CEO Supper Club: The Next Big Consolidation In Silicon Valley | Summary and Q&A

TL;DR

Enterprise software companies are likely to merge, specifically in the areas of activity stream and storage management, although not all companies will consolidate.

Key Insights

• ❓ Consolidation and fragmentation are cyclical patterns in the technology industry.
• 👨‍💼 Market consolidation is driven by the desire to gain market share and simplify business operations for buyers.
• 👾 The pace of delivery models and technological advancements can accelerate the consolidation and fragmentation cycles.
• ☢️ Oracle, SAP, and Salesforce are expected to be active in the consolidation process.
• ❓ It is still early in the consolidation process, and it may take 5 to 10 years to see the full impact.
• 👶 Some companies may focus on acquiring smaller companies, while others may try different strategies like developing new technology.
• 📁 File sharing and collaboration tools are becoming increasingly important in organizations.

Transcript

if you look at the enterprise software world now there's were many many many many companies that ultimately all Consolidated into a couple the same thing happened with Cloud sass you go first so I think you're going to see in you guys are kind of interesting I think you're going to see activity stream companies merge with storage management compani... Read More

Questions & Answers

Q: What is the likelihood of consolidation happening in the enterprise software market?

Consolidation is inevitable, but not all companies will merge. It depends on the natural product adjacencies and market dynamics.

Q: Why do companies feel the need to consolidate?

Consolidation makes it easier for buyers by reducing the number of suppliers, streamlining data and service models, and simplifying contracts and pricing.

Q: How do the big players like Oracle, SAP, and Salesforce fit into the consolidation process?

These big players may force consolidation by acquiring smaller companies. They have already started making smaller acquisitions and are expected to continue doing so.

Q: Will the consolidation process disrupt legacy systems management companies like CA and BMC?

The newer generation of developers, represented by companies like Salesforce, aims to disrupt and free organizations from the limitations of legacy systems management.

Summary & Key Takeaways

• The enterprise software industry is currently experiencing consolidation, similar to what happened in the cloud SaaS market.

• Activity stream companies are expected to merge with storage management companies, but not every company will consolidate.

• File sharing and collaboration tools are becoming increasingly important in organizations, leading to the convergence of different software products.