Executive Summary

Key Stakeholders: Chief Procurement Officer, Procurement Directors and Managers, Controllers, Vice Presidents of Accounting, Accounting Directors and Managers, Legal Directors, Finance Directors and Managers, Sales Operations Directors and Managers, Marketing Operations Directors and Managers

Why Raindrop Matters: Mid-market organizations between $100 million and $1 billion in annual revenue are in a tricky situation where they have the advantage of being relatively small and nimble, but must also face enterprise-grade operational challenges to support global supply chains, customer bases, and vendor ecosystems. Raindrop provides organizations at this size and above with a freemium SaaS product to support organizations starting to support mature enterprise spend practices while maintaining the governance, compliance, and security issues that come up for enterprises

Top Takeaway: Amalgam Insights recommends Raindrop as a business spend management solution to be considered for organizations with over $20 million in revenue that currently have fragmented or non-existent sourcing management, supplier management, and payment management capabilities.

Introduction to Raindrop Systems

Amalgam Insights recently briefed with Raindrop Systems, an emerging startup focused on Enterprise Spend Management. This vendor got our attention because it has come up in inquiries as a potential solution for managing contracts and spend in mid-market organizations between 100 million and 5 billion dollars in annual revenue, though Raindrop does support enterprise-sized clients exceeding 10 billion dollars in annual revenue.

Founded in 2019 and based in Santa Clara, California in the United States, Raindrop is part of the SaaS trend of “Built by X, for X” companies that was built by procurement professionals to solve enterprise procurement lifecycle demands from sourcing to payment. Amalgam Insights notes that this is a trend in the finance, accounting, and sourcing markets where subject matter experts have come in to build SaaS solutions that have quickly become competitive with legacy solutions that were developed by programmers or technicians lacking deep enterprise practitioner experience. Raindrop was founded by Vijay Caveripakkam and Ward Karson, who bring both provisioning practitioner and consulting backgrounds to the company.

Contextualizing Raindrop in the Enterprise Spend Market

In exploring the Raindrop solution, Amalgam Insights notes that Raindrop’s key differentiation points were associated with providing a modern user experience to support collaboration, workflow automation capabilities, analytic tracking of savings, and clear calls to action to support cost savings, and supplier risk management. The last of these is of particular note, as Amalgam Insights has traditionally seen spend management solutions focus on being systems of record, which led to a practical outcome of creating a data repository that was both complete and overwhelming to analyze on a regular basis. In the 2020s, as Big Data has become regular data and every large data source will overwhelm the human ability to manually audit and query data effectively, people need to use a combination of workflow automation, machine learning, natural language parsing and processing, and rapid contextualization of data to effectively keep up with the constant increases in contract text, transactions, and payments in place.

Raindrop has two key current focus areas. The first is with organizations with less than 50 million dollars in business spend, based on the product’s ease of implementation and a freemium approach that allows clients to sign up for a production-ready instance of the service at no cost to see how contractual obligations can be administrated through a formalized solution. Its second key focus is on larger mid-market to enterprise organizations with 100 to 500 million dollars in business spend to support that customer base. 

Raindrop is designed to be a general spend solution to support planning, supplier management, sourcing, contract management, and payables within a single solution. This integrated lifecycle approach is intended to ensure that data capture associated with contract, vendor, and stakeholder management occurs during transactional execution of payments, contract execution and renewal, and supplier evaluation. As part of this process, Raindrop includes a semi-automated contract loading process that currently automates about half of the contract term entry. From a data privacy perspective, Raindrop has placed a focus on GDPR and on not keeping payment information to support privacy and governance issues such as PCI DSS and FedRAMP compliance.

This solution comes to market at a time when the mid-market procurement market faces a bit of a vacuum. When Scout RFP was purchased by Workday for $540 million, it had made inroads into the mid-market to support cloud-based sourcing and supplier management. However, post-acquisition, Scout RFP development has been more focused on the enterprise customers that Workday focuses on. This development is similar to the work that planning and budgeting solution Adaptive Insights saw post-Workday acquisition.

