategy would be to try to enter the English-speaking market for insight into business applications strategy.

This would certainly be an audacious development for the CXP Group, but we think all firms need to act on the way that cloud technologies are changing both the industry realities and the way in which insight is consumed.

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