Giant bulk acquisition of collective enclosure software industry entered the era oligarchs

At a cost of $19 billion, within six months of ten acquisitions. Crazy Oracle CEO Larry Ellison, is not to defeat SAP, not to exceed IBM, the software industry is on the scale advantages of the survival of the industry in the next few years only large and complete software companies to survive "Oracle held in September 19th in San Francisco of the United States ever since the largest technology conference. Larry Ellison believes that the software industry of this merger will continue, the future is only a few giants can survive.

Wall Street analysts at the conference predicted that in the next two or three years, the United States in the 600 listed software companies, at least half of the enterprises will disappear. In the future, including IBM, Microsoft, Oracle, SAP and other giants can survive, including BEA, BMC, Business Objects, Hyperion, including a number of commercial software vendors are facing the risk of being acquired.

Improve product line by M & A

The oracle at the end of last year to buy the highest price of $10 billion 300 million after the history of PeopleSoft software, according to Oracle CEO Alison revealed that the first half to Oracle has 10 large and small acquisitions in September 12th, Oracle announced with a total value of about $5 billion 850 million purchase price of Siebel System, in CRM (Customer Relationship Management) market.

In addition, Siebel and other large PeopleSoft application software provider, Oracle continues to strengthen in vertical industries in the acquisition, such as retail, software maker Retek ProfitLogic and September 21st just released to buy to provide logistics and transportation management software company G-Log. In addition to the above in order to snatch the acquisition of large customers, Oracle also acquired a series of software developers can improve the performance of Oracle products, such as TimesTen, Oblix, etc..

In September 12th, Oracle announced the acquisition of the Siebel system, in September 19th, SAP announced the acquisition of Canadian retail software developer Triversity. Prior to this, SAP is in the acquisition of independent software developers RETEK and Oracle launched a fierce bid, SAP CEO Kong Hanning has repeatedly announced that the acquisition of a specific object will learn from each other".

The most successful acquisition of the software industry is more than IBM is also worth billions of dollars through 43 years of successful merger and acquisition of the world's largest software services company in 10 years. For example, in 1995 to $3 billion 500 million acquisition of Lotus, in 1996 to $743 million acquisition of Tivoli, in 2001 to $1 billion acquisition of Informix's database business, in 2003 to $2 billion 100 million acquisition of Rational, etc..

Mature industry to scale first

"This is the first one industry to the inevitable" mature president of Oracle Asia Pacific Williams in an interview with this reporter believes that the main symbol is the "mature industry scale first, through the acquisition of more large manufacturers have a better product line, customers; small manufacturers will not be acquired but seek the emerge of itself and perish of itself. The whole industry showed 'Co opetition' situation, and CCW research analyst Cao Kaibin believes that the development of the software industry peak has passed, Microsoft industry is entering the negative growth in the crunch period.

"This acquisition will continue, this is the result of" customer from cost considerations IDC (Chinese) deputy general manager of Wanning introduction, in the past 9 years, the enterprise IT construction cost is reduced by nearly 20 times, more and more right to speak in the hands of customers.

For software companies, mergers and acquisitions to expand is also a very wise choice." CCID computer software business manager Du Wenluan said in an interview with reporters, which saves a large cost, but also can acquire customer information obtained in the subsequent investment in return, that is to say, the software enterprise is a "enclosure movement".

Oligopoly hinder industrial innovation

As WINDOWS security issues have been criticized by the industry, Wall Street analysts are also responsible for all kinds of standards and open mode will bring security risks.

In addition to security risks, the Wall Street Journal reporter at the OPEN WORLD conference is also worrying, the oligopoly model will make the software industry the lack of innovation, lack of vitality, in the presence of this only a few giants of the industrial environment, the future will be very difficult for a small company through innovation and growth.

IDC software division analyst Cao Kaibin also believes that the software industry this upstream and downstream take all mode will make the whole industry is no industry chain no division of labor is becoming more and more vitality and lack of innovation.

Oracle acquisition

Oracle acquired company benefit

The firm has become the world's second largest business software maker

SIEBEL become the boss of CRM software

RETEK retail software business fully strengthened

I-flex Solutions (India banking software company) by the acquisition of a stake in the banking software industry

TIMES TEN and OBLIX by purchasing software developers to improve product performance