We walk through the dark corridors of time, as the software industry gets on with it’s midlife crisis. Now, who doesn’t talk about the hostile takeovers? At a point of time in 1995 to be exact, IBM’s hostile takeover of Lotus was considered a sin, the reason being it was the first hostile takeover ever in the software industry. But now, as the bubble starts to burst, IT companies have no more options but to get consolidated. Consolidation is too polite a name to be given for the hostile takeovers of bigger corporations on smaller or their contemporary competitors. Be it the Oracle’s hostile takeover offer of Peoplesoft or the Microsoft/Sap merger and Sun’s plans on buying out Novell, consolidation is everywhere.
This statement of Larry Ellison, CEO of Oracle Inc reflects how the bigger corporations suffer from the merger syndrome “We wanted to be a survivor and a consolidator, and we felt the only way to survive and prosper was through acquisition,” Ellison said this in June.
An article in ZDNet called Survival of software’s fittest, by Martin LaMonica triggered me to write this post. A passage from the article says, “The worst job in the world right now is a software salesman–there are too many software companies fighting for too few dollars in the marketplace.”
I just loved the article for the facts that it reflected. Read it fully if you in anyway related to the software industry.