What Does this Mean to the Technology Market?
- The overall market for technologies used inside the enterprise is mature. With few exceptions, the opportunity to sell technology used solely within the four walls of a company has passed. Naturally, there will be exceptions by industry, such as healthcare and public sector, and sporadic technology spending driven by regulations or compliance initiatives, such as Sarbanes-Oxley.
- More M&A will occur in technology markets. Oracle's success means other vendors will execute deals. Numerous vendors are targets, notably Siebel Systems and BEA.
- Standardize the technology backbone within the enterprise. Most CIOs have the mandate of reducing the complexity and cost of enterprise technologies. Executing standardization strategies enables CIOs to do two things: hold total IT budgets flat while freeing up dollars to fund technology-enabled business initiatives.