...represents a real opportunity for M&A services providers. While conducting my research into the M&A and broader corporate strategy services space, I observed that business intelligence and performance management (BI&PM) programs are still very high on the executive agenda. Increased investment in analytic capabilities, as well as moves to becoming more sophisticated and transparent, will lead to the end of the highly diversified organization. Why? With these new capabilities companies will have a better picture of their portfolio and will be able to more wisely invest/divest into core/non-core-related assets. In the next 4-5 years we will see -- induced/accelerated by the recession -- that companies will move closer again to their core business, and not only for cost reasons. Hence BI&PM will fuel M&A activity and also lead to better M&As. I am postulating that there is a positive correlation between "analytic maturity " and " M&A maturity".
EMC continues to tease the market with its management software ambitions, taking another step this week to build on its portfolio. On May 27, EMC announced its intent to acquire Configuresoft, a vendor of server configuration and change management (CCM) software. Forrester views this as a positive development for both companies but we eagerly await more.
While EMC must still make additional developmental moves to graduate into the “anchor” class of management vendors, its M&A activity has proven it is a formidable player in configuration and change management across a number of technology domains. Obviously, EMC has strength in storage, but it has also become a key vendor in the network domain with its Smarts (2005) and Voyence (2007) acquisitions, and its purchase of nLayers (2006) gives it some of the best visibility into the application domain. Servers have been a notable gap even though some good “skunk works” monitoring technology was developed within its Smarts team. Server CCM was one big domain missing from the portfolio.