Why try to innovate when you can buy to innovate ?


Share on LinkedIn

There’s a bit of a trend going on with the legacy vendors right now. Before, they burned through R&D budgets on a very risk averse basis in the hope of creating something potentially innovative. But the trouble with that method is you’re still very much tied to the ideals and thoughts that exist in the business which, let’s face it, are a little blinkered. It was the old case of being too close to the product to really break out from it.

However now there’s been two recent acquisitions that’s taken my notice. TIBCO have recently acquired a small Paris based startup called Maporama to pull in their geovisual and geospacial solutions into the Spotfire analytics suite.

And SoftwareAG have just announced investment in a mobile solutions startup called MetaQuark, which includes a buy-out option, to bolster their presumably lacking mobile capabilities and compliment their Big Data and Cloud offerings.

This isn’t new. None of this is really. But what I’m drawing attention to is that instead of wasting time with an R&D model, or going down the grotty M&A route with a competitor, larger and less innovative dinosaurs are now targeting the startup revolution where there’s far more talent, buzz and headline grabbing opportunity. Apart from that it’s also carbon-copy of the current Silicon Valley model, I’m surprised IBM hasn’t bought Dropbox after their own recent buy of Mailbox for their own Lotus product yet. I’m sure something will happen in that direction.

If anything, other than celebrating accelerated ‘innovation’ where it was lacking it’s a bit of a vote of no confidence in internal R&D talent to come up with something themselves.

So, if you’re a fresh startup with something really cool, you have the option of trying to court a Velociraptor like Facebook with your plumage or maybe even a Diplodicus like Oracle it would now seem. Or just stay independent.

It all depends now on which dinosaur species you choose to mate with.

Republished with author's permission from original post.

Theo Priestley
Theo Priestley is Vice President and Chief Evangelist at Software AG, responsible for enabling the marketing and voice of the industry's leading Business Process, Big Data/ In-Memory/ Complex Event Processing, Integration and Transaction suite of platforms. Theo writes for several technology and business related sites including his own successful blog IT Redux. When he isn't evangelizing he's playing videogames, collecting comics and takes the odd photo now and then. Theo was previously an independent industry analyst and successful enterprise transformation consultant.


Please use comments to add value to the discussion. Maximum one link to an educational blog post or article. We will NOT PUBLISH brief comments like "good post," comments that mainly promote links, or comments with links to companies, products, or services.

Please enter your comment!
Please enter your name here