Comments on: The MSP Software Industry: Following In Larry Ellison’s Footsteps? http://www.mspmentor.net/2009/10/12/the-msp-software-industry-following-in-larry-ellisons-footsteps/ Managed Services Blog for Top Managed Service Providers Fri, 19 Mar 2010 21:10:06 +0000 http://wordpress.org/?v=abc hourly 1 By: PacketTrap http://www.mspmentor.net/2009/10/12/the-msp-software-industry-following-in-larry-ellisons-footsteps/comment-page-1/#comment-50370 PacketTrap Wed, 14 Oct 2009 02:50:58 +0000 http://www.mspmentor.net/?p=4304#comment-50370 Joe - You're two blocks from PacketTrap's office. I bet you'll find alot more interesting stuff over here than in that overhyped event that's been losing attendance every year over the last three. Being in the MSP space and writing about it often, you should stop by. We have inside word that interesting stuff is on the consolidation / M&A horizon in the MSP space. There's some big players that will be in soon. It's coming. Matt www.PacketTrap.com Joe –

You’re two blocks from PacketTrap’s office. I bet you’ll find alot more interesting stuff over here than in that overhyped event that’s been losing attendance every year over the last three. Being in the MSP space and writing about it often, you should stop by. We have inside word that interesting stuff is on the consolidation / M&A horizon in the MSP space. There’s some big players that will be in soon. It’s coming.

Matt
http://www.PacketTrap.com

]]> By: Joe Panettieri http://www.mspmentor.net/2009/10/12/the-msp-software-industry-following-in-larry-ellisons-footsteps/comment-page-1/#comment-50368 Joe Panettieri Tue, 13 Oct 2009 19:31:12 +0000 http://www.mspmentor.net/?p=4304#comment-50368 LabTechSean: Thanks for the note. Just to be clear I'm not suggesting that all MSP software companies should or need to pursue M&As. Certainly, people are watching how GFI digests HoundDog (now called CFI Max). But remember, it can take years for a market to consolidate. In the enterprise space... PeopleSoft acquired JD Edwards in 2003; Oracle acquired PeopleSoft in 2004; Oracle acquired Siebel in 2005; and now the Oracle-Sun deal is pending. Big deals (and even small deals) take time. Plus, there are multiple scenarios facing software providers... 1. Organic growth: some will certainly take this route. If you're growing your top and bottom line, why potentially slow yourself down digesting an acquisition? 2. The tweener: Imagine a scenario where you're a growing, healthy software company. Do you buy up some smaller rivals for market share or a specific technology, or do you keep your wallet closed and potentially sell your own company to a software giant? In a way, you're caught between two options... wondering if the big guys will ever ring your doorbell but also mulling some buyouts of your own... 3. The seller: Perhaps motivated by cash flow issues or venture cap considerations. Again, I'm not suggesting all MSP software companies need to engage in M&A activities. Many won't. Some will. Potentially soon. How's that for a blogger making a vague prediction? Thanks again for reading, -jp LabTechSean: Thanks for the note. Just to be clear I’m not suggesting that all MSP software companies should or need to pursue M&As.

Certainly, people are watching how GFI digests HoundDog (now called CFI Max). But remember, it can take years for a market to consolidate. In the enterprise space… PeopleSoft acquired JD Edwards in 2003; Oracle acquired PeopleSoft in 2004; Oracle acquired Siebel in 2005; and now the Oracle-Sun deal is pending. Big deals (and even small deals) take time.

Plus, there are multiple scenarios facing software providers…

1. Organic growth: some will certainly take this route. If you’re growing your top and bottom line, why potentially slow yourself down digesting an acquisition?
2. The tweener: Imagine a scenario where you’re a growing, healthy software company. Do you buy up some smaller rivals for market share or a specific technology, or do you keep your wallet closed and potentially sell your own company to a software giant? In a way, you’re caught between two options… wondering if the big guys will ever ring your doorbell but also mulling some buyouts of your own…
3. The seller: Perhaps motivated by cash flow issues or venture cap considerations.

Again, I’m not suggesting all MSP software companies need to engage in M&A activities. Many won’t. Some will. Potentially soon. How’s that for a blogger making a vague prediction?

