-Consolidation needs to occur right across the whole of the technology industry, regardless of whether you are a PC manufacturer or a [service provider], this will impact the whole technology market," Powerlan managing director Theo Baker told ZDNet Australia.
Baker explained that any high growth market tends to be fragmented in the first instance, however, as time progresses the market starts to mature and big companies begin to consolidate to become a stronger global force.
-I think there is a very strong message in all of this, consolidation is definitely on the way, the technology industry has been too fragmented," Baker said.
Hewlett Packard and Compaq Computers announced today an agreement to merge both companies, a deal worth AU$47.5 billion. The deal would see the two biggest names in printers and computers combine their services together.
Baker said that if a company is purely a seller of hardware, the new merger would -definitely pose a threat" amongst other industry players.
-It will put a lot of pressure on the Dell's and IBM's of the world," Baker said.
Baker believes at this stage in the game, the announcement can only have positive implications for local consumers.
-It means more effort will be put into research and development rather than competing with other players in the market. In the long run, customers will benefit in terms of innovation," Baker said.
Baker said, however, that if there are too few players left standing after a period of consolidation, it would have a negative impact on customers.
-The big players will have too much power and there will be no competition to keep the industry honest," he said.
