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IT Industry News for January 2019

Kevin Dee By Kevin Dee, Chairman of the Board at Eagle

This post first appeared on the Eagle Blog on January 17, 2019     Tech News Header This is my 30,000 foot look at events in the Tech industry for January 2019

What you see here is a précis of the monthly report I produce, which will be available in more detail at the News section of the Eagle website, where you will also find back issues.

Five years ago, in January 2014 Google was an especially busy player, selling its Motorola Mobility handset unit to Lenovo for $2.9 billion but paying $3.2 billion for Nest Labs and the company also bought Bitspin.  The other big deal saw VMware pay $1.17 billion for mobile device management company AirWatch.  Other big names on the acquisition trail included Oracle who bought cloud based service delivery company Corente; Microsoft paid a reputed $100 million for cloud based service company (seems to be a theme) Parature; Ricoh purchased IT service company Mindshift from BestBuy; and Hootsuite bought analytics company uberVu.

In January 2015 the biggest deal saw Yahoo looking like it might be remaking itself, Yahoo logospinning off its $40 Billion stake in Alibaba to become smaller, leaner and either buy or be bought!  Other M&A activity involving a “B” was Telco equipment company Commscope offering $3 billion for TE Connectivities network business.  There were also a number of very well-known companies out buying, and in no particular order … Amazon paid something like $300 million (approximate) for chip designer Annapurna Labs; Expedia bought its online travel competitor Travelocity for $200 million; Samsung paid $100 million for Brazil’s largest print company Simpress; Google paid about $100 million for mobile payments company Softcard; Facebook bought Wit.ai a company that has a Siri like solution that can be embedded in other products; Dropbox bought CloudOn a document editing and productivity tools company; Twitter paid somewhere between $30 million and $40 million for Zipdial, an Indian company that does some funky marketing thing with phone hang ups; and finally Microsoft made two acquisitions, startup text analytics company Equivo and in a departure from its history it bought open software company Revolution Analytics. IBM logo

Three years ago in January 2016 there was plenty of activity with some of the household names out shopping.  IBM bought video service provider Ustream; Microsoft bought game form learning tool MinecraftEdu; Apple bought “emotion recognition” company Emotient; and Oracle bought media web tracking firm AddThis.  Toshiba bought an ERP solutions company Ignify, and a number of smaller deals included Juniper Networks buying BTISystems Inc.; FireEye bought iSight partners; Acceo Solutions bought Groupe Techna and SmartPrint bought LaserCorp’s Toronto based managed print services business. Cisco logo

In January 2017 the multi-billion-dollar deal of the month was Cisco’s purchase of app performance management company, AppDynamics for $3.7 billion. HP Enterprise purchased data center hardware provider, SimpliVity for $650 million. Microsoft acquired Montreal-based deep learning start-up Maluuba for an undisclosed sum. Google announced plans to purchase Twitter’s mobile developer platform Fabric. Trello, the startup behind a leading task-management app was purchased by Atlassian for $425 million. CRM giant, Salesforce bought Unity&Variety to enhance its productivity app service Quip Managed Service Provider of data and database administration, Datavail, acquired Canadian IT channel leader Navantis.

Amazon Web ServicesLast year January 2018 the big deal saw investment management software company SS&C pay $5.4 billion for financial services software company DST Systems.  Amazon Web Services increased its cybersecurity protection capabilities through the purchase of Sqrrl.  ADP bought gig economy tool WorkMarket and TD Bank bought a Canadian AI company Layer 6.

Which brings us back to the present…  ACCENTURE LOGO

January 2019 was another fairly busy M&A month.  The biggest deal saw DXC pay $2 billion for digital consultancy Luxoft, DXC also bought another European services company EG A/S. Amazon Web Services made a couple of acquisitions, Israeli data migration company CloudEndure and Vancouver startup TSO Logic, a cloud migration company.  Accenture was another high profile company making multiple acquisition in January, Houston based consulting company Enaxis Consulting, and Orbium a company providing services in the banking sector.  Dropbox splashed $230 million to buy electronic signature company HelloSign; Google bought DORA, a research firm; Microsoft bought database startup Citus; AT Kearney bought consulting company Cervello; and Zix paid $275 million for email security company AppRiver. There were a number of companies announcing layoffs, including Tesla (7% of workforce); AT&T; Verizon Media (7% of workforce); McAfee (200 people) and SAP (4,$00) although SAP suggest they will have net job growth in 2019. Canada added job in December and was up 163,000 jobs for 2018.  There is concern about Europe entering a recession with suggestion that Germany might already be in recession, and the situation in the UK is obviously being affected by the Brexit situation (or non-situation).  Generally around the world job numbers look not too bad, with the US continuing to show strong job growth.  The message of skills shortages is also being heard around the world.

That has been my look at the tech news for January … until next month, Walk Fast and Smile!

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