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All Talent Development Centre posts for Canadian technology contractors relating to the economy.

Regional Job Market Update for British Columbia

Cameron McCallum By Cameron McCallum,
Regional Vice President at Eagle

Vancouver SkylineWhile the job market in Vancouver and BC might be seen as being relatively flat this year and there have been signs pointing to a softening of the economy, those more qualified than I point to an economy currently operating at near capacity. In general, employment numbers are high and unemployment low. According to Central 1, B.C.’s job vacancy rate is highest amongst all provinces, pointing to a shortage of skilled workers across industries. This is certainly true in the IT sector where specialized skills remain in demand and finding suitable resources remains a challenge. Is the local market tapped out? Not quite, but again, a fairly robust economy, not to mention business and client expectations, means that there are a lot of changes underway. And change, more often than not, leads to opportunity.

So what does the current market offer IT professionals in BC?

We’re definitely seeing an uptick or continuation in the popularity of SAAS and if you combine it with Service Management for example, you should be taking notice of the number of Service Now initiatives taking place not only in BC but across Canada.

More and more of our clients are also in the midst of cloud transformations and there is a need to find project specialists who can assist with managing changes to the delivery of IT to the organization.

Large scale infrastructure projects are also widespread, everything from more basic, but urgent, Windows upgrades to very large deployments of hardware and software. We’ve also noticed a demand for virtualization experts in recent months.

On the application development side, it depends on what you are programming for. Microsoft still controls a large portion of our corporate client’s landscape and we continue to see a need for .NET programmers. But mobile and web developers who have worked with Java or JavaScript related tools such as Node.js, Angular or React will also find a pretty healthy demand for their skills.

What roles are our clients looking for? Despite all of the tech buzz that exists in the market, we continue to network with and recruit senior level Project Managers, Business Analysts, Architects and Testers…the bedrock of any IT project. With all the initiatives underway, project managers who have a strong record of delivering projects from inception to completion will find lots of opportunity in the Lower Mainland. Business Analysts fulfill all kinds of needs on a project. It may be straight forward requirements analysis or there could be aspects of change management and communications or process mapping and reengineering. Enterprise Architects are in short supply and in demand as well and finally testers, both automation and manual varieties are needed.

If you have any of these skills, you should feel pretty good about your employment or engagement opportunities in BC. The public sector and crown corporations are robust. Work, especially in the health sector, has exploded and there is no reason to believe it will slow down. The private sector has a good mix of large, traditional corporations delivering products and services along with a steady influx of startup and app centric software shops. All in all, BC currently offers lots of opportunity but as always in Information Technology, having a bit of a specialization will help open doors.

IT Industry News for August 2018

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

This post first appeared on the Eagle Blog on September 10, 2018

This is my 30,000 foot look at events in the Tech industry for August 2018. 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.

A Little History of August in previous years …

Five years ago in August 2013 IBM paid $1 billion for Trusteer, a cybersecurity company specialized in the financial services sector;  Qualcomm sold its fleet management software unit for $800 million to private equity firm Vista Equity Partners; and the other big dollar buy was AOL paying $405 million for online video company Adap.tv.  Facebook bought speech recognition company Mobile Technology; Software AG bought analytics firm Jackbe; Opentext paid $33 million for cloud based software company, Cordys; and SAP bought ecommerce company Hybris.

Intel logoAugust 2014 saw no blockbuster deals, however a number of big name companies were out with their cheque books.  Intel paid $650 million for the LSI Axxia networking chip business; Vmware bought application delivery provider CloudVolumes; IBM bought Lighthouse Security Group to bolster its cloud based identity and access management capabilities; Google bought two startups, Emu to boost its messaging capabilities and Directr for its video advertising business; Facebook bought a security startup Privatecore, and the last BIG name saw Yahoo buying app company Zofari.

IBM logoThree years ago in August 2015 there were two billion dollar deals.  Symantec sold Veritas (which it paid $13.5 Billion dollars for 10 years ago) to a group of investors for $8 Billion.  IBM also paid ”big bucks”, shelling out $1 billion for Merge Healthcare.  Smaller deals saw Calgary based Above Security bought by Hitachi; Transcomos bought 30% of Vietnamese daily deals site Hotdeal; Freshdesk bought live-chat company 1Click; and PLDT bought ecommerce startup Paywhere.

The apple logo and apple with a bite out of itAugust 2016 saw a fair bit of M&A activity although there were no billion dollar deals.   The largest deal saw global staffing company Randstad buy one of the larger job boards, Monster for $429 million.  A similar sized deal saw Intel shell out $408 million for artificial intelligence company Nervana.  Hewlett Packard Enterprises paid $275 million for SGI (what was left of Silicon Graphics); Apple paid $200 million for artificial intelligence company, (there is a pattern here), Turi; Salesforce bought business analytics company Beyondcore for $100 million; and ScanSource paid $83.6 million for telecom cloud services company Intelisys Communications.  Other acquisitions saw Microsoft snap up two companies, artificial intelligence scheduling software company Genee in addition to their XBox division buying interactive livestreaming company Beam.

