From A Second Tier Chinese Portal Site To An Enterprise Software Powerhouse?

from the seems-like-a-long-shot dept

Business Week is running an article looking at the changing strategies of chinadotcom. The company, which had always been a second tier portal site in China (not as popular as Sina, Netease or Sohu), is now trying to completely reinvent itself. They're selling off that going nowhere portal business, and are desperately trying to become an enterprise software player in the Chinese market. To do so, they've been using some of the cash they've been hoarding (from a boom-time IPO on the NASDAQ) to buy up struggling western enterprise software makers like Pivotal and Ross Systems. While the article seems to indicate this is a good strategy, they don't make it clear why. Going from a second tier portal to a consolidation play of widely distributed, previously failed, out-of-date enterprise software products seems like a shift sideways, rather than up.

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