That's created odd hybrid-service providers, where an energy company like Williams Networks is investing heavily in the communications business. And there are no signs of the consolidation slowing down anytime soon. Large companies are getting larger, buying up innovation as a sure way to excite investors. The theory goes that small companies come up with new products, make mistakes and sometimes succeed. Big companies buy out the small companies with their highly valued stock, making themselves look good in the process.
Some companies appear to be deliberately built with the goal of getting acquired.
Just look at all the terabit router companies, including Juniper Networks and Avici Systems. Consolidation is a natural progression for a mature industry, and networking is simply behaving like other market sectors. From banks to trash collection, from soft drinks to health care, from toys to tobacco, the market is controlled by a few large players. As conglomerates, these companies find themselves with a broad mix of products and customers. Yet customers are often confused about what has happened.