The article on software market consolidation that I mentioned in November is up on the IT Business Edge site. Trying to figure out if your favored enterprise software supplier will be subject to consolidation is an important IT planning activity for the year ahead. And if your favorite software was acquired in 2007 or 2008, and you haven’t thought about what that means to you, think again.

In the article, I suggest you look at where an acquired software company falls in terms of the three "D’s:" That is, some of the acquired/to-be-acquired companies were desirable, others are part of distress sales; and some are because your favorite supplier wants to divests itself of your favorite product.

If your favorite product was a desirable acquisition, you’re probably OK. The acquirer will keep updating it and keep its pricing competitive.  If your favorite software was part of a distress sale, watch out.  The acquirer didn’t want the software; it wanted you.  In the divest category, it could be either one.

Based on such analysis, you might want to start planning an enterprise software migration for 2009 or 2010.