At the same time, mid-market organizations face greater complexity in their sourcing environments as competitive markets, lowered barriers to purchase, and the proliferation of suppliers in a variety of markets has led to the need to manage spend more closely. As just one example, Amalgam Insights estimates that the average 500 employee company with approximately $100 million in revenue is supporting 250 SaaS vendors, but estimates that less than 100 of them are being formally sourced or managed through procurement. This haphazard approach will lead to spend leakage, missed renewal opportunities, and the inability to aggregate and negotiate licenses over time. And although mid-market companies have typically started to invest in spend management, it is typically in a piecemeal fashion where contract management, purchasing, invoices, payments, and budgeting can each be in a separate application or spreadsheet and there is no direct coordination between each silo other than manual employee changes made on an ad-hoc basis.

Because of both the increasingly complexity of mid-market procurement management and the potential for cost savings through competitive and bulk purchasing exercises, Amalgam Insights believes that the need for mature sourcing and spend management capabilities is now necessary for mid-market organizations that are responsible for good stewardship. Amalgam Insights estimates that the total cost of ownership savings for sourcing management typically matches the expense of an employee or full-time-equivalent at about 100 employees or $20 million in annual revenue and that this cost crossover can occur even earlier in a company’s progression if it is tech-heavy in its operations.

Amalgam Insights’ Recommendations

Amalgam Insights believes that Raindrop’s offering provides a low barrier to entry for business spend as a solution that is as-a-Service, free to start, and provides a modern user interface on par with current web-based applications while providing the breadth of services needed to support business spend management and a standard set of security and compliance requirements needed to support data privacy. In light of the increasing importance of managing the source-to-pay lifecycle for mid-sized organizations, Amalgam Insights recommends Raindrop as a business spend management solution to be considered for organizations with over $20 million in revenue that currently have fragmented or non-existent sourcing management, supplier management, and payment management capabilities.

On July 13, 2021, Zoho announced its Business Intelligence Platform which combines data preparation, machine learning, analytics, presentation, and application development into a single suite of services. This platform brings Zoho’s new DataPrep capability and combines is with the existing Zoho Analytics product. The combined platform provides a single solution the clean, augment, analyze, and present data as a visual presentation, application, or as an answer to a question asked in standard English. This analysis is based both on briefings and discussions with Zoho customers.

To provide some background on Zoho, Zoho is a private company founded in 1996 to provide business applications in the cloud. As of now, Zoho supports a business suite of 45 applications available as an integrated suite called Zoho One. Zoho’s Analytics offering, called Zoho Analytics, was first launched as Zoho Reports in 2009 to help users understand their data. Zoho Analytics supports over 10,000 customers across both cloud and on-premises environments. Zoho also supports over 300 white-labelled embedded BI customers across telco, supply chain, and other enterprise environments.

Since 2009, Zoho Analytics has evolved to build in-house capabilities to support data management, a data warehouse, data discovery, collaboration, and a breadth of APIs all used to help support a combination of self-service users and embedded analytics use cases.  Zoho’s analytic platform is based on four key components:

1. Data Preparation through Zoho DataPrep, which is Zoho’s self-service data preparation application to support data quality, enrichment, transformation, and data modeling capabilities. DataPrep uses machine learning to provide guidance on data enrichment and modeling
2. Visualization: Zoho enhances traditional dashboarding, reporting, and charting capabilities by providing both access and integration to Zoho Sites, Zoho’s website and portal building product, and Zoho Show, which focuses on presentations. By providing the tools to present and publicly share data outputs, Zoho Analytics extends beyond the dashboard to provide standard access to the digital tools that are typically used to share information: presentations, meetings, intranets, and the internet.
3. Augmented Analytics, where Zoho’s presentation of descriptive and predictive analytics is enhanced both by the Ask Zia conversational AI (which will be described later in this report) as well as by Zia Insights, which provides a conversational or natural language processing interface for asking questions about the data.
4. Applications, where Zoho provides a low-code platform called Zoho Creator to build analytic applications that can then be shared through Zoho Marketplace to share either with internal or external customers.

As can be seen from this description, Zoho provides a number of applications in its business suite (including a recently released Zoho Contracts product focused on sourcing) that expand beyond analytics in providing a full business suite of applications for small and medium sized businesses.

Zoho Analytics includes native data management capabilities including data preparation, cleansing, integration, transformation, enrichment, and modeling. This combination of capabilities allows Zoho to keep data relevant over time and to ensure that data is aligned to business terminologies and taxonomies.

