Final yr Broadcom, a chipmaker, raised eyebrows when it acquired CA Applied sciences, an enterprise software program firm with a broad portfolio of merchandise, together with a large mainframe software program instruments enterprise. It paid near $19 billion for the privilege.
Then final week, the corporate opened up its pockets once more and forked over $10.7 billion for Symantec’s enterprise safety enterprise. That’s nearly $30 billion for 2 growing old enterprise software program corporations. There must be some sound technique behind these purchases, proper? Possibly.
Right here’s the factor about older software program corporations. They might not out-innovate the competitors anymore, however what they’ve going for them is a backlog of licensing income that seems to have worth.