Wednesday, December 15, 2004

The New York Times > Technology > Software Sector Finally Enters a Merger Phase

The New York Times > Technology > Software Sector Finally Enters a Merger Phase: "The new rules of survival in the corporate software business, according to Lawrence J. Ellison, founder and chief executive of Oracle, mean that companies must be able to steadily improve their products and lower costs.
'The only way to do that is get bigger and sell more software,' Mr. Ellison said in an interview on Monday. 'Size matters in software and so does scale.'
The consolidation trend could well have a ways to run. In a new book, 'The Business of Software,' Michael A. Cusumano, a professor at the Massachusetts Institute of Technology's Sloan School of Management, writes that there are probably 'too many software companies in the world by a factor of three or more.'"
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