Are you going to be acquired?

Just occassionally (every day?), I am asked whether Nimsoft is going to be acquired. Prospective customers for some reason consider smaller companies a “risk” from acquisition.

I answer this question in the same way every time….

Any company can be acquired and quite honestly, larger companies are more likely to be acquired, and the effects of such an acquisition on the customers to be worse than smaller companies.

On Friday, Embarcadero Technologies announced that they are being acquired by Thoma Cressey Equity Partners.

A few weeks ago, HP announced that they are acquiring Mercury Interactive.….Think of the product overlap in this acquisition? Openview versus Topaz? The monitoring product overlap, the ETE response time overlap, the console overlap, the SLA overlap. I’m sure HP will come out with a product roadmap that says “we’ll take the best of breed from both sets of products and merge into a super product”. Read my lips – no new taxes.

And of course, Attachmate acquired NetIQ – finally putting them out of their misery.

What’s also interesting is that Gartner Group are suggesting that 2 out of the current “big four” will no longer retain that position through the next couple of years. A recent Gartner report stated “Of the Big Four vendors in 2005, only Computer Associates and IBM/Tivoli will be members of the Big Four in 2008 (0.7 probability).” This must be a little worrying for BMC Software or HP customers.

Anyhow, what’s the point? The point is that in many ways and somewhat ironically, as a smaller, privately held vendor, customers are actually more secure with our future and our committment to support them than they would be with a mega-vendor. I realize that sounds counter-intuitive but hopefully as the above starts to show, it is fact.

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