Skip to main content

M&A Curveball Mega-Strategy: What if HP and Microsoft merge?

I have been toying and observing the markets for quite a while. Back in 2003, I ran a poll calling them mega-megers. HP, Sun, Oracle, Microsoft etc were involved in the poll. I did get quite a few responses then.

First lets me tell you why this may happen. Simple as market is consolidating aggression. Several firms are doing the same things in different ways. Differentiation is there but over-capacitization and saturation of innovation limits are reached.

Innovation Trap: Many firms are at the brink of the proverbial S-curve (as Clayton explained in his book: Innovator's Dilemma). Many firms need to shelve products that resemble and work on newer products. Innovation budgets cannot be in Billions of dollars anymore. Things change, so will the strategy. Call it CrowdInnovation, which is taking some form today, will still need to be contained as some IP Container will need to be locked and sealed as firms/Nations/Communities would want to retin their identities via product portfolios.

Sales will decline as SaaS, Cloud Computing gets mainstream: Competing against each other will lead to declining sales, meaning it will be hard to innovate against depleting resources and budgets. Consolidation may be inevitable but the lead can still be extended as you partner or merge with another firm.

Today its Financial Markets, You could be next!: We haven't seen things like what we saw in the last few months. When BSC was rescued by JPM, we thought and talked about it. And then came the Lehman Brothers, and then came Merrill Lynch. And we will see some significant developments as Morgan Stanley seeks help and suitors. Bottom Line? No one is immune to this consolidation or correction (as many financial analysts, including Paulson might say).

Software firms too will have to go through this wave of consolidation. This industry shift is not about to end as of yet. The correction will invade many domains.

What could it mean to HP & Microsoft: Both are big and both sell well. Obviously they should be able to practice within their own domains and work collaboratively as true compartmentalized merged entities.

What can it mean to the industry: One-Stop Shop. Market is getting crowded and consumers are tired of being thrown around for support, sales, purchases, upgrades etc.

Read it lightly as its Saturday :-)


Popular posts from this blog

DeepLearningTrucker Part 1

Avastu Blog is migrating to; 1st Jan 2009 live


I will send out emails personally to those who are using my link(s) on their sites.

Thanks much for your co-operation and hope you enjoy the new site and its cool new features :-)

Not like the site is unlive or something..on the contrary, its beginning to get a lot of attention already. Well most of the work is done, you don't have to worry about anything though:

What won't change

Links/Referrals: I will be redirecting the links (all links which you may have cross-posted) to - so you don't have to do anything in all your posts and links. Although, I would urge however that you do change the permalinks, especially on your blogs etc yourselfThis blog is not going away anywhere but within a few months, I will consider discontinuing its usage. I won't obviously do …

Cloud Security: Eliminate humans from the "Information Supply Chain on the Web"

My upcoming article, part - 3 data center predictions for 2009, has a slideshot talking about the transition from the current age to the cloud computing age to eventually the ideation age- the age where you will have clouds that will emote but they will have no internal employees.

Biggest management disasters occur because internal folks are making a mess of the playground.

Om's blog is carrying an article about Cloud security and it is rather direct but also makes a lot of sense:

I don’t believe that clouds themselves will cause the security breaches and data theft they anticipate; in many ways, clouds will result in better security. Here’s why: Fewer humans –Most computer breaches are the result of human error; only 20-40 percent stem from technical malfunctions. Cloud operators that want to be profitable take humans out of the loop whenever possible.Better tools – Clouds can afford high-end data protection and security monitoring tools, as well as the experts to run them. I trust…