Oracle consolidates while eBay obfuscates
When viewed a year ago, Oracle’s (ORCL) ‘stack’ of software applications had some very noticeable gaps vs. competitors SAP (SAP), IBM (IBM), and Microsoft (MSFT). While some see Oracle’s recent acquisitions of PeopleSoft and now Seibel (SEBL) as buying customers, viewing the software market as an ecosystem reveals both the logic and necessity of the mergers, given the industry’s evolution towards re-integration and the simplicity of single solutions providers.
This systemic method of industry analysis is one of the many tools discussed in the recently released book Hunter or Hunted: Technology, Innovation, and Competitive Strategy, authored by technology executive and business school professor Dave Rochlin. The book outlines how ecosystem dynamics, lifecycle behavior, and competitive barriers should influence both the timing and direction of technology acquisitions.
In contrast to Oracle’s strategy, according to Rochlin, “The reasons put forth by Ebay (EBAY) for spending billions to acquire Skype -- to improve the eBay user experience and create new revenue streams -- violate several important strategic ‘rules’ identified in the text.”
