When it comes to mergers, integration at the technology level can make the difference between success and failure. In the case of Morgan Stanley and Smith Barney, the merger may have been dealt a blow because the IT integration is not working out all that well. The Financial Times reports that brokers at the combined firm "will have to wait up to two years to gain the full benefit of their $14 billion-a-year brokerage joint venture as the complexity of merging information technology systems delays integration."

Morgan Stanley Smith Barney said its goal was to provide a product from the other partner by the end of the year, with a full integration within two years. But that's not in the cards. The firm argues that it will meet it's goal. It notes that brokers currently have access to more than 100 products from both companies. It also says the integration is ahead of schedule because the deal closed early. Meanwhile, other firms may use their technology as a way to poach some talent. 

For more:
- here's the FT article [1]

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