Monday, July 03, 2006

Ovum acquires Summit Strategies; fills 'utility computing' gap

Ovum has acquired Summit Strategies, a US analyst firm.

According to Ovum, this acquisition helps the company fill a gap in its coverage of utility computing.

At a cost of around $1.2 million that's obviously not the only reason. Chris Dines, Ovum CEO, explained: "Summit Strategies brings to us expertise and products in an important and growing area of the IT market. It allows us to develop a stronger relationship with blue-chip IT vendor customers and further strengthens our position in the US market."

The press release specifically names IBM, HP, and Microsoft as three of Summit's blue-chip clients.

I was talking to an ex-Ovum employee this morning. They were generally positive and highlighted similarities with a previous takeover which proved successful for Ovum:

"It seems like a sensible move, although it's not going to change the world. One interesting thing is that in many ways it mirrors the Holway acquisition - a small team with a vendor/market focus that adds specific geographic weight. Ovum knows it can execute on acquisitions like this and get value in the medium term out of them."

ARmadgeddon has an interesting view on this. Find it here.

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