Tangoe to Merge with Asentinel - What does this mean for customers?
We wrote in January about the likelihood of Tangoe merging with a competitor solution provider and the potential implications for Tangoe Customers. Last Friday, April 28th, Marlin Equity Partners announced its intention to buy Tangoe and combine it with its existing portfolio company - fellow TEM provider Asentinel.
The problems for clients typically caused by such moves are well documented, with customers preferring to see their provider developing new functionality and integrations to make their 'business as usual' day easier, rather than using their development hours integrating TEM with TEM.As MDSL CEO Ben Mendoza commented back in January: "An acquisition might lead to another conglomeration of solutions and we have seen over recent years how difficult integrating and supporting multiple systems can be, with customers being promised great outcomes, but rarely seeing those promises become reality."
Articles from Industry analystsAOTMP and Amalgam Insights suggest a migration to Asentinel’s platform is a likely outcome for Tangoe customers. AOTMP warn that "enterprises should not expect any quick fixes to the challenges and discontent they have experienced over the years as Tangoe has grown through acquisitions and undergone subsequent integration problems."
It's not a deal that is taking place in the most positive of circumstances. As AOTMP write in their article on the merger: "Tangoe had revenue classification issues and then was delisted from the NASDAQ in March because it could not meet reporting requirements. This created much speculation with Tangoe clients as to the financial health of the company." Considering the background to this deal, many may see this action as a “rescue” fromtheir current situation, with Marlin and Tangoe management hoping that Asentinel’s platform might act as a sort of life raft, rather than this being some carefully planned, strategic solution to save the ship and all aboard.
Amongst the turmoil, should customers hope for a speedy resolution? Should they hope that adding yet another platform to the mix will be miraculously smoother than all the previous attempts in the past? Hope is not a strategy.
There is no doubt that there will be further change in store for some Tangoe customers and possibly for some Asentinel customers too. We advise that they think more strategically and look to a supplier who has already proven their ability to deliver. TEM customers have an opportunity to look at the wider market and make their own decision, rather than be dragged along by whatever decision the new acquirer makes. If you feel this applies to you, please visit our migration page.
It’s better not to hope, but to be sure that when you make your next change it’s on your terms, it forms part of a carefully considered strategy and will not just be reaching for the nearest life belt!