TeamViewer and 1E: the primary main DEX acquisition, however not the final
Once I revealed my weblog submit on the nice DEX-pansion in October, I foretold a future by which the DEX market would consolidate … However I didn’t suppose it will occur so rapidly.
Whereas I predicted consolidation would occur in 2025, this morning we obtained information of the primary main acquisition within the DEX area.
German distant connectivity vendor TeamViewer introduced its intent to amass end-user expertise administration (EUEM) vendor 1E for $720 million.
TeamViewer and 1E: good for distributors, clients, and the market
Every time M&A hits a market I cowl, I ask myself 4 questions to guage whether or not it is sensible:
How does it profit the businesses concerned?
Does the acquisition profit clients?
What are the dangers?
How will it change the market going ahead?
Let’s cowl every now.
TeamViewer will get entry to the DEX area; 1E advantages from scalability
TeamViewer is a perennial chief in distant assist and management and continues to stay standard with Forrester shoppers whilst a plethora of third-party endpoint administration instruments have launched their very own native distant assist instruments. After a large surge in its inventory worth through the pandemic as a result of rise in distant working, nonetheless, the corporate has been making an attempt to reinvent itself in a sluggish distant assist market. 1E provides that chance with:
A proactive and autonomous strategy to IT assist, rounding out TeamViewer’s extra reactive strategy with real-time finish person expertise telemetry.
A robust market presence within the quickly rising DEX area.
Improved visibility past gadgets with 1E’s net, SaaS, and shopper software monitoring capabilities along with worker sentiment.
1E has been difficult the end-user expertise administration (EUEM) marketplace for the previous few years, however is more and more going through stress from bigger software program distributors which can be coming into the area. Regardless of sturdy progress and its latest acquisition of Exoprise, the corporate will want extra assets to compete in an more and more crowded market. TeamViewer provides 1E the assets that it wants, akin to:
Entry to TeamViewer’s 4,500 clients worldwide, particularly in OT environments.
Elevated go-to-market assets from a vendor that’s considerably bigger with distinctive model consciousness.
Merchandise that fill gaps within the 1E portfolio, akin to cell machine administration (MDM).
Prospects get an end-to-end IT assist functionality spanning reactive to proactive
Proactive IT is a frequent topic of shopper inquiry. Most clients in the present day, nonetheless, have totally different instruments for managing totally different phases of the IT assist lifecycle. The acquisition combines 1E’s proactive strategy to IT assist with TeamViewer’s management in reactive distant management. Theoretically, it will allow clients to supply best-of-breed capabilities from a single vendor. Sometimes, this isn’t doable in the present day with out sacrificing the standard of both the EUEM or distant management product. Nonetheless, clients will nonetheless must complement these capabilities with third-party service administration and conversational AI instruments to convey proactive IT to life.
Product overlap and integration are the largest dangers
M&A all the time poses some dangers for distributors and clients alike: tradition harmonization, product line rationalization, expertise retention, and pricing will increase are some frequent challenges. Whereas Forrester’s view of this acquisition is optimistic, there are a couple of notable dangers:
TeamViewer and 1E merchandise are largely complementary however overlaps exist. 1E has a major endpoint administration enterprise which can conflict with the shopper administration facet of TeamViewer’s RMM enterprise. 1E’s distinctive structure and proprietary remediation language can even must undergo a harmonization and rationalization course of. It will take time and will impression characteristic units for patrons in the long run. 1E’s legacy enterprise (e.g., Nomad) and on-premises presence will doubtless require consideration.
1E joins a a lot greater firm with its personal tradition, methods of working, and priorities. Thus far, 1E has operated as a small, nimble SaaS firm centered totally on DEX. It will likely be as much as TeamViewer to make sure that 1E can proceed to capitalize on the DEX alternative and as much as 1E to uplevel its workers to grasp alternatives in OT world, an space that 1E has little expertise serving. Success in DEX requires a really particular promote, so a joint go-to-market movement that dilutes DEX in a roundabout way might pose a danger.
That is just the start of DEX consolidation
The entire Leaders and Sturdy Performers in Forrester’s latest Finish-Consumer-Expertise Administration Wave are pureplay expertise monitoring instruments. Whereas some distributors have sufficient momentum to proceed working independently, it’s going to turn into more and more tough for some to keep up market management with out important funding in partnerships and M&A. With the rise of bigger software program distributors like Ivanti, Omnissa, and Tanium, smaller distributors will transfer quick to supply a bulwark towards encroaching DEX opponents.
My prediction: we are going to see one other main acquisition or merger in 2025
What do you suppose? Is the TeamViewer/1E partnership factor? Will there be extra acquisitions in 2025?
Forrester shoppers can arrange an inquiry with me to be taught extra, and non-Forrester shoppers can all the time discover me on LinkedIn or arrange a briefing by emailing [email protected]
