Some analysts are now weighing up the possible outcomes of Oracle’s recent acquisition of Sun. Vuk Trifkovic writing in Data Monitor and reproduced here in tradingmarkets.com spells out his views. In a previous post I commented on how the big four, that is Oracle, Microsoft, IBM and SAP were now split in two groups. Since then two of the players have announced some first quarter results which further add to the views – IBM with a drop in hardware sales, and SAP with a drop in licence sales. No surprise given the economic conditions and neither of those parties could be described as a distressed company!
So what might happen next? The market is consolidating and some players are bigger than others or commanding a wider spread of products and services. Will we see the 4 reduce to 3? Will we see acquisitions, partnerships, or mergers? I think the answer to this is yes.
As users of products that are now essential to run any organisation we need to be mindful of the potential changes and ensure that we are prepared to manage the fall out of these changes.