GALA survey on SDL/TRADOS merger: LSPs worry
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Following the acquisition of TRADOS by its archrival SDL, the Globalization and Localization Association GALA has conducted a survey to find out how language service providers (LSP) feel about buying products from another LSP. The merger has created the largest software vendor for CAT tools and created a software developing company that provides the same services as the buyers of their tools. The results of the survey show that a majority of companies in the localisation market worry about the effect of buying from a competitor may create a dependency and lead to a monopolisation in the business: Close to 69 percent of the participants in the survey expressed concern, while less than a third did not feel uncomfortable. Common Sense Advisory processed the results and included some of the responses in their report: "As a direct competitor, it concerns us that a primary industry tool is being controlled by a localization services provider. It seems a bit monopolistic." "Why should I fund their technology development and competitive edge when they'll use this to compete against me?" "I worry about SDL using knowledge to approach or win business based on knowledge they gain from supporting TRADOS. Losing the TRADOS revenue would be minor in comparison to the revenue they would gain from the services. Worst case scenario: SDL changes the licensing terms for TRADOS to require information on every client/project where TRADOS is used. Thus SDL would have a list of all of the competitive vendors' clients. This is unlikely, but it just gives SDL too much power in our small industry. This significantly reduces the competition in the TM tools market. There is no other viable competitor to SDLX or TRADOS TWB. This gives SDL an effective monopoly in the tools market." Many of the respondents expressed concerns about the loss of choice, some hope for open-source development to step in. A close majority of 57 % consider merging SDLX / Trados into one tool a positive outlook, if compatibility can be ensured. The survey results are available for download at the GALA website. More information: Report introduction by Don DePalma, Common Sense Advisory, Inc. Source: Common Sense Advisory Global Watchtower |
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