What is Happening? Earlier this week, several trade media outlets reported that Dell was in talks to acquire one of its core software partners, Quest Software. Quest offers solutions designed to “simplify the management of IT across physical, virtual and cloud environments,” according to its website. Regardless of whether or not the acquisition occurs, Saugatuck sees this type of activity as another indicator of two key trends:
- Enterprise IT leaders and organizations are looking to traditional, IT Master Brands (“comfort vendors,” as we call them) for ways to manage increasingly-uncertain IT architectures and environments; and
- Traditional IT Master Brands are shifting their M&A activity to not only maintain their enterprise presence, but to establish or enhance credibility in a shifting, “boundary-free” IT and business environment.
Why is it Happening? Leading, competitive IT providers constantly acquire and divest other providers, technologies, and services to maintain and improve their competitive positioning. They follow trends based on what they see a critical mass of enterprise customers doing. And what the providers see their customers doing now is not only moving to Cloud, but changing – really, re-architecting – their IT and business infrastructures to reflect changing ways of doing business, and to reflect increasing/changing business opportunities....