Parature is an East Coast software start-up, founded in 2000 by five Cornell students including Duke Chung.
Originally named Cyracle Technologies, the company’s first product addressed the live chat market. Current CEO, Ching-Ho Fung, provided the initial investment in 2001.
Parature’s key investors include Valhalla Partners, Sierra Ventures, and Accel Partners. The acquisition is significant for both Parature and Microsoft Dynamics Customers because:
“Microsoft’s core strengths have come from the sales automation product and the tight integration with Office.” Ray Wang, Founder and Principal Analyst of disruptive technology research firm, Constellation Research, said. “Since 2012, with the arrival of Corporate Vice President, Bob Stutz, the Dynamics CRM team has sought to round out the rest of the customer experience offering. Dynamics CRM customers gain the knowledge base functionality in Parature, which is the crown jewel. This knowledge base was recently rearchitected and one of the most modern in the industry. Parature customers will gain greater investment in the customer service and support product line with deeper integrations to a full customer experience suite.”
The acquisition of Parature could add 70 million end users to the Microsoft Dynamics CRM ecosystem.
The company has built a foothold in industries such as education, gaming, high-tech, non-profit associations, online media, public sector, and travel.
“Parature’s relentless focus on customer success has led to tremendous growth. In 2013, Parature doubled its end user count from 35 million in 2011 to 70 million,” Wang added.
“Dynamics CRM is the fastest growing part of the Microsoft Dynamics franchise. In head-to-head deals, the Dynamics CRM unit is giving Salesforce.com the most competition. The acquisition of Parature shows that Microsoft is willing to make strategic bets to accelerate time to market of key offerings such as customer care. Parature accelerates Microsoft’s efforts in customer care by 24 months. The additional talent and customer base will provide both Parature and Microsoft Dynamics CRM customers with a win-win.”