Observed Signal · Nov 12, 2018 · Acquisition · Source: OnlineMarketing.de · Impact: 3/5 · Sentiment: Positive
SAP to Acquire Qualtrics for $8B
German tech giant SAP is acquiring Qualtrics, the leading Experience Management firm, for eight billion dollars to strengthen its CRM capabilities. The deal follows Qualtrics’ near-term IPO plans and includes an anticipated 2018 revenue of about $400 million with growth around 40%. Financing of roughly $7 billion supports the acquisition, which has board approval from both companies. Qualtrics currently serves more than 9,000 customers globally (around 1,500 in Europe) and employs about 1,800 people under CEO Ryan Smith, who will continue to lead. SAP argues that combining Qualtrics’ data analytics with its software and financial strength will create a compelling position against rivals like Microsoft and Salesforce. The integration emphasizes the concept of “X data” (experience data) paired with SAP’s “O data” (operational data) to enhance marketing, product insights, and customer relationship management across the enterprise.
High-profile enterprise software and market research acquisition affecting CRM/XM landscape
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Key Takeaways & Evidence Grounding
- SAP to acquire Qualtrics for $8 billion.
- Qualtrics forecasts 2018 revenue around $400 million with ~40% growth.
- Deal financed with about $7 billion; boards of both companies approved.
- Qualtrics has over 9,000 customers globally (1,500 in Europe) and ~1,800 employees.
- Ryan Smith to remain CEO of Qualtrics.
Connected Companies & Entities
5 Entities mappedRelated Market Signals & Shifts
Recent verified developments and strategic activity across this market segment.
SAP acquires Dremio and Prior Labs
SAP announced it will acquire the US data platform Dremio and the Freiburg-based AI start-up Prior Labs as part of a push to strengthen its artificial intelligence capabilities. The company did not disclose purchase prices but said it will invest more than one billion euros in Prior Labs' product development over the next four years. Prior Labs — which will remain an independent unit — focuses on AI for structured/tabular data to predict risks like payment defaults and sales opportunities. Dremio provides data-harmonization software to unify enterprise data from multiple sources, a foundation SAP expects to use for broader deployment of AI agents and advanced analytics.
CX Gap Persists After 20 Years Despite Billions Invested
Despite decades of investment in customer experience (CX) programs, a persistent disconnect remains between how companies perceive their CX and how customers actually experience it. Bain & Company's 2005 study found 80% of executives believed they delivered superior CX, while only 8% of customers agreed. Subsequent research by Capgemini (2017) and SAP (2026) shows similar gaps. The article argues that this 'delivery gap' is not a technology problem, but an accountability and culture issue. Root causes include measuring what's easy to report rather than actual experience, decorative feedback loops, and employee experience being deprioritized. As AI-driven CX investment surges, the author warns that automation without cultural and accountability fixes will merely scale the existing disconnect.
LinkedIn says don't treat leads as finish in B2B
At LinkedIn's B2Believe event in its new Empire State Building space, executives and practitioners called for a shift from lead-centric B2B marketing to a 'full journey' approach that links signals, targeting, creative, full journey, and measurement. Jae Oh, senior director of product management, revealed that fewer than 10% of upper-funnel audiences make it into bottom-funnel campaigns, urging marketers to connect awareness with demand capture. Research from LinkedIn's B2B Institute with eMarketer showed 77% of marketers say they no longer target individuals, yet only 31% have a playbook for activating audiences down the funnel. Practitioners from Canva, SAP, Mastercard, and others shared examples of aligning marketing and sales on common signals. LinkedIn also outlined a product roadmap focused on cost-per-opportunity targeting, multi-format campaigns, agentic workflows, and incrementality forecasting.
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