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And Now The Fun Begins 4YCnario

We won’t go on that we told you this would happen back in September (oh! okay we will, click here [1]) but YCD finally got to announce the acquisition of C-nario [2].

[3]Ok, so it wasn’t exactly a merger as we said but we doubt if there was much left of C-nario to actually ‘merge’ with. All the talk from C-nario’s most recent CEO, Tamir Ginat of forming a ‘dream team earlier this year’ [4] came to nought – he was a new broom that swept clean and managed (we think) to get rid of all the good C-nario staff that they had (and lost his job to boot as well).

Whilst C-nario have some really nice high end retail customers (and don’t forget the one that they are not allowed to talk about – the Microsoft Stores) they no longer have JCDecaux as a big (or potentially big customer) now that all that business has gone to BroadSign.

We always found C-nario incredibly difficult to work with, the product was good but hard to get to grips with and their employees intolerably ‘always right’ and ‘would never listen’. YCD are pretty excellent at retail – we love their retail merchandising tools built into their system but the suspicion is always that their retail rollouts are nothing more than pilots in and around NYC.

But just because YCD and C-nario both have lots of retail customers doesn’t necessarily make them good bed fellows. We have done a lot of ‘software roll-up’ strategy work for investors and in 90% of the cases we looked at, we couldn’t recommend it as a strategy going forward.

Whilst many will see this acquisition as a continuation of the consolidation of the (software) industry (which, in part it is) this is more likely, as we hinted at back in September, dozens and dozens of YCD shareholders and a dozen C-nario shareholders simply trying to cut their losses and make the most of their substantial investments to date.

If YCD had the money (I’m not sure I believe any of the figures about USD 6 Million in new investment) and were really keen on growth by acquisition there are plenty of better / more synergistic companies that they could have bought or merged with.

C-nario were probably in bad shape, easy to acquire with stock and the joint shareholdings cemented this deal.

2 Comments (Open | Close)

2 Comments To "And Now The Fun Begins 4YCnario"

#1 Comment By Thomas Dockter On 27 October 2011 @ 13:06 @587

At the end most of the DS software business is made by partners who are the face to the customer. The basics in the platform is important but without reliable and successful partners who integrate and support the software every vendor will be doomed.

#2 Comment By Luis R. Villafane On 27 October 2011 @ 14:19 @638

Thank you Thomas. I could not agree more with you. The sooner software vendors understand that they cannot correctly support a plataform from a different time zone the better. The sooner software companies realize they cannot make a sale (that probably takes way over a year) and then have engineers support a network that they probably know nothing about the customer, the better.

Regarding cnario… sorry guys. Hate to see good people lose their jobs. Sorry about O2. But been there, done that. I just thank God we had Fujitsu behind when it happend to us.

Really sad part here is that we will no longer be able to view those demos with girls in bikinis that the cnario guys used to work with (at least in the three demos I saw).