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IBM Unica Coverage

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About: IBM Unica is an enterprise marketing management (EMM) software solution. Unica is part of IBM's software solution group.

Unica is headquartered in Waltham, Massachusetts, with additional offices in the US, Australia, France, Germany, India, the Netherlands, Singapore, Spain, and the UK.
Founded: 1992 by Yuchun Lee, Ruby Kennedy and David Cheung.
History: A chronology of Unica history includes the following events:
  • In 1992, MIT graduate school classmates Yuchun Lee, Ruby Kennedy, and David Cheung founded Unica Technologies Inc., and developed a marketing software solution. The three had met while at MIT, where each specialized in data mining, predictive modeling, and statistics. The three founders pursued a road less traveled and the company funded its product development through 1997 with professional services, a rare occurrence among technology companies who more frequently sought and secured venture capital. "A billion-dollar company is built one brick at a time, and it's built as a company that knows how to make money," said Lee retrospectively in a 2002 DM Review article supporting his company's independent position.
  • In 1995, Unica introduced a line of software that simplified the task of building data-driven and statistical financial models. The Pattern Recognition Workbench (PRW) integrated a spreadsheet and an experiment manager that let users build "forward search" and "backward search" analysis. The product was about $7,000 for the PC version and $12,000 for the workstation platform and several of the customers were financial institutions that relied on network models to predict market price movements, volatility, and other market factors, such as interest rate fluctuations.
  • In 1998 Unica added to its product offerings with Model 1, a data mining solution which offered four data mining software modules. Model 1, distributed by Group 1 Software in partnership with Unica, quickly became a premier data mining software for database marketing in the Fortune 1000 and was used by companies in a wide variety of industries, including banking, marketing consulting, retailing, telecommunications, insurance, catalog, and healthcare. Also in 1998, Unica introduced Impact!, a predictive marketing campaign management system that could deploy high-volume marketing campaigns.
  • Unica achieved a steady growth and its revenues increased from 1992 to 1999, starting at $100,000 and increasing to $4 million. In 1999, the company raised $12 million from investment firms, including Summit Accelerator Fund, the venture capital arm of Summit Partners, and JMI Equity Fund.
  • In 2000, the management team made a decision to de-emphasize data mining and increase focus on Customer Relationship Management (CRM) software solutions, which were beginning to embed data mining as part of their core offerings. The company released 'Affinium' as a CRM solution to help marketing professionals. Affinium bundled earlier company products and offered four applications—Affinium Model (a data mining tool), Affinium Campaign (campaign management), Affinium Interact (email system) and Affinium Report (BI tool).
  • In 2002 the company moved its corporate headquarters to Waltham, Massachusetts and expanded into Europe, the Middle East, Africa, and the Asian-Pacific market with offices in London and Singapore.
  • In 2003 the company acquired Marketic of France for its campaign management software, a foothold in Europe and increased customer acquisitions in the financial services, retail services, and telecommunications industries.
  • In 2004, company revenues reached $48 million and Unica had achieved three years of profitable growth.
  • In 2005, Unica employed more than 250 staff, retained 300 customer organizations, grew revenues to $63.5 million and went public (Nasdaq: UNCA).
  • In 2009, Unica had a loss of $22.5 million on revenue $100.6 million in the fiscal year ended Sept. 30, 2009. The company had swung to the black in each of the prior three quarters as revenue began rising again.
  • In 2010, IBM acquired Unica for $480 million or $21 per share—more than double the stocks market closing price.
Ownership: NYSE: IBM
Key Staff:
Yuchun Lee Yuchun Lee, CEO
Lee is responsible for Unica's overall strategic direction and daily operations. Under Lee's leadership, the customer base grew to over 1,500 and its product received top marks from Gartner, OVUM and Forrester Research.
Chris Manton Jones Chris Manton-Jones, SVP Worldwide Sales & GM International Operations
Manton-Jones is responsible for driving growth and further establishing Unica and the newly formed IBM EMM (enterprise marketing management) division as a market leader.
Paul McNulty Paul McNulty, SVP & CMO
McNulty is responsible for the company's global marketing function. He has more than 20 years of technology and international marketing, product marketing and product management experience.
Customers: The Unica enterprise marketing management system is used by more than 1,500 global companies spanning six continents and 30 countries.

Marquee customers include the American Cancer Society, Atari, Bayer, Best Buy, Cisco, Citrix, Coca-Cola, Disney, Dow Jones & Co, EMC, Ford Motor Company, General Motors, GEICO Direct, HBO, Hewlett Packard, Lands' End, Mazda, Neiman Marcus, Nordstrom and Yale University.

While the company's enterprise marketing management software product is not purpose built for particular vertical markets, the company has acquired concentrations of customers in several industries, including automotive, high technology, financial services, insurance and healthcare, retail, telecommunications and travel and hospitality.

Partners: Unica manages alliance relationships with over 150 partners who market, sell, design, implement, and support Unica solutions. Unica partner programs are focused by partner type and include Marketing Service Providers (MSP), Resellers & Distributors, System Integrators, Marketing Agencies and Complimentary Technology Providers.

Business partners are a natural fit between marketers and marketing software publishers. According to a Forrester Research report, "Service providers wield plenty of influence. More than 80% of the marketers we spoke with rely on a marketing service provider or consulting organizations to help them build or manage their database and perform campaign design and segmentation tasks. Marketers turn to service providers to limit IT's involvement, augment existing staff, and reduce time to market. Not surprisingly, the service providers influence the technology selection process, and are often responsible for bringing individual vendors to the table."

Competitors: Unica marketing software competitors vary by marketing software type and include the following:
  • Primary Marketing Resource Management (MRM) competitors include Assetlink and Teradata Aprimo, with additional strong competition from BrandMaker, Elateral, Saepio Technologies, VYRE and Infor.
  • Primary Enterprise Marketing Management (EMM) software competitors include Teradata Aprimo, SAS Institute, Oracle Siebel and SAP, with additional competition from Alterian and Infor.
  • Primary Multi-Channel Campaign Management (MCCM) software competitors include Teradata Relationship Manager, Teradata Aprimo, SAS, Oracle Siebel and SAP, with additional strong competition from Eloqua, Responsys, Neolane, Alterian, Infor CRM Epiphany, RightNow Technologies, Portrait Software and smartFOCUS.
  • Additional lead management and marketing automation software competitors include Eloqua, Manticore, Market2Lead, Marketbright, Marketo, Pardot and Silverpop.

IBM Unica


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Address Reservoir Place North
170 Tracer Lane
Waltham, MA 02451-1379
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Unica Marketing Operations OnDemand's open layout enables us to improve marketing efficiencies regardless of the team's processes/procedures. Plus, the system's web-based technology requires few IT resources to implement, so a team can be up and running in less than a couple of weeks."

~ Rydex Investments


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