Funny how the enterprise software market works….
Weeks ago, after the Microsoft acquisition of Yammer, I blogged about how the consolidation of the enterprise social space and how, very soon, we will know the winners in this category. Well, there it seems to be another enterprise software category that seems to be heading towards a rapid consolidation as well: talent management.
Yesterday, IBM announced the acquisition of social HR and talent management software maker Kenexa for $1.3B in cash. This acquisition naturally follows SAP’s $3.4B acquisition of SuccessFactors, Salesforce.com’s acquisition of Rypple and Oracle’s $1.9B acquisition of Taleo. The Kenexa stack gives IBM a strong presence in the talent management space that, as always, will be complemented with a strong IBM global services delivery arm.
What does this means to the talent management market?
Well, as any other important trend in enterprise software, it seems very clear that we’ve entered the last phase of a consolidation in the talent management. With still a few players left, you can expect a raising interest in companies like Cornerstone OnDemand, SumTotal Systems and some of the other proven talent management software providers. Sadly, the rest of the players that don’t manage to either get acquired or raise important sums of private or public capital are likely to disappear or become increasingly irrelevant in a market that has already passed its hype curve.