Guest post by Chris Pupillo, Technical Consultant, Cloud
Technology mergers and acquisitions have become a major force moving companies to the cloud in recent years. However, technology mergers and acquisitions fell 35% from 2011 to 2012, which would seem to indicate a threat to the rise of the cloud. Most of the decrease in mergers and acquisitions activity was related to concerns about sluggish macroeconomic conditions and the fact that the average size of deals dropped from $218 million in 2011 to $188 million in 2012. Impressively, in spite of these declines the cloud market continued to grow.
In fact the cloud market grew to represent more than 15% of the global technology mergers and acquisitions deal volume. There was also growth in many transformative megatrends such as social-mobile-cloud, big data analytics and accelerated adaptation. Research suggests that technology mergers and acquisitions will remain strong because both technology and non-technology industries will have to adapt to technology innovation.
Do you agree that the cloud market and other megatrends will continue to stay hot making this post ripe? Or do you believe that this is hype and the cloud market will soon cool off?