Why old-school tech giants need M&A to stay relevant

Why old-school tech giants need M&A to stay relevant

There’s no better time than the present for established enterprise players like IBM, Salesforce, and Oracle to swallow up bleeding-edge business intelligence companies.

From SAP to Microsoft, established players are fighting to be the all-encompassing solution for the enterprise. Yet, they’ve been stagnating. Hewlett-Packard is trying to architect a seemingly endless turnaround. IBM is culminating a 10-year campaign to focus on high-margin services and software, but at the expense of lost market share in its hardware business. Only now is Microsoft focusing on the cloud, a move that almost looks like too little, too late.

The only way anyone will emerge as a clear winner is through M&A (mergers and acquisitions). And executives have suggested as much — focusing on cloud and big data acquisitions in particular. For the remainder of 2014, I predict a strong increase in M&A activity, particularly in business intelligence.

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