Is The DAM Vendor Consolidation Trend Really Just DAM Vendor Competitor Deletion?
Earlier today, I contributed the first part of a two article series for DAM News on the subject of the consolidation trend in DAM and whether or not consolidation is really taking place or if it is something far more expedient. In The DAM Software Market’s Customer Acquisition Problem, I assess the different types of acquisition and investment deals that are taking place, the issues with (and motivations for) them and speculate why this trend is occurring. Lastly, I consider what the outcomes might be:
“The implication of this is clear. The nature of the deals in question is essentially a competitor deletion exercise. The suitor needs to remove the competition by paying them off because they can’t win customers at the scale and speed they need to. The acquired party wants to get out because they too are now finding that getting more customers is becoming progressively harder and they don’t have the financial clout to do the same as their wealthier peers. Everyone wants more customers, no one can bring them in fast enough, so deals are done to buy and sell them in order to get everyone out of different sides of the same hole.” [Read More]
I describe some historical precedents for what is happening now and why the approach is unlikely to have any long-term benefits for anyone in the DAM market other than those who are selling up. I also describe the issues for DAM end-users and why I believe DAM ‘competition deletion’ will further hamper innovation rather than foster it.Share this Article: