The Collapsing Universe of Social Business

Dion Hinchcliffe over at the Enterprise 2.0 blog asks “Will Social Software Startups ‘Collapse into the orbit’ of the big vendors?“. He shows just a small subset of the mergers and acquisitions in the space in the past few years, and the picture painted is one of significant consolidation in the social media playing field.

This is a predictable shift, based upon our view of social business software, and the symbiotic relationships between social business platforms and social business applications. Because siloed social business applications make little sense (see here), it is a natural progression for social business application vendors to become closely bound to particular vendors’ platforms. Once the integration between the systems becomes close enough, and enough customers exist for the social business application, it is rather likely that many of the social business applications will be consolidated into platform vendors like IBM, Jive, Salesforce.com, and, Microsoft. Because the number of integrated business processes multiplies the value of the platform itself, it is a natural progression to see these platform vendors expanding the natural value of the platforms through acquisition.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s