Last year August 2017 was relatively slow on the M&A front.  Symantec sold its website security business to DigiCert for $1 billion, plus a stake in the larger entity.  Cisco paid $320 million for hyperconvergence company Springpath, CGI bought a Pittsburgh consulting company, Summa Technologies and Accenture bought a Toronto consulting company VERAX.  While not a pure tech play the biotech world saw Aclaris pay $100million for Confluence.

Which brings us back to the present …

Cisco logoAugust 2018, saw a fair amount of M&A activity, a lot of smaller deals, a few significant moves and some recognizable names out buying companies.   The big deal of the month saw Cisco pay $2.35 billion for access security company Duo Security.  In other deals VMWare paid $500 million for cloud management company CloudHealth; and HP splashed out $500 million for Europe’s largest print provider, Apogee.  Apple snapped up Augmented reality startup Akonia; Accenture made two small acquisitions in the digital space, Mindtribe and Pillar Technology; Intel picked up a small AI company Vertex.Ai and Vonage paid $35 million for video company TokBox.

Apple was also in the news because it became the first public company to reach a $1 trillion valuation, and they were quickly followed by Amazon.

Jobs section of the newspaper under a microscopeGeneral job indicators were good in Canada and even better in the US, which continues to see strong job growth.  There were several reports indicating a growing skills gap for key roles, particularly in tech, both in Canada and the US.  Elsewhere around the world job indicators were relatively strong, with a few exceptions due to Brexit or other external factors.  Of course Canadians continue to watch the unfolding sagas of NAFTA negotiations and the bungled oil pipeline, concerned about what that might do to our economy.

On a final note, “digital” continues to be hot, with Canadian firms expected to spend more than $16 billion on digital tech and services this year.

That’s what caught my eye over the last month.  The full edition will be available soon on the Eagle website.  Hope this was useful and I’ll be back with the September 2018 industry news in just about a month’s time.

 Until then, Walk Fast and Smile!

Canadian Job Market Update

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

Canadian Job Market UpdateIn the second half of 2018 the general message to technology job seekers is a positive one, and below I will explain why, and also why there is some caution to that statement.

On the face of things a 5.8% unemployment rate is as good as it has been, and Canada has created 240,000 jobs (mostly full time) in the last twelve months which is all good.  The downside for the economy is that a large portion of those jobs have been public sector, which while good for the job seeker today is not at all good for Canada’s economy.  As we have seen in Ontario, a change in political power means that investment in public sector jobs can change quickly as Ontario has a hiring freeze and a pay freeze for executives.  Overall I expect there to be plenty of opportunity in the public sector due to the large numbers of retirees that will need to be replaced, even if new jobs are curtailed.

Canada’s economy, like most of the world, is doing well. The TSX as a representative market indicator is in around the 16,500 points which is about 1,500 higher than last year.  The price of a barrel of oil is up around 65c which is much better than the $50 we saw perhaps a year ago.  As indicated above, the unemployment numbers are also good.  The Canadian dollar has ranged between 75c and 80c for a while, but NAFTA negotiations, the trade war with the US, the potential carbon tax impacts, loss of investment in Canada, the continuing oil patch debacle and recent labor law changes in Ontario can all conspire to change the situation.

One of the drivers of opportunity for jobs in Canada is the success of the US market, which has added jobs consistently, month over month since the last recession.  The stories of skills shortages, particularly in tech are common.  The TechServe Alliance attributes the slowing in growth of IT jobs to the growing skills shortage in the tech space.  We are seeing, and will continue to see large Global companies with headquarters in the US opting to add capacity in Canada, where there is an educated workforce, in similar time zones and within easy reach of head office.  Amazon, Facebook, Google and others have announced such activity in recent months.  So opportunities will exist for people willing to relocate to the US, in addition to jobs in Canada being created by US companies.

The GTA is Canada’s largest market, and is home to more head offices than any other city in Canada by a large margin.  The financial sector is largely headquartered here and is a huge employer of technology resources.  The telecommunications industry also has a large tech base in the GTA.  As the fourth largest city in North America the GTA represents 60% of Eagle’s business and probably 60% of tech jobs in Canada.

Tech job activity is relatively strong in most markets across Canada.  The one exception would be Calgary, which has not returned to pre-oil crisis levels of activity but is still busier this year than last.

