Streetinsider.com recently posted its commentary following IDC’s 2010 prediction that IBM would acquire Juniper Network. This may be a response to HP’s ongoing acquisition of 3Com and the continuing speculation of a potential Cisco-EMC merger.
The much delayed completion of the acquisiton of Sun Microsystems by Oracle will likely come to conclusion during the first of 2010.
Seeing itself more a bridesmaid than a bride is Brocade, which has put up its “For Sale” sign and seen no real suitor moving to take the offer. As far back as October 2009, Gigaom analysts pointed to Juniper as a potential buyer for Brocade. IBM would have also been a good suitor but the overlap is in the Foundry products (assuming Big Blue does acquire Juniper).
I still think Brocade would made a fine addition to HP. Of course Brocade may need to get rid of its Foundry portfolio to minimize overlap with HP’s Procurve offerring.
Assuming that Cisco and EMC do combine, that would leave NetApp and HDS as the lone pure play storage vendors. Can these two survive in an environment where customers want true ease of use, best possible integration, and one throat-to-choke accountability from their vendors?
If you look back at all this a proliferation of vendors came about because customers clamored for more choice. But while enterprises say they like choice because it allows them to haggle on the price, in reality, they will turn to one vendor who has everything because its simply easier to deal with one supplier than a multitude of vendors.
Having a choice of sources is great only in as much as it gives you the perception of freedom to pick what you want. But choice brings chaos to the equation. This goes agaiinst the grain of businesses that must operate in an orderly fashion so that processes can be streamlined resulting in greater efficiency, higher productivity and lower total cost of doing business. Which if my math is correct will mean greater profits and better shareholder value.
So the old adage of vendor lock-in doesn’t hold sway in today’s highly competitive world. As one CEO told me recently, “At the end of the day, its really not a matter of giving customers a wide array of choices to choose from. It is giving each customer the product that he or she will want to buy. And that could be just one product it just so happens to look a little different to the individual customer.”
Smoke and mirrors!