General Manager, Analytics Platform & Cloud Data Services at IBM
During the main keynote at Apttus Accelerate there was an announcement that appeared to have barely registered to an audience that had been dwindling due to the heat of the day. Derek Schoettle, General Manager of the IBM Watson Data Platform announced that Apttus CPQ has been integrated into IBM Watson to deliver cognitive pricing.
He followed this up with a demonstration. This illustrated how users can simply press a button within Apttus to access the artificial intelligence that is IBM Watson. This then delivers an optimal price based on historical data for the industry, custome and, time of year. An optimal price in IBM speak is one that maximizes the profitability and the chance of winning the deal. The integration through IBM Bluemix provides access to IBM’s cognitive pricing engine.
Cognitive pricing to open up new markets for Apttus
IBM talks about cognitive pricing as the third stage of retail dynamic pricing in a white paper (Registration required). However with Apttus leveraging the cognitive pricing this takes far more factors into consideration and extends it into the B2B marketplace and away from retail. While the demonstration was impressive there needs to be more clarity about what data set the IBM system is leveraging to provide the information.
In time this could be an extremely important relationship for both companies. For Apttus is gives them the possibility of extending their CPQ solution into new markets. One example could be food. IBM weather can provide long range forecasts that can modify pricing based on future weather patterns pricing can be optimised based on accurate forecasts. For IBM it delivers a tighter integration into Watson and also gives the consultancy arm another option. Apttus were able to deliver this integration before the Salesforce Einstein integration to Watson is generally available. This gives both Apttus and IBM a short window of significant competitive advantage.
Conclusion
Unfortunately IBM were not available for further comment at the event. In some ways this was not the biggest story about augmented intelligence at Apttus Accelerate. This is news that will interest a large number of customers have who relationships with either IBM and/or Apttus. One would expect that more details will be released shortly.
At the beginning of the keynotes the hall was full, though whether all 3,500 who were attending were inside was doubtful. San Francisco is going through an unseasonable heat wave at the moment. The event hall roasted the audience causing many to leave early.
