Software Convergence Driven by Disruptive Changes

Among the many factors driving M&A activity in 2006, disruptive changes in the enterprise software sector are leading to high growth opportunities and driving convergence.  This was noted in Updata Capital's Webinar last December, "Internet-Infrastructure Software Convergence," as well as in our "2006 Outlook."

PricewaterhouseCoopers and the Economist Intelligence Unit recently surveyed executives on the drivers of convergence between telecom carriers, technology companies and content owners.  Their study considers the question of whether M&A activity is driven by the need to "converge or die" or if market conditions are ripe for growth through M&A vs. organic growth.