High Tech Shakeout Coming?

from the ready-or-not... dept

While the business press has been so focused on Oracle’s hostile takeover attempt of PeopleSoft, not too many have been reporting that it might signal the beginning of a significant trend in certain high tech sectors. As the industries start to mature, many are ripe for restructuring, often via mergers. The analysis provided in the McKinsey Quarterly (who, it should be noted, probably has some incentive to push more companies to merge, so they can get more consulting business telling companies how to merge) suggests that this realization will lead to many more hostile takeovers — something that isn’t often seen in the tech world. Certainly, there are some industries that are maturing and commoditizing products (which is a good thing), which should lead to opportunities for certain industries to restructure. What’s much more interesting, however, are the opportunities this creates for smaller businesses to leverage both the mature industries and the upheaval to create new and innovative products and services.

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