The type of roles that have been in most demand at Eagle in the recent past have been developers, business analysts, project managers, Sys Admins, Architects and database admins.

In summary, people with tech skills should have little difficulty in finding employment, either contract or perm for the foreseeable future.  A willing ness to relocate to the bigger centres will only increase their marketability.  The only potential downside is whether Canada can maintain its competitiveness given the aggressive approach of the US administration in supporting US business.  I expect our government to act at some point to provide relief to Canadian business.

Our advice to clients is to ensure there are clear, clean hiring practices that move quickly through the hiring process.  It is a candidate market again and that means the best talent is snapped up quickly, often with multiple offers.

That’s my look at the Canadian Job market to date in 2018.

IT Industry News for July 2018

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

This post first appeared on the Eagle Blog on August 14th, 2018.

Tech News HeaderThis is my 30,000 foot look at events in the ICT industry for July 2018. 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.

A Little History of July in previous years …

Five years ago, July 2013 was quiet for M&A activity, but there were some interesting deals, with the big deal involving perennial acquirer Cisco shelling out $2.7 billion for security vendor Sourcefire. There were some other big names out shopping with EMC buying identity management company Aveska, Intel making an acquisition in Israel (a trend) of Omek a company specialised in the perceptual computing arena.  Apple bought Locationary, a Toronto company that is expected to be involved in improving Apple’s maps for iOS (remember when Apple dropped Google Maps!)  Finally, Ottawa’s Shopify bought Toronto-based design agency Jet Cooper.

Oracle logo a large software company originally noted for its databaseJuly 2014 had a lot of M&A activity but no real blockbuster deals.  BlackBerry bought encryption company Secusmart GmbH; Oracle bought cloud services company TOA Technologies; Twitter bought a startup Madbits, a company that focuses on the media space; Yahoo also bought a startup Flurry in the mobile apps space; Teradata bought a couple of smaller “big data” companies, Hadapt and Revelytix; Apple bought a couple of smaller “books & podcast” companies Booklamp and Concept.io; Qualcomm bought education company EmpoweredU; and finally Nokia continue to rebuild after selling its devices and handsets business to Microsoft, this time buying Panasonic’s 3G and LTE base station operations division.

Microsoft logoJuly 2015 saw no billion-dollar deals, but there was some activity with some big names out shopping.  Microsoft made two acquisitions, paying $320 million for cloud security company Adallom and also picked up customer servicing software company FieldOne Systems. IBM picked up database as a service company Compose; Cisco paid $139 million for sales automation company MaintenanceNet; HP bought a cloud development platform Stackato; Blackberry bought AtHoc which is a crisis communication tool; and DropBox bought messaging company Clementine.  Other acquisitions saw Cisco as a seller, with Technicolor paying $600 million for Cisco’s set top box division; Level 3 bought security firm Black Lotus; Amadeus bought travel software company Navitaire (a subsidiary of Accenture) for $830 million; eBay sold its enterprise unit for $925 million, having paid $2.4 billion for it four years ago.  In the continued blurring of the lines between technology companies and other industries, Capital One bank acquired design, development and marketing firm Monsoon.

Yahoo logoJuly 2016 saw some large deals, with Verizon making two multi-billion-dollar acquisitions.  The big name was Yahoo who they bought for $4.83 billion, but they also paid $2.4 billion for Fleetmatics who provide fleet and mobile workforce management services.  Oracle were also out spending big dollars, paying $9.3 billion for cloud based ERP company, Netsuite. Now if those deals were not big enough, Softbank (like Verizon they have a large telco presence – formerly Vodafone) paid a whopping $32.2 billion for chip designer ARM Holdings. Also joining the July billion dollar club was security vendor Avast, who bought AVG for $1.3 billion. Other deals this month saw Salesforce pay $582 million for cloud based startup Quip; Google bought video company Anvato; Terradata bought training company Big Data Partnership; and Opentext bought analytics company Recommind.

Mitel LogoJuly 2017 saw Cincinnati Bell buy Hawaiian Telcom Holdco for $650 million and OnX for $201 million. Mitel paid $430 million for ShoreTel and bought Toshiba’s unified communications business. In Toronto, digital signage solution provider, Dot2Dot, acquired Pixel Point Digital. PNI Canada Acuireco Corp. purchased Sandvine Corp. for $562 million and plans to merge Sandvine with Procera Networks.

Which brings us back to the present …

July 2018 was busy in the M&A world, with the biggest deal of the month, a somewhat unlikely $19 billion acquisition of CA Technologies by Broadcom, who are clearly planning to expand beyond the semiconductor world.  Solution provider, Atos is paying $3.45 billion for Syntel, creating a large North American presence.  Fortive is paying $2 billion for physical resource management software company Accruent, and the last billion dollar deal of the month sees SS&C pay $1.45billion for investment technology company Eze Software.  Other deals saw AT&T buy cybersecurity company Alienvault; Hitachi bought AWS integrator Rean; Intel bought specialty chip maker eAsic Corp; Accenture continued its acquisition spree with the purchase of AI company Kogentix; and Getronics re-entered the North American market with the purchase of Pomeroy.

