Research company
Strategy Analytics
predicts that most of the leading Internet players will have
merged with other vendors by the end of this year.
Far from becoming an open market for all participants, with equal access to
technologies, buyers and suppliers, the industry will be composed of huge, vertically integrated companies, says the firm.
The report, “Mergers within the Internet Industry Value
Chain: Strategies for Success,” comes from the Internet Business
Strategies advisory service of Strategy Analytics. The service
monitors changes within the industry, highlighting new
opportunities for major players.
“The next 12 months will be a time
when certain vendors are either locked into, or out of,
growth opportunities on the Internet,” says the report. “Vertical integration
will be one the greatest structural forces in determining
the winners and losers.”
“Perception that Internet industry
structure is becoming highly vertically integrated should
become self-fulfilling as chief executives race to exploit
opportunities before they are foreclosed by competitors.”
Formerly BIS Strategic Decisions, Strategy Analytics works
on a global basis and maintains offices in Newton, Mass.,
and Luton, UK.