Wednesday, August 23, 2006

Big Blue on the move...

IBMs latest acquisition of Internet Security Systems Inc. has sent some signals in the market. Here's the news.

By far...largest in this domain, this acquisition shows how deep pockets can help bring consolidation. IBM is now hoping that being big will help ISS too. What if its assets become less useful due to the acquisition and the merger with IBM? What I mean is ...what if the employees leave due to dislike to the Big Blue's culture and loss of identity?

IBM is big and fat and many times, acquisitions do not unlock the value due to cultural differences in the companies. IBM will do the same set of activities to ISS as it did to Lotus Notes. Try to integrate its products with its own product range. Was that a success.... your guess is as good as mine.

IBM also bought MRO software and Filenet in recent past. Is IBM good at acquisitions?

Let us see what IBM buys next and what will the rivals do....any guesses ?

No comments: