Digital commerce software’s second coming

Contact: Matt Mullen

Nearly 20 years ago, there was a burst of exuberance for digital commerce software companies, with commerce and Web vendors gaining attention and massive valuations. However, the sheer complexity and lack of market readiness meant that many ambitions remained unfulfilled.

Today the market is ready and though the complexity is still there, the urgency and potential rewards are now greater. Commerce technology is tricky stuff and those that want to add it are unlikely to want to build their own, making the remaining independent players ideal acquisition targets.

Many of the largest social business application providers (IBM, Oracle, SAP, etc.) have already put a stake in the ground in this market. And many will look for tuck-ins. Though a number of players are aging, the necessary partnerships and technologies they’ve built over the years are not easily replicated. There’s also an influx of venture capital into this market, particularly among SMB-focused companies that could make for compelling acquisition targets.

Look for a forthcoming report detailing the potential acquirers and targets in the digital commerce software space.

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