API management company Apigee has acquired predictive analytics firm InsightsOne, and the merger brings the killer app to the world of big data, Waqar Hasan, InsightsOne founder and CEO said in an interview.
Predictive Analytics Gives Context
Waqar helped build Yahoo's data platform before founding InsightsOne just three years ago. Now it joins a fast growing company in Apigee that is quietly branching out from its API management beginnings. Apigee is building the all important digital platform, one that will now infuse predictive analytics into businesses digital interaction strategies.
In 2013, Apigee launched its Insights product to help companies learn more about things like developer adoption, app user engagement and information analytics. Because APIs are vital to the app economy, Apigee has focused its business on API services, developer services and, increasingly, on analytics. First with the Apigee Insights launch, and now with the InsightsOne buy.
"APIs drive interactions by using data, but we need context and knowledge," said Chet Kapoor, CEO of Apigee, in an interview. "In this world where the velocity of information is as fast as it is, you need to make sure you are providing context, and not just from the rear view mirror."
Predictive analytics offers just this kind of context, at least in theory. However, InsightsOne has been a successful business because it has been able to show its customers precise results, Hasan said. With average deals in the $400,000 to $500,000 range, it's clear InsightsOne is focused on enterprise level businesses, and now it joins an even larger, more established company in Apigee. Customers in the healthcare, financial services, telco and e-commerce industries will be the focus of the combined companies, Kapoor said.
From Automated Interactions to Intelligent Interactions
According to Kapoor, the merger has been in the works for a while now and the two companies have already combined offices. Additionally, Kapoor gave a timeline of mid-2014 for integrating the technologies. Until then InsightsOne will continue to be offered as a standalone product.
InsightsOne could be a big help to customers that depend heavily on their APIs. That is likely to be the majority of large companies in the very near future, due to the outsized influence of mobile device technology. Mobile devices -- and especially the apps they use, are powered by APIs -- and predictive analytics can move customer engagement from automated interactions to intelligent interactions.
A healthcare provider, for example, might use InsightsOne to help predict which customers are most likely to file complaints as much as a month in advance, Hasan said. "We took Blue Cross' customer service from reactive to proactive."
Hasan believes the technology could really shine in areas with devices that use lots of data, like fitness bands. In the healthcare world, the bands could be offered as part of a wellness program. Apigee helps manage the data interaction with the band, and instead of just counting steps and recording the heartbeat, the band could offer things like medication reminders or even help in an early diagnosis of conditions like sleep apnea.
"Those are transformational capabilities," said Hasan.
InsightsOne uses machine learning to process large amounts of data and then scours it to find the patterns businesses might need to help make decisions.
"We think the world is ready for this, we have a sense of where the market is going, and with InsightsOne, it's a great combination," Kapoor said.