November 20, 2007 11:18 AM PST
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.
Dave Rosenberg dishes up "Software, Interrupted" with nearly 15 years of technology and marketing experience that spans from Bell Labs to multiple start-up IPOs to open-source enterprise software companies. He is co-founder of MuleSource and currently serves as the general manager of Hardy Way. He is a member of the CNET Blog Network and is not an employee of CNET. Disclosure. You can contact Dave via e-mail at softwareinterrupted@gmail.com or follow him on Twitter @daveofdoom. 