Thanks again for reading,
-jp

]]> By: LabTechSean http://www.mspmentor.net/2009/10/12/the-msp-software-industry-following-in-larry-ellisons-footsteps/comment-page-1/#comment-50366 LabTechSean Tue, 13 Oct 2009 16:44:32 +0000 http://www.mspmentor.net/?p=4304#comment-50366 Hi Joe, Great article. Just out of curiosity, why do you think some of the larger RMM and Serivce Delivery Platform companies have not started a mad rush on snatching up smaller but complimentary solutions to consolodate the market. We saw what we all thought was the begining of that with the GFI move, do you think that trend will continue? Hi Joe,

Great article. Just out of curiosity, why do you think some of the larger RMM and Serivce Delivery Platform companies have not started a mad rush on snatching up smaller but complimentary solutions to consolodate the market. We saw what we all thought was the begining of that with the GFI move, do you think that trend will continue?

]]> By: Joe Panettieri http://www.mspmentor.net/2009/10/12/the-msp-software-industry-following-in-larry-ellisons-footsteps/comment-page-1/#comment-50365 Joe Panettieri Tue, 13 Oct 2009 14:29:31 +0000 http://www.mspmentor.net/?p=4304#comment-50365 Hi Stu: I think we are seeing regional MSPs get acquired to form nation MSPs. Keep an eye on companies like Azaleos and mindSHIFT; both are good examples of buyers that are moving into new geographies and new technologies. Hi Stu: I think we are seeing regional MSPs get acquired to form nation MSPs. Keep an eye on companies like Azaleos and mindSHIFT; both are good examples of buyers that are moving into new geographies and new technologies.

]]> By: StuFinancesTech http://www.mspmentor.net/2009/10/12/the-msp-software-industry-following-in-larry-ellisons-footsteps/comment-page-1/#comment-50364 StuFinancesTech Tue, 13 Oct 2009 14:02:25 +0000 http://www.mspmentor.net/?p=4304#comment-50364 Joe, I'm surprised a rollup hasn't yet started in the MSP industry at all, not just in software. I thought for sure there would be a couple regional and maybe even a national MSP by now taking advantage of SAAS, cloud computing and remote tools to deliver from maybe one or a few strategically placed NOCs around the nation or region. Then again, thats the business side talking and integrating various technologies and platforms and such is something I dont really know much about. One thing I do notice is that the MSPs themselves seem to switch platforms often and dont seem married to any one, making me think maybe that integration isn't as tough as I might think it is. Joe, I’m surprised a rollup hasn’t yet started in the MSP industry at all, not just in software. I thought for sure there would be a couple regional and maybe even a national MSP by now taking advantage of SAAS, cloud computing and remote tools to deliver from maybe one or a few strategically placed NOCs around the nation or region. Then again, thats the business side talking and integrating various technologies and platforms and such is something I dont really know much about. One thing I do notice is that the MSPs themselves seem to switch platforms often and dont seem married to any one, making me think maybe that integration isn’t as tough as I might think it is.

]]> By: Joe Panettieri http://www.mspmentor.net/2009/10/12/the-msp-software-industry-following-in-larry-ellisons-footsteps/comment-page-1/#comment-50363 Joe Panettieri Tue, 13 Oct 2009 12:04:05 +0000 http://www.mspmentor.net/?p=4304#comment-50363 Tim: In some ways I guess we already have MSPs (like Verizon Business...) the size of Oracle-Sun. Tim: In some ways I guess we already have MSPs (like Verizon Business…) the size of Oracle-Sun.

]]> By: Tim Brewer http://www.mspmentor.net/2009/10/12/the-msp-software-industry-following-in-larry-ellisons-footsteps/comment-page-1/#comment-50362 Tim Brewer Tue, 13 Oct 2009 01:20:40 +0000 http://www.mspmentor.net/?p=4304#comment-50362 Great observation Joe how many years do you think before we have MSP's the size of Oracle-Sun? I don't see any around now.... do you think someone big will move into the MSP space or will we see something amazing come from within? Tim Great observation Joe how many years do you think before we have MSP’s the size of Oracle-Sun? I don’t see any around now…. do you think someone big will move into the MSP space or will we see something amazing come from within?

Tim

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