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Software Consolidation- What's the impact for Sales?

The software industry is quickly settling into a gang of four: IBM, Microsoft, Oracle, and SAP. How will this impact sales in these companies and of those they aquire?

We all hear about the software aquisitions occurring- Oracle taking over PeopleSoft, HP aquiring Mercury Interactive, IBM acquiring FileNet, these are just some of the large efforts we have seen in the past 12 - 24 months.
Last year, 1,726 software companies were acquired, the highest number since 2000, according to investment firm Software Equity Group.
This year, watchers are tracking Cognos and Business Objects, both with annual revenue in the $1 billion range, as potential acquisitions. I wrote in a previous article about SAS's possible acquisition by IBM.
Business intelligence is hot, and the biggest vendors want in--hence Microsoft's acquisition of ProClarity last April.
However, do Sales rep's benefit after an acquisition?
I can say firsthand as I saw SAS aquire Data Flux and ABC Technologies, some folks made out fine, others struggled and left. Data Flux brought some junior sales reps and management when they came on board at SAS. Some of the management people stayed, but the majority of the sales rep's left over the course of a few months.
I would wager there is not alot of original Data Flux sales people left today.
ABC Technologies brought some technology heavy sales reps, who were both sales rep AND technology specialist. They had a hard time folding into SAS's culture, and SAS did not do a good job of retaining these talented folks much to SAS's peril. I watched as one talented rep was "managed out" of the company because she was not the typical "SAS" sales rep. I saw another guy rise within SAS and assume a sales management role.

IBM claims it has taken great care in preserving its customer relationships during acquisitions. "We invest more in technology than prior to the acquisition," says IBM. "We invest more in sales and support than the company did prior to the acquisition." While I can read these words, I have watched as folks from the aquiring companies wait and watch and leave. IBM can be very stringent in imposing it's culture, and that can rub some sales rep's the wrong way. Others appreciate the exposure working for a larger, more recognized company such as IBM can offer their sales careers. More vertical markets, different products lines, more opportunity.

I witnessed some PeopleSoft reps who were eliminated in the Oracle acquisition, as that is also always a possibility as well. This can occur in certain verticle markets and geography. Obviosuly there was some overlap in sales reps at Peoplesoft/Oracle, thus the elimination or re-positioning of some reps occurred.

An article in Information week adresses the innovation issues involved with the acquisition, check it out!


Does Software Consolidation stifle innovation?

This article discusses the impact of the Peoplesoft and Oracle merger
href= "http://www.findarticles.com/p/articles/mi_m0EIN/is_2005_Jan_11/ai_n8687362">Impact of PeopleSoft acquisition
http://www.findarticles.com/p/articles/mi_m0EIN/is_2005_Jan_11/ai_n8687362

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