The competition drags down sales and profits, while businesses struggle to innovate and remain viable.
Timing is crucial; a company that sells itself or merges early in the consolidation phase has a good chance of realizing a greater return on its initial investments.
There are three storage consolidation architectures in common use: network-attached storage (NAS), redundant array of independent disks (RAID), and the storage area network (SAN).
In NAS, the hard drive that stores the data has its own network address.
In addition, cutting "redundant" administrative workers and combining sales and marketing divisions can significantly lessen labor and head-office costs.
Consolidation has important side effects for investors.