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Thursday, June 07, 2007

Oracle and Cisco growing not just by leaps and bounds. Mergers/Acquisitions and the endless technology wars...

In all possible ways the empire is striking all over to build more and more fortresses. Yep the giant database and ERP leader ORACLE is in a massive acquisition spree for quite some time now, it's hunger to lead the industry has always been in the forefront of its policies. Take a look at the acquisitions that this company has made in the recent years. (Is this all to keep ahead of SAP?)

http://www.oracle.com/corporate/acquisition.html

People soft for $10.3 billion in 2005
Retek for $631 million in 2005, this take over was a win over SAP's bidding and ORACLE emerged as the victor in the sharp bidding war.
Siebel systems for $5.85 billion in 2006
Hyperion solutions for $3.3 billion in 2007

Inspite of all these deals, there is a great rumor that Oracle is planning a take over SAP to bring an end to the cold war.
And Microsoft is trying to portray its influence in the ERP segment. They are buying different companies and integrating systems to show that nothing is limited to their reach and they can create a mark everywhere. (Though they are just a single coral island in the ERP ocean)
Let's wait and see what happens...

The other major company in the acquisition mode is the network giant Cisco, last year they were ranked as the second largest in the world, based on an organization's cash reserves. Their list of acquired or companies planned to acquire are Broadware technologies, Sypixx, Topspin to name a few.

Recently Cisco expanded its boundaries to other areas, remarkably there is a tussle between Microsoft and Cisco in the IP communications were the later is a hardware based IP leader and Microsoft, leader in the desktop application systems.

And Cisco is also coming up a big way in the area of video conferencing were HP is trying to make their mark with the Halo collaboration systems.
Cisco bought few video surveillance system developers, which is also being eyed by other giants like IBM and HP.

Not to limit, they are also establishing in the systems management and security software, which had always been the favorite kid of the greater three in this area IBM, HP and Computer Associates.

Speculations are that a potential battle emerging, where Cisco and other notable leaders, such as Dell, HP, IBM, and Sun, play tug-of-war over where network intelligence should reside - either in network gear, such as switches and routers, or in clusters of servers and blades.

An other arena or the type of industry is the Original Contract Manufacturer's or OCM's in which the current hot wave is, Flextronics to buy it's arch rival Solectron for $3.6 billion.

Meanwhile the daily clashers Microsoft and Google are going with zoom lenses to acquire all possible small and mid sized companies in their business or their opponent's business to make their foothold stronger and deeper as ever.

Why do comapnies acquire other companies

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