Other companies in the news included Google, who were fined $5 billion by European antitrust regulators and Dell who announced plans to go public again.

The US economy continues to have strong indicators in almost every category, with a growing concern about skills shortages in the tech space.  The Canadian market added jobs, but most of them were public sector jobs and one report shows Canada’s ICT sector as performing poorly versus the other G7 countries.  Employment indicators from most countries around the world were generally positive.

Other topics of interest include, news that the Facebook group of companies have 2.5 billion people using their services at least once a month; the cost of data breaches to Canadian companies is on the rise; and people with Blockchain expertise are among the most in demand resources.

That’s what caught my eye over the last month, the full edition will be available soon on the Eagle website. Hope this was useful and I’ll be back with the August 2018 industry news in just about a month’s time.

Walk Fast and Smile.

——————————————————————————————————————————
Kevin Dee is the founder and Chairman of Eagle (a Professional Staffing Company)
Want to know where Canada’s hot jobs are?   Visit the Eagle Job Board!
Have you tried Eagle’s (very cost effective) Virtual Recruiter service?
——————————————————————————————————————————

Has The Calgary Market Finally “Turned The Corner”?

Morley Surcon By Morley Surcon,
Vice-President Strategic Accounts & Client Solutions, Western Canada at Eagle

It has been two (plus?) very long and difficult years for the Alberta economy, especially so in Calgary. Tens of thousands of people had lost jobs and/or have had to take wage or rate cuts. The trickle-down effect from this to the broader economy was huge. Compared to the economic dip created during the 2008/2009 world financial crisis, this was a “valley” for the local economy. During this time, Alberta went from a “have” province to a “have-not” one, adding deficit spending in the billions of dollars. Market rates for contract work fell and more closely matched those in the rest of Canada. The “Alberta Advantage” had all but disappeared.

The City of Calgary has been working very hard to attract new companies to the city and diversify the industry. Over the final months of 2017, Eagle had witnessed some new, small projects popping up here and there. This was partly due to M&A activity, but was mostly outside of the Oil and Gas (O&G) space. This new activity was spotty at best and all companies didn’t participate in a general sense. However, since the New Year the feeling has been more optimistic across a broader base of companies. Big O&G companies are holding their own, although they’re not driving a lot of the new projects. But outside of these, work is beginning to show up again.

In the Information Technology and Communication sectors we are seeing cloud, security, infrastructure, and some new development projects being rolled out. And there does appear to be more companies participating this time. Rates have halted their decline, although there hasn’t been much upward movement either.

Also, an interesting situation has occurred on the skills side of things. It had been common practice that IT consultants relied on new, leading edge projects to keep their skills up-to-date. However, with the lack of projects available over the past two years some are finding their experience/skills have fallen behind where technology is at today. And as companies spark up their new projects, they are looking for employees/independent contractors with knowledge and experience in the latest technology. Oddly enough this has created a skills shortage in certain areas within the market, despite supply and demand being closer to a balance than it has been in a very long time. It will be interesting to see where this takes us.

So, has Calgary officially turned the corner economically speaking? It feels as if it has. I would love to be able to report emphatically and with confidence that things are on the upswing. However, only time will tell. When Calgary came out of the financial recession in 2009/2010, we had one of the busiest summers ever. People were trying to make up for lost time on the projects and lost billings for their businesses. Work and projects were plentiful, and we saw many people foregoing their vacations in favour of getting caught up.

But will this time be different? After two years of depressed economic conditions, one would think that there would be some appetite to make hay. But people are also fatigued. Over the past years, those that were able to find opportunities had to push through working as many hours as possible. When between assignments, they were working extra hard to find their next gig. There wasn’t a lot of rest or downtime over this very long period. So maybe a rest is needed and work will slow over the summer. The continued growth of our economy requires that we get our second wind and push through. The activity level over the next two months will show whether Calgary is back to growing again or whether this will be the new normal (for a while longer, at least).

What do you think? What are your feelings on this subject? Share your prediction by leaving a comment below!

IT Industry News for May 2018

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

This post first appeared on the Eagle Blog on June 11th, 2018.

Tech News HeaderThis is my 30,000-foot look at events in the ICT industry for May 2018. 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.