Zoho also has its own data warehouse used to model data for analytics. This data warehouse is native to Zoho and includes both in-memory and columnar services to accelerate access to data. Although Zoho typically targets the SMB market, this warehouse has been proven to scale to terabyte-sized data with billions of rows for clients that have needed to grow their analytic environments. This warehouse is currently only available as a part of Zoho Analytics and can be mapped to other cloud data warehouses such as Snowflake or Amazon Relational Database Service (RDS) through metadata mapping.

Zoho Analytics works with Zoho’s applications, but also includes over 250 native integrations to other vendors used by its clients including HubSpot, Microsoft Dynamics, Quickbooks, Salesforce, ServiceNow, Shopify, and Xero with the understanding that some Zoho clients may use other applications as well. In creating these integrations, With these integrations, Zoho Analytics rivals many of its standalone providers, which is demonstrated by 60% of Zoho Analytics’ usage being associated with data outside of the Zoho One suite.

Zoho Analytics provides all of these services on its own cloud, Zoho Cloud, which has both GDPR and CCPA compliance. Based on customer demand, Zoho has also made Zoho Analytics available on-premises for specific geographies, markets, and use cases, which is an interesting departure from Zoho’s typical focus on cloud apps. Based on this combination of data management capabilities, Amalgam Insights considers Zoho Analytics to take a full-stack approach that allows companies to build an analytic environment solely within the Zoho ecosystem.

The pricing for a paid Zoho Analytics account starts at $24 per month as an entry point and can increase up to $455 per month to support up to 50 users, 50 million rows of data, and unlimited workspaces. Zoho Analytics can also be purchased as part of the Zoho One Suite, which brings almost all of Zoho’s applications into a single subscription which ranges from $37 to $105 per user per month depending on whether a company chooses to enroll every employee or seeks a more flexible model for bringing a portion of employees onto Zoho.

Zoho Analytics’ Support for modern analytic capabilites

All of Zoho Analytics’ capabilities across data management, integration, and analytic distribution help to scale the core capability of visualization and analysis. Amalgam Insights views these visualization and analytic capabilities to provide reports and dashboards to be on par with the current analytic market, but today’s market requires analytic companies to push forward to support natural language queries, collaboration, and machine learning. In this light, Amalgam Insights looked at Zoho Analytics’ capabilities across six areas: natural language processing, statistical and advanced analytics, collaboration, mobility, APIs, and future-facing roadmap.

Zoho has taken steps towards this next generation of analytic delivery through its Ask Zia capability. Zia serves as Zoho’s AI assistant. Initially launched in February 2017, Zia was originally designed to be a sales assistant for the Zoho CRM product to help provide reminders for contacting prospects and taking relevant actions at the right time. Since then, Zia has evolved into an assistant that understands natural language questions across multiple applications including the Analytics product. The word “questions” is used here rather than “query” because the inputs for Zoho’s Ask Zia are plain language questions and requests such as “show me the sales for last year” rather than a query-based text string such as “Search sum of sales amount where Year equals 2020.” Although the two phrases are semantically similar, the prior phrase is based on a standard use of language while the latter requires an understanding of querying logic that is not natural. With Ask Zia, Zoho Analytics is a conversational analytics solution that is capable of providing insights and results to any employee based on the language they use in their everyday workplace.

Business analytics solutions are also increasingly asked to support more statistical and advanced analytics capabilities to help more advanced data users understand probabilities, forecasting, data relationships, trending and regression analysis, seasonality and time-series relationships, and model choices to support optimal forecasting and root-cause analysis. Zoho Analytics first announced forecasting capabilities in November of 2018 and continues to increase support for relevant models to improve results for regression, exponential smoothing, and seasonality trend Loess decomposition.

From a consumption perspective, Zoho Analytics supports embedded analytics, web-based apps, as well as the ability to share linked data through collaboration platforms such as Slack, Microsoft Teams, or Zoho’s own Zoho Cliq. Zoho Analytics results can be embedded in webpages, shared as a permalink, placed into slideshows, and provided as public resources. Zoho Analytics also supports analytic storytelling through its slideshows, which work similarly to storyboards that exist in other analytics solutions and are used to present Zoho Analytics workspaces.

All of these analytic outputs are available through the Zoho Analytics mobile app, which is designed to emphasize the workspaces, dashboards, and reports created within Zoho Analytics. The app also supports exporting and commenting on analytic views as well.

