Originally posted to Data Center POST
By Sarah Chamberlain, Contributing Writer, Data Center POST
The competitive landscapes that define and influence business operations across the world are unique to every industry vertical. Commercial ecosystems run the gamut, with some spheres displaying huge numbers of smaller competitors and other sectors containing only a few larger players. Each competitive atmosphere has its own drawbacks and advantages, but as these business landscapes shift and are rearranged by mergers, acquisitions or other unifying events, some industries may find that a little consolidation can do a lot of good.
For the technology and telecommunications realm, living life in the lane of constant evolution and innovation means a highly competitive market, which is only further intensified by growing end user demands. Although end results can rarely be guaranteed, industry consolidation in telecommunications may offer the industry at large a host of benefits, both macro and micro. Deloitte notes in their 2019 industry outlook that mergers and acquisitions can help level the competitive playing field and stabilize pricing. On the smaller scale, businesses that are currently dwarfed by telecom incumbents (the likes of AT&T, and Verizon) can have the opportunity to supplement their product portfolios, expand their global reach, augment customer bases and ultimately garner market share.
When it comes to actually taking steps toward critical convergence, GTT is no stranger to the process. In a recent interview with The Deal, Rick Calder, CEO of GTT, the leading cloud networking provider to multinational clients, explains, “Given that there wasn’t a natural consolidator out there, we chose to take that role.” It’s true, statistics reflect that the value of M&A activity is expected to remain on the decline, dropping from $468 billion in 2018 to $328 in 2020. However, GTT certainly has come to fit the bill as a force of disruption and consolidation, proving there is lots of room for opportunity and much to be gained. The company has acquired ten companies in the past two years alone and is still in the process of considering a staggering 80 other attractive entities (Calder dubs these “ankle biters”).
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