A Little History of May in previous years …

Five years ago, in May 2013, Yahoo purchased Tumblr for $1.1 billion. The $6.9 billion deal to take BMC Software private however did not cause the same kind of splash … the power of the brand? Manitoba Tel decided to shed its Allstream division to a holding company for $520 million; McAfee paid $389 million for Finnish security firm Stonesoft; Dell added to its cloud capabilities with the purchase of Estratius; AVG bought PrivacyChoice; and Ottawa based N-Able Technologies became one more Canadian company to be bought by a larger US company, this time Solarwinds for $120 million.

In May 2014, AT&T paid $50 billion for DirectTV and Apple paid $3 billion for Beats. Google continued to invest in its Android strategy this time with a strategy company, Divide, that will bring help breaking into the enterprise. Other acquisitions saw Seagate pay $450 million for some flash capability from Avago (the LSI divisions); GE bought cyber security firm Wurdtech; EMC bought a flash (see the trend) start-up DSSD; Time Warner bought Youtube video network FullScreen; and SAP bought behavioral target marketing company SeeWhy.

HP logoMay 2015 saw some very large deals on the M&A front, with the biggest seeing Charter Communications spend $55 Billion to buy Time Warner Cable and a further $10.4 Billion to buy Bright House Networks. This creates the second largest cable company in the US, just behind Comcast. The “Billion-dollar club” also saw French Telco Altice pay $9.1 Billion for another US cable company Suddenlink Communications. Keeping with the billion dollar deals involving telcos, Verizon paid $4.4 Billion for AOL to bolster its mobile video capabilities. Another Billion dollar deal saw HP unload 70% of its stake in its China server, storage and technology storage unit to Tsinghua Holdings for $2.3 billion. The final billion-dollar deal saw EMC pay $1.2 billion for cloud service provider Virtustream. Apple was out buying a couple of companies in May, snapping up mapping company Coherent Navigation and augmented reality company Metaio. In other deals Avaya bought cloud technology company Esna; and Cisco bought cloud programming interface company Tropo.

May 2016 saw some M&A activity with the largest deal seeing HPE merge its services arm with CSC in a $8.5 billion deal to create arguably the largest IT services company. In another large deal Vista Equity Partners is paying $1.79 billion for customer service and marketing cloud provider Marketo. There were some other big names out shopping in May too. Oracle paid $532 million for software as a service for the utilities vertical, company Opower; Google picked up interactive training platform Synergyse; Infor bought consulting services company Merit Globe AS; and ARM paid $350 million for imaging and embedded systems company Apical. Microsoft ended an unhappy period by divesting its feature phone business to FIH mobile for $350 million, and GoDaddy picked up cloud based phone company FreedomVoice for $43 million. New Signature picked up another Microsoft solution provider, Dot Net Solutions; and Edmonton based F12.Net bought Calgary-based professional services company XCEL.

The apple logo and apple with a bite out of itThe most significant purchase in May 2017 was the $1.86 billion sale of CenturyLink’s data centres and colocation business to a consortium led by BC Partners, Medina Capital Advisors and Longview Asset Management. Cybersecurity startup, Hexadite, was bought by Microsoft for $100 million. Goldman Sachs entered the BI space by purchasing a minority stake in Information Builders of New York City. Apple acquired Beddit, a Finnish sleep sensor product, for an undisclosed amount. Finnish cybersecurity firm, F-Secure acquired British security consultants, Digital Assurance also for an undisclosed amount

Which brings us back to the present …

Microsoft logoMay 2018 was a very active month for M&A activity, with Microsoft’s $7.5 Billion purchase of GitHub leading the pack in size.  Microsoft also bought AI company Semantic Machines.  Paypal paid $2.2 Billion for European payments company iZettle; Recruit paid $2.1 Billion for Glassdoor; Investment firm KKR paid $2 Billion for BMC Software; and Office Depot paid $1 Billion for CompuCom.  Other big names out shopping saw Oracle buy collaboration platform Datascience.com; Google bought cloud migration startup Velostrata; HPE bought Plexxi; Rackspace bought RelationEdge;and Splunk bought Phantom Cyber Company.  There were a number of other deals … perhaps too many to mention.

In a display of how careful we need to be online these days, two Canadian banks, BMO and CIBC Simplifi Financial announced online breaches by hackers who were holding them ransom.

On the economic front the US continues its march, posting strong job numbers and many positive indicators. Around the world the job numbers for most countries were generally positive.

Here in Canada Amazon announced an investment in Vancouver that will generate up to 3,000 jobs, employment numbers were little changed from March and GDP growth was relatively weak.

