Tag: channel

Google buys Channel Intelligence for $125 million

google-ICGoogle is continuously trying to improve its e-commerce business and its latest acquisition should give it a nudge in the right direction. The search giant bought e-commerce solution provider Channel Intelligence for $125 million in an all-cash deal.

Channel Intelligence is active in 31 countries and it offers a wide range of e-commerce services.

The company has been a partner of Google Shopping for years and the two outfits worked together on Return on Ad Spend (ROAS) and Product Listing Ads (PLA) products. In addition, Channel Intelligence offers a range of free services, including Facebook integration and product search widgets and an e-commerce back end, dubbed Shopping Engine.

Channel Intelligence announced the deal on its website, adding that all of its services will be available for years to come. The company has been around since 1999 and it tracks about 15 percent of all online transactions in the US. It is behind $2 billion in sales through referrals every year.

ICG group announced Wednesday that the transaction should be finalized in the first quarter of 2013. ICG is expected to realize $60.5 million in connection with the transaction.

“Building upon the perseverance and strong foundation laid by CI’s founder Rob Wight, I am extremely proud of the work we accomplished at CI,” said Doug Alexander, CEO of CI and President of ICG. “With the talent and hard work of the entire CI team, we successfully navigated a very complex marketplace, ending a record year that culminated in this very exciting acquisition.”

Wright said he is thrilled to see the recognition of CI’s value. He said the company’s vision was to simplify the online shopping experience and that he is very proud to see the vision executed to such a “great outcome.”

Channel faces legal pitfalls after Oracle ruling

courtThe final appeal is out and Oracle has lost its appeal against a Californian judge’s ruling that it will have to keep porting its software to Hewlett-Packard’s Itanium-based servers.

But as the cleaners clean the blood off the court room walls, it is clear that the case will have some impact on the way suppliers do business.

The case centred on the so-called Hurd Agreement, which HP and Oracle negotiated after Mark Hurd left the company and joined Oracle. Oracle felt that the agreement was a statement that the two companies would work together as they did before their spat. Oracle co-President Safra Catz claimed that such a statement was a non-binding “public hug”.

The judge thought that public hugs should be considered legally binding, depending on who was doing the hugging. He pointed out you can’t write down a phrase like “Oracle will continue to offer its product suite on HP platforms … in a manner consistent with that partnership as it existed prior to Oracle’s hiring of Hurd” and hope that no one would take you literally.

“The sentence can only be reasonably interpreted as requiring Oracle to continue offering its product suite on HP’s Itanium platforms,” Kleinberg wrote.

It went without saying Oracle appealed, but other judges also nodded sagely and said that it did not matter what Ellison thought he had signed, the agreement was there in black and white.
While the situation is extraordinary, it could herald a new era of partner agreements.

The case effectively said that any agreement has to be written down carefully and mulled over by the legal team before it is signed. It also says that anything put in writing has to be looked at as if it was chiseled into Egyptian granite for all time.

While this might seem obvious, it clearly was not in Oracle’s mind it has some of the most expensive, er, best, lawyers in the world.

Already analysts are muttering that you will never see another “public hug” deal like this again. Every agreement between suppliers will have a start date and an end date.

This is one of the reason why the channel should be dusting off their legal contracts with their suppliers post haste. Many of them will find that they have signed vague expressions of love and devotion which could get them in hot water.

Some of these contracts are like a pre-nuptial agreement, which are signed when the partners are in love and only reviewed when they are arguing custody over the CD collection.

Software deals in particular can be problematic, which are particularly ripe for a major legal row when something goes wrong for a mutual customer.

Fortunately a lot of lawyers have written in clauses into such for the contracts to be reviewed, or renewed. The problem is that if they are not renegotiated it is possible, as HP did, to stand up and demand it be taken literally.

The Itanium case also proved that trying to get out of a deal with bad grace might also backfire. Oracle really hates having to support Itanium, but if it assigned its worst developers to make sure the porting was stuffed, Ellison could be back in court facing a contempt charge.

Because the court has become involved, Oracle is painted into a corner and must be a dedicated follower of Itanium. Its ability to duck out of the plan is even more restricted than Intel or HP.

No company would ever want their partner to have that much power over their business decisions. So it is probably better to check out what those old contracts look like before you pick a fight with your channel partners.

Mobile shopping apps only four percent of e-commerce revenue

smartphone-shoppingIn spite of the unprecedented smartphone boom, shoppers are apparently still reluctant when it comes to e-commerce apps.

According to a report compiled by Research2Guidance.com,  the vast majority of mobile shops made less than 5 percent of their total e-commerce revenue via the mobile channel.

ChannelEye launches and injects zest into the supply chain

Hands across the waterPrakasha Publishing Ltd has launched a title designed to inform, educate and entertain the influential supply chain in the United Kingdom.

ChannelEye, (channeleye.co.uk) is edited by industry veteran Mike Magee. The editorial team that launched another channel title this time last year, will upset the apple cart and provide hard hitting news, interviews and pithy comment that reflect the concerns of distributors, resellers and the rest of the community.

“It’s high time that stuffy, old fashioned channel magazines whether online or in print are consigned to the dustbin of history,” Magee said.  “The supply chain continues to be essential to deliver vendors’ offerings to end users.  We will break the mould and deliver essential information to the key players in the market.”

“This is a fantastic development for IDG” suggests Jonny Busse, head of the IDG Tech Network. “Commercially representing this website will now allow IDGUK a strong presence in this important marketplace with ChannelEye offering a clean and unique style coupled with hard hitting content”

In addition to news, ChannelEye will cover wider matters including reviews, interviews with key players, moves in the industry, product information, gossip, and sparky, solid information. Avoiding re-cycled press releases, ChannelEye will avoid business jargon that only marketers understand, and will deliver gritty and realistic depictions of stuff that matters to the channel.

About Prakasha Publishing Ltd.  Prakasha, headed by CEO Mike Magee, already publishes well respected technology title TechEye.  Founder of both the Register and the Inquirer, Magee was listed as the 35th most influential person in UK technology by the Daily Telegraph.  He can be contacted at mike.magee@channeleye.co.uk  He brings on board a team of journalists that has close contacts in the channel and the wider IT community.