[qi:044] As the world becomes increasingly digital, and data continues to grow, the importance of software in managing it all is on an upswing. Hardware vendors, realizing that building specialized software isn’t easy, and that is why they are busy opening up their check-books, looking to buy the software expertise. In fact, there were three such deals that hit the news wires today.
Of course, by now you may have already heard about HP buying Opsware for $1.6 billion in cash, because it would help sell HP’s datacenter hardware. Hifn, a Los Gatos, CA.-based storage and security hardware company snapped up Siafu Software for an undisclosed amount. Aruba Networks, a wireless networking equipment maker bought Network Chemistry’s wireless security business this morning, again for an undisclosed amount of money.
Bottomline: While Web 2.0 companies may get acquired by Google (or Yahoo), specialized software start-ups with products that enhance hardware will find buyers more often. Expect this trend to continue, and in fact gain momentum.