MyGlobalCity

Some Interesting Technology Purchases May 7, 2006

It seems that some companies are being proactive and purchasing companies who are their suppliers or even software vendors. Now this isn’t exactly a new idea, but the actual technologies that are being gained haven’t typically been the subject of takeovers.

For example, Lockheed Martin is generally considered a defense contractor, but was often involved in NASA’s aeronautics projects as a supplier. Recently, they announced that they’ll be purchasing Savi Technology, a company that builds RFID solutions for defense and transportation. Apparently, it’s a huge purchase, in the 9-figures range.

Another similar recent purchase happened when John Deere, a manufacturer of farming and agricultural equipment, purchased a company that makes GIS systems. Now I didn’t read the entire press release, so I don’t know why John Deere would make such a purchase. But no doubt they’ve got some plans to either utilize the technology or modify it and license it out. I mean, I can kind of see the connection, but during my seven years working with GIS, I don’t recall hearing of farmers using such systems. Although, I wouldn’t be surprised if larger corporate-run farms use GIS.

The Lockheed-Martin purchase definitely makes perfect sense. Experts in the RFID field say that the market will be worth around $9 billion by 2009. Some think it’ll be worth more. Obviously, keeping the costs of RFID chips down will be the key to profit.

So what other technologies are ripe for purchase, and who would buy them? The buyer might actually want to bury the technology, instead of utilizing it. For example, I can’t prove this, but a friend who did research into solar power and solar panels six or seven years ago found that all or most of the Canadian-owned solar technology-related patents were purchased by American oil companies and then promptly shelved - never used, never employed in any research.

In a similar vein, what if phone companies bought up VoIP companies and buried the technology? Or they might stop being selfish and figure out how to make a profit for themselves. Broadcasting companies might buy up podcasting hardware and/or software businesses. And what if magazine publishers somehow managed to get their hands on all high-end CMSes? Now mind you, I don’t want this to happen. I’m just considering possible scenarios. If any of this happens, life online may change significantly.

Links/ Sources: RFID Update newsletter, GeoCommunity Spatialnews.

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