Gartner Research

How an Enterprise Software Vendor Acquisition Affects Vendor Relationships

Published: 20 May 2014

ID: G00263434

Analyst(s): Deborah Wilson , Kimberly Collins , Jeff Freyermuth

Summary

M&A activity in CRM, procurement and HR markets is rampant. IT leaders need to understand what impact these acquisitions will have on their relationship with the acquired and acquiring vendor. Here we provide early warning signs to recognize and steps to take when an acquisition is in trouble.

Table Of Contents
  • Impacts

Analysis

Impacts and Recommendations

  • When a vendor is acquired, IT leaders must take into account that executive leadership continuity is not indicative of the "health" of an acquisition
    • Early Warnings Signs
  • When a vendor is acquired, IT leaders must take into account that sales attrition is more likely in year two
    • Early Warnings Signs
  • When a vendor is acquired, IT leaders must take into account that account management will become more complex
    • Early Warnings Signs
  • When a vendor is acquired, IT leaders must take into account that customer service and support can erode postacquisition
    • Early Warnings Signs

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