When your organization acquires other companies, what impact does this have on your vendor consolidation journey?
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Our experience with M&A disruption is limited. We recently acquired a large company in a similar vertical to ours. However, since most companies in our space generally use the same stack, we didn't experience any vendor sprawl or need to introduce new vendors. We were able to cut ties with the other company's vendors because we already had all of those services in place. Therefore, there wasn't much of a change for us.
When we acquire companies, we have to answer a new set of questions. We need to understand why the acquired company selected certain vendors, their strategy in terms of vendor consolidation or best of breed, and whether we need to rethink our strategy or simply integrate them into our existing one. This process can be quite complex.
Our organization was acquired last year, but we have remained largely unaffected as we continue to operate as a separate entity. However, I can understand how the process of merging another company's environment into yours can present a unique set of challenges.
When another company is integrated, there is a whole list of risks to consider, some directly related to mergers and acquisitions in general, and others pertaining to security. You're not always sure what their environment is like, what access levels they have, or what kind of data they possess. Vendor consolidation then becomes another aspect to consider in this integration process.
The goal is to ensure that you don't miss a beat during this transition. Any lapse could potentially lead to catastrophic consequences, especially considering the larger the merger or acquisition, the more information is available for anyone who wishes to look it up, making you a potential target.