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Tuesday 13 October 2020

Twilio breaks data silos, deepens customer engagement with Segment

Twilio logoTwilio has confirmed the $3.2bn acquisition of customer data management platform provider Segment, signaling its intention to propel its connected customer engagement strategy forward. Its deeper investment in customer experience and data management for marketing and customer support will also move it towards competition with Salesforce and Adobe

Both companies have a lot to gain by coming together. Twilio’s communications capabilities and customer engagement focus align well with Segment’s expertise in managing customer data and identities across applications; and as both are architected around APIs there are technical synergies too. The essence of the value proposition is the ability to break down data silos. The communications data from Twilio can be repurposed and combined with data managed by Segment to support better customer engagement, delivered through the Twilo engagement platform. 

Twilio is one of the tech companies that has benefitted from organisations’ response to the pandemic and their efforts to get closer to their customers and provide a better and more connected customer experience. News of this all stock acquisition drove its share price up once more. Nine year old Segment was valued at c.$1.5bn at the time when its raised $175m in 2019. Segment is Twilio’s second largest acquisition, following the $2bn SendGrid email marketing acquisition of 2018. 

Twilio’s expanding footprint has been evident for some time as its grew from the provision of API tools to build and run communication services to the higher level area of customer engagement. It is seen as a challenger to Microsoft Teams (and to AWS Chime) and while that continues, it is now stepping deeper into data driven customer engagement, support and services which moves it closer to Salesforce and Adobe’s territory. As for Microsoft, the preview of Azure Communication Services (ACS) at its recent Ignite event, which introduced a  communications API enabling developers to build voice, video, chat, and SMS messages in their applications, shows it is continuing  to invest in its unified comms portfolio and to counter Twilio’s rise. Meanwhile, Twilio is demonstrating that it is not afraid to challenge the big players in its markets. 

Posted by: Angela Eager

Tags: acquisition   software   customerexperience  

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