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IDC
Assesses Impact of Consolidation on IT Industry
Consolidation has increased as technology markets mature, and merger
and acquisition (M&A) activity in the IT industry has reached
a very high rate, according to a new study from IDC.
In light of recent mergers, including the $25 billion HP-Compaq
deal and IBM's $3.5 billion acquisition of PwC Consulting, IDC has
evaluated the effect of the IBM-PwC Consulting deal and other potential
M&A scenarios on the IT services, software and hardware markets.
However, mergers also involve significant integration and other
management challenges. "Although consolidation has obvious
benefits, success should not be taken for granted," said Chris
Ingle, Group Consultant for IDC's European Systems Group. "Any
vendor considering consolidation should be wary, as the main winners
in these scenarios are often competitors. Merged companies become
so focused on managing the merger that they lose sight of their
customers and leave rivals to capitalize on lost opportunities."
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