Will IBM, Microsoft, or HP Buy This Falling Cloud?
The business landscape continues to evolve as the Internet of Things merges cyberspace with the physical world. In recent years, cloud-based services have formed a competitive environment among the biggest tech firms in the market. Staying relevant is no easy task and time is of the essence. As this technological shift takes place, smaller firms like Rally Software (NYSE:RALY) could become takeover targets.
Software vendors are battling for revenue dollars around the world. According to recent data from Gartner, global software revenue totaled $407.3 billion in 2013, up 4.8 percent from a year earlier. Microsoft (NASDAQ:MSFT) remained the leader with its software revenue jumping 6 percent to $65.7 billion, while Oracle (NASDAQ:ORCL) overtook International Business Machines (NYSE:IBM) for second place with $29.6 billion, compared to IBM’s $29.1 billion.
“Investors continue to focus on revenue growth and market share gains as the primary criteria when evaluating vendors,” said John Rizzuto, research vice president at Gartner, in a press release. “At this point, the new and emerging technology markets in software, such as digital marketing and public cloud computing, are so nascent that investors are favoring those companies that are early and aggressive in grabbing both market and mind share — in many cases dismissing progress on earnings and cash flow in hopes that they will one day follow.”