Market moves towards consolidation

According to a Gartner prediction, year 2008 will see one-third of the CRM application vendors taking part in a consolidation or acquisition deals. The activity seems to be moving from the enterprise sector to the midmarket players. A break-up of vendors who are into acquisitions includes holding companies, ecosystem providers and transitional vendors. Gartner gives the example of M2M as a holding company; M2M has acquired Onyx but has not as yet made public its way forward with respect to the acquisition.

This in all probability means that the company will not act in a manner that may disturb the existing situation vis a vis Onyx and its clientele. As against a holding company, a transitional vendor will have plans for its acquisitions. A customer needs to be aware of these plans and he should check that such plans by the vendor do not hurt his own CRM implementation strategy. Read more.