Consolidation

Quotes:

"Over the past three years, more than 25 percent of leading software companies have become the subject of merger, acquisition and divestiture (MAD). Over the next three years, Gartner Dataquest analysts expect this pace to reach 50 percent."

"'In many cases, strong brand names will survive under a new owner where the equity justifies it,' said Joanne Correia, vice president for Gartner Dataquest's Software Industry Research group. 'The demise of software vendors will also become more commonplace as the assets left by some failing companies don't attract a new owner, however cheap they are to acquire. Vendors should be actively seeking MAD opportunities while they still have substantial residual or purchasing value.'"

Source: "Gartner Dataquest Forecasts Strong Consolidation for the Software Industry in the Next Three Years," December 17, 2001.

"Chairman and CEO Michael Fleisher said the recently announced merger of Hewlett-Packard and Compaq is the first of many large acquisition agreements that will be seen in the next few years."

"Fleisher outlined the harsh reality of the IT industry today and for the next few years during the opening keynote of Gartner Symposium/ITxpo 2001. Fleisher told an audience of more than 6,000 IT professionals that 50 percent of IT companies that have a household brand name won't exist in their current form in three years."

"'CEOs and CIOs need to anticipate incredible consolidation — both in your own industry as well as in your suppliers,' Fleisher said. 'Your most trusted partner may suddenly be subsumed by another company that you chose not to do business with.'"

Source: Press Release — "Gartner CEO Says 50 Percent of IT Companies That Have a Household Brand Name Won't Exist in Current Form in Three Years", October 8, 2001.