When do acquisitions make a company too big?

There seems to be a belief in some quarters that when it comes to IT companies, the larger the better; for example, Acquire Me! Oracle’s and SAP’s Next Likely Targets which quotes:

"A move by Big Blue, say on a midmarket ERP partner like Lawson or Infor, could presage further consolidation in that arena by Oracle and SAP." (The 451 Group report – Where Might Old Foes Oracle and SAP Each Look Next to Stave Off Apps Hunger Pangs?)

However, from a customer (and a partner) point-of-view, dealing with some larger ERP vendors means going through the bureaucracy to get even small things done. Also, large software vendors seem to go for a centralised control model. It might be old news, but at a conference in 2008, I was told by a senior local representative that Oracle’s process for confirming quotes for SA companies could only be done by Head Office in the US, this required a wait of several weeks before a quote could be approved.

Waiting that long for a quote might be OK in some countries, but South African business people are not typically enamoured by long decision cycles.

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3 thoughts on “When do acquisitions make a company too big?

  1. Pingback: Revisiting the Gartner Tier 2 ERP Magic Quadrant « The Manticore blog

  2. Pingback: When do acquisitions make a company too big? ERP1

  3. Pingback: When do acquisitions make a company too big? ERP Terms

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