Software

Software consolidation proving to be not great for customers

Software consolidation proving to be not great for customers

One of the things that I have noted in the past is the fact that ongoing consolidation limits the choices for IT buyers. There will eventually be a backlash against these behemoths and we'll see more open source and SaaS alternatives take the place of these giants.

Today's WSJ notes As Software Firms Merge, Synergy Is Elusive:
The issue of what customers experience after a big tech merger is once again coming to the fore as the software industry undergoes its latest wave of consolidation. International Business Machines Corp. last week plunked down $5 billion to buy software maker Cognos Inc., while Germany's SAP AG recently agreed to purchase France's software maker Business Objects SA for $6.8 billion. Meanwhile, Oracle last month made a failed bid for software maker BEA Systems Inc., and has in recent years also purchased software makers Siebel Systems Inc., Retek Inc. and Hyperion Solutions Corp.
Obviously, you always hope for the best but when you make a commitment to software that you don't control it should keep you up at night. You are at the mercy of the market and corporate whims.