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Rabu, 23 April 2014

The Hard Things to Look for in Software Acquisitions - M2M Evolution

4/23/2014

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April 23, 2014

The Hard Things to Look for in Software Acquisitions


Today I will offer a thread of thought (is that what I meme?) on hardware companies that need to partner or become solutions partners.  In some ways this is very logical, though it may also be a sign that as a group we are suffering from stinking thinking.



First, the upside of moving to the solutions side:  

  • If you are unable to demonstrate how the hardware can benefit a business then you won’t reach anyone other than the small minority of geeky users who will base their decisions on performance characteristics.
  • Worse, you will miss the vast majority of opportunities that will not sell based on the gateways, but on the solutions.  
  • Even worse, your box gateway or sensor may be out-featured or out-performed by a technicality.  I know of many a great device that lost an RFP based on some marginal bias in weighting (e.g., “Yes, they performed well, but they don’t have the brand name like so-and -o.”).
  • Worst: You will have to constantly shave your margins as you compete for customers via the primary integrator’s desire to maximize profits.    

And the downside?...Read More



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