PxPixel
2008 - year of consolidation? - PC Retail

2008 - year of consolidation?

Oracle keynote-fest has tech bigwigs predicting tech industry consolidation next year
Author:
Publish date:
7_CPW_InStore_CouchLaptop.jpg

Speaking at Oracle's Open world conference in San Fransisco, HP boss Mark Hurd said he thought the technology industry was due for another round of consolidation. "If you look at the math right now in the tech industry ... only a handful of players have more than $100 billion in cash," he said.

He implied that that money's got to go somewhere (I'll take some off your hands, Mark), and once you've dealt with dividends and stock reacquisitions that just leaves company acquisitions. The fact that this comes from Hurd, who essentially owes his job to his predecessor Carly Fiorina acquiring Compaq to the perceived detriment of HP, is somewhat ironic.

This trend is already happening in the corporate software market, where IBM has been the most recent acquirer of a business intelligence company, with its $5 billion purchase of Cognos. This follows SAP shelling out £6.8 bn for Business Objects in February and Oracle buying Hyperion for $3.3 bn in February.

In the hardware space we've already had Acer and Gateway/Packard Bell, Dell moving into data storage through equalogic, Logitech expaning into security via WiLife and so on.

There do seem to be a lot of fat-cats with money to burn and if you look at companies like Nokia getting into satnav, Google getting into smartphones and Microsoft getting into social networking, there's clearly some 'blue-sky' thinking going on about where to put it. Time for that .com start up I think.

Related

7_CPW_InStore_CouchLaptop.jpg

No XP in 2008

Microsoft will stop making the OEM version of XP Pro at the end of this year.

5_2008_web.jpg

2008: The Year That Was

In the first of a two-part feature, we take a look back at the events and news that made 2008 one of the most important in the channel's history. Today, Andrew Wooden take a look at the first half of the year?

7_CPW_InStore_CouchLaptop.jpg

Aten's two year plan

CHANNEL EXPO 2007: Taiwan based connectivity products comany, Aten has revealed its plans to push into the UK channel over the next two years.