Cloud Innovation

Cloud Innovation

Opinions expressed on this blog reflect the writer’s views and not the position of the Capgemini Group

WhatsApp, and What Cloud Means for M&A

The news of Facebook's acquisition of WhatsApp, the popular mobile messaging app, is renewing conversation on how the previous generation of tech innovators, now fully mature organizations, are looking to emerging startups as a means to stay competitive. M&As are part of the path to expansion and future innovation for large companies, and cloud computing today is playing a major role in that process.
 
With any merger or acquisition comes the need for IT integration, something that can take months or even years to complete. Some businesses never even get around to reconciling IT-related discrepancies. To achieve a successful IT integration that solves the day-to-day tech discrepancies (email, intranet, etc.) and helps generate value, companies need to consider both short and long term goals when it comes to their digital strategy. For any company that acquires new businesses as part of its larger corporate strategy, moving to the cloud ensures smoother IT integration for future M&As while also building the foundation to develop a comprehensive digital strategy, and ultimately the ability to leverage technology for Digital Transformation.
 
The few months immediately following a merger or acquisition can help define how a business will leverage technology. Companies that have already adopted cloud computing services will experience a shorter IT integration process, and leadership can better use that time to select the enterprise software platform that best fits the overall organization--whether it is one of either preexisting choices or an entirely new option. On the other hand, the opportunity for two companies to consider a move to the cloud is also an opportunity to assess the digital needs of the larger corporation. Long term goals and short term needs can be cross-evaluated to find a tailored solution. With the virtually limitless scalability cloud offers, future acquisitions will be met with faster IT integration and fewer roadblocks.

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Jace Cole

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