Friday, August 16, 2013

How Much is Enough?

To much technology gets bought up by other companies just to be shut down. We see it all the time Twitter buy Posterous and shuts it down, Google bought and shut down Wavii. It is not uncommon at all in technology for this to happen.  That is why it is surprising when you see a lot of buy outs in the premise of consolidating services in automotive.

There are two schools of though one is that Technology Consolidation is the way of the future and the other thought process is that if services are consolidated then no one does anything exceptionally well. The truth is both points of view carry valid weight but the question is why all the consolidation?

Automotive Technology vendors shutter services too.  We have seen CRM's and Data Management companies bought by bigger companies only to be shut down after acquiring the client base. In both of those instances the acquired companies only real value was the client base due to the fact the technology was not up to day.

What is funny is to see one of the companies opened after the buy out was as poorly conceived as the company that was sold. Just goes to prove that the technology for car dealers will always be a few steps behind the rest of the world..

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