The other day I equated the idea of merging Microsoft and SAP as essentially corporate misconduct. The following day I felt as though I might have over reacted. I have numerous friends at Microsoft and even know someone working on their corporate strategy team. But after reading this article at Business Week, I am not certain I did NOT over react.
While Microsoft hasn't stated what their motivation for the proposed merger would be, the article throws out a few theories. The best theory they have is that the combined Microsoft and SAP would be a "One Stop Shop" for IT houses. The theory is that large organizations could come to Microsoft and buy ALL their software and it would all work together. Having been an IT consultant before business school I know that the LAST thing most CIOs want is more lock-in to Microsoft products. They are sick and tired of having to deal with their buggy, insecure software and they want MORE competition, not less.
I stand by my original call for Microsoft to start returning their cash pile to the owners of the company, shareholders! Does anyone really believe that they would consider this merger if they weren't sitting on ~$60 Billion in cash?
No comments:
Post a Comment