Twilio acquires Segment for a Billion Dollar Opportunity

Twilio acquires Segment for a Billion Dollar Opportunity

Twilio has taken a step to improve how they engage with their consumers. They are planning to buy a Segment, a startup that helps companies better manage their customer data. The price tag? $3.2 billion.

How Will Twilio’s Service Improve?

Once it integrates Segment’s systems, they will have a complete picture of their consumers. With that information, it will be in a better position to engage with their customers. However, it will not be the only ones to benefit from this purchase. Twilio’s partners will be able to use the system to do the same. Ultimately, that will leave them with a competitive advantage. Future solutions offered by Twilio should be better than ever.

The Only Way is Up

Twilio won’t just be getting a new piece of software to use with this purchase. Their investment has an expected revenue opportunity of $79 Billion. If there was ever a way to become a market leader, this purchase might be it. Twilio’s users will be able to utilize the system to carry out their business better. Twilio gets $79 Billion. Its users get a platform that will allow them to provide a more personalized service to their customers.

Twilio’s Customers Are the Ones That Really Benefit

As touched on, it’s users will also benefit from this merge. Yes, it is making a great investment, but let’s explore what it means for an everyday user. Twilio plan to bring this data intelligence solution to all of its offers. Improvements will feature across the board, from its APIs to Twilio Flex. Twilio customers will then have the tools to better interact with their own customers, no matter their budget. 

Two Companies, One Goal

In truth, this isn’t far from what Segment had planned. Segment’s CEO Peter Reinhardt describes the Segment platform as a way for businesses to step into the digital age. Consumers deserve the best experience, and with the use of big data, that is possible. Combined with Twilio’s own service, that experience will last from the initial call to the service’s end.

Twilio’s has had the same goal from day one, which is why the merge makes sense. Seamless user experience has always been on the agenda, though in the last couple of years, that goal has been at the forefront. The launch of Twilio Flex is one such example of this. Twilio Flex is a cloud-based contact center platform. Any contact center will operate better if the agents have access to detailed consumer information. The acquisition of Segment is a means to improve the service further.

What Does It Mean for Other Companies?

Twilio is getting a great deal, and it’s users will also benefit. But what does it mean for the industry as a whole? Of course, direct competitors of Twilio have something to worry about. They have just lost out on possible revenue of $79 Billion. Twilio already updated there third-quarter expectations to much higher than the initial $401 to $406 Million. So, the immediate future is not so bright for other companies, but provided they can adapt, big data as a resource will become an expected service. Similar service providers will have to expand on their services to meet or beat Twilio. For the consumer, this is only a good thing.

What Does Segment Do Exactly?

While the above talks about what a great opportunity this is for Twilio, it might not be clear why. To understand the benefits of this purchase, it’s important to understand what Segment does exactly. The segment had already made a name for itself before Twilio took an interest. They provided a selection of APIs that allowed users to gather various information about consumers. For those not in the know, an API enables users to perform a function without writing out all the code. The Segment API gave users access to big data.

Not The First Time Twilio Led The Way

The acquisition of Segment puts Twilio one step closer to being the market leader, with a focus on customer service. However, this is not the first time they have shaken the market with an acquisition. Back in 2019, Twilio purchased SendGrid, an email platform enabled through the use of API. Why is that relevant? Because, like the purchase of Segment, it put Twilio in a better position to optimize their solutions for their consumers.  By the end of 2019, Twilio had a platform that could offer multiple communication channels for its consumers. The price of $2 Billion seems fair for what SendGrid brought to the table. SendGrid lets users create and send mass marketing emails. Twilio’s cloud-based services and other communication APIs further extend a company’s ability. Adding Segment to the mix gives a level of customization not seen elsewhere. The only question now is who it will acquire next.