That is my look at the May tech industry news. The full edition will be available soon on the Eagle website. Hope this was useful and I’ll be back with the June 2018 industry news in just about a month’s time… until then, walk fast and smile!——————————————————————————————————————————
Kevin Dee is the founder and Chairman of Eagle (a Professional Staffing Company)
Want to know where Canada’s hot jobs are?   Visit the Eagle Job Board!
Have you tried Eagle’s (very cost effective) Virtual Recruiter service?
——————————————————————————————————————————

IT Industry News for April 2018

 

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

This post first appeared on the Eagle Blog on May 14th, 2018.

Tech News HeaderThis is my 30,000 foot look at events in the Tech industry for April 2018. 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.

A Little History of April in previous years …

Five years ago, in April 2013 Rogers paid $200 million for Primus’s Blackiron subsidiary, including datacenter capability; Toronto based Softchoice also chose to go private in a $412 million private equity deal; Shaw paid $225 million for an Enmax fibre network subsidiary in Calgary; Best Buy sold its stake in Carphone Warehouse for $775 million (having paid $2.1 billion in 2008).  Google paid $30 million for social company Wavii.  Other big names on the acquisition trail in April 2013 included Intel (Mashery), IBM Facebook logo(Urbancode); Computer Associates (Nolio).  Finally, Facebook had a couple of small acquisitions Osmeta and Parse.  April 2014 saw Microsoft officially entered the handset business with the completion of the $7.5 billion purchase of Nokia’s devices business.  Zebra Technologies paid $3.5 billion for Motorola’s unit that makes mobile devices for business which is a move in the ever-expanding Internet of Things space. Apple paid $479 million purchase of the LCD chip development unit of Renesas Electronics.  IBM snapped up marketing automation software company Silverpop Systems and open source software company Red Hat paid $175 million for storage company Inktank.  In April 2015 there was plenty of action.  Nokia was the biggest story, paying $16.5 billion for telecom company Alcatel-Lucent, but there was also a $4 billion deal that saw Capgemini buy services firm IGATE and LinkedIn made its largest acquisition ever, paying $1.5 billion for training portal Lynda.com.  LinkedIn also bought a predictive insights startup company, Refresh.  Netsuite paid $200 million for ERP and commerce software company Bronto Software and Blackberry reputedly shelled out $150 million for file sharing security company Watchdox.  Salesforce was also out shopping, picking up mobile two-factor authentication startup, Toopher.  In another deal involving billions, Informatica decided to Bell logofollow in DELL’s footsteps and go private for a $5.3 billion price tag. April 2016 saw some big deals, the biggest was Bell’s $3.8 billion bid for Manitoba Telephone System, which closed in 2017.  Other large deal saw a Chinese conglomerate bid $3.6 billion for Lexmark; and Plantronics shell out $2 billion for Polycom.  Oracle paid $663 million for cloud based construction software company Textura.  Nokia, who were also in the news announcing layoffs,continued to evolve their business model, this time into the wearable tech arena with the $192 million purchase of Withings.  Other deals saw Autodesk acquire 3D animation software company Solid Angle; and Dimension Data bought Toronto based Microsoft logocloud services company Ceryx. Last year in April 2017 Microsoft bought Israeli cloud-monitoring and analytics startup, Cloudyn. Flipkart, one of India’s larger ecommerce companies, acquired the Indian division of eBay (eBay.in) as part of eBay’s $500 million investment in Flipkart. VMware’s vCloud Air unit was acquired by OVH, a French hosting and cloud company. Global professional services provider, Accenture, purchased the UK-based automation services provider, Genfour. Toronto-based startup, Turnstyle Analytics, was acquired by Yelp for $20 million. California-based Coupa Software purchased Swedish software company, Trade Extensions for $45 million. Montreal-based financial technology provider, Alithya acquired big data solution provider, Systemware Innovation Corporation.  Other interesting news saw ride-hailing company, Lyft, raise $600 million in additional investments bringing the company’s valuation up to $7.5 billion.

 Which brings us back to the present …

Mitel LogoApril 2018 was not super busy on the M&A front although there were a few deals, including a $2 billion purchase of Ottawa based Mitel by Searchlight Partners, who will take the company private.  Mobile payments company Square paid $365 million for website company Weebly; iconic photo site Flickr has been bought by SmugMug; Adobe acquired AI startup Uru; Indeed bought Canadian jobs site Workopolis; and HPE Pointnext bought Redpixie.

My website breach of the month was the Nova Scotia Government’s access to information site which had 7,000 sensitive documents breached  … and marketing firm AppsFlyer tells us that there was about $800 million of “ad fraud” in the first quarter of 2018.

The economy in the US continues to show lots of promise, with almost every indicator being positive.  There are some indicators that Brexit is starting to impact the UK and the EU negatively.  Most other countries, including Canada had reasonably good job  numbers.

That’s it for my look at what was happening in the technology space over the last month, compared to the same month in previous years. I’ll be back at the beginning of June, until then – walk fast and smile!

