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ThoughtSpot Acquires Diyotta to Accelerate Access to Cloud Data

Key Stakeholders: Chief Information Officers, Chief Technical Officers, Digital Transformation Heads, Director of Engineering, Enterprise Architecture Directors and Managers, Application Architecture Directors and Managers, Financial Systems Directors and Managers

Why It Matters: This document serves as introductory guidance for Amalgam Insights’ subscribers considering ThoughtSpot and Diyotta for their data environments. Cloud data warehouses and data lakes provide challenges in data integration and transformation for enterprises seeking to analyze the massive volumes of data in these stores. Diyotta has a strong track record of supporting analytic data at massive cloud scale over the past decade and will provide ThoughtSpot with both the technology and talent necessary to continue innovating in making data more accessible for business analysis and distribution.

Top Takeaway: This acquisition makes ThoughtSpot more prepared and able to support enterprise data ecosystems and it should be accretive to current and future ThoughtSpot customers seeking to access data more quickly.

About the Announcement

On May 4th, 2021, ThoughtSpot purchased Diyotta, a data integration platform as a service (IPaaS) vendor known for its ability to support “Big Data” sources, including the market leaders in cloud data warehouses. Diyotta also has a data pipeline SaaS product supporting over 120 data sources to simplify integration. With this purchase, ThoughtSpot both acquires a strong data integration platform and closes gaps for customers seeking to rapidly deploy ThoughtSpot across cloud data sources and machine learning services. With this acquisition, over 60 Diyotta employees will be joining ThoughtSpot, which Amalgam Insights believes is over half of the company.

About Diyotta

Diyotta was founded in 2011 by Sanja Vyas, Ravindra Punuru, and Sripathi Tumati to build a cloud-based data integration at a time when cloud computing was just starting to get traction. At the time, infrastructure as a service (IaaS) was a $5 billion global market (compared to the $70 billion+ market that IaaS is in 2021) and data was only beginning to move into the cloud.

Over time, Diyotta built out a code-free data integration platform that allowed companies to connect a wide variety of scalable data sources and built out partnerships with leading data and analytics vendors. 

A notable partnership created was the October 2019 announcement of Diyotta and ThoughtSpot creating a strategic partnership to support search-driven analytic insights. This partnership accelerated enterprise access to data both by allowing companies to build data pipelines more quickly and to support data ETL (Extract, Transform, and Load) from a variety of sources to ThoughtSpot. 

What to Expect

ThoughtSpot has quickly evolved in 2021 both through inorganic acquisitions including Diyotta and SeekWell as well as through the organic creation of the ThoughtSpot Modern Analytics Cloud to provide a SaaS platform for search-driven analytics and the launch of ThoughtSpot Everywhere to provide a low-code application development platform. As ThoughtSpot seeks to continue enabling its growth as a company, one of its bottlenecks was in providing access to the increasingly diverse, distributed, and messy data ecosystems that every enterprise now has. ThoughtSpot had created ThoughtSpot Embrace to query a variety of data sources already, including Amazon Redshift, Google BigQuery, Microsoft Azure Synapse, SAP HANA, Snowflake, and Teradata. With the acquisition of Diyotta, ThoughtSpot Embrace development should accelerate and the two solutions should come closer together more quickly.

With Diyotta, ThoughtSpot now owns an in-house solution for companies seeking to bridge the data access gap for enterprises that lack mature ETL capabilities for cloud data. ThoughtSpot had already been licensing Diyotta technology within its solution, but the Diyotta acquisition allows ThoughtSpot to further access Diyotta’s combination of ease of use, scale, and support for a variety of cloud-based data sources This acquisition should allow the two technologies to support more synergistic development going forward. 

In particular, both Diyotta and ThoughtSpot are strong partners with Snowflake. ThoughtSpot has even taken a $20 million investment from Snowflake Ventures. ThoughtSpot is now better positioned to optimize its data integration and analytics solutions for Snowflake.

ThoughtSpot and Diyotta already partnered to support an easy way to both access and analyze data through their respective technologies. With this acquisition, Amalgam Insights expects to see Diyotta integrated into ThoughtSpot over time as analytics and business intelligence companies are driven to become business data companies capable of handling not only analytic needs, but the curation and orchestration of data sources and the programmatic delivery of analytics back to both applications and data sources.

As for the Diyotta standalone products, Amalgam Insights believes that the revenue from these products is relatively small considering that ThoughtSpot has raised approximately $564 million with the most recent round coming from Snowflake and the prior round of $248 million happening in August 2019. Given that, it is likely a distraction for Diyotta to continue both supporting the standalone iPaaS solution while also supporting ThoughtSpot’s broader product and sales goals. 

Amalgam Insights’ Recommendations

For ThoughtSpot customers, this acquisition should be a welcome addition as it will accelerate ThoughtSpot’s ability to support data sources. Diyotta’s technical team has deep experience in supporting rapid data connectors and the deeper ETL processes needed to support data analytics across a wide variety of data lakes and data warehouses. The biggest task for ThoughtSpot customers is to find out how quickly Diyotta will be available as a broader ThoughtSpot Embrace solution and whether Diyotta will be made available to current customers as a standalone product or as an embedded product going forward.

For Diyotta customers, start tracking support announcements to see what commitments ThoughtSpot is making to support the product. Diyotta was purchased to support ThoughtSpot’s massive research, development, and product roadmap and to effectively allow ThoughtSpot to be Diyotta’s biggest customer.

For the analytics community in general, this acquisition demonstrates that the data integration and analytics companies are coming together based on market demand for solutions to make data easier to access and analyze. Both Diyotta and ThoughtSpot were developed to handle massive analytic data. This is a trend that will continue. Expect to continue seeing Best-in-Class integration and BI solutions coming together to provide you with integrated options. 

This acquisition also speaks to the increased demand for usability. Diyotta consistently ranked high in every measure of usability and ease-of-use as an integration platform, which was an important aspect of this acquisition. ThoughtSpot continues to work on creating an Apple-like environment for data where end-user and analyst access to data remains simple by putting substantial work and investment into analytic performance, backend search, natural language processing, and data management.

Overall, Amalgam Insights believes that this acquisition makes ThoughtSpot more prepared and able to support enterprise data ecosystems and that it should be accretive to current and future ThoughtSpot customers seeking to access data more quickly.