From a programmatic perspective, Zoho Analytics functionalities are also available through an API which is accessed by a variety of other Zoho applications, such as Zoho CRM, Zoho Creator (a low-code application platform), Zoho Projects (project management), and Zoho Books (accounting) and can also be used to build add-on capabilities for third-party and custom-built applications. The API can be used with a variety of commonly used programming languages including Java, C#, Python, PHP, Go, and Google Applications through prebuilt “Client Libraries” created to support each language and includes a variety of interfaces to access data, modelling, metadata, collaboration, embedded analytics, and Single Sign-On integration. This API includes SQL access to Zoho Services data for those seeking query-based access to data, through what Zoho calls CloudSQL, which supports ANSI, Oracle, Microsoft SQL, IBM DB2, MySQL, PostgreSQL, and Informix-flavored SQL queries.

Amalgam Insights notes that Zoho Analytics has stated that future roadmap items for Zoho Analytics include further improvements in self-service analytics, data catalog, and the analytic formula engine to increase access to computational tools needed for advanced analytics. Self-service analytics has been a key goal for business intelligence over the past decade, driven by solutions such as Tableau and Qlik. Amalgam Insights considers self-service analytics to be an intermediate stage of analytics between the analyst-controlled reports and dashboards that defined the initial generation of analytic solutions and the current era of contextualized insight where analytic outputs are guided by natural language, pre-contextualized for users through role definitions and machine learning and augmented by a combination of human judgment and third-party data sources to guide business-relevant actions.

The data catalog is increasingly important as companies seek to contextualize data for machine learning and data science. By creating a catalog that effectively categorizes and indexes the relationships within relevant business data, businesses can be more prepared for the near-future where they use advanced algorithms and neural nets to support better decision-making and automate high-volume transactional judgment calls.

And Amalgam Insights believes that access to statistical tools, machine learning algorithms, and production-ready machine learning models will provide strategic advantages to the quantitatively savvy organizations that realize that behind the math are opportunities to improve organizational processes, increase business transaction volume and size, and proactively support customer issues.

Amalgam Insights’ Recommendations

Based on the pricing and new functionality of Zoho Analytics, Amalgam Insights recommends Zoho Analytics both as a starting point for using business intelligence and as a tool to bring together data across small and medium businesses that are starting to bring together a variety of applications and have outgrown their initial data organization strategies.

The variety of capabilities Zoho provides across prep, presentation, and application development also makes Zoho a useful and cost-effective augmentation for organizations have already invested in visualization, self-service analytics, and data discovery. In large organizations, where it is not uncommon to invest in multiple analytics and business intelligence products as long as they drive productivity, Amalgam Insights believes Zoho Analytics should also be considered as an end-to-end analytics solution that can quickly bring new data sources from prep to scalable, cloud-based app.

Amalgam Insights recently caught up with diwo, a decision intelligence solution that provides companies with a consistent approach for contextualizing recommendations and developing portfolios of strategies, scenarios, and actions. We first spoke with diwo in 2017 at its launch at the Strata Conference.

Based on discussions with the vendor and with enterprises facing challenges with their analytics, machine learning, Big Data, and data management environments, Amalgam Insights believes that decision intelligence will be a foundational evolutionary stage for enterprise analytics environments in the 2020s and that diwo has an opportunity to be a leading player in this market.

To explain why, consider how the value chain from data recognition and contextualization all the way to recommendation has been largely ignored in the enterprise analytics world as analytics products have been overly focused on the process of “self-service” analytics that drives employees into constant and unending cycles of discovery used to identify data that might be of value.

There are four core issues in enterprise data and analytics that decision intelligence solves:

1. Decision Intelligence makes analytic recommendations more human.
2. “Analysis paralysis,” where the search for results and self-driven discovery can lead to a never-ending set of analysis.
3. A third challenge that exists in the analytic market at large is that the solutions that support natural language and search-based interfaces to ask data questions typically lack “memory.”
4. A fourth challenge is that even if end-users ask the correct questions, it is hard for analytics solutions to provide semantic or contextual sense of whether those fields are relevant. “Correlation is not Causation” is a standard Statistics 101 truism. But in traditional analytics solutions, correlation is often conflated and is presented as causation.

To read the rest of this piece, read our new report diwo and the Emerging Age of Decision Intelligence available at no cost until July 2nd. This report covers key aspects of this emerging era and how Amalgam Insights believes diwo can play a role in this new era.