Metrics Partners sees opportunities for emerging companies that are focusing on niche markets and are aggressively pursuing the client bases of larger vendors. Opportunistic offerings from these technology companies typically match or exceed the capabilities of products offered by larger providers in the market. Once critical functionalities and service levels are matched or exceeded cost becomes the driving force in making a decision. Price positioning is an area that younger companies are becoming very adept at.
Well managed, emerging software company's offer many advantages to end-user buyers. Typically they are leveraging the latest in technology, do not face the distractions that publicly traded companies do and can be very aggressive in negotiating price. "In many markets the leaders are now beginning to pay attention to what the emerging players are up to. When enterprise level companies lose a client, they lose revenue as well. Revenue hits are painful for any company but especially one who has a business valuation built upon recurring revenues contracts. When the market recovers a bit I predict that we will witness a number of defensive acquisitions," Adams reported.
Metrics Partners is a sales outsourcing and advisory firm that assists emerging technology companies sell their products into the professional wealth and asset management markets.