Regional Job Market Update for Edmonton

Cameron McCallum By Cameron McCallum,
Regional Vice President at Eagle

Much has been made of the continuing recession in Alberta and the fact that we may finally have hit rock bottom means things can only get better from this point on. An interesting statistic takes a look at the sales of new vs. used cars and found that the sales of new vehicles fell 18% during the period between 2014 and 2016, while the sale of used vehicles rose 10%. This same trend was noted during the recession of 2008 to 2009. During that recession new vehicle sales fell 27%, a huge decline and an indicator that things were bad.

So what’s happening now? According to recent stats, as Alberta’s economy gradually gains traction, new vehicle sales are rising once again. They rose 11% in 2017 and signs point to that trend continuing.

Much like the trend in new car sales, the market for Information Technology professionals declined during the recession. The Edmonton market was not as heavily impacted as the Calgary market during this time however, there was a definite decrease as companies and organizations took a cold, hard look at their spending. Edmonton is supported by its large Public Sector and while much of the private sector was hunkering down and keeping the lights on, government at the municipal and provincial level didn’t have that luxury, as taxpayers were clamored for increased and improved services. Additionally, the newly elected government in 2015 brought in a large number of policy initiatives and changes and the result was the reorganization and/or implementation of new systems and processes, which created a consistent level of activity. Things felt a bit slower, but there still seemed to be a demand. If you were an experienced architect, project manager, business analyst or .Net developer, there was little shortage of requirements and opportunities.

What we’re seeing today is different. Those roles continue to be in demand, but we’re seeing (and hearing of) major projects either in the planning stage or already on the docket and ready to go. Clients in traditional sectors seem to have greater confidence and are moving projects from planning to implementation. And new companies and partnerships are springing up in response to new opportunities and legislation, such as the legalization of Cannabis. This is driving innovation and opportunities in technology, especially around data, security, mobile apps and the cloud.

So what roles are clients looking for? As mentioned earlier, project managers, business analysts, and developers continue to be in demand. But we’re definitely seeing the introduction of roles pointing towards the changes taking place in the market.

You may begin to find your skills are in high demand, if you possess the following expertise:

  • Data Scientists
  • Cloud Specialists, specifically “integration” architects
  • ITSM/Workflow Consultants (Service Now)
  • Front End Developers (JavaScript and associated tools)
  • QA Specialists

Regional Job Market Update for Calgary

Morley Surcon By Morley Surcon,
Vice-President, Western Canada at Eagle

Calgary Job Market Outlook: The New NormalCautious optimism.  That is how the job market in Calgary might be best described.  Eagle has witnessed more new hiring over this past quarter than we’d seen of any previous quarter in the past couple of years.  Still at far lower levels than prior to the Oil & Gas meltdown, it represents a marked shift as a broader range of companies have participated in the hiring.

Economists from the National Conference Board and ATB are predicting that a lot of the growth will be seen coming from new, smaller and start-up companies.  There certainly appears to be more activity in these areas.  As the City has made significant efforts to diversify its corporate company-base, new-to-Calgary and start-up companies are building on their infrastructure.  They tend to have fewer requirements than the traditional O&G corporations, but there are more of them.  Certainly, a trend to watch over the coming months and years.

Supply of resources available also appears to be returning to normal levels.  In March, Eagle’s Calgary office had significantly fewer people apply to online job postings compared to the same period in 2017.  Rates have remained stable for quite some time now after having been knocked back due to the local recession.

Top IT Job Titles from this past month include:

  1. Developer
  2. Business Analyst
  3. Systems Analyst
  4. Support
  5. Quality Assurance

There hasn’t been too much variability in these top requests over the past months.  However, new requests for people with skills in Cloud and Cyber Security have been growing.

One disturbing trend that we have noticed is that there have been fewer contract extensions offered vs. times past.  Despite the uptick in new roles coming out, there is trend across the industry seeing a drop in extension rates.  The reason for this is not exactly clear but could be a sign that companies are shifting the way they use contingent labour.  Certainly, there are more companies that have implemented maximum tenure rules and that may be having an impact as well.  But it is something that we plan to follow closely.

What does the future hold?  It is still difficult to say with any level of surety.  I do expect that new, smaller companies will continue to drive innovation and will be a source of new opportunities here in Calgary.  Should some of this pipeline mess be resolved in favor of new capacity, there would likely be a “bounce” in the O&G market, with Oilsands companies, particularly, having some relief.  Regardless, it will take some time for local investment by the O&G industry to come back.  A lot of investment dollars have been committed to projects (and acquisitions) elsewhere, often south of the border.  Clear and decisive government intentions/policy will likely be needed before true confidence returns to this industry.

