Continuing his acquisition binge, Oracle's (NYSE:ORCL) Ellison acquires Hyperion (HYSL) for $3.3 Billion. This also continues the consolidation of the Enterprise Software space, which is now only left with SAP (NYSE:SAP) as the major other player. WSJ Coverage here.
There are, however, a number of mid and small sized companies: Opentext (NASDAQ:OTEX) (Content Management; Market Cap $1.08 Billion), Informatica (NASDAQ:INFA) (Data Integration; Market Cap $1.1 Billion), Business Objects (BOBJ) (Business Intelligence; Market Cap $3.1 Billion), Cognos (CGNS) (Business Intelligence; Market Cap $3.5 Billion), and numerous “walking dead” smaller ones like iMany, Selectica, …
SAP, of course, has a stated strategy of not acquiring much of anything, relying on trying to fill their product line gaps by internal development efforts.
IBM (NYSE:IBM), on the other hand, has systematically rolled up numerous enterprise infrastructure software companies, and is likely to continue doing so.
This raises a few questions in my mind:
(1) Can SAP stick to this attitude, and still manage to fill the gaps in their portfolio? One major gap, for example, is Content Management. While OpenText is still independent, I think, they should pick it up. Or else, Oracle will. [IBM acquired FileNet.]
(2) Is Informatica going to get acquired by IBM as well, or will it manage to scale itself with a roll-up strategy of its own?
(3) Should Business Objects and Cognos merge, to figure out their own roll-up plans?
In any case, there will be a lot more consolidation in Enterprise Software this year!