M & A in the Systems Management World

Network management software vendors have, until now, lived in a far different world from that of application management software vendors. Most enterprises have completely separate departments handling these two functions, and the sales channels of the vendors rarely cross paths, which underpins what is a fundamental disconnect between these two market segments.

The 451 Group, however, has found that several market drivers are causing these worlds to collide. IT organizations are demanding unified tools that manage applications and networks with a holistic view, thus allowing them to reach a higher level of enterprise control and subsequent ROI. And next-generation computing models, such as grid and on-demand computing, require a unified management platform to reach their full potential.

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Despite their enthusiasm for converged products, CIOs are concerned about the possibility of ending up with a cumbersome and expensive integrated framework that doesn?t work as well as the various best-of-breed point products. They are also worried about the difficulty of integrating the two very different “cultures” of in-house network management and application management teams. These concerns may slow adoption of converged services until the concept is proven.

“Predicting $3-4 Billion In Software M&A Over The Next 18 Months”