It has been sometime since I have posted anything in my blog and it has been slightly over 5 months. I am back to active blogging on this space and there have been some changes in what I am personally doing as well. I will have them updated in the next few days. Coming to the main portion of this post….

There is a lot of consolidation happening across the ISV space; quite a few big names are getting absorbed into other companies. Peoplesoft, Siebel, JDEdwards, Hyperion, Business Objects, Cognos, Opsware, Webmethods and JBoss have got acquired. Add to this, we have Pilot Software, Inxight, Outlooksoft, Applix, Telelogic, Xensource, Agile Software, Altiris and  WebEx. Some of the reasons for this trend are:

  • Commoditization of software sector
  • Need for big platform vendors to take over new markets as growth in their own businesses
  • Weak IPO market or weak stock markets
  • Competition from Open Source alternatives and investor pressures

With this trend, only the big platform players will survive and the ones that come to my mind are IBM, Microsoft, Oracle and to an extent SAP (maybe this could well get acquired in due course of time). Is the situation as bleak as it appears to be, and for all my money, it may well not be the case as there is far too much innovation that is happening on the ground:

  • Big names that have survived this are primarily vendors who are privately owned and are less commoditized.
  • New wave of startups – in virtualization, SaaS, enterprise web 2.0 have emerged and will grow to large ISVs and the cycle will continue
  • Pure plays will always be there as long as innovation takes place
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