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November 26, 2012
Focusing on Consumer Products
A New Microsoft Has Surfaced

 

The day before Thanksgiving, CRN posted a story written by Marty Wolf explaining that Microsoft was on a new feast of its own.

 

Microsoft is becoming a consumer products company starting with the Surface tablet and Windows 8. In the process, as the company sets the table for a new menu of items and business strategies, it is impacting the value of its channel partners that have been decades in the making.

 

As we write this, it is Cyber Monday. This underscores that the new focus is on consumer products: Microsoft announced its new offering just in time for the holiday shopping season. Clearly, Microsoft is aiming to create new relationships direct to consumer and compete directly with Apple.  Microsoft Surface

 

Whether or not the new Microsoft will succeed is, of course, unknown.

 

But, what is clear is that this holiday season Microsoft is leaving many of its channel partners out in the cold.

 

Our article noted that in formulating its new strategy, Microsoft is facing four new realities:

  1. We are in a post-PC era;
  2. The post-PC market is dynamic, exciting and rapidly changing, driven largely by consumers rather than Microsoft's traditional sweet spot customer (large enterprises);
  3. The key to innovative hardware that appeals to consumers is strict control over all aspects of product design; and
  4. Having a direct relationship with customers is everything. 

For Microsoft, the fact that they are admitting these new realities may or may not be too late.

 

But, what we can learn in the IT Services industry is this one basic fact: every industry has a lifecycle: beginning, middle and end.

 

As Microsoft's business has migrated, so has IT Services.  We have seen it in the past few years with the SaaS wave.  Before that, with the BPO wave. 

 

The point is, make certain your IT business is always relevant. Today's cash cow could quickly become tomorrow's steak dinner.    

 

To read the entire column, click here.


To learn more about martinwolf contact Matthew Putzulu at mputzulu@martinwolf.com.  

About martinwolf    

 

     San Ramon Office          
             San Francisco, CA                                                Bangalore, India

With offices in San Francisco and Bangalore, India, martinwolf is a leading middle market M&A Advisory focused on companies with IT services-based business models. Since 1997, our team has completed more than 115 transactions in six countries. We are a five-year member of the Merrill Lynch PS Referral Network, and were selected as ICICI Bank's (India's leading private bank) exclusive strategic partner for acquiring U.S. IT companies. martinwolf is a member of FINRA and SIPC. For more information, visit www.martinwolf.com.

   

November 6, 2012

Rolta, through its subsidiary Rolta International, Inc. announced that it acquired AdvizeX Technologies, LLC, a US company providing a comprehensive set of IT products and services ranging from roadmap planning to cloud-computing implementation strategy. With the acquisition, Rolta is now one of the top national partners of Oracle, Microsoft, HP, EMC and VMware in the US. Rolta was represented by martinwolf in the transaction. 

Please click here to view the announcement.

 

June 15, 2012

glendonTodd Capital LLC announced that it acquired Aztec Systems, a leading provider of enterprise technology solutions to hundreds of U.S. middle-market companies. Aztec was represented by martinwolf in this transaction. Aztec, a member of Microsoft's Presidents Club, was recently ranked 27th in revenue on Bob Scott's 2012 Top 100 VARS list and serves more than 700 middle-market clients. Terms of the transaction were not disclosed. Please click here to view the announcement.

 

December 1, 2011

Softchoice Corporation (TSX: SO) announced it has it has fulfilled its regulatory requirements under the Competition Act and has now completed the acquisition of substantially all of the assets of UNIS LUMIN, one of Canada's most highly regarded Cisco networking and managed services companies. Softchoice was represented by martinwolf. The acquisition strengthens Softchoice's professional services capabilities while providing the technology foundation to support the Company's future cloud offerings.

Please click here to view the announcement.   

 

 

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________________  

 

"...it is absolutely clear that there is an innovation opportunity 

on the scene between hardware and software, and that is a scene that must not 

go unexploited at all by Microsoft."

 

- Steve Ballmer 

 

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