Sometimes you wonder why companies are so desperate to make acquisitions, especially when everyone knows the rate of successful mergers is pretty low.
This summer’s cat fight between EMC and NetApp over Data Domain is a case in point (although plenty of rationalizations were offered). EMC’s Chuck Hollis has an interesting overview of the reasons companies have to make acquisitions, particularly in the technology industry, where innovation comes at a premium and only gives a short-lived competitive advantage. Hollis says:
the things that fuel the initial phases of growth of any successful IT vendor only have a limited life span — the rocket fuel doesn’t last forever.
To read more, please see EMC Touts M&A Skill Set at my Technology Insights blog on BNET.