Analysis: Software M&A heats up as firms battle budget squeeze | @Reuters #finance #business

According to#PaulSandle and #PatriciaWright 2010, “Big-name #technology firms will compete to acquire niche #software groups in 2011 as part of a growth plan they hope will cater to recession-hit clients clamoring for a wider range of services.

Having learned the lessons of the dot-com bubble collapse in 2000, technology companies were quick to cut headcount — their biggest cost — at the start of the downturn.

And with revenues returning to growth, they have pockets full of cash at their disposal.

Major companies, such as IBM (IBM.N) and Oracle (ORCL.O), are buying specialist software makers so they can offer more to corporate customers who need to cut IT budgets, thereby holding on to high margin, long-term maintenance contracts.” Article Continued > #triciawright #paulsandle #finance #business #dealmaker #technology #software #consulting @IBM @Oracle @Reuters @Callistecomm