Right after SDL announced that it was buying tool archrival Trados, the Globalization and Localization Assocation (GALA) received many e-mails from members asking “What is GALA’s position on this deal?” Because the transaction involved two GALA members and affected the entire industry, the Board took a neutral stance toward the purchase. However, it decided that members needed a forum to publicly express their concerns. It chose an online survey as the best vehicle for members to voice their opinions, advance the discussion about acquisition and consolidation, and -– with a summary of the results -– let SDL know how the supply side felt. Seventy-five members responded, providing the most comprehensive industry-side view of the impact of the acquisition.

We volunteered to process the results — the report is now available at the
GALA website. What we found interesting was yet another confirmation of our findings that language service providers don’t like handing over cash — and control of their technology destiny — to a rival LSP. Two-thirds of the 75 companies that took the survey were concerned about what impact the merger would have on their businesses. This result conflicts with some unscientific straw polls taken at the time of the acquisition.

The most common feeling among the GALA survey respondents was that “SDL the Tools Company” will provide “SDL the LSP” too much information about potential contracts and business via its technology. They felt that SDL could use this information to score more business. Our own conversations with some non-LSP buyers of translation and localization products indicate a continuing concern with buying tools and services from the same supplier. Realistically speaking, though, whenever a company buys languages services from an LSP, it implicitly commits itself to that LSP’s tool strategy.

In the GALA survey, 25% of respondents advocated combining the best of both product lines into a single, more powerful offering -– what one person called “the best of both worlds.” This last suggestion echoes SDL CEO Mark Lancaster’s stated direction. As articulated by one respondent, “I really hope that SDL will proactively search for the voice of the customers, including LSPs and freelance translators, and take actions based on those voices.” Make sure you read beyond the introduction — you’ll find some juicy quotes from the language service providers who felt strongly (pro and con) about the acquisition.

What will SDL do with its treasure trove of Trados technology? We will moderate a joint GALA-SDL webcast to discuss SDL’s plans (tentatively scheduled for September 1st). With membership comes privilege: GALA members will be given first priority in getting seats for that limited-space webcast.