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IT Industry News for June 2018

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

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

This is my 30,000-foot look at events in the ICT industry for June 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 June in previous years

Tech NewsFive years ago, in June 2013, Salesforce.com purchased marketing technology company ExactTarget for $2.5 billion, which was the big buy of the month. Other acquisitions included Irish mobile company Three’s purchase of O2 Ireland for $780 million; SanDisk paid $307 million for SMART Storage Systems; Cisco bought Composite Software for $180 million; IBM bought cloud company SoftLayer Technologies; and Buytopia.ca was on a spree with six acquisitions in the last year.

June 2014 included some significant deals announced, with Oracle paying $5 billion for Micros Systems; Sandisk paid $1.1 billion for solid state storage company Fusion-io; and Google continued its push into home automation, witnessed by its subsidiary Nest paying $550 million for cloud-based home monitoring service Dropcam. Google itself paid $500 million for Skybox Imaging, a satellite maker to enhance the Google Maps capability. Twitter paid $100 million for mobile marketing platform Tap Commerce and Red Hat paid $95 million for eNovance.

In June 2015, Intel paid $16.7 billion for semiconductor company Altera Corp. Cisco paid $635 million for security firm OpenDNS in addition to picking up OpenStack company, PistonCloud Computing. Microsoft bought 6Wunderkinder, maker of task management app Wunderlist; Ricoh Canada bought Graycon Group, a professional services firm headquartered in Calgary; and finally, IBM bought OpenStack company Blue Box Group.

June 2016 was certainly an interesting month, with the Brexit vote upsetting the markets and causing uncertainty; and there was plenty of M&A activity. The big deal was undoubtedly the Microsoft purchase of LinkedIn for a whopping $2.6 billion. There were other billion dollar deals that month too: Salesforce paid $2.8 billion for e-commerce platform maker Demandware and Amazon announced an extra $3 billion investment in its India operations. Other significant deals included Daetwyler Holdings AG paying more than $877 million for Raspberry Pi maker Premier Farnell Plc; Red Hat paid $568 million for API management software company 3Scale; and OpenText paid $315 million for HP’s Customer Communication Management products. Other noteworthy deals included an investment group’s purchase of Dell’s software arm; Microsoft bought natural language start up Wand Labs; and Samsung bought cloud computing company Joyent. Also, Google Capital announced its first investment in a public company, investing $46 million in Care.com, an online personal services marketplace platform.

June 2017 saw Amazon’s purchase of Whole Foods for $13.7 billion. Westcon-Comstar’s American business was being bought by Synnex for approximately $800 million. US fintech provider, Fiserv, purchased British financial services technology firm, Monitise for $88.7 million. Microsoft purchased Israli cloud startup, Cloudyn, for a price between $50 million and $70 million. Rackspace acquired TriCore in an effort to increase their business from customers who want help running their critical applications. Ebix Inc. entered into a joint venture with Essel Group while acquiring a majority stake in ItzCash for $120 million.

Which brings us back to the present

June 2018 saw a fair bit of M&A activity, the biggest deal seeing Synnex pay $2.43 billion for call centre company Convergys and AT&T pay $1.6 billion for advertising tech company AppNexus. Palo Alto Networks is paying $300 million for Security company Evident.io; PayPal is shelling out $120 million for fraud detection startup Simility; Splunk is paying $120 million for incident management platform company VictorOps; Ribbon Communication is paying $120 million for Edgewater Networks; and Sharp is paying $36 million for Toshibas PC business. Other companies out shopping include Cisco who bought WiFi analytics company July Systems; IBM bought maintenance and repair company Oniqua and Shopify bought app company Return Magic.

Skills shortages were a theme around the world as hiring plans in most countries are positive. Confidence is high in many economies, including Canada’s despite the storm clouds surrounding NAFTA negotiations and the trade war with the US. Speaking of the US, their economy continues to roll along with very favorable indicators almost everywhere.

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 July 2018 industry news in just about a month’s time.

Walk Fast and Smile.

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!