The Future IT Industry Structure Will Be More Complex Than “Consolidated”

In the Gartner Mastermind Keynote, Gartner Senior VP Peter Sondergaard discussed how the industry will change:

- Sure, there will be consolidations around the very largest vendors like IBM. But we don’t return to the IBM of yore when we got everything IT from IBM. (We are seeing very rapid consolidation in the software market; witness Oracle’s moves.) Rather, there will be smaller vendors who are tied to the technology and vision of the larger company – that company’s ecosystem (sort of like the symbiotic relationship that sharks and remoras have!)

- At the same time, new and interesting small vendors will crop up – and maybe not from Silicon Valley – but newer hot spots of technology leadership and innovation – like Southeast Asia, India and Israel (already a hotbed of new developments).

- Lastly, expect “non-linear” acquisitions: Key players buying into companies that make you scratch your head and say “What?” So, even though the industry consolidates, IT procurement ironically becomes more difficult. It is a lot more complex than saying you want a Ford or a Chevy (or Toyota or Kia, for that matter).