Experts Predict M&As Will Drive Increase in Integration Projects

Loraine Lawson

If the economy improves, the powers-that-be believe 2010 could be a huge year for integration-related projects. But more money isn't the main driver for many of these projects and initiatives. The consensus among analysts, marketers and bloggers seems to be that mergers and acquisitions will push many of these integration projects.


Informatica's Chief Marketing Officer, Chris Boorman, put it the most succinctly in his recent post about data integration trends for the coming year:


"More companies will fail, cash-rich companies will acquire and cash-strapped companies will divest. ... One of the results of extensive M&A activity is that the typical Fortune 1000 struggles with a big headache - chaotic data from incompatible applications and complex business processes that cut across multiple business functions, customer channels, languages, and legal jurisdictions. This data chaos will drive an 'integration wave' in 2010 as enterprises look to clean up the chaos."


The predictions are that more mergers and acquisitions will lead to a rise in data migration projects and master data management implementations.


In a recent CRN article, David Galton-Fenzi discusses why there will be more data migration projects in 2010. Galton-Fenzi is a group sales director for IT solutions distributor Zycko, and his company believes the number-one reason for a surge in data migration projects will be ... ding, ding, ding: mergers and acquisitions. More companies are either dealing with or could face mergers and acquisitions which, in turn, will mean IT has to integrate the systems and migrate-or integrate, but mostly migrate-the data.


The other reason? Long overdue storage upgrades. Galton-Fenzi notes that many organizations temporarily tacked on disk space to storage. Eventually, that data will need to be migrated-and he believes it will be in 2010.


In the article, he offers three guidelines for handling data migrations. His three guidelines are meant to be very broad-to develop your own data migration checklist, try using this data migration template published recently by Data Migration Pro.


You can see how data migrations would inevitably increase in 2010, since you really can't postpone that type of infrastructure issue indefinitely. However, I wouldn't have thought the same could be said for master data management.


But Baseline Consulting partner and co-founder Jill Dyche recently told TDWI that MDM is infrastructure, in a lot of ways - it's hard to demonstrate to business users, but it's quickly becoming clear that MDM is a necessity. And you'll never guess what's convincing companies of this: That's right, mergers and acquisitions.


Dyche says MDM can speed up acquisitions, leading to savings in the millions-which is good, because that's about what MDM can cost. What's more, mergers and acquisitions tie into another business need that will drive MDM adoption-regulatory compliance. TDWI quotes Dyche thusly:


"Just the compliance alone, the fines that these companies have to pay to federal regulators are huge. In a lot of ways, situations like this make the ROI [case] for MDM much more straightforward."

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