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The Future of IT Mega-Vendors

In this edition of BTalk we look at the prospects of the IT giants, like IBM, HP and Oracle. Do they really have much of a future?

Carter Lusher, Research Fellow at Ovum, believes they still have an important role in providing “the plumbing of IT infrastructure,” so companies can take advantage of applications and services that help them do operate more innovative businesses.

Does that mean these big players will focus on infrastructure and middleware, leaving applications to newer innovative players? No, not really, says Carter. He believes the big players will continue to acquire and integrate new players as they try to offer fully integrated IT solutions that reduces the diversity of vendors companies rely on.

But is that happening? Jens Butler is a Principal Analyst in Ovum’s IT Services and Sourcing group, covering Asia Pacific. He says the mega vendors are happy playing in the sandbit with innovative new application providers.

Perhaps they are, until they buy them! I wonder though, when the big players buy a disruptive player, does the product they bought lose its edge? I ask Carter what he thinks, using Oracle’s recent acquisition of RightNow technologies as an example.

Tell us what you think? Will these mega-vendors still have a role to play in 10 years?

First published on CBS News

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