There has been a remarkable flowering of companies over the past year or two, all riding a wave of developer and investor enthusiasm for the loosely defined concept of “big data.” But given that the big data startup market is probably overvalued and headed for a lot of consolidation, these new companies’ days might be numbered.
The big news over the weekend was SAP‘s U.S. subsidiary’s $3.4 billion acquisition of SuccessFactors. Arik Hesseldahl is amongst those seeing this as an attempt to boost SAP’s cloud abilities. Larry Dignan points to this (and recent Oracle acquisitions) as evidence that the established enterprise software players have decided to buy rather than build their way to cloud success. Dignan also posits “a run on cloud-related companies.” Dennis Howlett takes a step back, and explores some of the implications of the purchase. And finally for now, Larry Dignan returns to the story this morning with some more reflection. He worries that a continued spate of these acquisitions will squeeze the “revolution” out of the cloud space, and make progress slower and more evolutionary. A little bit of evolution might actually not be a bad thing.