Don't you think the transition period would dramatically hurt productivity? What about clashing cultures? M&A usually fails.
Yet a lot of YC companies will end up getting acquired.
Given this, there is no reason startups should avoid merging simply because it "usually fails" (as the post above was suggesting)... In fact, it's a risk in the same league as doing a startup in the first place.
The original statement was along the lines of - M&A usually fail, so there is no point in doing this for startups.
Now, maybe being a startup modifies the M&A rules in some or many ways - but I don't think it precludes M&A as a worthwhile option.
A merger in a high risk field might be a tipping factor - might improve your chances or getting a critical mass of users, funding, or some other key factor - so whilst the merger is risky, it modifies the chance of success in some critical way.
In the highly competitive field such as online storage, this kind of advantage may well be something worth pursuing -- I'm not 100% convinced in this case, but it does have some interesting implications.
So - totally agree - might be risky. Might be risky most of the time... But certainly not worth dismissing.
The risk & reward don't usually work out right (regardless of size). But business development people love them.
You shouldn't always avoid them, you just need to understand the majority fail without the reward to make up for it.
I know this is against the grain, but Dropbox replaced SVN for our development projects. It's a lot easier for designers to use... SVN is too tedious.
One fundamental difference is that Dropbox syncs things between drives and cloud. Zumodrive only uses your local machine as cache. The difference is when you have 20 gigs in the service, a Zumodrive doesn't actually use up any of your HD space. On the other hand, you don't have to be connected to the internet to see/edit your Dropbox files, only to sync.
* Rebrand Zumodrive as a future version of Dropbox
* Use Dropbox's syncing model to ensure the local cache is kept up to date to a user-configurable percentage.
This would allow speedy access where the local device has the space, and still allow access where the local device doesn't have the space.
The storage market with these two companies seems like a pretty good example.
The ZumoDrive/iTunes integration is truly innovative, though. Majorly cool!
Does anyone know if ZumoDrive plans to offer Linux support in the future? I have a huge flac library I'd love to be able to stream to my lower storage laptop. Heck, I'd store a ton of stuff in the cloud.
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