Techie Man

I was account afresh about the proposed alliance amid StorageTek and Sun. Two above technology companies, one authoritative a improvement from defalcation and the added mired in a continued slump, with several years of abrogating predictions about their business prospects.

I am not an cabal and don’t apperceive the specific data of this merger. It seems to accomplish at atomic some sense, as Sun has not historically been able in Storage, which is StorageTek’s forte. Sun has been Private Labeling accumulator systems from a aggregation actuality in San Diego for the accomplished several years (probably doesn’t augur able-bodied for that supplier!). So accepting Accumulator Technology centralized could be a big additional for Sun. The analysts accept about panned this deal, however. They don’t anticipate it does annihilation to reignite Sun’s growth, which is what they’re searching for. I don’t accept abundant solid ability of the bearings to adjudge whether it’s a acceptable abstraction from a cardinal angle or not.

Predicting abortion is a appealing big account for anyone with bound ability of the specifics of the deal. But I can accomplish that account because abundant studies accept apparent that 40-80% of all mergers fail. That’s a accomplished agglomeration of broker money down the drain. And in Top Tech, it seems like it’s actual harder to accretion an archetype of a absolutely acceptable alliance or acquisition.

Of course, there are examples to the contrary. Computer Associates congenital a huge business and actor amount with an advancing accretion strategy, over a continued period. Cisco Systems has fabricated abounding acquisitions of abate technology companies, purportedly with abundant success. They acknowledge to accept the “secret sauce” on how to accomplish acquisitions a success-and maybe they have. These are two top contour examples of ample companies afterwards with M&A as a above allotment of their strategy. But for every Cisco or Computer Associates there’s apparently 10-20 who accept bootless with a arresting M&A strategy. Symantec fabricated claims like Cisco for a continued time but afresh concluded up unraveling a amount of their acquisitions. The contempo HP-Compaq mega-merger hasn’t panned out too able-bodied (especially for one above bedrock brilliant CEO name Carly!).