Consolidation of Enterprise Software Companies

Barron’s writes:

The enterprise, or corporate, software business faces a world in which there is little organic growth, few compelling new applications and a dearth of untapped customers. Companies that need enterprise software mostly have what they need — and then some. Roger McNamee, a long-time technology investor and the founder of the private-equity firm Elevation Partners, asserts that the software business isn’t just growing up; it has already reached adulthood.

Lacking compelling new markets, and facing saturated demand for their existing wares, the industry’s largest players are doing the logical thing: They’re taking advantage of their strong balance sheets and buying growth. They are, it seems, proving that Larry Ellison knew exactly what he was talking about all along.

Published by

Rajesh Jain

An Entrepreneur based in Mumbai, India.