When software companies buy software companies
- by admin
Software companies are spending billions of dollars on acquisitions of internet software companies to bolster their competitive position in the growing field of internet applications, according to a report by the technology company Next Big Frontier.
The acquisition spree has resulted in a dramatic expansion of the companies market share, according the report, which was compiled by Next Big for a conference that was hosted by the New York Stock Exchange.
More than 2,000 companies now control over 50 percent of the global market for internet applications software.
These companies include Amazon, Google, Facebook, Microsoft, Twitter, Yelp and others.
The report comes at a time when the internet has become a lucrative business for the tech giants, as companies increasingly compete with one another to provide their customers with faster internet connections.
The rapid expansion of these companies’ market share has been a boon for the software companies.
Last year, Amazon announced that it would spend $1 billion to buy SoftLayer, a company that makes internet applications that it sells to websites, including Netflix.
Amazon says it plans to use SoftLayer’s technology to power its own video streaming service.
Google, which has already invested $50 million in a rival, Palantir, said last month that it planned to spend $100 million on Next Big’s software outsourcing services.
Amazon, Microsoft and Facebook also invested in companies like Cloudflare, a software company that helps users protect their personal data, according TOF.
Amazon is also the biggest spender in Next Big.
Its latest acquisition was announced last month, when it purchased OpenOffice for $300 million, and it has made deals with Facebook and Yahoo in the past year.
More to come.
Software companies are spending billions of dollars on acquisitions of internet software companies to bolster their competitive position in the…
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