The market for tech acquisitions in 2024 was mostly driven by strategic buyers who were looking dataroom.blog/top-tech-driven-ma-companies-overview to build capabilities in mission-critical subsectors such as artificial intelligence (i.e. Microsoft’s investment in OpenAI and Databricks acquisition) cloud and data analytics (i.e. Clearlake’s acquisition of Alteryx and IBM’s purchase of Apptio) as well as security (i.e. Cisco’s acquisition of Splunk, and Rocket Software’s purchase of Micro Focus). Tech vendors are increasingly interested on creating a single technology stack that can satisfy their customers’ toughest requirements.
To make a company’s strategy for technology acquisition work, the IT management team, senior engineers and all other employees need to have a strong “value culture” where they are focused on making decisions that maximize the value of the company’s expenditure. To achieve this, it is necessary to create competitive playing fields for the key supply-side sectors of the business and making sure that purchasing decision makers don’t let relationships rob them of bargaining power.
In the ideal world the procurement team is on the same page as the technology decision maker at each step of the tech acquisition process. This helps them ensure that purchasing decisions are based on requirements of the business, not the relationship with the supplier. It also helps in driving cost savings since it makes sure that the purchasing team doesn’t ‘direct’ the purchase to a single supplier. In the event of a disaster, an ineffective process could reduce a company’s bargaining power and result in an overspending. The Daimler Benz and Chrysler merger was an excellent illustration of this.