Has IT contingent labour hiring turned the corner for good? The last 3 months would indicate an improved and sustained hiring environment.  But only time will tell if this will be a long-term trend.  I expect that until the end of June, at least, there should be stable demand for IT resources.  Then the summer months will hit, and all bets are off.  Some summers can be very busy, while others are quiet.  When we came out of the 2008 – 2009 general recession, the summer was super-busy as people worked hard to make up for lost time.  However, that particular slow-down (although sharp and deep) was short in duration.  Things bounced back quickly.  This time around, we have been dealing with a depressed market for 2+ years, our economic muscles have atrophied, and companies have made structural/fundamental changes to their IT organizations.  This makes it difficult to predict whether our local economy continue to drive the need for jobs over the summer months.  As time goes on, be sure to watch the Eagle job boards, confer with your recruiter contacts, and keep active in your professional networks to gauge for yourself what is to come.

Best wishes for good business in the upcoming months!

IT Industry News for March 2018

 

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

This post first appeared on the Eagle Blog on April 4th, 2018.

Tech News HeaderThis is my 30,000 foot look at events in the Tech industry for February 2018. 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.

A Little History of March in previous years …

In March 2013 Oracle continued its move into the telco space with the purchase of Tekelec; Google bought the small Toronto University-based company DNNresearch in the machine learning vertical; Microsoft sold Atlas Advertiser Suite to Facebook; and Yahoo bought Summly. In March 2014, Facebook made a somewhat surprising $2 billion acquisition of virtual reality company Oculus VR. Intel also expanded its horizons with the $150 million acquisition of smart watch maker, Basis Science. SAP added to its purchasing software suite with the acquisition of Fieldglass and TELUS made a couple of buys, Enode, a management consulting company out of Quebec and Med Access, an addition in British Columbia, to their healthcare division.  HP logoThree years ago in March 2015 HP paid $3 billion for Aruba Networks; Lexmark paid $1 billion for customer management software company Kofax; eCommerce company Rakuten paid $410 million for ebook marketplace Overdrive; Cheetah Mobile paid $58 million for mobile ad network MobPartner; TeraGo Networks paid $33 million for cloud provider RackForce; IBM bought natural language and image processing company AlchemyAPI; and in the cable TV world Charter Communications paid $10.4 billion for dell logoBright House Networks. In March 2016, we saw the $3 billion sale of Dell Services to NTT, a direct result of Dell’s restructuring following the recent purchase of EMC. IBM was out bolstering its services business with a couple of acquisitions; the first was Optevia, a UK-based integrator focused on Microsoft Dynamics; and the second was Bluewolf Group, a global Salesforce consulting partner. Montreal-based Yellow Pages picked up Toronto-based Juice Mobile, primarily for its mobile marketing capability. Another Toronto company, Influitive, raised some cash ($8.2 million) and bought a couple of mobile app companies, Ironark Software and Triggerfox; and Netsuite bought IOity solutions, a cloud-Intel logobased manufacturing software company.  Last year in March 2017 Intel bought Israeli computer vision company, Mobileye, for a hefty $15.3 billion. HPE bought storage solution provider, Nimble, for $1 billion. Amazon Web Services, a public cloud infrastructure provider, acquired Thinkbox Software, a company that provides software for managing media rendering workloads. Mozilla acquired Pocket, a startup that developed an app for saving articles and other content.

Which brings us back to the present …

Salesforce logoIn March 2018, there was a significant amount of M&A activity.  The deal of the month saw Salesforce pay $6.5 Billion for cloud integration company Mulesoft.  Plantronics is paying $2 Billion for unified communications company Polycom; and Amazon is paying $1 Billion for smart home company Ring.  Other deals saw eBay shell out $700 million for the commerce platform Qoo10; Cognizant is buying Bolder Healthcare Solutions; HPE Aruba is buying Cape Networks; VMWare is buying security company E8; and Deloitte is buying API Talent in New Zealand.  It is also nice to see Avaya buying Spoken Communications after leaving Chapter 11 bankruptcy protection.

Facebook logoFacebook received a lot of attention around the world this month with questions about improper use of client data and their potential role in major political situations like the US election and the Brexit vote.

The Canadian economy has enjoyed a reasonably decent run in 2017, but 2018 is starting to look less than rosy.  Indications are that GDP and employment growth will slow down as the year progresses.  Obviously NAFTA negotiations and inter-provincial spats will have some influence, in addition to new labor laws and the carbon taxes beginning to take effect.  The US economy is benefiting from the recent tax decreases and the general tone around the world is focused more on positive employment numbers and skills shortages rather than high unemployment.

That is my monthly look at what was happening in the technology space over the last month, compared to the same month in previous years.  I’ll be back in about a month’s time, until then … walk fast and smile!