IBM Buys Sterling Commerce

On Monday, the technology behemoth said it would buy Sterling Commerce for $1.4 billion from AT&T Inc. in a move to expand its business software portfolio. Sterling has 18,000 customers using its technology to conduct transactions with select business partners, such as order management and fulfillment.


This won't be the last of IBM's deals. Its executives told investors just a few weeks ago that the company plans to spend about $20 billion over the next five years, mostly to expand its software business.

This deal is merely 7% of what IBM is prepared to spend over the next 5 years. But of course, IBM is not alone. Other major companies like Microsoft, Apple, Google, Dell, Oracle are poised to make even more acuqisitions and mergers deals with a lot more other small little companies. Afterall, these small companies are very powerful when it comes to relating to the needs of the mass public.


Although they are small, they understand every single needs of the public. It's just that they do not have the financial capacity to fulfill the needs they understood. But, with the help of those giants IT firms, it's a whole new different story.


Now, it's a matter of which company will be better able to make use of these small companies. Stay tuned guys!



Credits -marketwatch, -pulse2