SuccessFactors has a recipe for business success. The SAP subsidiary provides software designed to help align business strategies, boost employee productivity, and manage development and performance. Its Business Execution Software provides everyone from FORTUNE 500 companies to small businesses with a Software-as-a-Service (SaaS) platform that automates goal planning, progress tracking, and performance reviews. The company targets customers in markets ranging from financial services (Wells Fargo) and health care (Baylor Health Care System) to education (Kaplan), retail (LensCrafters), and technology (EMC). About 80% of sales comes from customers in the US. SAP acquired the company in 2012.
SAP bought SuccessFactors as much for its cloud (SaaS) presence as its complementary business process with a focus on human capital management.
SuccessFactors generates revenue primarily from subscription fees and configuration services. In 2010 sales increased by more than a third over 2009 on a year-over-year basis, primarily due to a higher level of subscription renewals and expanded sales of new modules to existing customers. The company has a history of losses since inception, which it attributes to investments in expanding its product lines, customer base, and sales and marketing organization. Initially focused on the enterprise market, the company has expanded to serve small and midsized businesses. SuccessFactors utilizes a direct sales forces, though it does generate some channel sales through partners, including Ceridian and IBM.
While the majority of SuccessFactors' sales are made in the Americas, the company has identified international expansion as a key part of its growth strategy. It expanded its list of international clients in 2009, when it added Orange's wireless unit to its roster. That year the company also opened a development center in India. SuccessFactors has subsidiaries in some twenty countries.
SuccessFactors has expanded primarily through acquisitions. In 2011 the company bought Jambok, a provider of hosted learning software that enabled organizations use mobile video, podcasting, and other social media tools to create business communities. The purchase extended SuccessFactors software portfolio to include collaborative content creation and learning tools. It also added customers from a wide range of industries including NIKE, Sandia National Laboratories, Mitsubishi Electric, and AAA. In a complementary deal the same year, SuccessFactors paid $145 million for human resources management software developer Plateau Systems, which offered a hosted HR software package similar to SuccessFactor's product. The deal broadened the company's customer base and improved its ability to offers its products as hosted applications on a subscription basis.
Late in 2011 SuccessFactors bought Jobs2web, a recruiting marketing company based near Minneapolis. The acquisition allows SuccessFactors to offer an expanded platform that extends further into the recruiting cycle.
In 2010 the company acquired Inform Business Impact. The deal added analytics and workforce planning applications to SuccessFactors' portfolio of business planning and execution software. It also increased the company's customer list by some 130 clients, including Comcast and The McGraw-Hill Companies. The company also bought online collaboration software maker CubeTree that year in a move to build its portfolio of products for remote communication and work sharing.
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