Key Considerations When Integrating Data Storage after a Merger and Acquisition

IT operations invariably encounter challenges after an M&A deal has been completed. Issues often relate around data reuse, security and privacy. While operations need to be integrated quickly, extreme care has to be exercised during data storage integration so that the shift is as smooth as possible.

For starters, it is helpful to be clear on whether the merger and acquisition was undertaken in order to extend the scope of the business or scale that business. These two are different in terms of the challenges they present during data integration.

For M&A deals geared at expanding the scope of the business, that is, enabling the business to branch out into a new vertical, it isn’t immediately urgent to integrate data storage since the products of the original firms are usually different. For scale deals, products are similar or related, so it makes sense to quickly integrate data storage. For both kinds of deals, the integration has to be carefully thought out so that operations aren’t compromised and rules aren’t broken.

For instance, it is prudent to check existing commercial terms of the acquired firm’s data storage system. If the data was stored on the cloud, for example, will moving that data to another storage provider trigger egress fees? Was there a running contract with many years still left? These and so many other questions have to be looked into so that the integration makes sense on several levels and unnecessary lawsuits are avoided.

It is also worthwhile to explore how efficiency could be compromised during and after the integration. For instance, are there any redundancies that need to be removed so that system performance isn’t compromised? These need to be properly mapped out and catered for during the integration.

Data migration also comes with additional minefields. For example, how can the vulnerabilities arising from employees accessing proprietary data which they initially didn’t have access to be managed? Or, what could happen when employees are confronted with an entirely new system or data that they aren’t familiar with? Valuable assets must be protected, yet the process of integration necessitates that access is granted to some, if not all, personnel within the IT department.

A delicate balancing act must be worked out so that cost management, security, efficiency, privacy, legal and other concerns are all accounted for in the timing and execution of the integration process.

As you can see, it isn’t always cut and dry for a smooth integration of data storage to occur once an M&A deal has been inked and ownership transferred. Several entities, such as Broadcom Inc. (NASDAQ: AVGO) that specialize in software solutions for enterprise-level clients, can provide guidance on how best to conduct the data storage integration. If need be, a completely new solution can be developed to address the needs of the new business.

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