Are tech-industry acquisitions always bad for CIOs? Are they
always bad for the acquiring company? Are they ever good for the
company being acquired?
A recent Associated Press article that quotes several CIOs seems
to say that the answers to those questions are yes, no, and no.
And that article makes a lot of nonsense.
Although it quotes some highly reputable CIOs whose comments
seem to endorse those views, the problem with the article is that
it attempts to assess a profoundly difficult question with a series
of lightweight observations. And in so doing, it continues to
perpetrate the stereotype of the CIO profession as one whose
practitioners have their heads stuck in the sand, who are detached
from the realities of the business world, and who yearn for the
good old days when nothing changed and unwavering predictability
ruled.
Referring to CIOs who have to cope with the repercussions of
tech-industry acquisitions, the article says, "Often they get new
headaches with multibillion-dollar deals by the likes of Oracle,
IBM, SAP, Dell and Hewlett-Packard. When you add the challenges
that come with any corporate acquisition, it's not hard to envision
a reverse trend eventually building: a drive to split up tech
companies that have grown too large."
So according to this piece, the big IT companies, any day now,
are going to start to break themselves up because they "have grown
too large."
And not only have they grown too large, but they have also made
life consistently worse for their CIO customers, according to some
comments in the article. In the most pointed of those anecdotal
remarks, one CIO says tech-industry acquisitions "never" result in
better deals for customers:
"I sit here and I think: What mergers have really benefited
everybody, both the companies and the customers? And there aren't a
whole lot. There are a lot more that go bad than are successful,"
says Rosen, a former president of Share, an organization of IBM
customers. "I have never seen a merger that saves the customer
money." (That's from Robert Rosen, whom the article identifies as
CIO for the National Institute of Arthritis and Musculoskeletal and
Skin Diseases.)