Although we rarely comment on the software market within the international law firm area, keep your eyes open for news of a consolidation move/buy-out in the APAC market by a major international organisation this week.
Although it may initially be seen as a reactive move by some given the coverage and peer positioning of the target company's current customer base, a little quiet reflection and imagination may turn the move into one which will be seen as quite strategic in the longer term - it is (at the very least) a move to grab a customer base within a particular market bracket, and a potential to move a majority of these forward with either on an enhanced or completely different offering supplied by the new parent.
This prospect of a "strategic move" may be particularly true given that the top end of the Australian and Asian market (top 30 firms by size/revenue) for this area of software is currently (and will remain for the next 3 years) quite tough for those hungry satellite sales juniors trying to convince firms there is enough of a reason to spend funds on back office operational software while also asking the firms to go through the pain of change before the scars of "the last time" are healed, or indeed the new offerings are proven in the domestic market. It is the firms further down the tree where a great deal of potential currently stands, and the volume of sales can be made.
As always, the success of this move will be up to the new parent company and their tactical plans for the future of their new customer base. No doubt everyone will have their opinion on it this week as the press release begins to circulate. Good luck to all who are about to be asked their opinions, and who will ask questions. Now go and read the rest of your emails and pretend you are enjoying being at work early on a Monday.
Although it may initially be seen as a reactive move by some given the coverage and peer positioning of the target company's current customer base, a little quiet reflection and imagination may turn the move into one which will be seen as quite strategic in the longer term - it is (at the very least) a move to grab a customer base within a particular market bracket, and a potential to move a majority of these forward with either on an enhanced or completely different offering supplied by the new parent.
This prospect of a "strategic move" may be particularly true given that the top end of the Australian and Asian market (top 30 firms by size/revenue) for this area of software is currently (and will remain for the next 3 years) quite tough for those hungry satellite sales juniors trying to convince firms there is enough of a reason to spend funds on back office operational software while also asking the firms to go through the pain of change before the scars of "the last time" are healed, or indeed the new offerings are proven in the domestic market. It is the firms further down the tree where a great deal of potential currently stands, and the volume of sales can be made.
As always, the success of this move will be up to the new parent company and their tactical plans for the future of their new customer base. No doubt everyone will have their opinion on it this week as the press release begins to circulate. Good luck to all who are about to be asked their opinions, and who will ask questions. Now go and read the rest of your emails and pretend you are enjoying being at work early on a Monday.
No comments:
Post a Comment