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Blog > July 2018 > Enterprise IT Acquisitions Enable Internal Innovation

Enterprise IT Acquisitions Enable Internal Innovation

The technology industry cyclically experiences consolidation via mergers and acquisitions. Some of these consolidations are positive for customers, while others lead to the virtual death of once vigorous technologies – HP’s acquisition of Autonomy in 2011 is a notorious example of the latter. Broadcom’s acquisition of CA is perhaps driven by a need to transform itself from strictly a hardware provider to offering a more information-driven value proposition. What’s unclear is whether this action can and will deliver incremental value to customers.

Still, anytime an enterprise sees a significant acquisition impacting a vendor upon which they rely for mission-essential products, prudent leadership must consider the potential consequences in terms of their enterprise goals and strategies. The risk of diminished investment in critical offerings, staff reductions to meet expense goals, and shifts in strategic direction of the acquired vendor and its products must all be meticulously considered. Enterprises depending on CA Technologies are experiencing this circumstance now, after Broadcom announced it would acquire the enterprise software vendor this week. While details are still emerging, it is plain Broadcom will have to rationalize expenses, not the least to balance the $18.9B all-cash transaction, $18B of which is new debt.

agreement-3489902-1920.jpgFor those enterprises that are concerned with the future direction of CA enterprise software, the quality and geography of its product support, or other aspects critical to their enterprise success, consider ASG. ASG has a history of growing by acquisition, certainly. Since its founding, it has competed with larger companies like BMC and CA in the performance, application and operations management markets, with well-received competitive offerings in those areas. While growing through acquisition, we’ve also innovated organically with our enterprise products. Recently, ASG expanded the capabilities of its transaction monitoring suite, TMON, by extending it with the PERFMAN product, now offered as TMON Performance Analyzer. This increases value to our customers and, through introduction of an open API, integrates performance analysis into the overall TMON dashboards or the reporting platforms of broader systems management solutions.

As we look ahead, we expect more consolidation of company and capabilities, by the market and by ASG. This is why our transformation into a provider of solutions to enable the information economy is providing value to our customers. We’ll continue to modernize our systems management offerings as we’ve modernized our market leading content management, data intelligence offerings. For example, we’ve implemented standards-based APIs to enable extension and integration, we’ve developed common and modern user experience standards across the product line, and we continue to innovate in capability, delivery and sales model to meet the evolving needs of customers.

We’ll watch if Broadcom treats its combination with CA as a financial transaction or an opportunity to grow by increasing the value to customers. We’ll watch and we’ll be there to serve our customers and, of course, CA customers should they find our approach to the market, to customer service and to innovation the better choice for their systems management needs.

Learn more about ASG’s momentum here.
Posted: 7/17/2018 8:48:23 AM by Rob Perry
Filed under :acquisition, ASG, Broadcom, CA, enterprise, IT, merger