
The high tech Titans - IBM (
IBM), Hewlett-Packard (
HPQ), Oracle (
ORCL), Microsoft (
MSFT), SAP (
SAP) and EMC (
EMC) - have been buying software firms at an amazing pace over the last half decade. According to
BusinessWeek
the tally is: Oracle $30 billion for 56 companies, Microsoft 79
companies, IBM 60 companies, EMC 40, and HPQ 34. Many of these
acquisitions have been "tuck-ins" where the Titans have added the
purchased company's product capabilities into their product portfolio.
This is a time honored practice the Titans and their smaller brethren,
have used to expand beyond organic growth and tap the innovative ideas
of entrepreneurs.
Although tuck-ins have been a mainstay of software mergers and
acquisitions (M&A) for decades, Oracle in the last decade has
raised the bar by being successful in acquiring firms of a much larger
size and, very much against software etiquette, even completing hostile
takeovers. PeopleSoft and Seibel are the two case studies to validate
this new approach.
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