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Software Companies - Merge or Die?

Posted by ryuzaki0 on from the skate-or-die dept.

pillageplunder writes "This article in Businessweek points out that large software companies like Siebel, BMC and Veritas are all warning that 2nd quarter results would be lower, and predicts a shakeout. According to the article, 'Investment bankers say half of the sector's 600 publicly traded companies are likely to be eliminated.' Ouch!"

6 of 278 comments (clear)

  1. Half? by Neil+Blender · · Score: 5, Interesting

    Once that happens, won't that mean about 75% of publicly traded companies will be gone since the dot com bust? A second round, I guess.

    I hope the company I work for never goes public. I'd rather stay small and slightly profitable than get a whole bunch of money and blow it.

  2. Why don't some companys just change their values? by Cyberhwk · · Score: 5, Interesting

    Why don't companys just change their values instead of trying to screw people? There was an article about bad customers on slashdot earlier and I think a bigger problem is poor treatment of customers. Seriously look at all the marketing where there are large rebates instead of just marking the product down to a more reasonable rate. All the rebates done hoping the people won't be able to collect on them later. This isn't exactly friendly business. Large companies who's values are supposed to be integrity and people are firing their workers and trying to cut every corner just to raise their own stock options. Wouldn't it be better business to make better products and hire people from the countries that you are selling to instead of making products that break and sending your money to other countries. Aren't large companies in effect draining the economy that they are trying to tap with their current business plans? I think business should just try to do a few things to improve their products. 1)Make things right the first time. I can't tell you how many companies I've stopped buying from cause their products are flawed. 2) Value people. Give friendly customer support and stop trying to give every excuse in the book not to work. If you offer a warrenty you should honor it for everyone and not just big business.

  3. Evolution in action... by Gordonjcp · · Score: 5, Interesting
    The way we use software is changing, so the companies that produce software must change. It's like the British motorcycle industry. Right up until the 1960s, you could buy one of a broad range of British bikes, or little scooters from Italy. When the Japanese motorcycles started to be imported, people realised that they could own a motorbike that was fun, cheap, went round corners, stopped, didn't piss oil everywhere and didn't need near-continuous maintenance.


    Open-source is the Japanese motorcycle industry. At the moment, we're about where motorcycles were in the late 1970s - they're pretty good, and they work and work well. But we haven't reached the Honda CG125 (a million pizza-delivery boys can't be wrong), or the mighty mighty Fireblade, yet...

  4. Re:Another Field by LostCluster · · Score: 4, Interesting

    Good, go, that means there will be more jobs for those of us who are both qualified AND actually like what we do...

    Sometimes I wonder if some of the trouble the IT industry got into was when IT became the highest-earning after-graduation major at many colleges. I was in college in 2000 and I saw many students who just plain did not understand their computer at all trying to learn how to be an IT geek just in hope of the money... it wouldn't surprise me that such people are now moving on to the next big thing now that IT isn't so hot anymore.

  5. Merge or Die? by evilviper · · Score: 4, Interesting
    Software Companies - Merge or Die?

    Here's an idea.... INNOVATE or die. Companies merging is not part of the capitolistic system. The idea is that you produce good enough products that enough people will pay to get them. Merging is just the corporate pyramid scheme.

    Just as Time Warner how great their merger with AOL worked out...
    --
    Slashdot gets worse every day... Pipedot: News for nerds, without the corporate slant
  6. It's only Natural by ROOK*CA · · Score: 4, Interesting

    Consolidation is only natural among relatively "young" business sectors ("economic history" is rife with examples). With the proliferation of companies in the sector, overlapping product offerings, finite market size and the struggle to offer REAL value propositions to customers it's rather inevitable.

    Now if you add the unique trends that are pressuring this sectors consolidation like Open-source and "off-shoring" it's rather a surprise it's taken this long for the media to recognize it. Let's face it the software sector has grown bloated and in a lot of cases has lost touch with customers needs. A good "shakin-up" is just the ticket for improved quality and reasonable margins (re: pricing).

    It's a great strength of capitalism that the market eventually will grab a shovel and bash in the heads of those companies whose demise will lead to better value for the customer (well that's the theory anyways ;-) ).