Menu
SAS buys revenue management software vendor IDeaS

SAS buys revenue management software vendor IDeaS

BI vendor SAS is getting deeper into revenue management in a bid to differentiate itself.

BI (business intelligence) vendor SAS is buying IDeaS Revenue Optimization, maker of revenue-management software for the hospitality sector, a move that could serve to differentiate SAS from major competitors like SAP and IBM.

Revenue management, common in the travel and hotel industries, involves maximizing profits by balancing prices with demand. The approach can be seen in airline reservation systems, where flights are often cheaper the longer in advance you book, and can get expensive when you buy at the last minute.

SAS plans to maintain IDeaS' focus on hospitality but will also use its platform as a basis for targeting other verticals. The company is also starting a "Profit Optimization Global Practice," and will develop an offering that integrates revenue management with CRM (customer relationship management) pricing and distribution.

Terms of the deal were not disclosed. IDeaS, which employs a SaaS (software-as-a-service) model, has 200 employees, according to SAS. Its customers include Hyatt International and Fairmont Hotels.

IDC analyst Dan Vesset said SAS' move is not unexpected: "SAS primarily buys only small companies with specific, targeted solutions that they can combine with other SAS products."

However, he added, "I'm quite positive on the acquisition because it's what they need to compete with larger BI vendors."

While revenue management is a niche area, populated by specialized vendors such as Revenue Analytics, big vendors such as Oracle are also in the space.

SAS already had some price optimization software, but was compelled to buy IDeaS for its technology, said Steve Pinchuk, who is heading up the Global Practice.

"Instead of building, we thought it was good to acquire them. They've perfected the SaaS delivery model and have an interface business [users] really like," he said.

SAS is anticipating happy marriages between the IDeaS software and the complementary technologies it sells. "We've got a lot of analytics we can put underneath this platform," he said.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Brand Post

Featured

Slideshows

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards

Hundreds of leaders from the New Zealand IT industry gathered at the Hilton in Auckland on 17 November to celebrate the finest female talent in the Kiwi channel and recognise the winners of the Reseller News Women in ICT Awards (WIICTA) 2020.

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards
Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards

Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards

The leading female front runners of the New Zealand ICT industry joined together for the annual Reseller News Women in ICT Awards event at the Hilton in Auckland, during which hundreds of guests celebrated 13 outstanding individuals who won awards, chosen from more than 50 finalists representing over 30 organisations.

Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards
Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners

More than 500 channel leaders gathered in Auckland on 21 October at the ​Reseller News Innovation Awards ​2020 to celebrate the achievements of the New Zealand technology industry's top partners, start-ups, vendors, distributors and individuals.

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners
Show Comments