Comments on: SAIC/Forterra acquisition: what it means for the enterprise immersive software market http://www.thinkbalm.com/2010/02/08/saicforterra-acquisition-what-it-means-for-the-enterprise-immersive-software-market/ Immersive Internet insights & expertise Fri, 25 Jun 2010 18:05:08 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Erica Driver http://www.thinkbalm.com/2010/02/08/saicforterra-acquisition-what-it-means-for-the-enterprise-immersive-software-market/comment-page-1/#comment-778 Erica Driver Wed, 24 Feb 2010 18:04:28 +0000 http://www.thinkbalm.com/?p=3530#comment-778 Sandy -- No, I don't think the acquisition of Forterra OLIVE by SAIC will slow down the Immersive Internet. I think consolidation is necessary and inevitable in this emerging market. There is no way a $50M USD software market can sustain two dozen vendors. It can support a few vendors -- not two dozen. All the vendors in this market are small (or are large vendors with a very small investment in immersive technology) so this type of change is to be expected. In 2010, we expect to see implementations break out of the experiment-and-pilot ghetto; a wave of products move from alpha and beta to general release; and new alliances form, thereby creating new value. (See the Jan. 13, 2010 ThinkBalm blog post, "Enterprise immersive software trends for 2010" at http://www.thinkbalm.com/2010/01/13/enterprise-immersive-software-trends-for-2010-2/. Sandy — No, I don’t think the acquisition of Forterra OLIVE by SAIC will slow down the Immersive Internet.
I think consolidation is necessary and inevitable in this emerging market. There is no way a $50M USD software market can sustain two dozen vendors. It can support a few vendors — not two dozen. All the vendors in this market are small (or are large vendors with a very small investment in immersive technology) so this type of change is to be expected. In 2010, we expect to see implementations break out of the experiment-and-pilot ghetto; a wave of products move from alpha and beta to general release; and new alliances form, thereby creating new value. (See the Jan. 13, 2010 ThinkBalm blog post, “Enterprise immersive software trends for 2010″ at http://www.thinkbalm.com/2010/01/13/enterprise-immersive-software-trends-for-2010-2/.

]]> By: Sandy http://www.thinkbalm.com/2010/02/08/saicforterra-acquisition-what-it-means-for-the-enterprise-immersive-software-market/comment-page-1/#comment-774 Sandy Thu, 18 Feb 2010 21:16:15 +0000 http://www.thinkbalm.com/?p=3530#comment-774 Do you think it's possible that this will slow immersive Internet down? Afterall, this is commodity simulation compared to the very expensive platforms. Time will certainly tell the outcome. Do you think it’s possible that this will slow immersive Internet down? Afterall, this is commodity simulation compared to the very expensive platforms. Time will certainly tell the outcome.

]]> By: Erica Driver http://www.thinkbalm.com/2010/02/08/saicforterra-acquisition-what-it-means-for-the-enterprise-immersive-software-market/comment-page-1/#comment-768 Erica Driver Mon, 08 Feb 2010 20:16:43 +0000 http://www.thinkbalm.com/?p=3530#comment-768 Kent: You make fair points. A lot can go wrong in an acquisition. We will be staying in touch with the SAIC team and keeping a close eye on how things progress. Kent: You make fair points. A lot can go wrong in an acquisition. We will be staying in touch with the SAIC team and keeping a close eye on how things progress.

]]> By: Kent Fasail http://www.thinkbalm.com/2010/02/08/saicforterra-acquisition-what-it-means-for-the-enterprise-immersive-software-market/comment-page-1/#comment-767 Kent Fasail Mon, 08 Feb 2010 20:01:39 +0000 http://www.thinkbalm.com/?p=3530#comment-767 Erica - let's be real about "OLIVE just gained momentum..." My experience with IT mergers (n=50+) says that 80% of the time, the acquirer screws up the acquisition and the little company never gets to market or scale. In a successful scenario, what usually happens is that the smaller company's momentum stalls for at least a year, as it gets mired down in the politics and slow-moving processes. But, if that acquisition gets executive sponsorship, things start moving in the right direction. Regarding the value of Forterra's channel partnerships - the value is next to zero at this point, and is one major reason why the company had to be sold. This market is new, and as such, it is fueled by mercenary salesmanship. The companies that will get to scale faster than others will be the ones who have passionate execs who can sell. Anyone who is telling you that they are selling through channel relationships should be viewed with a great deal of suspicion. It takes forever to build a worthwhile channel relationship and train their force to sell. Remember, this is software, not a network filer. Erica – let’s be real about “OLIVE just gained momentum…” My experience with IT mergers (n=50+) says that 80% of the time, the acquirer screws up the acquisition and the little company never gets to market or scale.

In a successful scenario, what usually happens is that the smaller company’s momentum stalls for at least a year, as it gets mired down in the politics and slow-moving processes. But, if that acquisition gets executive sponsorship, things start moving in the right direction.

Regarding the value of Forterra’s channel partnerships – the value is next to zero at this point, and is one major reason why the company had to be sold. This market is new, and as such, it is fueled by mercenary salesmanship. The companies that will get to scale faster than others will be the ones who have passionate execs who can sell. Anyone who is telling you that they are selling through channel relationships should be viewed with a great deal of suspicion. It takes forever to build a worthwhile channel relationship and train their force to sell. Remember, this is software, not a network filer.

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