Data warehouse mergers and acquisitions, whether through vendor consolidation or other company mergers, require a solid, long-term plan. Forrester Research Inc.'s James Kobielus offers advice and guidelines for CIOs experiencing a data warehouse merger or acquisition.
SPEAKER: James Kobielus, senior analyst on data warehousing and predictive analytics, Forrester Research Inc.
BIOGRAPHY: Kobielus has more than 20 years' experience in the IT industry and is a recognized authority on data warehousing, business intelligence, master data management, data integration, data warehousing, data mining, data quality, database management systems, governance risk compliance, and federated identity management. He has also held positions as an industry analyst, systems analyst, consultant and product management in the distributed computing and telecommunications sectors.
Read the full transcript from this podcast below:
Joyce Chutchian: Hello and welcome to another Searchcio.com Podcast. My name is Joyce Chutchian, editor of SearchCIO.com. Today's topic is on mergers, acquisitions, and data warehousing; best strategies for CIO's.
As all CIO's know, mergers and acquisitions at any company, regardless of the industry, can be an IT nightmare. But it can also be an exciting challenge for the IT organization and the CIO. Whether it be a merger among your key vendors or your own company merging with another, the process can be done successfully if you have the right strategies in place.
Joining me today to help us understand more about such IT issues is James Kobielus, Senior Analyst on Data Warehousing and Predictive Analytics at Forrester Research. Hello Jim.
James Kobielus: Hi Joyce.
Joyce Chutchian: Thanks for joining me today.
James Kobielus: For sure.
Joyce Chutchian: Jim has been in the IT industry since the mid 1980's and has held a variety of analyst, consulting and product management positions. So, let's get started Jim. First can you tell me a little bit about how mergers and acquisitionsaffect the users of the acquired companies?
James Kobielus: Yes. Mergers and acquisitions generally in the IT world tend to introduce sort of a bipolar element in enterprises response. On the one hand they introduce fear, uncertainty and doubt, "FUD".
The acquired company quite often is regarded, as it were, a lame duck, meaning that quite often the assumption is that when a company has been acquired that its products will ultimately be discontinued in favor the equivalent products of the acquired company so there's a bit of FUD that follows on any M & A announcement.
But also, there's also a positive side because on a variety of occasions the acquisition of promising, say, pure-play companies say in business intelligence or data warehousing is a new lease on life for that acquired company, meaning quite often it's a larger, better established, better funded firm that's acquiring the pure-play because of the strength of its products.
Generally, the positive take, the new lease on life is that the acquired companies products will form the foundation for the acquiring company to build on and to address its strategy for addressing that market, be it BI or data warehousing and so forth. So if you look at some of the recent merger and acquisition activities, SAP is acquiring Business Objects, Oracle has already acquired Hyperion. IBM is acquiring Cognos and in those three recent high visibility M & A's, you know, it's clear that for the most part these can be regarded as sort of a new... [ends abruptly]