5. Cloud Application Industry Will Consolidate
In 2014 SAP acquired Concur, a supplier of cloud-based travel and expense management applications, for $8.3 billion. While they won't all be of that size, look for many more such acquisitions in 2015 as the cloud application industry consolidates. Or, more precisely, as many established, on-premise software vendors acquire young cloud application companies.
"It's surprising we haven't seen far more acquisitions of cloud companies, since the large enterprise players have largely failed to transition to the cloud and won’t be able to hold on to maintenance revenues forever," said Bob Muglia, former president of Microsoft's server and tools business and now CEO of cloud data warehouse startup Snowflake Computing, in a note to CRN.
Look for big software vendors to snap up cloud startups with apps that match -- or are complementary to -- their core products. Muglia says such a consolidation wave is "long overdue" and we, uh, concur.