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Posts Tagged ‘Microsoft

Vertical integration as a cloud competitive weapon

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When will the cloud providers begin acquiring product companies in order to keep the technology out of the hands of their competition?

Is that a strategy worth pursuing?

Many clouds are using open source technology to power their solutions, but I assume many of them have reliance on commercial products as well.  Could one cloud get an upper hand over the others by bringing a leading edge commercial product in house, integrating it tightly into one’s own cloud, and then end-of-lifeing the commercial version?

If you believe that the winners of the cloud game will be won by those firms with the greatest ability to control and continually shrink OPEX then maybe it is worth for big cloud players to bid against the typical acquirers of typical infrastructure technology (MSFT, Symantec, etc) in order to keep that technology out of the hands of the other clouds.

Are there any commercial products that are so clearly differentiated and powerful that they’d be worth a cloud provider paying up to acquire?

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Written by John Gannon

June 26, 2009 at 4:23 pm

2009 Predictions

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cb

Every blogger is doing a 2009 predictions post at this time of year, so why shouldn’t I?  In fact, this is the only time I’ll be able to say my predictions for the previous year were perfect (because I was zero-for-zero), so I’m going to enjoy my unblemished record while I can…

VMware gets acquired:  Whomever owns VMW will own the 21st century datacenter.  Cisco and Microsoft have enough cash on the balance sheet to foot the bill, but will they?  A Cisco/EMC merger would be pretty interesting, too.

Someone purchases Citrix: Again, Cisco and Microsoft would be logical acquirers.  Cisco is focused on growing the application side of their business and Microsoft can always use more ammo against VMware.

Continued slow growth of cloud computing in the enterprise:  Due to concerns about security, cloud computing adoption in the enterprise will still severely lag that of the SMB/SME markets.

Social media works its way into enterprise IT:  I think there is huge value in leveraging social media to help IT professionals do their jobs better.  New entrants to the enterprise IT market that lack the baggage of legacy product lines will integrate social media into their products and use rich internet application technologies to enable that integration.

M&A frenzy begins in Q2: Right around the middle of 2009 I predict that investors and operating companies will perceive a (near) bottom in the market and will go shopping in earnest for assets and companies.

Feel free to comment on these predictions or add some of your own!

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Written by John Gannon

December 17, 2008 at 2:48 pm

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