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Cloud software companies are being acquired left and right (I, II, III, IV), but most of these...

  • Saturday, February 25, 2012, 10:15 AM ET
    Cloud software companies are being acquired left and right (I, II, III, IV), but most of these deals will be failures for the acquirers, says industry exec Flip Filipowski. The acquired companies sport agile, dynamic cultures whose best talent won't stick around post-merger, rather than deal with the bureaucracy of a larger firm. As a result, the acquiring companies will often end up fielding "immature half-baked offerings" that are surpassed by new upstarts.
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This news story has 6 comments:

  •  
    These company will be rewarded as long as cloud stays white. When cloud becomes dark and start raining. These will come down to earth from sky, just like rain.
    25 Feb 2012, 12:57 PM Reply Like
  •  
    sounds like someone read innovators dilemma
    25 Feb 2012, 02:08 PM Reply Like
  •  
    I think The Innovator's Dilemma is more about how incumbent companies get disrupted by smaller rivals offering products that doesn't have all of the features that the incumbent's product offers, but is cheaper and perhaps also easier to use/install, and which adds more functionality over time.

    Cloud software could very well be an example of the Innovator's Dilemma, even with all of the acquisitions being made. But I think Filipowski's argument is more about how the cultures of the incumbents won't allow them to successfully counter the upstarts, even if they're willing to cannibalize their traditional software sales in favor of the cloud software that they obtained from their acquisitions.
    25 Feb 2012, 03:24 PM Reply Like
  •  
    This headline assumes that the acquiring companies don't bother to find out who the key creative people are and get them signed up on contracts BEFORE they buy the company...

    This may even be an accurate prediction, given the trackrecord of many of these companies doing the buying.
    25 Feb 2012, 06:29 PM Reply Like
  •  
    Hard to view Flip's opinion as anything short of self serving. Flip, and how much money did you burn and how many companies destroyed via Divine?
    25 Feb 2012, 10:13 PM Reply Like
  •  
    There were IT services in the cloud for many decades before this latest supposedly new delivery model was invented. If the business has good financials and growth then it is a good business regardless of whether it is in the cloud or not.
    26 Feb 2012, 12:43 AM Reply Like
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