Friday, August 19, 2005

A tech heavyweight in the making

Macrovision (MVSN) disappointed investors recently with its weark earnings and expectedly got punished. What most seem to be missing is Macrovision's series of smart acquisitions that is turning it into a monopoly player in the digital rights/license management and IT deployment/maintenance space.

The stock is a value buy right now.

Macrovision has acquired InstallShield, TryMedia and Zero G Software in the last few months.

It will take a few more buyouts to complete this picture. Companies that Macrovision should go after include Opsware (OPSW), Motive (MOTV), SupportSoft (SPRT), Altiris (ATRS), Aladdin (ALDN) and Digital River (DRIV)/Intraware (ITRA).

There has been a lot of hype around on-demand/hosted services, but I think it will be a while before this will have on impact on the client-side business of Macrovision's. In addition, any reduction on the client-side, will be replaced and I think more than made up for, by increased server-side complexity requiring offerings from Opsware/Altiris to keep things in control.

I personally have a lot more to say about this sector, but that will have to wait!

I own shares of Altiris, Opsware and Intraware. Most of the above are still worth buying, in stages.


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