Good Technology’s IPO Filing Likely an ‘Exit Strategy’

By Craig Galbraith Comments
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Good Technology plans to follow in the footsteps of fellow enterprise mobility management (EMM) provider, MobileIron, filing paperwork this week for an initial public offering (IPO).

The news comes despite Good’s announcement that it lost $118 million last year. It lost nearly $91 million the year before. MobileIron filed for a $100 million IPO last month. The companies are clearly trying to capitalize on the increasing attention being paid to their industry as more companies mobilize employees and business processes.

But with consolidation in EMM becoming common – take VMware’s pending acquisition of MDM provider AirWatch – at least one industry insider expects the trend to continue.

“I have pretty much the same opinion on Good’s IPO that I did for MobileIron’s: It’s difficult not to see it as an exit strategy," noted Chris Marsh, principal analyst with Yankee Group, commenting specifically on a Re/Code article. “Pure-play EMM vendors are seeing their products become commoditized, and indeed we have already been seeing pricing pressure around MDM and MAM services reduce their overall value. This has led to some already big acquisitions (Zenprise and Citrix, AirWatch and VMware) as they’ve been folded into larger enterprise mobile portfolios, the integration of which is where the value is shifting to instead. I cannot see where EMM as a standalone capability can be differentiated enough going forward for any pure-play vendor to go it alone and continue to create value. So where to now? IPO, exit strategy, followed by attempts to go it alone – most likely followed by the inevitable acquisition – is where my money is."

Follow senior online managing editor @Craig_Galbraith on Twitter.

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