Shall We Dance?

Partnership, M&A activity to boom in enterprise interoperability through 2003

Waltham, MA  July 16, 2002  Significant and increasing partnership and merger/acquisition activity will characterize the enterprise software market over the next 18 months as suppliers scramble to meet customers' growing calls for enterprise interoperability (EIO), according to a new report from Kinetic Information.

The report stated that mounting economic and competitive pressures are causing business technology buyers and users to focus sharply on making their business-critical information systems work seamlessly together. The prize for interoperability is a more competitive and profitable company, thanks to increased efficiency and responsiveness. And, because true interoperability requires application, connectivity and process technologies that typically are not available from a single provider, suppliers in one arena must join with suppliers in the others to give customers what they want.

"For many suppliers, the question comes down to 'make versus buy,' as it often is more cost-effective to 'buy' a needed capability from someone else than it is to develop it yourself," said Kinetic Information's President Steve Weissman. "But for others, the question is one of survival, as smaller companies in particular may seek a 'sugar daddy' to provide needed funding even at the cost of their own future independence."

Weissman lists several recent transactions as harbingers of the "deluge" to come, including Novell/Silverstream, Adobe/Accelio, and FileNET/eGrail. In such cases, he said, "Smart companies move quickly to chase a significant share of a $30 billion-plus opportunity that is already ripe for the picking."

Information about the report "Mapping the Market for Enterprise Interoperability: Friends, Foes & Paths to Profit" can be found on the Kinetic Information Web site at